Global Housing: Demand to Be Strongest in North America While Potential Crisis Looms in Western Europe

Germany's central bank estimated that the housing market is overvalued by as much as 30%

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Nov 20, 2017, 09:00 ET

CLEVELAND, Nov. 20, 2017 /PRNewswire/ -- North America will post the fastest gains in new housing construction of any global region. The 4% annual growth projected for new housing units in North America through 2021 will be driven by above average household formation in Mexico as well as strong construction activity in the US. The size of an average North American housing unit is forecast to grow to 145 square meters in 2021, making North America's existing floor space the second largest, behind only the Asia/Pacific region, which had nearly six times as many housing units as North America in 2016. For in-depth analysis of these and other trends, see Global Housing Outlook, 7th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.

For more information on the study, see the following link:
https://www.freedoniagroup.com/industry-study/global-housing-outlook-by-housing-type-region-and-country-7th-edition-3540.htm

Surging housing prices and household debt throughout Western Europe may indicate a new housing bubble. Fueling worries, Germany's central bank estimated in early 2017 that the housing market is overvalued by as much as 30%; in 2016, the nation accounted for 19% of the EU's outstanding mortgage value. In Sweden, average housing prices grew 15% between 2015 and 2016, faster than any other EU country, and household debt as a percentage of income reached 350%. To mitigate fears, Denmark and Norway enacted policies to restrict mortgage lending. In Spain, the economic recovery inches forward after years of downturn, as average housing prices increased for the first time in eight years in 2015 and foreclosures fell by over 30% in 2016.

China and India will continue to dominate the global housing market through 2021, representing a combined share of 43% of all new housing units. Growth will be supported by above average gains in residential building construction, particularly in India, where growth is projected to be more than double the global average. Following declines during the 2011-2016 period in China large-scale urbanization projects will promote the rebound of new multifamily housing units.

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About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Construction & Building Products studies can be purchased at www.freedoniagroup.com, www.marketresearch.com, and www.profound.com.

Press Contact:
Corinne Gangloff
+1 440.684.9600
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SOURCE The Freedonia Group