In the same period between 2018 and 2060, Statec believes that the number of private households will double. According to the potential growth of Luxembourg's GDP, the current 253,000 households could reach 462,000 or 539,000 in the next 40 years.
As a result, the increasing amount of households would lead to a significant demand for housing. Statec has calculated this demand at 243,000 (if the GDP does not increase) and at 324,000, provided the GDP grows by 4.5%. This corresponds to a need for an additional 5,600 to 7,500 homes per year.
The more Luxembourg's economy grows, the more workers will see the appeal of the Grand Duchy, in turn putting pressure on the need for housing. Statec's projections outline a number of different scenarios with migration and cross-border worker flows.
Statec's report outlines different forms of living together, including housemates, single-parent families, single individuals living alone, and collective residences.
The study also endeavours to take into consideration the factors which affect housing in households, such as break-ups, couples moving in together, etc.
Statec also considers the economic and political flows affecting changes within households, such as the cost of rent, interest rates, income, subsidies, and state housing.
The need for housing becomes even more striking, as the tendency in Luxembourg and other Western countries shows households becoming smaller (decreasing from 2.35 to 2.08 in the same period), as well as fewer people choosing to live together as middle-aged couples.
