Some will turn 80 this year, and that milestone alone is expected to create significantly higher demand for senior housing and care facilities. In fact, as quoted by CNBC, “The 80+ population is set to increase meaningfully over the next few years, which will drive a material increase in demand for senior housing,” wrote Jefferies analyst Joe Dickstein.

We also have to consider that people are living longer, which only increases demand further. Longer lifespans mean more years requiring assisted living, skilled nursing, memory care, and outpatient medical services. At the same time, there’s a growing shortage of caregivers to meet this explosive demand, creating a supply imbalance that strongly favors owners of healthcare real estate.

As noted by Medsien.com, “The growing aging population is driving demand for more medical care, as we face provider shortages. Patients 65 and older account for 34% of the demand for physicians. And by 2034, patients over 65 will account for 42% of the demand. An aging population means higher use of health care services and a greater need for family and professional caregivers.”

For investors, this combination of demographic certainty and constrained supply creates a rare opportunity. The question becomes not if demand will grow, but how to gain exposure in a way that balances growth with income and risk management.

So, what’s the best way to invest?

We suggest care facility real estate investment trusts (REITs), not only for their exposure to a rapidly growing market but also for their ability to generate reliable income. Healthcare REITs benefit from long-term leases, relatively stable occupancy rates, and the essential nature of the services provided. That makes them particularly attractive for investors seeking yield while still participating in secular growth tied to investing in the aging population.

Stocks for an Aging Population: American Healthcare REIT (AHR)

With a yield of 2.12%, American Healthcare REIT (NYSE: AHR) is a real estate investment trust that acquires, owns, and operates a diversified portfolio of clinical healthcare real estate. The company focuses primarily on senior housing communities, skilled nursing facilities, and outpatient medical buildings across the United States, the United Kingdom, and the Isle of Man.

American Healthcare REIT is expected to release its fourth-quarter and full-year 2025 earnings report on Thursday, Feb. 26, after market close. While investors wait for that update, the most recent quarterly results provide a useful snapshot of execution. In Q3, the company’s earnings per share of 33 cents beat expectations by 19 cents. Revenue of $572.93 million, up 9.4% year over year, also exceeded estimates by $20.97 million—evidence of steady operating momentum.

Stocks for an Aging Population: CareTrust REIT (CTRE)

We can also look at CareTrust REIT (NYSE: CTRE), a “real estate investment trust engaged in the ownership, acquisition, development, and leasing of skilled nursing, seniors housing, and other healthcare-related properties.” CareTrust currently offers a more generous yield of 3.61%, making it appealing for income-focused investors.

In its most recent quarter, Q3 funds from operations came in at 45 cents, missing estimates by two cents. However, revenue of $132.44 million beat expectations by $10.09 million, suggesting continued portfolio expansion and tenant demand despite short-term earnings variability.

Investing in the Aging Population for Income and Stability

Investing in the aging population isn’t just a long-term growth story—it’s also an opportunity to generate income in a market driven by demographic certainty rather than economic cycles. The steady rise in Americans over age 65, combined with a sharp increase in the 80+ population, creates sustained demand for senior housing, skilled nursing, and outpatient care facilities for decades to come.

Care facility REITs offer investors a practical way to participate in this trend. These companies benefit from essential services, long-term leases, and predictable cash flows, which support dividends even during periods of broader market volatility. As caregiver shortages persist and healthcare utilization increases, owners of well-located, high-quality healthcare real estate are likely to see continued demand and pricing power.

For investors looking to balance growth with yield, investing in the aging population through healthcare REITs such as American Healthcare REIT and CareTrust REIT offers a compelling combination of income potential and demographic-driven tailwinds. As the population continues to age, this theme should remain one of the most reliable and resilient opportunities in the market.

Some of those Americans will turn 80 this year, which is expected to create greater demand for senior care facilities. In fact, as quoted by CNBC, “The 80+ population is set to increase meaningfully over the next few years, which will drive a material increase in demand for senior housing,” wrote Jefferies analyst Joe Dickstein.”

We also have to consider that people are living longer, which increases demand. Plus, there’s a growing shortage of caregivers to meet this explosive demand.

As noted by Medsien.com, “The growing aging population is driving demand for more medical care, as we face provider shortages. Patients 65 and older account for 34% of the demand for physicians. By 2034, patients over 65 will account for 42% of the demand. An aging population means higher use of health care services and a greater need for family and professional caregivers.”

Real estate investment trusts (REITs) are one of the best healthcare investments you can make for investing in the aging of America. In addition to gaining exposure to this growing market, you’ll get attractive dividend yields that can provide a passive income stream.

Healthcare Investments to Buy: American Healthcare REIT

My first pick is American Healthcare REIT (NYSE: AHR). The company is focused on acquiring, owning and managing healthcare‐related properties across the United States.

The company’s portfolio includes senior housing communities, skilled nursing facilities, medical office buildings and outpatient care centers. All of the properties operate under long-term net lease or triple-net lease structures, designed to provide stable and predictable rental income.

AHR is a new REIT that only started publicly trading in 2024. However, in that short time period, the REIT has delivered a total return of over 290%.

The total return includes a dividend with a yield of approximately 2.33% as of the current writing. It just paid out a dividend of 25 cents per share on October 17.

Analysts have a consensus price target of $51 on AHR, but recent price targets are moving higher. Also supporting a higher price is the idea that analysts forecast earnings growth of over 19% in the next 12 months.

Healthcare Investments to Buy: CareTrust REIT

My second pick is CareTrust REIT (NYSE: CTRE). The company’s business model is similar to that of the American Healthcare REIT. CareTrust acquires and manages net-leased properties serving the senior housing and medical markets.

The company’s portfolio spans skilled nursing facilities, assisted living communities, independent living properties, medical office buildings and life science facilities. It also yields 3.92% and just paid a dividend of $0.335 per share.

The company’s earnings report in the last quarter was solid. Its funds from operations (FFO) of 43 cents missed by two cents. However, its revenue of $112.74, up 63.3% year over year, beat by $10.45 million.

In the last five years, the CTRE REIT has delivered a total return of 142.47%. That includes the company’s dividend, which is growing at around 5% per year.

As of this writing, the stock is trading slightly above its consensus price target of $35.78. However, analysts are increasing their price targets and are estimating the company’s earnings will increase by over 12% in the next 12 months.

Follow the Trend

Investing for the long term means taking what the market is giving you. In short, if you want to make money from our aging population and collect a consistent yield along the way, you can’t go wrong with these healthcare investments.