Affordable Housing Market Size, Share, Competitive Landscape and Trend Analysis Report
The global affordable housing market, valued at $52.2 billion in 2021, is projected to reach $84.7 billion by 2031, growing at a CAGR of 4.9% from 2022 to 2031. The market is driven by a growing middle-class and working population, particularly in Tier 1 cities, where migration for employment and education fuels demand. Rapid urbanization in emerging economies like Brazil, China, India, and Eastern Europe further supports market growth.
Government initiatives, such as India’s “Housing for All by FY2023” and extended tax deductions on affordable housing loans until March 2023, are key growth catalysts. Easier access to home financing also propels market expansion. However, in developed nations like the U.S., saturated urban markets and rising property prices in cities like Washington D.C. have slowed sales, restraining growth. The COVID-19 pandemic disrupted construction and supply chains, reducing affordable housing demand, but recovery began by late 2021 as industries resumed operations.
Collaborations, such as the SHAPE-EU project launched in March 2022 by the European Affordable Housing Consortium, and government policies are creating lucrative opportunities. The market is segmented by provider (government, public-private partnerships), unit size (up to 400 sq. ft., 400-800 sq. ft., above 800 sq. ft.), and location (urban, rural). In 2021, public-private partnerships and units above 800 sq. ft. led in revenue, while government providers and 400-800 sq. ft. units are expected to grow fastest. Urban areas dominated in 2021, but rural areas are projected to register the highest CAGR.
Regionally, Asia-Pacific led in revenue in 2021, while LAMEA is expected to grow fastest by 2031. Key players, including Dominium, Larsen & Toubro, and Skanska, are adopting acquisitions, partnerships, and expansions to strengthen their market position and meet rising demand.