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Latest news: Worldwide construction of new housing expected to grow by yearly 3.2% until 2018

In general, in 2018 new housing units will be larger than existing ones, reflecting the rising standards of living across the globe.

Worldwide construction of new housing units is projected to reach 62.0 million in 2018 on 3.2 percent yearly advances from 2013. The Asia/Pacific region will own the most new housing units, while the Africa/Mideast housing stock region will grow the fastest. Multifamily housing construction will continue to outpace that of single-family types. Changes in population distribution, mainly due to rural-to-urban migration, will also bolster demand for new housing units, particularly in urban areas. These and other trends are presented in a new study named „World Housing“ from The Freedonia Group, Inc., a Cleveland-based market research firm.

Through 2018 construction of multifamily housing units is projected to outpace that of single-family housing units. Rural-to-urban migration will be particularly strong in the Asia/Pacific region, which will drive regional demand for housing in urban areas. Worldwide, construction of new multifamily units will increase 3.5 percent annually through 2018 to 26.2 million units, with 70 percent of growth taking place in the Asia/Pacific region. Nevertheless, in that region and worldwide, single-family dwellings will continue to make up the majority of new housing units.

The average size of a new housing unit fell to 89 square meters in 2008 and remained at that size in 2013 due to the sharp declines in new unit completions in North America and Western Europe, where units tend to be larger. The average new dwelling size is forecast to expand to 93 square meters in 2018. Two factors will support this growth: rising personal incomes, particularly in developing countries, and recovering residential construction in developed regions to close to historical levels. In general, new units will be larger than existing units, reflective of rising standards of living across the globe.

Developed countries that suffered dramatic declines in residential construction around the time of the 2009 global economic recession are forecast to exhibit the fastest gains in construction of new housing units through 2018, though growth will typically be from a depressed 2013 base. North America can expect annual advances of 7.9 percent while Western Europe can expect a 6.1 percent per annum increase in construction of new housing units.

The largest absolute gains in construction of new housing units are expected to be in the Asia/Pacific and Africa/Mideast regions. The Asia/Pacific region, led by China, is projected to be home to over three-fifths of the new dwellings constructed in the world in 2018. Between 2013 and 2018, new unit construction will increase by 4.8 million units to 38.5 million on 2.7 percent annual growth. New dwelling construction in the Africa/ Mideast region is expected to reach 13.0 million in 2018 on 3.7 percent annual growth, with absolute gains of over 2.1 million units, supported by above average population growth and household formation.

The Freedonia study #3184 „World Housing“ is for sale at 5,800 US-$.

(30.07.2014, USA: 07.30.2014)