Higher labor and materials costs, operating deficit reserves and entitlement outlays are making seniors housing development more costly, according to a recent report from CBRE.

Daniel Lincoln, national practice leader of Seniors Housing & Healthcare for CBRE's Valuation & Advisory Services, said in prepared remarks, "Due to a slow post-COVID recovery in occupancy, market rents have been below the level needed to support new development in many markets; a more balanced market could be on the horizon as many high-end communities are fully occupied and poised for rent increases."

Not all centers are fully occupied, one small-business operator of five communities said he's at 80% occupancy, not because there are no residents, but because he can't fully staff his property.