Report Overview
Featuring 169 tables and 244 figures
Key Trends in the Global Housing Market
- labor costs and material costs
- new or altered government incentives
- trends in interest rates
- the supply and demand gap on existing housing stock
Global construction of new housing is projected to expand 2.4% per year through 2029 to 60 million units, driven by:
- new housing formation in countries with large population shares in the 18-24 year-old range
- programs like Pradhan Mantri Awas Yojana in India to boost the construction of affordable housing units
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rural-to-urban migration in lower-income countries
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a recovery in housing construction in Western Europe, where a number of countries saw sharp contraction in housing activity in 2024
While Global New Housing Will Grow, Weak Performances Are Expected for US & China
Despite the general global trend of new housing growth, two of the largest housing markets in the world – China and the US – are expected to see weaker performances:
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China will see construction rise only marginally through 2029, beset by declining population, central government measures to curb excessive borrowing among real estate developers, and the overhang of large numbers of vacant housing units constructed in the last decade, particularly in third- and fourth-tier cities
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In the US, completions of new housing units are expected to decline through 2029, measured against an inflated 2024 base, which saw a surge in construction of multifamily housing units.
Rural-to Urban Migration & Replacement of Substandard Housing Boosts Multifamily Units
Over the forecast period, multifamily housing construction is expected to outpace construction of single-family units due to primarily to continued rural-to-urban migration in lower-income countries in Africa and Asia. India alone will account for over 40% of multifamily units built globally, supported not only by urbanization and a growing population, but also by government efforts to build affordable housing for the urban poor. In general, many of the governments in these African and Asian countries have already or will institute programs designed to reduce the share of the population that dwells in substandard housing units, often constructed informally out of repurposed materials.
Housing Stock
Regional Outlook
The global housing stock is forecast to increase 1.2% per year to 2.6 billion units in 2029, growing at the same rate as the number of households. Gains in the housing stock will be driven by:
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new household formation and increased shelter needs
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increasing income levels, allowing families living in shared quarters to move into their own homes and more affluent households to afford the purchase of a secondary residence
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migration from rural areas to urban centers
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construction of subsidized, or social, housing for low-income households to help alleviate shortages of affordable dwellings
In many countries, rural-to-urban migration will stimulate growth in new housing beyond that required by population increases. Such internal population flows will test the ability of government planning agencies to respond to the increased need for urban housing. As a result, some housing needs will continue to be met by the construction of substandard, informal housing, or slums – often on land to which the dweller has unclear or no legal title.
In addition, a substantial amount of vacant housing units (built because of speculation and asset-formation) has led to the creation of “ghost cities” in countries such as China, which could discourage future property development. Governments must find a way to utilize these unoccupied housing units, especially as significant portions of their populations continue to live in informal housing and in poor living conditions.
Renovation and expansion of the existing housing stock boost residential construction expenditures but do not contribute to growth in the number of new homes. Renovation activity represents a large share of residential construction spending in industrialized countries, where:
The materials used in housing construction, as well as the quality of construction, vary across countries:
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Some dwellings are constructed of less durable materials such as grass or cardboard, particularly in urban slums or rural areas of developing countries. Roofing and siding materials may be obtained by reclaiming used products such as corrugated metal panels or wooden crates.
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Dwellings constructed in the formal sector are more likely to use new, durable building materials intended for the purpose, such as building boards, bricks, and asphaltic or tile roofing materials.
Developing countries in the Africa/Mideast and Asia/Pacific regions are expected to post the greatest absolute increases in population and new households. As a result, these countries will account for a significant portion of global new housing construction, boosting the size of their housing stock:
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The Africa/Mideast region is anticipated to see the most rapid growth in the size of its housing stock of any region, as countries in the area continue to industrialize and see standards of living improve.
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India – the world’s most populous country – will see the healthy increases in new housing construction above the average in the Asia/Pacific region, with Malaysia, Pakistan, and the Philippines also registering new housing construction gains faster than the global average.
Types of Housing (Single-Family & Multifamily)
The global housing stock is segmented into single-family and multifamily types:
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Single-family housing consists of detached, freestanding housing units, typically built on lots larger than the individual structure (including site-built and manufactured dwellings).
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Multifamily housing units are contained in a building or complex along with other multifamily units (e.g., apartments, condominiums, townhouses).
Areas in which a larger share of the population is rural – such as many parts of the Asia/Pacific and Africa/Mideast regions – see high proportions of single-family housing. For example, in Vietnam, single-family homes account for 96% of the housing stock because of the country’s large proportion of rural, self-built homes.
Industrialized countries with low population densities per square kilometer (e.g., Australia, Canada, and the US) also tend to have larger shares of single-family dwellings, as lower population densities generally make land less expensive and more readily available, even in urban areas.
Other factors contributing to high proportions of single-family homes include:
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less expensive land prices in rural areas
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high per capita incomes
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secondary vacation homes and cottages in affluent countries
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availability of open land
By contrast, both Western and Eastern Europe have high proportions of multifamily dwellings:
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In Western Europe, population densities are generally higher than in Australia, Canada, and the US despite generally similar levels of affluence, and multifamily units house many people with only limited use of relatively expensive land.
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In Eastern Europe, centralized construction policies resulted in a large stock of multifamily dwellings, many of which were built in the first decade after the end of the Second World War.
High-income, densely populated Asian countries such as Singapore, Hong Kong, Taiwan, and South Korea also have among the highest rates of multifamily housing.
Growth in the global stock of multifamily housing is expected to slightly outpace gains in the number of existing single-family homes, helped by continued rural-to-urban migration and expanding construction of government-subsidized social housing, particularly in developing areas where informal housing is common. Multifamily units are typically more affordable, especially in the rental market, which has also led to increasing demand.
The size and condition of single-family and multifamily homes vary widely across the globe, with industrialized countries generally having housing units that are larger and of better quality than in developing nations. Faster advances in completions of multifamily housing will constrain growth in average unit size, as multifamily units are typically smaller than single-family homes.
Report Details
This report examines the global housing market in terms of both the global housing stock and the construction of new housing units. Historical data for 2014, 2019, and 2024 and forecasts for 2029 and 2034 are presented in units by country in the following regions:
Housing data in this report encompass private (owner-occupied and rental), public/social housing (owner-occupied and rental), and informal housing.
Housing units are segmented by type in terms of:
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single-family housing units
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multifamily housing units (e.g., apartments/flats, condominiums, townhouses)
This report also includes the following data, all presented in square meters:
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existing residential floor space
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new residential floor space
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average size of existing housing units
- average size of new housing units