Affordable Housing Market Expected to Reach $84.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Affordable Housing Market," The affordable housing market size was valued at $52.2 billion in 2021, and is estimated to reach $84.7 billion by 2031, growing at a CAGR of 4.9% from 2022 to 2031. Affordable housing is defined as housing that is sufficiently adequate in terms of standard and location for lower or middle income households and does not cost so much that a household is unlikely to be able to meet other basic necessities on a long-term basis. Affordable housing are referred to housing units that are affordable by that section of society whose income is below the median household income. The market for affordable housing is driven by a growing middle class and increasing workforce. This has led to a significant increase in migrant movements, especially in Tier 1 cities. These immigrants move in search of employment and educational opportunities. This is expected to facilitate market expansion in the expected time frame.

Moreover, ease of mortgage financing is also expected to boost the market expansion during the forecast period. Moreover, the Indian government's initiative to provide housing for all by FY2023 is projected to create lucrative opportunities for market growth. This is because the union government has extended the option to deduct additional interest costs up to Rs 1.5 lakh paid on affordable mortgages in the budget for fiscal year 2022 by one year until 31 March 2023. These government initiatives are spurring the affordable housing market growth.

The affordable housing market share is expected to grow significantly and rapidly during the forecast period. The demand for affordable housing is driven by rapid urbanization in emerging markets, where most of the population is concentrated in countries such as Brazil, China, India and Eastern European countries. Developing countries are creating demand for affordable housing that drives the market.

Moreover, all major cities in developed countries have reached saturation point, with urban areas and economic growth either stalled or growing very slowly. For example, the U.S. residential real estate market has seen affordable home sales and declining residential real estate in major cities such as Washington, D.C. as a result of rising real estate prices and declining investment. by foreign investors. Such cases limit the growth of the market during the forecast period.In addition, the outbreak of COVID-19 has led to halt in logistic and manufacturing activities across the globe, which, in turn, has led to interruption of supply chain, thereby hindering growth of the affordable housing market. However, this situation is expected to improve as government is relaxing norms around the world for resuming business activities.

The expansion of state programs for affordable housing and the cooperation of key market players presents an attractive opportunity. Growing cooperation across Europe also suggests that the affordable housing market has a bright future in the region. For example, in March 2022, the European Affordable Housing Consortium for Sustainable Housing and Social Impact launched the SHAPE-EU initiative. Such factors increase the demand for affordable housing and provide many opportunities for market growth.The global affordable housing industry is segmented on the basis of providers, size of unit and location, and region. Based on providers, the market is divided into government, and public-private partnership. Based on size of unit, the market is divided into up to 400 square feet, 400-800 square feet, and above 800 square feet. Based on location, the market is divided into urban and rural.

The major players profiled in the affordable housing market analysis include Dominium, Jonathan rose cos, Larsen & Toubro Ltd., LDG Development, TATA Projects, The NRP Group, Pennrose, Prestige Group, Related Group, and Skanska.

KEY FINDINGS OF THE STUDY

• The report provides an extensive analysis of the current and emerging global affordable housing market trends and dynamics.
• Depending on providers, the public-private partnership segment was the largest revenue generator in 2021.
• By size of unit, the above 800 square feet segment generated the highest revenue in 2021.
• Based on location, the urban segment dominated the market in 2021.
• Region wise, Asia-Pacific dominated the market in 2021. And LAMEA anticipated to dominate the global market throughout the study period.
• The report provides an extensive analysis of the global affordable housing market opportunities.
• The global affordable housing market forecast analysis from 2022 to 2031 is included in the report.