Senior Living Development and Construction Regains Momentum
Tapped for her expertise within the senior living industry, , senior vice president of senior living at 万人牛牛, was recently interviewed by Tim Regan with regarding the current status of the industry, the article ran in May as a SHN+ exclusive article.
A slow-but-steady increase of shovels in the ground
Despite a challenging 2020 and even a slow start to 2021, deals are being made and construction in the senior housing market is regaining momentum.
鈥淭here鈥檚 so much capital in the space that wants to invest in the sector, and now that the debt markets are really coming back, it鈥檚 inevitable that the construction will start picking up again,鈥 said Julie Ferguson, senior vice president of senior living, 万人牛牛.
Specifically, for 万人牛牛, the year is already halfway over, and the team still plans to break ground on five more projects by the end of 2021.
鈥淥ur list of potential projects that we鈥檙e working on from a third-party construction perspective, is probably one-and-a half times what it was last year at this time, maybe even two times what it was,鈥 Ferguson said. 鈥淲e鈥檙e certainly starting to see a lot of other people come off the sidelines and start talking to us about getting their project started in 2021,鈥 said Ferguson.
The Current Challenges
Although momentum is moving in the right direction, the industry is experiencing several challenges including labor shortages and skyrocketing lumber and steel prices. Unexpected events like the ship backup in the Suez Canal and the ice storm in Texas have also contributed to the challenges. Despite the current setbacks, subcontractors are bidding competitively and as the pandemic regresses, construction costs should level. This slowdown is also adding further demand to an already undersupplied market.
Ultimately, Ferguson, along with other experts, believe the industry is on track to return to its pre-pandemic state. It鈥檚 just a matter of when.
