The global affordable housing market size was around USD 54.76 Billion in 2022 and is expected to surpass USD 84.23 Billion by 2031, expanding at a CAGR of 4.9% during the forecast period, 2023–2031.
Affordable housing refers to housing that is intrinsically affordable to people whose income is below or equal to the average household income of a country. Large influx of migrants increased the population in tier 1 cities for educational and occupational purposes.
Old apartments are being redeveloped and considered as affordable in both rural and in urban areas. Acquiring land and building a house is difficult for a person or real estate developers, due to growing legal issues and increasing involvement of lenders. This is boosting the requirement of affordable housing.
The COVID-19 pandemic positively affected the affordable housing market, as the importance of home ownership increased in the generation Z and young millennials who inclined towards rental properties. Governments imposed lockdown to stop the spread of virus and suggested people to be in isolation at the time of coronavirus infection. People desired to buy new homes to acquire large space and stay in isolated spaces to prevent the spread of the infection.
Affordable Housing Market Trends, Drivers, Restraints, and Opportunities
- Easy availability of home loans is anticipated to drive the market during the forecast period.
- Rising industrial and service sector is expected to propel the market.
- Increasing urbanization and rising number of nuclear families are projected to boost the market in the coming years.
- Shortage of available land and high cost of building materials are anticipated to hamper the market expansion.
- Increasing government investments in infrastructure to develop real estate creates lucrative opportunities for the market growth.
Scope of Affordable Housing Market Report
The report on the global affordable housing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Affordable Housing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Sizes (Up to 400 Square Feet, 400-800 Square Feet, and Above 800 Square Feet), Locations (Non-metro and Metro), Income Categories (EWS, MIG, and LIG), and Providers (Private Builders, Government, and Public-private Partnership)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Larsen & Toubro Ltd.; WorldHaus Construction Pvt. Ltd.; TATA Projects; Prestige Group; and KEC International Limited
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Affordable Housing Market Segment Insights
Sizes Segment Analysis
On the basis of sizes, the market is segregated into up to 400 square feet, 400-800 square feet, and above 800 square feet. The up to 400 square feet segment is projected to expand at a considerable CAGR during the forecast period, as it is affordable and convenient for people of all income categories. The 400-800 square feet segment is anticipated to account for a major market share during the forecast period, owing to rising government investments in housing sector.
Locations Segment Analysis
In terms of locations, the affordable housing market is divided into non-metro and metro. The metro segment is expected to hold a significant share of the market in the coming years, as it is easy to relocate from one place to another. The non-metro segment accounts for a significant market share, owing to easy availability of home loan in the rural region.
Income Categories Segment Analysis
Based on income categories, the market is segmented into EWS, MIG, and LIG. The EWS segment is expected to expand at a rapid pace during the forecast period, owing to increasing government investments and subsidize for affordable housing. The MIG segment is anticipated to hold significant share of the market, due to rising trend of nuclear family in many countries.
Providers Segment Analysis
On the basis of providers, the market is segregated into private builders, government, and public-private partnership. The government segment is projected to expand at considerable CAGR during the forecast period, as governments provide home loans and subsidies for people of EWS category. Private builders are expected to drive the market in the coming years, owing to the presence of various players in the market.
Regional Analysis
In terms of regions, the affordable housing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the forecast period, due to rapid industrialization and infrastructure development. The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, owing to the presence of key market players in the region.
Segments
The global affordable housing market has been segmented on the basis of
Sizes
- Up to 400 Square Feet
- 400-800 Square Feet
- Above 800 Square Feet
Locations
Income Categories
Providers
- Private Builders
- Government
- Public-private Partnership
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global affordable housing market are Larsen & Toubro Ltd.; WorldHaus Construction Pvt. Ltd.; TATA Projects; Prestige Group; and KEC International Limited. Players in the market are developing advanced technologies, launching products, and implementing new competitive strategies such as acquisitions and mergers. The market holds lucrative opportunities for small and medium players, owing to the increasing government initiatives in the sector.