Demand for new housing through 2014 is projected to advance worldwide by 3% per year, generating the construction of 53 million new housing units. Among developing regions, the most rapid growth in new housing units will be in the Africa/Mideast region, where growth in population and household formation will support 3.9% annual advances in new housing construction through 2014 to 11 million units. However, a significant share of the new housing constructed in sub-Saharan Africa will merely satisfy basic needs for shelter.
The largest number of new housing units will be generated in the Asia/Pacific region, where an expected rise in new housing construction of 2% per year will result in 31.7 million new units. That pace will represent a deceleration from the 2004-2009 experience, primarily because of tepid growth of just 0.05% annually in the large Chinese market.
The world housing stock was 1.9 billion units in 2009, roughly 2% larger than the number of households. The Asia/Pacific region had the largest housing stock, with its nearly one billion units accounting for 52% of the world total; China alone represented 23% of the world total. The Africa/Mideast region had the second largest housing stock in 2009, with 292 million units, or 15% of the world total. In the aggregate, Western Europe and North America together accounted for just under one-fifth of the housing stock.
For more information, phone (440) 684-9600 or visit www.freedoniagroup.com.