The construction of senior housing in the United States has slowed to its lowest rate in over a decade, even as the population in need continues to grow. This trend reflects a construction pipeline that is influenced more by financing challenges than by demand.
Nationally, the number of senior housing units being built has dropped to the lowest level since 2012, as reported by the National Investment Center for Seniors Housing and Care. In 2023, fewer than 15,000 units began construction across primary markets, marking the lowest figure since 2010. The average construction time has increased, rising from 21 months in 2017 to 29 months in 2023.
Despite the slowdown in construction, occupancy rates have been on the rise for 19 consecutive quarters, reaching 89.5% in the first quarter of 2026. This uptick in occupancy highlights a significant gap between the demand for senior housing and the current supply.
Lisa McCracken, head of research and analytics at NIC, indicated that the high costs associated with labor and materials are causing many developers to hesitate before initiating new projects. This situation is further compounded by the projected increase in the older population in North Texas, which is expected to rise by 33.5% over five years, underscoring the urgent need for more senior housing options.