Assisted Living Construction Costs Rise In 2026, Independent Living Costs Remain Flat

Costs for new assisted living construction are up early in 2026, while independent living construction costs remain relatively flat compared to late 2025 data.

Construction costs in early 2026 are similar to levels reported last year by the Weitz Company, with the first edition of the Senior Living Construction Costs report being released this week.

Costs of mid-level independent living projects registered between $240 and $292 per square foot and high -level projects are said to cost between $283 to $362 per square foot, down $1 since the previous report in August. Mid-level assisted living projects cost between $280 and $356, a decrease of $3 per square foot in the latest report. High level assisted living construction costs remain the same since August at a range of $363 to $452 per square foot.

Projects with under-building parking are currently ranging from $153 to $190 per square foot at the mid-level and $190 to $238 per square foot at the high level, an increase of $1 per square foot for mid-level projects.

Pricing for mid-level cottage projects ranged between $187 and $221 per square foot and high-level projects ranged between $263 to $322 per square foot.

The construction industry enters 2026 with “mixed signals,” the authors of the report noted. Planning stage development has lengthened caused by tariff uncertainty and “complex market conditions.”

“Success in this environment depends on proactive risk management. Contractors are focusing on early planning, streamlined procurement, faster decision-making, and flexible delivery models that can adapt to changing conditions. While uncertainty remains high, the industry continues to move forward-albeit with caution,” the report states.

The senior living industry continues to struggle with a dual challenge of aging properties and an ongoing lack of new development. The industry is also “ready to grow, but struggling to build” as operators capitalize on new demand but still struggle to get new projects started.

Cost escalation in 2026 is anticipated to be between 3% and 4%, down from 8% to 12% during the pandemic recovery. This is due to lower material costs and more stable supply chain dynamics.

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