U.S. Healthcare Real Estate Market Size, Share & Trends Analysis Report By Property (Hospitals, Medical Office Buildings, Senior Living & Retirement Communities), By Model (Sales, Rental, Lease) And Segment Forecasts
Published Date: April - 2025 | Publisher: Market Insights Research | No of Pages: 230 | Industry: Consumer Goods | Format: Report available in PDF / Excel Format
View Details Buy Now 2999 Download Sample Ask for Discount Request CustomizationU.S. Healthcare Real Estate Market Trends
The size of the U.S. healthcare real estate market was approximated at USD 1,324.52 billion in 2024 and is anticipated to grow at a CAGR of 6.2% during the forecast period. The U.S. healthcare real estate sector has witnessed remarkable growth over the last decade due to a number of factors such as an aging population, healthcare expenditure, the growth of outpatient services, growing emphasis on digital health solutions, and emerging technologies. As of 2024, the U.S. is witnessing a substantial demographic shift towards an aging population. According to the U.S. Census Bureau, there are about 62 million adults aged 65 and above living in the country, constituting around 18% of the population, constituting a considerable increase from past decades and indicating the continued process of aging.
Forecasts suggest that this trend of aging is going to be a continued reality in the future. The Congressional Budget Office (CBO) estimates that the number of people 65 and older would grow from about 62 million in 2024 to about 84 million in 2054, accounting for a projected 23% of the total U.S. population. An older population traditionally needs more medical treatment, long-term care, and assistance, so more healthcare infrastructure and personnel is needed.
According to the American Hospital Association, as of 2025, the United States has 6,093 hospitals, with 5,112 classified as community hospitals. The U.S. population of approximately 331 million equates to roughly 1.84 hospitals per 100,000 people. This relatively low hospital-to-population ratio underscores the need for additional healthcare facilities, especially in underserved regions, presenting opportunities for real estate developers to invest in new healthcare.
The growing rates of hospitalizations, physicians shortage, and acute disease occurrences give rise to strong demand for increased healthcare facilities. Acute illnesses, like acute kidney injury (AKI), are still widespread in the U.S. The 2020 Annual Data Report shows that the rate of AKI incidence has been on the rise, with a contributory factor being the aging population coupled with an escalating rate of chronic diseases such as diabetes and hypertension.
The U.S. is estimated to experience about 36.2 million hospitalizations in 2025, with projections of this figure increasing to 40.2 million by 2035 as a result of an aging population. This rise in hospitalizations reflects an increased need for inpatient care facilities, implying that increasing hospital capacities and constructing new facilities will be necessary to address future healthcare demands.
Report Coverage & Deliverables
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- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Property Insights
The senior living and retirement community sector is experiencing significant growth. It is projected to expand at a robust CAGR of 7.7% from 2024 to 2030, largely driven by the aging baby boomer population and their increasing demand for comfortable, fulfilling post-retirement lifestyles that include specialized healthcare services. This demand surge attracts real estate developers and institutional investors, who view senior living as a stable and promising asset class. As a result, new facilities are being developed, ranging from independent and assisted living to skilled nursing and memory care units. The U.S. healthcare real estate industry is also becoming increasingly diverse, offering a spectrum of lifestyle and care options that allow seniors to "age in place" as their needs evolve. A predominantly for-profit industry, the competitive landscape encourages continuous innovation in service quality and amenities, ultimately enhancing resident experiences. Government support through favorable policies and incentives further fuels this growth, contributing to the broader expansion of the U.S. healthcare real estate industry.
Medical Outpatient Buildings (MOBs) are poised to benefit from shifting consumer preferences for more accessible healthcare and broader industry trends. In 2024, MOB vacancy rates declined while asking rents increased, even amid strong new supply. Capital markets activity rebounded, with rising sales and falling cap rates for the first time since mid-2022. Most new MOB developments are occurring off hospital campuses to serve residential areas better. However, on-campus projects remain significantly larger due to physicians’ preference for proximity to hospitals and favorable insurance reimbursements. Ongoing labor shortages drive interest in technologies like AI to support the healthcare workforce. Easing inflation and potential interest rate cuts in 2025 are expected to boost MOB leasing and sales, with rents likely to rise as market fundamentals stay balanced.
Model Insights
The lease model held a market share of 65.10% in 2024. The leasing model in healthcare real estate is gaining momentum, driven by various practical advantages. One of the key benefits is the flexibility it offers healthcare providers, allowing them to adapt to changing operational demands without the hefty upfront costs of purchasing property. By choosing to lease rather than buy, organizations can strategically allocate their capital, prioritizing investments in patient care and core medical services. Leasing also supports scalability, enabling providers to adjust their space requirements based on patient demand and shifts in healthcare delivery models. Additionally, lease agreements' predictability and long-term nature make this model attractive to investors, especially real estate investment trusts (REITs), who value consistent income and reduced risk exposure.
The healthcare real estate rental model is anticipated to grow at a CAGR of 6.1% from 2024 to 2030. Rental arrangements provide healthcare providers with a cost-efficient and adaptable option for acquiring space, without the long-term financial commitments tied to property ownership or leasing. This model is especially well-suited for temporary or specialized services, such as pop-up clinics or seasonal health programs requiring short-term space solutions. The rental approach allows providers to respond swiftly to evolving healthcare demands and operational shifts while avoiding the complexities of property management and large capital investments. As the healthcare sector continues to evolve and introduce new services, accessing flexible, short-term rental spaces is becoming increasingly valuable.
Key U.S. Healthcare Real Estate Company Insights
The U.S. healthcare real estate industry is substantial and expanding steadily, with major players such as Healthpeak Properties, Inc. and Ventas, Inc. at the forefront. The market is projected to maintain its growth momentum, reaching an estimated revenue of US$ 2,270,404.3 million by 2030.
The dominance of major healthcare real estate groups such as Welltower Inc., with a market capital of $82.34 B, Ventas Inc. ($24.94 B), and Healthpeak Properties Inc. ($14.44 B) continues to define the upper tier of the competitive spectrum. Their competitive advantage lies in their Scale and Diversification, Long-Term Operator Partnerships, Portfolio Strategy Sector Specialization, and Operational Expertise. Welltower, for instance, has the largest portfolio among healthcare REITs, with a diversified mix of senior housing, outpatient medical facilities, and health systems. This scale allows for significant risk mitigation and strong tenant relationships.
Key U.S. Healthcare Real Estate Companies
The following are the leading companies in the U.S. healthcare real estate market. These companies collectively hold the largest market share and dictate industry trends.
- Welltower Inc.
- Ventas, Inc.
- Healthpeak Properties, Inc.
- Omega Healthcare Investors, Inc
- Healthcare Realty Trust Incorporated
- The GEO Group, Inc
- CareTrust REIT, Inc
- Sabra Health Care REIT, Inc
- National Health Investors, Inc
- Medical Properties Trust, Inc
Recent Developments
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Healthpeak Properties, Inc. and King Street Properties announced that Healthpeak had acquired King Street’s minority interest in their joint ventures involving eight lab buildings in Cambridge and Lexington, Massachusetts. Following a short transition period, Healthpeak would take over the day-to-day management of these properties.
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CareTrust REIT, Inc. announced that it had acquired a skilled nursing portfolio consisting of five facilities with a total of 498 licensed beds located in the Southeastern United States. The total investment, including transaction costs, amounted to approximately $80.9 million. As part of the acquisition, CareTrust entered into a new triple-net master lease with affiliates of YAD Healthcare, marking the beginning of a new operator relationship. YAD Healthcare was described as a seasoned skilled nursing operator with facilities across several states in the Mid-Atlantic and Southeastern regions. The lease was reported to have an initial term of 10 years, with two optional 5-year extensions. It would provide a first-year contractual lease yield of 9.0% (including transaction costs) and annual CPI-based rent escalations. CareTrust noted that the acquisition had been funded with cash on hand. The company also shared that its year-to-date investments totaled approximately $386 million, including this transaction. Additionally, it mentioned having an investment pipeline with around $460 million in near-term, actionable opportunities.
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Ventas reported completing over $2 billion in investments in 2024, primarily focusing on senior housing. The company indicated that these investments were expected to deliver attractive net operating income (NOI) yields, had been acquired at prices below replacement cost, and offered strong multiyear NOI growth potential—all in alignment with its stated investment criteria. It also mentioned a robust pipeline of additional senior housing investment opportunities that met its strategic objectives. The company expressed its intention to continue expanding its Senior Housing Operating Portfolio (SHOP) and to drive enterprise-wide growth through these targeted investments.
U.S. Healthcare Real Estate Market Report Scope
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Report Attribute |
Details |
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Market size value in 2025 |
USD 1389.42 billion |
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Revenue forecast in 2030 |
USD 1876.77 billion |
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Growth rate |
CAGR of 6.2% from 2025 to 2035 |
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Actual data |
2018 - 2024 |
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Forecast period |
2025 - 2035 |
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Quantitative units |
Revenue in USD million/billion, and CAGR from 2025 to 2030 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Property and model |
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Country scope |
U.S. |
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Key companies profiled |
Welltower Inc.; Ventas, Inc.; Healthpeak Properties, Inc.; Omega Healthcare Investors, Inc.; Healthcare Realty Trust Incorporated; CareTrust REIT, Inc.; The GEO Group, Inc.; Sabra Health Care REIT, Inc.; National Health Investors, Inc.; Medical Properties Trust, Inc |
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Customization |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
U.S. Healthcare Real Estate Market Report Segmentation
Property Outlook (Revenue, USD Billion; 2018 - 2035)
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Hospitals
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Medical Office Buildings (MOBs)
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Senior Living and Retirement Communities
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Long-Term Care and Specialty Care Centers
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Medical Centers (Life Science, Biotech, Research Centers, etc.)
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Others (Retail Health, Health Campuses, etc.)
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Model Outlook (Revenue, USD Billion; 2018 - 2035)
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Sales
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Rental
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Lease
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