2026 Trends: Healthcare Costs Up, AI Adoption Accelerates

CBRE has identified six major trends that will shape healthcare real estate development in 2026, including significant impacts from the One Big Beautiful Bill Act (OBBBA).

Recent amendments to the OBBBA will cut more than $1 trillion from healthcare spending and leave an estimated 14.2 million more people without insurance. As a result, healthcare providers are expected to shift more care from hospitals to lower-cost outpatient facilities.

“Outpatient real estate demand will accelerate as providers seek more affordable options for healthcare delivery and restrictions are eased on the Inpatient-Only List,” CBRE reported.

Yet another factor may complicate this shift: medical office construction is slowing sharply. Completions fell in 2025, and 2026 is projected to see an additional 26% decline—the lowest level in over a decade. Development on hospital campuses is set to contract even further.

According to CBRE, “The lack of new supply could push more occupiers into second-generation office and retail space,” and shrinking availability “will drive MOB rents to historic highs by the end of 2026, led by markets in the southern and western U.S.”

These pressures are emerging at the same time the U.S. experiences a surge in its elderly population. The number of people aged 76 and older is increasing by more than one million annually—three times the pace of the past four decades. Combined with rising healthcare spending, growth in the healthcare workforce, and widespread technology adoption, this demographic shift continues to boost demand for medical office facilities.

In response, providers are expected to focus more heavily on portfolio optimization and developing cost-effective healthcare settings. Their efforts will be challenged by rising medical supply costs, which increased 3.4% in 2025 after a small dip the previous year.

A final trend may offer some relief: accelerating use of artificial intelligence. Surveys show AI adoption is growing faster in healthcare than in most other industries.

“AI can help improve patient volume management, reduce workforce stress, increase satisfaction scores, drive higher admissions, and optimize existing space,” the report concluded.

Source: GlobeSt