Can we build 4000 homes an hour?

The already critical world housing shortage is being exasperated by an ever-increasing rate of rural-urban population drift, creating a serious urban housing crisis.

In 2002 almost two billion people lived in the urbanised regions of the developing world. According to a recent United Nations report, by 2030 that number will double to four billion.

Furthermore the UN estimates, to meet the demand for adequate, affordable housing right now, we would need 4000 new houses to be built around the world, every hour.

House building boom imminent?

Most major Asian cities are thriving economically and growing far more rapidly than their Western counterparts. In India alone, estimates of the housing shortage range from 20 million to 70 million homes.

Over the past decade, the population of Shanghai, China’s largest city, rose 35%, or by nearly 6 million.

“There’s no question that the situation has reached a near crisis point,” says Scott Palmer, Regional Director for FRAMECAD Asia, “and I think there will be significant opportunities for developers and the construction industry over the next five years as Governments come to grips with the extent of the shortage.”

Scott cites India, China, South East Asia as the areas most affected.

Social crisis

Organisations such as the UN are also warning of the social and health consequences of the housing shortage. Latest estimates put the number of people living in slum conditions worldwide at over one billion, and the figure is set to rise by 25 million every year.

In a recent BBC World News debate, David Smith of the Affordable Housing Institute, commented: “Every year the world has 80 million more people, and nearly all of them live in cities. If we don’t do anything about this, cities drown in poor people.”

Affordable homes

In nearly all the areas where the housing shortage is most acute, the greatest demand is for what is commonly described as “affordable” or “low income” housing – modest two or three bedroom homes or units.

In China for instance, the number of families living in low-income units increased from 329,000 in 2006 to 15 million in 2010, and there are indications that another 10 million units will be built this year.

Looking further into the future, the demand for this type of housing in China will remain strong with over 400 million migrant workers expected to move into cities over the next 20 years.

Scott believes that the extent of the housing shortage and the degree of urgency required to address the problem represents an excellent opportunity for light gauge steel technology.

“I think there are some very compelling reasons why steel framing will become the building method of choice.

“For a start, it’s a much faster way of building, it’s more precise and it is more economical, especially with large-scale multi unit developments.”

Partnership approach

With a current world wide housing shortage of over 100 million, and a world population growing by 80 million people a year, the housing problem is not going to improve any time soon.

“The reality is that we’re going to have to upscale our capacity internationally to build homes faster, more efficiently and more economically,” says Scott.

“In my view, I think the developers and builders who set up strong networks with reliable partners and suppliers, will be in a very strong position when the surge in building activity inevitably arrives.”

Tags : affordable housing, building boom, housing, housing shortage