Is it better to build or buy an assisted living facility?
Direct answer
For most investors, buying is faster and less risky than building. New construction costs $300,000 to $400,000 or more per unit, while the national average sale price was $182,800 per unit in 2025, so existing communities often trade well below replacement cost. Buying also gives you income and an operating history from day one, while a new building must be licensed, staffed and filled.
What to know
Building can make sense in an underserved market, or when you need a specific product that doesn't exist locally.
Building carries extra risks: construction costs and delays, permitting, initial licensing, and a lease-up period before income covers expenses.
Buying carries different risks: deferred maintenance, survey history and the existing staff and reputation. Thorough due diligence addresses them.
Financing differs too. Acquisitions can use SBA, bank or agency loans, while development usually needs construction financing and more equity.
How Haven helps
Haven helps buyers find existing communities that fit their criteria and compares them against the cost of building. Visit our buyers page.