As of the first quarter of 2013, assisted living and memory care units under construction represented 2.8% and 6.4%, respectively, of their respective existing inventory within the 31 largest metropolitan markets (aka MAP31). Construction activity of assisted living units has been steadily rising since 2010 and is nearing its pre-recession peak. Memory care construction activity peaked at 7.5% of its existing inventory during the second quarter of 2012 and remains well above its rates of construction prior to the economic downturn.
Within the 31 largest metropolitan markets, 13 markets had assisted living construction activity equating to more than 3.0% of existing inventory. As compared to existing inventory, Phoenix had the highest level of construction activity at 8.7%, which represented 469 units. Houston had the second highest level of construction at 8.6% of existing inventory, which represented 373 units. Dallas and Denver also had high levels of construction activity, with construction representing 7.5% and 7.6%, respectively, of each market’s existing inventory.
Memory care construction is heavily concentrated in select markets, with Dallas and Houston accounting for 30% of the memory care units under construction in MAP31. As compared to existing inventory, Houston had by far the highest level of construction activity at 25.8%, which represented 460 units. Dallas had the most units under construction at 502 units, which represented 19.3% of its existing inventory. Atlanta had the third most units under construction at 210, which was far below that of either Dallas or Houston.