Healthcare Diagnosis: The Current & Future State of the Medical Market
Currently, there are over 328 million people in the U.S. and over seven billion in the world. Due to several factors including advances in medical treatment, improvements in healthcare coverage, increases in healthy lifestyles, and the aging baby boomer generation, people are living longer than ever before. As a result, this means the older population is rapidly growing. Population reports and data from the U.S. Census Bureau and the United Nations show that in 2006, about 37 million Americans were 65 years or older. By 2016, one of every seven Americans, or 49.2 million, had reached age 65. By 2060, that number is predicated to double: 98 million Americans will be at least 65 and will significantly outnumber children younger than five years old.
This current and expected climate of the aging population has created an immense demand for healthcare services. Based on a report by the National Center of Health Statistics, the 65 and older population averages 6.6 visits per year, while the rest of the population averages 2.5 visits per year. Older adults utilize healthcare services nearly three times more than younger people and have more chronic conditions which require unique and long term treatments. This demographic demand has also caused a surge in healthcare job growth as it outpaced nearly every other major sector of the economy in 2018.
This demographic shift and robust job growth not only reflects the rising demand for healthcare services, but overall needed demand for medical office space. CoStar estimates that the total medical office space that needs to be added over the next decade is over 208 million square feet. With the unwavering demand, Matthews™ analyzes key aspects of the medical sector, current state of the medical office market, and what’s in the cards for this dynamic and transforming industry.