Senior housing construction in the United States has fallen to its lowest rate since 2012, coinciding with a growing elderly population. This trend is attributed to high financing costs that hinder new projects, rather than a lack of demand.
Nationally, the number of senior housing units being built has drastically decreased, with fewer than 15,000 units initiated in 2023, marking the lowest annual total since 2010. The average construction time has also increased, now taking about 29 months to complete a project.
Currently, only 29% of the units under construction were started within the past year, a record low compared to historical averages of 60% to 80%.
In North Texas, the population aged 60 and older is projected to grow significantly, from 573,265 in 2019 to 765,329 by 2024, indicating a 33.5% increase in just five years. This demographic shift highlights the growing need for senior housing options, which are not being met by current construction levels.
The area's population is expected to continue aging, while the national inventory growth for senior housing remains stagnant at just 0.4%.
