SOURCE: The Freedonia Group, Inc.

March 12, 2008 11:57 ET

Freedonia Market Research Report Analyzes Global Demand for New Housing

CLEVELAND, OH--(Marketwire - March 12, 2008) - Global demand for new housing is expected to increase 2.1 percent per annum through 2011, generating the construction of nearly 58 million new housing units. The most rapid gains will be in the Africa/Mideast region (led by Nigeria), spurred by the most rapid increases in population and household formation of any region. Yet a significant share of the new housing constructed in that region will be to satisfy little more than basic needs for shelter, and the growth in the value of new housing construction will be eclipsed by that in other parts of the world. These and other trends are presented in "World Housing," a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

China is forecast to post the fastest advances over the forecast period. Real residential construction expenditures in China will expand 8.1 percent per year through 2011. China's continuing population flows from rural to urban areas will help stimulate increases in new housing construction. Population increases in China over the forecast period will be substantially below the world average, and the annual growth in new housing units will be moderate.

Mexico will enjoy one of the fastest increases in the number of new housing units through 2011, with growth of nearly five percent per year to one million units. Advances will be driven by a continuation of government-sponsored efforts to address the country's shortage of affordable housing, with a large portion of new home construction built through programs sponsored by housing agencies of the federal government.

In 2006, the existing global stock of housing was 1.8 billion units, two percent higher than the number of households. Over one-half of the world's housing units are in the Asia/Pacific region. In 2006, China alone accounted for 23 percent of the world total. The Africa/Mideast region had the second largest housing stock in 2006 at 15 percent of the world total.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product and market forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.

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