Depending on population growth, Luxembourg would have to more than double or even triple its annual rate of construction or conversion
Luxembourg needs to find up to 7,500 new homes per year between now and 2060 to meet demand from a growing population, a working paper from Statec suggests.
This projection is calculated on the extreme economic scenario that GDP grows by 4.5% annually, attracting new residents and adding to a need for 324,000 homes in 2060. Even with the modest scenario of 0% GDP growth, the projection suggests the country would need 5,653 homes per year to reach a total of 243,000 new homes by 2060.
This means that depending on population growth, Luxembourg would have to more than double or even triple its annual rate of construction or conversion--research from real estate agency JLL suggests the country constructed an average of 2,600 homes per year since 2000.
Housing needs to change
But builders and architects may want to reconsider what kind of housing the country needs. Indeed, the report's author observes a social phenomenon across the western world that occupancy rates are falling--the number of people living as a couple in middle age is falling, while the number of people living alone is increasing. Among the older generations, life expectancy is increasing, pushing up the demand for housing for couples, singles and collective housing.