Medical real estate proved to be a recession resistant asset class during the most recent economic
Aging Baby Boomers
The first of the “baby boomer” generation began turning 65 in 2011. The population over 65 is expected to grow significantly, rising by nearly 42 percent over the next 10 years.¹ By 2060, the population over 65 is expected to reach 98 million, compared to 47.8 million in 2015.
People 65 years and older average 2.5 times the number of physician office visits than the rest of the population. Insurance exchanges and Medicaid expansion provide coverage to an additional 27 million people in this population segment.²
Growth In Elderly Population
The elderly population of people over 85 also is growing at a rapid pace.³ The elderly population has even greater need for medical real estate.
Increased Healthcare Expenditures
Approximately 20 million people have obtained coverage under the Affordable Care Act, generating additional need for medical real estate.
Healthcare represents 18 percent of the U.S. gross domestic product, and is expected to increase to nearly 20 percent of GDP by 2021. Healthcare expenditures are expected to increase to $4.8 trillion by 2021, up over 58% from 2012.
- “Medical Office Research Report,” Marcus & Millichap 2016
- “Projections of the Population by Selected Age Groups and Sex for the United States: 2015 to 2060.” U.S. Census Bureau, December 2012
- An Aging Nation: The Older Population in the United States.” Page 6. U.S. Census Bureau, May 2014