Analyst Insight: Healthcare Construction for an Aging Population

According to the World Health Organization, the population of people aged 65+ will grow at a compound annual growth rate (CAGR) of 2.7% from 2010-2050. The leading cause of death has changed from infections to chronic noncommunicable diseases, of which heart disease, stroke, and cancer have the greatest impact on an aging population. Expected challenges facing the healthcare system will require increased amounts of resources, healthcare professionals, technology, and infrastructure. According to the United Nations, the largest increase of older people aged 65+ is expected to occur in Southeast Asia and Latin America. 

In many concentrated urban areas, healthcare facilities have insufficient capacity and need to prepare for an increasingly aging population. Preparations might include adding, renovating, or expanding existing healthcare facilities to accommodate more people and longer stays. Although the world might suffer a delayed decline in healthcare building construction starts in 2021 as a result of COVID-19, overall projections show growth in the healthcare building segment, led by Asia Pacific. 

The Guidehouse Insights Global Building Stock Database estimates building stock across more than 230 countries and building types based on a rigorous modeling approach that uses available building stock data to fill gaps in publicly available information. The most recent Database was published 4Q 2020. This Analyst Insight report relies on the associated Database data to discuss healthcare building stock to address the aging global population.