2025 Global Living Outlook
The current housing supply shortage and affordability crisis is very real—and it’s also global. By Hines' estimates, the global housing market across a group of key developed economies that Hines Research analyzes tells us that we need a net 6.5 million housing units to meet current demand. This lack of supply has caused a global affordability crisis, putting many major markets out of reach for potential homebuyers. One important and potentially unexpected outcome has been a pronounced global proclivity to rent: Over 80% of households in the developed economies we analyzed were in country markets showing clear momentum for renting over buying1 .
Against this backdrop, we see some important opportunities emerging for global real estate investors:
- Overall, the traditional apartment (multifamily) sector offers compelling performance attributes globally as the popularity of renting trends upward. A shortage is calling for new supply, and in Europe and Asia, the size of the institutional quality and fit-for-purpose market trails the U.S. by such a large margin that catching up is a powerful force behind new development. Meanwhile, unique demographic and market trends support region-specific strategies.
