In today’s macro environment, defined by three years of economic uncertainty, an aging American population, evolving household preferences, and remote work, we believe demographic trends are actively shaping the future of commercial real estate.
In a recent Asset TV interview, Matt Fries, Inland Real Estate Investment Corporation’s CEO and President, shares how demographic forces continue to influence real estate demand, especially for alternative real estate sectors. Below are four sectors we believe will benefit the most from demographic-related tailwinds. Watch full interview here.
Senior Housing
The aging Baby Boomer generation is expected to drive significant growth across the senior housing market as the number of Americans over age 65 continues to surge. Beginning in 2030, all baby boomers will be older than 65, and one in every five Americans is projected to be retirement age.[1] The number of Americans 65 and older is projected to reach 82 million by 2050 as longevity increases and birth rates decline.[2]
Today’s seniors increasingly prefer communities that blend independence with healthcare‑oriented support such as assisted living, memory care, and wellness‑focused amenities. With demand rising faster than supply, with a projected 560,000‑unit shortfall by 2030,[3] we believe the senior housing sector is entering a period of rapid expansion and reinvention to meet the expectations of a more active, lifestyle‑driven generation.
Medical Outpatient Buildings
The aging U.S. population, combined with rising rates of complex health needs and chronic conditions, is driving healthcare demand with medical outpatient buildings (MOBs) as care continues its shift from inpatient to outpatient settings. We see MOBs as an increasingly essential infrastructure, supporting everything from primary care to specialty services that help manage long‑term conditions. Healthcare utilization climbs sharply with age. Adults under age 45 average roughly two medical visits per year, whereas adults aged 65 and older average more than seven annual visits,[4] underscoring why we believe demand for accessible, community‑based medical space will continue to accelerate.
Student Housing
Despite broader demographic headwinds, student housing near Power 4 universities continues to outperform, driven by rising enrollment, constrained new supply, and sustained demand from both domestic and international students. Properties located close to these schools have historically seen strong pre-leasing velocity and rent growth,[5] as students prioritize proximity, safety, and modern amenities.
Self-Storage
Self‑storage demand continues to rise as Americans navigate major life events (moving, downsizing, remote work transitions, and the growth of e‑commerce) all of which create a need for flexible space. Retirees downsizing from longtime homeownership often require storage for belongings they’re not ready to part with, while small businesses and online sellers rely on storage units for inventory. The sustained shift to a work‑from‑home environment has pushed many households to repurpose rooms into offices, further boosting demand. In 2026, roughly one‑in‑three Americans, about 33% of the population, use self‑storage. Millennials represent the largest share of storage users nationally, followed by Gen Z and Gen X, while Baby Boomers account for a smaller portion of renters.[6]
The Takeaway
Matt Fries’ insight highlights a simple but powerful truth: in an environment where capital markets, interest rates, and economic forecasts can shift quickly, we believe demographics remain a reliable anchor to identifying resilient opportunities across alternative real estate sectors. To dive deeper into Matt’s perspective on how demographic trends are shaping these real estate sectors, watch the full Asset TV interview below.
[1] U.S. Census Bureau
[2] Population Reference Bureau
[3] NIC
[4] https://www.cdc.gov/nchs/namcs/about/index.html?
[5] RealPage Data Subscription
[6] https://www.storagecafe.com/self-storage-industry-statistics/