The Living Sector
As we highlighted in our global living whitepaper in March 2025, the current housing supply shortage is very real, and it’s also global. By our estimates, we need a net 6.5 million housing units to meet current global demand. This lack of supply has contributed to a global affordability crisis that is fueling a shift toward renting. In fact, over 80% of households in the developed economies we analyzed were in country markets showing clear momentum for renting over buying.
From a localized point of view, fundamentals in the for-rent living sector vary across regions. In the Americas, fewer supply restrictions and the robust capital markets environment that existed before the U.S. Federal Reserve started raising rates resulted in oversupply, particularly in the Sunbelt. But demand has been strong, stoked by continued job growth and the difficulty of buying due to high interest rates, limited inventory, and sticky home prices.
Key Takeaway:
In Europe, the student housing sector is an increasingly institutional market with low provision rates among a growing student population, creating a compelling combination.”
The Opportunity:
Markets in developed Asia are seeing potential for rent growth
