Global Housing

Global Housing

Global construction of new housing is expected to increase 2.0% per year through 2026 to 60.4 million units. Gains will be supported by:

• increasing rural-to-urban migration and rising populations in the Asia/Pacific and Africa/Mideast regions, increasing demand for multifamily units in urban centers
• rising income levels in many developing countries in the Asia/Pacific and Africa/Mideast regions
• ongoing efforts to boost the supply of social housing in order to reduce the population living in substandard, informal dwellings

However, new housing construction will be limited by:

• slow growth in North America and Western Europe resulting from high construction costs, rising mortgage interest rates, long lead times for construction projects due to labor shortages, and weak population gains
• declines in China – the world's largest housing market – stemming from population loss, defaults by large building developers, and efforts by the government to stabilize the housing market and prevent a housing bubble

Countries around the world dealt with high levels of inflation and rising mortgage interest rates throughout the course of 2022, which increased the cost of home purchases for all buyers using lending to finance their purchases. High mortgage rates and other economic uncertainty – such as that caused by the Russia-Ukraine war – are holding down housing markets in many areas as potential purchasers delay investments while they wait for conditions to stabilize.

Growth in Multifamily Housing Will Outpace Single-Family Housing

The COVID-19 pandemic disrupted housing markets in many countries. While reduced movement of people and closed economies halted construction and home sales in many areas, it also boosted purchases of larger, single-family homes away from urban centers as those who could looked to remove themselves from crowded areas.

As the pandemic winds down and government and corporate policies moderate, new multifamily housing construction will outpace that of single-family housing. Multifamily housing is often more affordable, particularly for those in crowded areas who need access to public transportation. In addition, longer term trends continue to support the market, including:

• ongoing migration to urban centers from rural areas in developing nations such as India, Brazil, and Nigeria
• government efforts to reduce the amount of people living in inadequate housing
• rising interest rates and high home prices that make single-family dwellings unaffordable, especially in countries where potential buyers commonly rely on financing to back their purchases

Study Description

This Freedonia industry study analyzes the global housing industry, with construction of new housing units expected to grow 2.0% annually to 60.4 million units in 2026. The study presents historical demand data (2011, 2016, and 2021) and forecasts (2026 and 2031) for housing stock and new housing unit construction by type (single-family, multifamily).