What is Wellness Real Estate?
01. Everything you need to know about the fastest-growing sector in the global wellness industry.
The Wellness Real Estate Movement
Wellness isn’t just a trend—it’s a movement, and it’s transforming the way we live. Enter the wellness real estate market, a $400 billion+ industry designed to promote health and well-being in our homes, offices, and communities. But what exactly is wellness real estate, and why is it becoming such a big deal?
Market Growth and Opportunity
The wellness market has seen explosive growth, with McKinsey estimating the U.S. wellness sector at $480 billion, growing at 5–10% annually. Globally, it reached $6.32 trillion in 2023, with North Americans spending over $5,000 per year on wellness.
Wellness real estate—defined as a segment of construction focused on residential and commercial properties (including office, hospitality, mixed-use/multi-family, medical, and leisure)—incorporates intentional wellness elements in their design, materials, amenities, services, and programming. It is one of the fastest-growing sectors within the global wellness economy. From 2019–2023, the sector maintained a robust average annual growth rate of 18.1%. For context, the annual growth rate for overall global construction was only 5.1%.
According to the Global Wellness Institute (GWI), the wellness real estate market is projected to grow 15.8% annually from 2023 to 2028, reaching nearly $913 billion.
As this market approaches $1 trillion, it becomes increasingly harder for developers and investors to ignore.
Key Drivers and Demand
• Consumer-Driven Demand: Homebuyers and renters are prioritizing health-enhancing features such as advanced air and water filtration systems, biophilic design, and wellness certifications like WELL or Fitwel. The total number of wellness-certified building projects increased by more than 40-fold from 2017 to 2023. Properties incorporating these wellness features often command higher rents and resale values, reflecting the growing consumer demand for health-centric living environments.
• Corporate Wellness Impact: The global corporate wellness market is projected to reach $123.35 billion by 2032, as businesses increasingly recognize the return on investment of health-focused office spaces. Companies with wellness-certified environments—featuring ergonomic workstations, natural lighting, and fitness amenities—experience higher tenant retention and improved employee productivity. Healthier, happier employees are more engaged, with over 80% of those working in wellness-oriented workplaces reporting greater job satisfaction. By prioritizing wellness, companies are better positioned to attract and retain top talent.
• Indoor Air Quality Concerns: HEPA filters have become standard practice post-COVID-19. Healthy air is not only important for our homes but is also top-of-mind for managers and occupants of non-residential buildings, including workplaces, schools, hospitals, retail spaces, and industrial facilities. The pandemic has accelerated the growing understanding among consumers and the building industry about the critical role external environments play in our physical and mental health and well-being. Additionally, smoke and toxic air from record-breaking wildfires around the world have heightened concerns about air quality.
• Technology: Emerging health-driven technologies have become less expensive, more accessible, and incredibly efficient, driving their adoption in wellness real estate. Real-time indoor air-quality sensors, smart lighting systems, and home appliances such as smart refrigerators now offer health benefits at a fraction of their previous costs. Innovations such as smart beds (e.g., Eight Sleep) optimize sleep and recovery with advanced yet user-friendly technology, while disease-detecting toilets and wearables such as Whoop, Garmin, and Apple Watch provide comprehensive health monitoring that is both accurate and affordable. These advancements make it easier than ever for homeowners and developers to integrate wellness-focused features into everyday living spaces, further democratizing access to health-enhancing environments.
• Cultural Shift: Wellness is no longer a luxury—it’s a necessity. Millennials and Gen Z prioritize health and fitness more than older generations, driving demand for integrated wellness solutions. A recent survey found that Gen Z participants indicated they would spend an average of $7,856 on their health per year, the highest of any generation. In contrast, baby boomers were willing to spend an average of $3,734.
Challenges in Wellness Real Estate
• Accessibility: Health is wealth, and this truth is increasingly evident as wellness-focused real estate is often positioned as a luxury market. High-end properties feature an array of premium amenities—private gyms, spas, recovery equipment, hyperbaric oxygen chambers, infrared saunas, cold plunge tubs, and sophisticated health monitoring systems. These upscale offerings, coupled with stunning views and access to outdoor recreation, create a stark divide between wellness real estate and the broader housing market, where many struggle to secure affordable housing.
For most buyers, particularly those in middle- and lower-income brackets, wellness priorities are more modest—seeking homes free from toxins, protected from pollution, and within reach of essential services like public transit, grocery stores, and green spaces. The increasing cost of housing, particularly in urban areas, combined with rising inflation and high interest rates, has made homeownership more elusive than ever. This growing gap presents an opportunity for the development of affordable wellness housing models that focus on practical features like non-toxic materials, good ventilation, natural light, outdoor spaces, and vibrant community designs that foster connections to the local economy.
• Regulatory Barriers: The regulatory landscape for construction and urban planning often acts as a roadblock to the development of wellness-focused real estate and healthier built environments. Although our understanding of how the built environment impacts health has advanced significantly, building codes and zoning laws have been slow to adapt.
Many local regulations still prevent the creation of healthier urban spaces, such as mixed-use, higher-density developments, walkable streets, and inclusive zoning policies that support diverse communities. Moreover, policies that prioritize car dependency and reinforce socioeconomic and racial segregation further limit the potential for wellness-oriented neighborhoods.
These regulatory constraints not only increase the time and cost of development but also discourage developers from pursuing wellness-focused projects, as navigating the complex permitting and approval processes can be both time-consuming and expensive. The result is a system that inadvertently hinders the growth of healthier, more sustainable communities.
Final Thoughts
The wellness real estate movement is not just a fleeting trend—it’s a transformative shift that aligns with the growing global demand for healthier, more sustainable lifestyles. With a market poised to reach nearly $1 trillion by 2028, the opportunity for developers, investors, and policymakers to shape this evolving sector is immense. But growth comes with challenges, particularly in making wellness real estate accessible and navigating regulatory hurdles. The industry’s success will depend on embracing innovation, prioritizing inclusivity, and aligning economic incentives with health-focused principles.
For consumers, the shift toward wellness living represents an opportunity to redefine what “home” and “community” mean—spaces that don’t just house us but actively enhance our physical and mental well-being.
Sources
• Altus Group: Is the Wellness Boom Reshaping Global Commercial Real Estate?
• SNS Insider: Corporate Wellness Market Report
• GlobeNewswire: Global Corporate Wellness Market Size Projected to Reach USD 123.35 Billion by 2032
• Global Wellness Institute: Wellness Real Estate Report 2024
• Global Wellness Institute: The Global Wellness Economy Reaches a New Peak of $6.3 Trillion and Is Forecast to Hit $9 Trillion by 2028
• McKinsey & Company: Mind the Gap: Gen Zers are Obsessed with Wellness
Quote of the Day
“A fit body, a calm mind, a house full of love. These things cannot be bought–they must be earned.”
– Naval Ravikant