Global Housing

Global Housing

Global construction of new housing is forecast to advance 2.1% per year through 2028 to 62.0 million units. Increases will be supported by:

• expanding urbanization in the Africa/Mideast region, boosting demand for multifamily housing in urban locations
• above average growth in India – the second largest new housing market in the world – where the middle class is experiencing robust expansion and becoming more able to acquire new homes
• continuing efforts to boost the supply of social housing to reduce the population living in inadequate, informal homes

However, new housing construction will be constrained by:

• a decline in new housing units in the US due to high mortgage rates and construction material costs, construction labor shortages, and relatively slow population growth
• negligible increases in China – the world’s largest housing market – stemming from a slight decline in population and continued liquidity issues among large building developers in the short term

In 2023, countries worldwide contended with high levels of inflation and construction costs (and in some countries, high mortgage rates), which led to a slight decline in new housing activity from 2022 levels. Although such conditions are expected to moderate in many countries, housing affordability will remain a major hurdle in new housing construction.

New Multifamily Housing is Forecast to Outpace Single-Family Housing Multifamily housing construction is expected to outpace single-family housing due to its greater affordability, particularly for those in crowded urban areas who need access to public transportation. In addition, longer term trends continue to bolster demand for multifamily units, including:

• ongoing rural-to-urban migration in developing nations such as India, Brazil, and Nigeria
• government initiatives aimed at reducing the number of people living in inadequate housing
• high interest rates and home prices that make single-family homes unaffordable in countries such as the US, where potential buyers typically 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 2.1% annually to 62.0 million units in 2028. The study presents historical demand data (2013, 2018, and 2023) and forecasts (2028 and 2033) for housing stock and new housing unit construction by type (single-family, multifamily).