Healthcare Market Trends
Advances in technology, nutrition, and lifestyle are helping to improve longevity. Every day over the next decade, 8,000 Baby Boomers will turn 65. Recent studies suggest that 6 in 10 older Americans will be managing multiple chronic medical conditions over the next two decades. These conditions and increased life expectancy will contribute to the rising demand for senior housing.
Healthcare Spending Rise
Healthcare spending reached almost 20 percent of the nation’s GDP in 2018. Per capita spending on healthcare continues to increase, driven largely by those over 55 years of age. More than two-thirds of every healthcare dollar goes to treating chronic illnesses; for older persons the proportion rises to almost 95%. An aging population could result in a tripling of long-term care expenditures.
Hospitals continue to scale back on expensive patient care for chronic conditions. At the same time, an aging population is visiting the doctor more often. This has led to increased demand for medical office space, outpatient clinics, and assisted living facilities. For families caring for an elderly loved one, assisted living provides a much better experience than frequent stays in a hospital.