Why does the world want to buy houses?
The global housing market is about to get a lot more expensive.
That is the takeaway from a new report by the Institute for Supply Management, which predicts that global housing demand will fall by as much as 30% in the next decade, to 5.6 trillion units by the end of the century.
“It’s going to be a lot harder for households to afford these new expectations,” said Ian Dansley, chief economist at the IMS.
In fact, the Ims forecasts that house prices will actually fall by 2% to 2.7% in 2030, before recovering in the years after that.
“In the future, we expect the cost of living to go down,” Dansleys report said.
“The impact on households will be even greater because housing is a critical element of social mobility.”
The Ims report does not put a price tag on the global housing shortage.
Rather, it looks at a series of key factors that affect the cost and availability of homes in various regions, including: economic growth, population, population density, population mobility, home price growth, household size, and income.
The Ims has also noted that it is “not clear what the effects of these factors will be on demand.”
For now, the main drivers of demand for housing are expected to be growth in population, and growth in the cost to buy a home.
According to the report, population growth will account for the majority of new housing demand in 2030.
If population growth continues to outpace inflation, that could be a concern, but it would also mean that the number of people needed to build a new home would go up.
The report predicts that in 2030 the number needed to buy 10,000 square feet of new home will be 4.4 billion, and for the same amount of square feet in 2030 it will be 8.6 billion.
The report also noted some other trends.
In 2030, the average age of people will be increasing from 28 to 29, while the average income will be rising from $72,000 to $100,000.
The proportion of people in their 30s will also be increasing, from 20% to 30%, while the proportion of those in their 40s will be falling.
The ratio of people aged 55 to 64 will also increase, from 13% to 15%.
The IMS has also been forecasting that the global average household income will decline from $92,400 in 2030 to $88,900 by 2040, and that the average price of a home will rise from $200,000 in 2030 not $300,000, with the largest price increases coming from China.
The Iss also predicted that the median age of a household would decline from 55 to 58, and the proportion who are aged 60 or older would increase from 11% to 12%.
The impact of those factors on house prices in 2030 will vary widely by region, and it will take some time to see the impact in all countries.
For instance, the report says that the United States will see a decline in average house prices as older people retire and live longer, and younger people move into the market.
But the I ms report says the impact of younger people in the housing market will be more immediate in Australia and the United Kingdom, as they move into retirement.
“In other words, the impact will be strongest in older Australians,” Dersley said.
Dansleys analysis of the Im report finds that there are some signs of a slowdown in the world’s housing demand.
While the global cost of housing has declined by roughly 30% from 2010 to 2030, according to the I, it remains the biggest driver of demand, and even bigger in the developed world, where house prices have risen by 40%.
“If we assume the average cost of buying a home in the United Sates will be $400,000 by 2030, that means that only 3% of households will have to increase their housing costs by $200 a month in 2030,” Darsley said, “and a further 40% will have no change in their housing needs.”
The biggest driver is a slowdown of the population, with global population growing from 6.5 billion to 7.3 billion by 2030.
And while the population growth is slowing in other developed countries, in developing countries like China and India it is accelerating.
As a result, the world will likely see fewer homes being built by 2020.
That could help push up house prices, especially in urban areas, but the report also predicts that the growth in China and Japan will not offset the slowdown.
Other key factors affecting the cost-and-availability of housing in 2030 include the population and age of households, but Dansons report notes that China and the U.K. will both experience an increase in population and a decrease in the number and age distribution of households.
“This means that as house prices grow in China, the price of houses will increase in London and Paris,” Dorsley