National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Growth in Outpatient Care Spurs Demand for Medical Office
While representing just 30% of the U.S. population, the 55-plus populace is the biggest consumer of U.S. healthcare services, and the 80-plus cohort is forecasted to balloon nearly 50% in the next 10 years. The growth of the elder population in the U.S., longer life expectancies and better healthcare delivery are all fueling demand for outpatient healthcare services and facilities, reinforcing medical office as one of the most stable asset classes, says JLL.
Citing data from the Centers for Medicare and Medicaid Services, JLL says healthcare as a share of U.S. GDP was 19.7% in 2020. Along with healthcare expenditures, it’s predicted to account for 30% of GDP by 2030. Outpatient demand for ages 55-plus alone is forecast to grow 16.9% by 2025, a rate 4.3% higher than the general population.
“If we consider that the older population will potentially grow from 46 million residents in 2020 to 80 million in 2050, we can anticipate that the demand for healthcare services and facilities will grow steadily and significantly,” said Jay Johnson, U.S. practice leader, healthcare markets, JLL. “We expect the elder population to drive significant outpatient demand over the next 10 years, which, in turn, is a fundamental driver for healthcare-related real estate despite the potential offsetting effects of telehealth and home care.”
- ◦Lease
- ◦Economy
