The construction of senior housing in the United States has fallen to its lowest rate in over a decade, coinciding with a growing population in need of these facilities. The National Investment Center for Seniors Housing and Care reports that the number of units currently under construction is at its lowest since 2012, highlighting a significant gap between demand and supply.
In 2023, less than 15,000 new senior housing units were initiated across primary markets, marking the fewest starts since 2010. The trend has continued into 2024, with quarterly averages dropping below 2,000 units in three of the last four quarters. This slowdown is attributed to high costs for labor and materials, which have deterred builders from launching new projects despite rising occupancy rates.
The occupancy rate for senior housing has increased for 19 consecutive quarters, reaching 89.5% in early 2026. The North Central Texas Council of Governments has projected that the population aged 60 and over in its service area will grow by 33.5% from 2019 to 2024, emphasizing the urgent need for more senior housing.
However, the current construction pipeline remains limited, primarily focusing on independent living rather than assisted living or memory care facilities.
