Beyond Market Volatility: Demographics Drive Long-Term Medical Office Growth
Rapidly Changing Economic Conditions Challenge Investors
- Market data is becoming outdated faster than usual, making it harder to rely on traditional indicators
- The latest economic forecasts for 2025 are already shifting, with major firms revising their projections.
- Inflation data lags real-time changes, missing key cost increases like the 30% rise in steel prices
Aging Population Is Driving Medical Office Demand
- 11,000 people turn 65 every day, leading to a surge in healthcare service usage
- Seniors visit the doctor 7.1 times per year on average, nearly double the rate of younger adults
Medical Office Construction Is Slowing Amid Growing Demand
- Only 8 million square feet of new medical office space was built in 2024, down from 14 million in 2023
- Construction starts have declined sharply; rising labor and material costs could limit new development further
From 1Q 2025 through 4Q 2029
Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Moody’s Analytics
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