Top 5 Trends Impacting the Health Care and Life Sciences Markets

Engineering Inc. magazine

The current construction spending market for health care is worth $68 billion, up 3 percent from 2023, according to FMI. An aging population, growing mental health concerns, the increase in artificial intelligence capabilities, and rising obesity rates will drive demand for additional medicines, services, and facilities including hospitals, outpatient facilities, and medical office buildings. Here are the top five trends impacting the market today.

1. The surge in mental illnesses demands more facilities: One in 5 American adults (approximately 57.8 million) experienced mental illness in 2021, according to the National Alliance on Mental Illness. In 2023, 50 percent of adults ages 18 to 34 reported experiencing mental illness, the highest rate among the population, according to the American Psychological Association. Diagnoses of anxiety and depression increased by 25 percent during the first year of the COVID-19 pandemic, the World Health Organization reports. This led investors to begin acquiring behavioral health properties at a rapid pace, with investments worth $3 billion in the last 10 years, according to Colliers. This directly resulted in increased investment in three in-demand facility types: outpatient, inpatient, and residential.

2. There has been a notable shift from inpatient to outpatient care: The Urgent Care Association reports the number of urgent care centers (UCCs) grew 66 percent from 2016 to 2023. Outpatient volumes are expected to rise 26 percent over the next decade, according to the American Hospital Association. Demographics, consumer preference, and advancing technologies are driving demand for outpatient facilities. Medical outpatient buildings can include UCCs, labs, surgery centers, and mental health clinics.

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