Global new housing construction levels are forecast to increase 2.0% per year to 60.6 million units in 2022. Together, India and China are forecast to account for over 33% of the new homes built worldwide through 2022. Both countries are expected to see demand for new housing continue to rise along with their expanding middle classes and growing urban populations, as well as the implementation of government programs to increase the supply of low-income housing. These and other trends are presented in Global Housing, a new study from The Freedonia Group, a Cleveland-based industry research firm.
The fastest annual increases in new housing construction are projected for Greece and Spain, which both saw double-digit declines between 2012 and 2017. Housing demand will rise quickly due to an improved economic outlook, stabilizing home prices, and growing interest in new property investments by foreign buyers. Additionally, government programs to fund the construction of new rental housing in Spain will help boost construction. However, new housing in both countries will remain well below historical levels.
The global housing stock is forecast to expand at a 1.5% annual pace through 2022, rising slightly faster than the world’s population. Higher income levels will enable families living in shared quarters to move into their own dwellings and will help more affluent households to afford purchases of second homes. Single-family dwellings will continue to account for close to two-thirds of existing homes worldwide, although growing urban populations are supporting an expanding share of multifamily units.
Global Housing (published 09/2018, 392 pages) is available for $3500 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email [email protected].