**Boomers Are Aging: What This Means for Senior Housing and Healthcare Real Estate**
The aging of the Baby Boomer generation (those born between 1946 and 1964) continues to reshape the demographic landscape—and with it, the commercial real estate market, particularly in the senior living and healthcare sectors.
According to the U.S. Census Bureau, the population of Americans aged 65 and older increased by 3.1% from 2023 to 2024, reaching a total of 61.2 million. The share of the total population in this age group climbed from 12.4% in 2004 to 18.0% in 2024. By the end of 2025, approximately 73 million Baby Boomers will be 65 or older, making up more than one-fifth of the U.S. population.
A recent report from Marcus & Millichap explores how this demographic trend is expected to influence commercial real estate—particularly in two key areas: senior housing and medical office buildings (MOBs).
**Surging Demand for Senior Housing**
As the population ages, the demand for senior housing—including independent living, memory care, and continuing-care retirement communities—is expected to grow dramatically.
NIC MAP, using Census Bureau data, projects that the number of Americans aged 80 and older will increase by 3.4% to 14.7 million in 2024. That number is expected to continue rising—by 16.6% by 2028 and nearly 28% by 2030. By 2035, the 80+ demographic could grow to nearly 23 million, representing a staggering 55% increase from current levels.
This surge in elders means the country will need approximately 600,000 additional senior living units over the next five years to meet demand. However, supply is lagging far behind—during the peak of the last senior housing construction cycle in 2019, only 60,000 units were completed.
Limited new development, combined with rising demand, is expected to drive both higher occupancy rates and rent growth in the senior housing sector. Compounding the challenge is a growing labor shortage, making staffing these new developments more difficult.
**Healthcare Demand Fuels Growth in Medical Office Real Estate**
With a larger aging population comes an increased need for healthcare services, and that’s fueling growing demand for medical office buildings.
Marcus & Millichap notes that this influx of healthcare needs is leading to lower vacancy rates and stronger rent growth in MOBs. In 2024, 8.4 million square feet of new medical office space was added to the market. Despite this addition, the average vacancy rate remains at 9%.
However, industry analysts also point to a shortage of doctors and healthcare professionals—a potential obstacle in accommodating a rapidly growing patient base.
Supporting this trend, the report highlights that roughly one-third of all U.S. job growth from 2023 to August 2024 occurred in the healthcare sector, underlining the industry’s expanding role in the national economy.
**Conclusion**
The aging of the Baby Boomer generation is more than just a demographic milestone—it’s a transformative force for multiple sectors of commercial real estate. As demand outpaces supply in both senior housing and healthcare facilities, investors, developers, and service providers will need to move quickly to meet the needs of America’s oldest generations.
