Affordable Housing Market Overview: Market Size, Major Drivers And Trends
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Affordable housing is a global concern that continues to shape the real estate landscape. The Affordable Housing Global Market Report 2023 offers a closer look at the current state and future projections of this pivotal market. Let’s delve into the key highlights.
Growing Opportunities: A Glimpse at Market Growth
The global affordable housing market is on an upward trajectory, with positive growth projections in the coming years. In 2022, the market was valued at $51.05 billion, and it is expected to expand to $54.26 billion in 2023, reflecting a compound annual growth rate (CAGR) of 6.3%. The journey doesn’t stop there; the market is set to reach $67.17 billion by 2027, maintaining a robust CAGR of 5.5%.
The Key Catalyst: Home Loans
The growth of the affordable housing market is significantly attributed to the accessibility of home loans. Home loans are a lifeline for individuals and families aspiring to own a home. These loans, typically provided by housing finance institutions, empower people to build, renovate, or purchase homes without incurring the full upfront cost. This accessibility to financial support fosters homeownership and plays a pivotal role in addressing housing affordability concerns.
- Debt Dynamics: According to the Federal Reserve Bank of New York, household debt in the United States increased by $148 billion (0.9%) to reach $17.05 trillion in the first quarter of 2023. This surge in household debt indicates a growing demand for financial resources to secure housing, making home loans an essential part of the affordable housing equation.
Major Players Paving the Way
The affordable housing market is shaped by key players committed to providing affordable and quality housing solutions.
- Leaders of the Pack: Leading the charge in the affordable housing market are companies like Skanska AB, The Related Group, and KEC International Limited. Their dedication to creating affordable housing options contributes significantly to market growth.
Embracing Innovation: A Technological Trend
Innovation is at the heart of the affordable housing market. Major industry players are harnessing technology to develop innovative and technologically advanced solutions to make affordable housing more accessible.
- AI-Powered Solutions: AppFolio Inc., a US-based software company specializing in real estate management solutions, introduced AI-powered capabilities and affordable housing solutions in June 2023. These capabilities enhance property management and resident experiences, making it easier for property managers to comply with regulations, streamline procedures, and integrate accounting operations. The integration of technology is set to redefine the affordable housing landscape.
A Multifaceted Market: Diverse Segmentation
The affordable housing market offers a range of options tailored to meet the diverse needs of potential homeowners.
- By Providers: Affordable housing solutions are provided by various entities, including private builders, governments, and public-private partnerships.
- By Unit Size: Housing units vary in size, accommodating different lifestyles and family needs, with categories such as up to 400 square feet, 400-800 square feet, and above 800 square feet.
- By Location: Affordable housing solutions cater to both urban and rural settings, ensuring accessibility regardless of the setting.
- By Income Categories: Affordable housing doesn’t have a one-size-fits-all approach. It takes into account different income categories, including economically weaker sections (EWS), middle-income groups (MIG), and lower-income groups (LIG).
- By Population: The market also addresses the needs of both slum and non-slum populations, offering diverse solutions to different segments of society.
Global Impact: Market Reach and Potential
The largest share of the affordable housing market in 2022 was seen in North America. However, as we look ahead, the North American market is anticipated to experience the fastest growth in the coming years. The changing dynamics of the affordable housing market, coupled with innovative approaches and the demand for accessible housing solutions, make it a prominent market to watch.
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The Affordable Housing Global Market Report 2023 provides an overview of the affordable housing market for the time series: historic years (2010 – 2021) and ten years forecast (2023 – 2032). The affordable housing market forecast analyzes affordable housing market size, affordable housing market share, leading competitor and their market positions.
The Table Of Content For The Affordable Housing Market Include:
1. Affordable Housing Market Executive Summary
2. Affordable Housing Market Segments
3. Affordable Housing Market Size And Affordable Housing Market Growth Rate
4. Key Affordable Housing Market Trends
5. Major Affordable Housing Market Drivers
25. Key Mergers And Acquisitions In The Affordable Housing Market
26. Top Affordable Housing Companies
27. Affordable Housing Market Opportunities And Strategies
28. Affordable Housing Market, Conclusions And Recommendations
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