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Homebuilding to Hit 60.9M Units in 2017

Monday, November 4, 2013

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Housing construction is forecast to surge over the next several years, especially in developing countries where the demand will be fueled by increased rural-to-urban migration, according to a newly issued market report.

Worldwide, demand for new housing through 2017 is projected to advance 3.3 percent annually, generating the construction of 60.9 million units, according to “World Housing,” from The Freedonia Group Inc., an industry market research firm based in Cleveland.

new house
© iStock.com / jeffhochstrasser

In North America, housing construction is forecast to experience annual gains of 8.9 percent, reversing the 8.2 percent annual retreat reported for the 2007-2012 period.

The world housing stock reached nearly 2.0 billion units in 2012; it is expected to grow to about 2.2 billion units in 2017.

Multifamily Boom

On a global basis, multifamily units are anticipated to outpace construction of single-family units through 2017. 

The increasing urbanization in many developing countries will drive this trend. 

For example, in the Asia/Pacific region, construction of multifamily units is expected to grow 3.6 percent annually through 2017. The rate of increase is more than 1.5 times the rate of single-family home construction for that region, Freedonia reports.

Forecasts by Region

The strongest growth will be in the Asia/Pacific and Africa/Mideast regions, which will account for 80 percent of the world’s new housing units constructed in 2017, the report projects.

The Asia/Pacific region accounted for slightly over one-half of the world housing stock in 2012 and is expected to maintain that share through 2017.  China’s market alone had 21 percent of the 2012 world housing stock, a slightly greater share than the housing stocks of North America and Western Europe combined. 

An expected rise in new housing construction of 2.9 percent will result in 37.8 million new units for the Asia/Pacific region.

Freedonia chart
© 2013 by The Freedonia Group Inc.

The Africa/Mideast region had the second largest regional share, at 16 percent in 2012. Through 2017, population growth will support 4 percent annual advances in new housing construction to 12.7 million units.

North America is forecast to experience annual gains of 8.9 percent, reversing the 8.2 percent annual retreat reported for the 2007-2012 period.

Western Europe will also rebound, growing 5.9 percent per year through 2017, recovering from a 12.3 percent annual decline from 2007-2012.

Central & South America is projected to grow 2.6 percent annually to hit 4.5 million units in 2017.

The slowest growth will be in Eastern Europe, which is forecast to grow 1.8 percent per year, to 1.7 million units.

Several countries, including the United States, Italy and Spain, will experience double-digit annual increases in new housing construction, Freedonia reports.

   

Tagged categories: Construction; Economy; Freedonia; Housing; Market forecasts; Residential Construction; Trends

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