• Living investment is concentrated and growing. Living is the largest sector globally and is forecast to retain the number one spot with a further $1.4 trillion in transactions over the next five years. The Living 15, the largest investment markets, contributed 98% of living investment and 32% of global commercial real estate investment over the last five years, with investment rising 19% from the previous five years.
• Global capital seeks diversity. Cross-border investment has been instrumental in establishing new markets. These purchases accounted for a quarter of living investment over the past five years. This will rise as international buyers are attracted to new locations, various sub-sectors and opportunities for large platform purchases.
• Supply shortages underpin values. Large investors own just 9% of housing across the Living 15 key markets. Over the next five years this living universe is expected to exceed 50 million homes. Investors will strengthen overall supply, but will need to overcome challenges of high construction costs and regulation.
• Urbanization and international mobility drive demand. Trends of urbanization, international mobility and shrinking households mean growing demand for quality rental. The Living 15 key markets will need an extra 21.8 million urban homes within the next decade, investor supply would need to more than double to meet this demand.
• Location, location, location. Successful growth strategies start at the neighborhood level and use strategic place-making to attract tenants and deliver value. Population density, average commute time and proximity to local amenities, have the larger impact on investor returns.

U.S. investors are the biggest force behind living, contributing two-thirds of capital deployed in the Living 15 over the past five years. While the vast majority of this was via domestic transactions, 11% went to other locations: primarily the UK, Germany and Spain.

Cross-border investment has been instrumental in establishing new markets. These purchases accounted for a quarter of living investment over the past five years, though are far higher in smaller and less mature markets, peaking at 87% in Ireland and 82% in Australia, both English-speaking countries with low shares of investor stock.

With capital raising now resuming and yields stable or compressing, larger deals are expected to follow. Platforms owners who held off on large sales can be more confident on pricing and appetite. Multi-market platforms with operators in place will offer diversified portfolios in countries which may be otherwise difficult to access, particularly in Europe. As living gains appeal with investors seeking to raise exposure, this will further expand the pool of prospective buyers

Housing shortfalls versus strong underlying rental demand has been a key driver for investors in the living sector over the past decade. A majority of the world’s largest living markets continue to face housing supply challenges despite strong historic economic growth.

Nine of the Living 15 markets have set national new homes targets in a bid to increase supply to meet demand. However, all nine of those countries failed to meet their target in 2024, with most building at a rate of around 60-75% of target.

Institutional scale investors have played a significant role in easing supply pressures over the past decade. A total of 6.5 million new purpose-built rental units have been delivered in the Living 15 between 2014 and 2024.

Construction challenges will continue to inhibit housing supply in the coming years, although as cost inflation slows and debt pricing normalises, this should ease. Investors’ ability to innovate, be that through repurposing other use classes or using modern methods of construction, will mean not just more homes delivered in the next decade, but better quality housing also.

The future of global living investment markets relies on more than strong city demand and international capital flows. Successful growth strategies start at the neighborhood level and use strategic place-making to attract tenants, create communities and deliver value.

Population density, average commute time and proximity to local amenities, such as rail transit, restaurants, grocery stores and parks all impact tenant appeal and rent levels. Ultimately, the importance of intentional place-making will remain paramount to developers and investors creating new communities. Elevated construction costs and development equity hurdles require building well-positioned assets in desirable neighborhoods to achieve the returns necessary for long-term investment in the living sector.

Investors will continue to innovate, harnessing repurposing strategies, public-private partnerships and technology to support operational efficiencies and sustainable development. JLL predicts investor total rental stock holding will exceed 50 million by 2030, providing a home to circa 10% of households in the world’s largest living markets.