Old-Age Facilities Construction Global Market Report 2025

The old-age facilities construction market size has grown strongly in recent years. It will grow from $240.68 billion in 2024 to $260.26 billion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth during the historic period can be attributed to the increasing awareness of quality elder care, rising disposable income among the elderly population, growing demand for specialized rehabilitation and medical facilities, increasing urbanization driving the need for modern senior housing, and the rising emphasis on sustainable and senior-friendly construction designs.

The old-age facilities construction market size is expected to see strong growth in the next few years. It will grow to $351.21 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to the increasing demand for senior living accommodations, the rising aging population, the growing prevalence of age-related health conditions, the expansion of government initiatives supporting elderly care infrastructure, and the increasing investment in healthcare and assisted living facilities. Key trends anticipated during the forecast period include advancements in smart home technology for elderly care, the integration of telemedicine and remote monitoring systems, technological developments in mobility and accessibility solutions, progress in energy-efficient and sustainable construction materials, and innovations in safety and emergency response systems.

The increasing healthcare expenditure is expected to drive the growth of the old-age facilities construction market in the coming years. Healthcare expenditure refers to the total spending on medical services, equipment, and technologies aimed at improving health outcomes. This expenditure is rising due to the growing demand for advanced medical technologies, as hospitals and clinics continue to invest in innovative equipment and digital solutions to enhance patient care and outcomes. Higher healthcare spending supports the development of old-age facilities by directing more resources toward constructing infrastructure that provides medical care, rehabilitation, and assisted living services, ensuring better support and quality of life for older adults. For instance, in June 2025, according to the Centers for Medicare & Medicaid Services, a US-based government agency, national health expenditures (NHE) in 2023 grew by 7.5 percent, reaching $4.9 trillion, which averages $14,570 per person and accounts for 17.6 percent of the Gross Domestic Product (GDP). Therefore, the increasing healthcare expenditure is fueling the expansion of the old-age facilities construction market.

Key companies operating in the old-age facilities construction market are focusing on developing advanced approaches such as bioelectrical impedance scanning to enhance senior health monitoring, improve personalized care, and optimize facility management. Bioelectrical impedance scanning is a method used to assess body composition and hydration levels by transmitting a safe, low electrical current through the body and measuring the resistance (impedance) to that current. For example, in August 2025, PhantomOmics Inc., a Canada-based technology company, partnered with Garden Loft, a Canada-based architecture company, to introduce the world’s first smart modular senior homes equipped with advanced health scanning technology. This solution enables continuous, non-contact health monitoring, improving safety and allowing early intervention for seniors. It supports independence and privacy while integrating seamlessly with smart home systems to provide peace of mind for families. This innovative approach allows seniors to age with dignity in supportive environments, reducing the need for costly emergency care.

In October 2025, Ahrens Group, an Australia-based construction company, acquired Vaughan Constructions Pty. Ltd. for an undisclosed amount. Through this acquisition, Ahrens Group aims to establish a stronger, more sustainable, and truly national construction partnership by combining expertise, expanding its presence across the eastern seaboard, strengthening supply chains, and delivering greater opportunities and innovative projects for clients and communities. Vaughan Constructions Pty. Ltd. is an Australia-based construction company that provides old-age facilities construction services.

Major players in the old-age facilities construction market are China Resources Land Limited, Skanska AB, AECOM, Whiting-Turner Contracting Company, DPR Construction Inc., PCL Construction Ltd., Gilbane Building Company, McCarthy Building Companies, Barton Malow Company, Ryan Companies US Inc., The Weitz Company, Senior Lifestyle Corporation, The Korte Company, Leisure Care LLC, W.E. O'Neil Construction, Benchmark Construction, Life Care Services, Miles-McClellan Construction Co., Andron Construction Corp., Clark Construction Group, and Advanced Building Corporation.

North America was the largest region in the old-age facilities construction market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in old-age facilities construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

The old-age facilities construction market research report is one of a series of new reports that provides old-age facilities construction market statistics, including old-age facilities construction industry global market size, regional shares, competitors with an old-age facilities construction market share, detailed old-age facilities construction market segments, market trends and opportunities, and any further data you may need to thrive in the old-age facilities construction industry. This old-age facilities construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Old-age facilities construction refers to the development and building of infrastructure designed to accommodate and support the elderly population. It includes the construction of retirement homes, assisted living facilities, nursing care centers, and senior housing communities that provide safe, comfortable, and accessible living environments for aging individuals.

The primary construction types in old-age facilities construction are new construction and renovation. New construction involves building entirely new structures or expanding existing ones, excluding repairs or modifications to current components. The facility types include assisted living, nursing homes, independent living, memory care facilities, continuing care retirement communities (CCRCs), hospice facilities, and rehabilitation centers. These facilities provide various levels of care such as medical care services, personal care services, rehabilitation services, skilled nursing care, and social and recreational activities. They cater to different age groups, including individuals aged over 85 years, 75-84 years, 65-74 years, and under 65 years, and serve end users across the private sector, public sector, and hybrid operational models.

The countries covered in the old-age facilities construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The old-age facilities construction market includes revenues earned by entities by providing services such as design and architecture services, project management, and renovation and retrofitting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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