Cleveland, Ohio - Freedonia Group Inc. says that the global recession of 2009 dealt a severe blow to housing markets in much of the world, most noticeably in the industrialised countries. And a new study from the Cleveland, Ohio-based market research group says that new housing construction dropped so sharply in North America, Western Europe and Japan that those countries are now expected to enjoy the fastest growth in housing construction through 2014.
Despite the impressive recoveries -- for example, new housing activity in the US is forecast to increase 24 percent annually -- the level of activity in 2014 will generally remain below that achieved a decade earlier, said Freedonia, in its new study World Housing.
Worldwide, demand for new housing through 2014 is projected to grow 3.0 percent per annum, leading to the building of 53 million new housing units. In the 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 percent annual growth in new housing construction through 2014 to eleven million units. However, a significant share of the new housing constructed in sub-Saharan Africa will merely satisfy basic needs for shelter, Freedonia said.
The largest number of new housing units will be built in the Asia/Pacific region, where an expected rise in new housing construction of 2.0 percent per annum will result in 31.7 million new units. That pace will represent a deceleration from the 2004-2009 period, primarily because of "tepid growth of just one-half of one percent annually in the large Chinese market," Freedonia said.
World housing stock was 1900 million units in 2009, which Freedonia notes is roughly two percent larger than the number of households.
Asia/Pacific region had the largest housing stock, with nearly one billion units; China alone represented 23 percent of the world total. The Africa/Mideast region had the second largest housing stock in 2009, with 292 million units. Western Europe and North America together accounted for just under a fifth of the housing stock.
World Housing, published 09/2010, in 200 pages. is available for $5300 from Freedonia, See more at www.freedoniagroup.com.