California's Senior Housing Shortage Must Be Addressed and Andre Hurst of CRHG Is Doubling Down on San Diego
San Diego, California, August 10, 2016 (Newswire.com) - Andre Hurst of Encinitas based CRHG begins preliminary demand analysis to add an additional 22 Senior Care Facilities to the greater San Diego Area. Andre Hurst points the demand based on a new study by the American Consumer Institute shows that California should heed that advice when it comes to building senior housing to accommodate the skyrocketing aging population the state will see in the coming years.
According to data from the National Investment Center for Senior Housing & Care, there are nearly 14,000 senior housing properties with over 1.7 million housing units across the country. That represents only one unit for every 26 Americans 65 years of age or older, so it is clear that this problem isn’t unique to California. However, California’s 65-plus population will nearly double over the next 20 years.
According to data from the National Investment Center for Seniors Housing & Care, California has six of the lowest 10 metropolitan areas in terms of private senior housing penetration rates — including San Diego (18.8 percent), Sacramento (18.2 percent), San Jose (17.5 percent), Los Angeles (17.2 percent), San Francisco (15.5 percent) and Riverside (13.8 percent).
According to the state Legislative Analyst’s Office (LAO), a series of major contributing factors are stifling much-needed housing production in California. Aside from the high cost of land, developers face higher labor (20 percent more expensive in California), materials, and government fees, compared to the rest of the country. California’s building codes and standards also are considered more comprehensive and prescriptive, often requiring more expensive materials and labor, including costs associated with achieving energy efficiency goals.
In addition, cities and counties require housing projects to go through multiple layers of review prior to approval. For example, local regulations may necessitate an independent review by a building department, health department, fire department, planning commission and city council. Rezoning generally takes longer in California. These layers of review and delays add to the cost of capital and construction.
Andre Hurst states that "The senior housing shortage is coming, especially in California where the penetration rate for senior housing is less than half that of the national average. In the face of rising demand, the state has substantial barriers and costs in place that discourage investment at a time when increasing the supply is paramount."