New report reveals household growth in West Midlands by 2040

The number of households in the West Midlands is set to grow by 16 per cent, adding more than 391,400 households to the region by 2040, according to the latest research by socio-economic experts at planning, design and development consultancy Marrons.

The analysis – part of Marrons’ newly updated Housing 2040: Phase II report – reveals significant demographic shifts that will shape housing demand across the region in the next 14 years.

The data shows Stratford-upon-Avon is projected to have the largest increase in 25-44-year-old households, rising by 32 per cent, reflecting strong demand for family and starter homes.

The town will also experience the most substantial growth in its later living population, with households aged 65 and over increasing by 55 per cent, driving demand for rightsized and retirement focused housing.

Meanwhile, Coventry is forecast to have the greatest rise in 19-24-year-old households, increasing by 26 per cent, signalling opportunities for purpose-built student accommodation (PBSA) and co-living schemes.

Birmingham is expected to lose the most social housing by 2040, with its stock plummeting by 14,100 if current trends continue.

Reiss Sadler, associate director at Marrons, who is based in Stratford-upon-Avon, said: “The West Midlands is moving into a period where housing demand will become increasingly concentrated and varied across the region, placing greater pressure on how growth is planned in different local markets.

“In Coventry, continued growth in younger and student-age households is reinforcing demand for private rented and specialist accommodation. These dynamics are central to supporting the region’s economic role, particularly around its university and employment hubs.

“At the same time, towns such as Stratford-upon-Avon are experiencing strong growth both in working-age households and in older age groups, which brings a dual challenge – delivering family housing while also planning for a significant increase in later living and retirement-led provision.

“The scale of social housing loss in Birmingham also points to a deeper structural issue. Without a step-change in how affordable housing is delivered and replaced, the gap between supply and need will continue to widen.

“The priority now for is to align local plans more closely with these distinct patterns of demand and ensure delivery is supported by the infrastructure needed to sustain long-term growth in West Midlands.”

The Housing 2040: Phase II report draws on the most up-to-date datasets available, including Office for National Statistics 2022-based household projections, published in October 2025 – the first in more than five years – covering overall 16+ household growth and age demographic breakdowns.

It also incorporates local authority housing register data for 2025, providing a real-time view of unmet social housing need, and social housing stock movements (2014/15-2023/24), including demolitions, Right to Buy sales and new completions.

The report identifies where first-time buyer demand will be strongest, highlights regions losing the most social housing, and maps growth in later living, student-age and young professional households across every English region.

Dan Usher, economics director at Marrons, said: “England faces a national housing challenge of unprecedented scale. By 2040, millions of new homes will be required across the country to accommodate population growth, the rising number of young adults and an ageing population.

“The pressures are not uniform – some regions like Yorkshire and The Humber will see rapid growth in first-time buyers, students and older households, while other areas face acute social housing shortages.

“Meeting this demand will require more than simply increasing supply – we need the right mix of housing: starter homes, family homes, retirement properties and specialist accommodation such as PBSA and co-living.

“Without urgent action, the country risks locking in decades of unmet need, putting pressure on affordability, households and local authorities. Our analysis makes clear that now is the time to build strategically – ensuring homes are delivered where they are needed most.”

Pictured: Reiss Sadler and Dan Usher