Outpatient healthcare services and facilities set for enormous growth

CHICAGO, Feb. 8, 2023 – Although they comprise only 30% of the U.S. population, the 55+ populace is the biggest consumer of U.S. healthcare services, and the 80+ 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.

According to the Centers for Medicare and Medicaid Services, healthcare as a share of U.S. GDP was 19.7% in 2020, and, along with healthcare expenditures, it is predicted to account for 30% of GDP by 2030. Outpatient demand for ages 55+ alone is forecast to grow 16.9% by 2025, a rate that is 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.”