D.R. Horton was the homebuilder with the highest gross revenue in the United States in 2024. The Texas-based company reached a homebuilding revenue of 33.83 billion U.S. dollars. It was closely followed by D.R. Horton, which had its headquarters in Florida and generated a revenue of 33.78 billion U.S. dollars. Challenges to the residential construction marketThe number of private housing units started fell around the time of the global financial crisis (2007-2009), but has since recovered – though not to the heights of 2006. The value of residential construction in the U.S. fell in 2023, but it is expected to start growing again in the next years.New home sales follow the same trend After a fall in the number of new houses sold in 2021 and 2022, home sales have increased again, with those figures in the U.S. expected to reach 683,000 in 2024. The number of single-family homes started has followed a similar trend, and it is expected to increase in the next couple of years.

D.R. Horton was the leading homebuilder company in the United States based on the number of closings in 2023. Some of the other companies in the highest positions of the ranking that year were Lennar Corp. with approximately ****** closings, PulteGroup with around ****** closings, and NVR with ****** closings.

Home builders construct single-family homes while also remodeling houses and other residential buildings. Perennially low housing stock has driven new housing development throughout the current period. Still, from early 2022 through mid-2024, the Federal Reserve rose or maintained interest rates up from historic lows; these rate hikes sent housing starts into a steady decline. Loans have become less accessible, with mortgage rates increasing, discouraging property developers from breaking ground on more residential projects. Even as the Federal Reserve has cut rates since mid-2024, mortgage rates, which are only indirectly impacted by the federal funds rate, have largely increased. Even as housing starts have fallen over recent years, house prices have seen strong growth, allowing builders to see growth. Overall, industry revenue is set to push up at a CAGR of 2.9% to $166.9 billion over the five years through 2025, including a 1.6% increase in 2025 alone. Spikes in the 30-year conventional mortgage rate reduced the number of projects available for home builders. Inflationary concerns have also led more consumers to rent instead of buy. A bright spot has been state and federal projects like affordable housing programs in large metropolitan cities. Home builders also cut expenses and raised profit by hiring subcontractors. The basic underlying need for more housing has remained strong throughout the period. Interest rates are set to gradually fall over the coming years, while the nation will remain in its housing shortage, driving growth for home builders. Home builders will aim to differentiate themselves by building homes that meet sustainability standards to achieve Leadership in Energy and Environmental Design (LEED) certification. Government programs and households will continue to be a source of income for many homebuilders. The Trump administration has proposed using federal lands for housing development but is also set to drive up costs for builders through its tariff policies. Overall, revenue is set to climb at a CAGR of 1.8% to reach $182.8 in 2030.

The United States home construction market, valued at approximately $700 billion in 2025, is experiencing robust growth, projected to maintain a compound annual growth rate (CAGR) exceeding 3% through 2033. This expansion is fueled by several key factors. Firstly, a persistent housing shortage, particularly in desirable urban areas like New York City, Los Angeles, and San Francisco, continues to drive demand. Secondly, favorable demographic trends, including millennial household formation and an increasing preference for homeownership, are bolstering the sector. Furthermore, low interest rates (though this is subject to change depending on economic conditions) have historically made mortgages more accessible, stimulating construction activity. However, the market isn't without its challenges. Rising material costs, labor shortages, and supply chain disruptions continue to exert upward pressure on construction prices, potentially impacting affordability and slowing growth in certain segments. The market is segmented by dwelling type (apartments & condominiums, villas, other), construction type (new construction, renovation), and geographic location, with significant activity concentrated in major metropolitan areas. The dominance of large national builders like D.R. Horton, Lennar Corp, and PulteGroup highlights the industry's consolidation trend, while the growth of multi-family construction reflects shifting urban preferences. Looking ahead, the market's trajectory will depend on macroeconomic factors, interest rate fluctuations, government policies impacting housing affordability, and the ability of the industry to address supply-chain and labor challenges. Innovation in construction technologies, sustainable building practices, and prefabricated homes are also emerging trends expected to significantly influence market dynamics over the forecast period. The competitive landscape is characterized by a mix of large publicly traded companies and smaller regional builders. While established players dominate the market share, opportunities exist for smaller firms specializing in niche markets, such as sustainable or luxury home construction, or those focused on specific geographic areas. The ongoing expansion of the market signifies significant potential for investment and growth, despite the hurdles currently impacting the sector. Addressing supply chain disruptions and labor shortages will be crucial for sustained growth. Continued demand in key urban centers and evolving consumer preferences toward specific dwelling types will be critical factors determining the market's future trajectory. Recent developments include: June 2022 - Pulte Homes - a national brand of PulteGroup, Inc. - announced the opening of its newest Boston-area community, Woodland Hill. Offering 46 new construction single-family homes in the charming town of Grafton, the community is conveniently located near schools, dining, and entertainment, with the Massachusetts Bay Transportation Authority commuter rail less than a mile away. The collection of home designs at Woodland Hill includes three two-story floor plans, ranging in size from 3,013 to 4,019 sq. ft. with four to six bedrooms, 2.5-3.5 baths, and 2-3 car garages. These spacious home designs feature flexible living spaces, plenty of natural light, gas fireplaces, and the signature Pulte Planning Center®, a unique multi-use workstation perfect for homework or a family office., December 2022 - D.R. Horton, Inc. announced the acquisition of Riggins Custom Homes, one of the largest builders in Northwest Arkansas. The homebuilding assets of Riggins Custom Homes and related entities (Riggins) acquired include approximately 3,000 lots, 170 homes in inventory, and 173 homes in the sales order backlog. For the trailing twelve months ended November 30, 2022, Riggins closed 153 homes (USD 48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of USD 313,600. D.R. Horton expects to pay approximately USD 107 million in cash for the purchase, and the Company plans to combine the Riggins operations with the current D.R. Horton platform in Northwest Arkansas.. Notable trends are: High-interest Rates are Negatively Impacting the Market.

Subcontractor delays were the number one challenge for one third of respondents, according to a 2023 survey among home builders in the United States. Client selections decisions emerged as the second-biggest issue, according to almost 20 percent of the respondents.

The United States home construction market is projected to grow from $XX million in 2025 to $XX million by 2033, at a CAGR of 3.00% during the forecast period. Key drivers of this growth include increasing population, rising incomes, and low interest rates. Additionally, the growing popularity of smart homes and green building technologies is creating new opportunities for home builders. The market is segmented by type (apartments & condominiums, villas, and other types), construction type (new construction and renovation), and city (New York City, Los Angeles, San Francisco, Washington DC, and Miami). The new construction segment is expected to hold the largest market share during the forecast period, driven by the increasing demand for new homes from growing families and millennials. The multi-family home builders segment is projected to grow at a higher CAGR than the single-family home builders segment during the forecast period, due to the increasing popularity of urban living and the rising demand for affordable housing. Recent developments include: June 2022 - Pulte Homes - a national brand of PulteGroup, Inc. - announced the opening of its newest Boston-area community, Woodland Hill. Offering 46 new construction single-family homes in the charming town of Grafton, the community is conveniently located near schools, dining, and entertainment, with the Massachusetts Bay Transportation Authority commuter rail less than a mile away. The collection of home designs at Woodland Hill includes three two-story floor plans, ranging in size from 3,013 to 4,019 sq. ft. with four to six bedrooms, 2.5-3.5 baths, and 2-3 car garages. These spacious home designs feature flexible living spaces, plenty of natural light, gas fireplaces, and the signature Pulte Planning Center®, a unique multi-use workstation perfect for homework or a family office., December 2022 - D.R. Horton, Inc. announced the acquisition of Riggins Custom Homes, one of the largest builders in Northwest Arkansas. The homebuilding assets of Riggins Custom Homes and related entities (Riggins) acquired include approximately 3,000 lots, 170 homes in inventory, and 173 homes in the sales order backlog. For the trailing twelve months ended November 30, 2022, Riggins closed 153 homes (USD 48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of USD 313,600. D.R. Horton expects to pay approximately USD 107 million in cash for the purchase, and the Company plans to combine the Riggins operations with the current D.R. Horton platform in Northwest Arkansas.. Key drivers for this market are: Indonesia's Hospitality Market Shifting Preference for Local and Authentic Experiences. Potential restraints include: Difficulties in Implementing Tourism Policies. Notable trends are: High-interest Rates are Negatively Impacting the Market.

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US Residential Construction Market Size 2025-2029

The us residential construction market size is valued to increase USD 242.9 million, at a CAGR of 4.5% from 2024 to 2029. Increasing household formation rates will drive the us residential construction market.

Major Market Trends & Insights

By Product - Apartments and condominiums segment was valued at USD 509.50 million in 2022
By Type - New construction segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 39.65 million
Market Future Opportunities: USD 242.90 million
CAGR from 2024 to 2029 : 4.5%

Market Summary

The Residential Construction Market in the US is a dynamic and evolving industry, shaped by various factors and trends. Core technologies and applications, such as Building Information Modeling (BIM) and energy-efficient systems, are increasingly adopted to enhance project efficiency and sustainability. In fact, the use of BIM in residential construction is projected to reach 50% penetration by 2025, according to industry reports. Service types and product categories, including general contracting, design-build, and modular housing, cater to diverse residential construction needs. However, challenges persist, including rising material costs and skilled labor shortages for large-scale residential real estate projects. Regulations, such as the International Energy Conservation Code, drive the focus on sustainability in residential construction projects. The regional landscape is diverse, with the South and West regions leading in residential construction activity due to population growth and favorable economic conditions. These evolving market dynamics offer significant opportunities for industry players to innovate and adapt to the changing landscape.

What will be the Size of the US Residential Construction Market during the forecast period?

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How is the Residential Construction in US Market Segmented and what are the key trends of market segmentation?

The residential construction in us industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductApartments and condominiumsLuxury HomesOther typesTypeNew constructionRenovationApplicationSingle familyMulti-familyConstruction MaterialWood-framed ConcreteSteel Modular/PrefabricatedGeographyNorth AmericaUS

By Product Insights

The apartments and condominiums segment is estimated to witness significant growth during the forecast period.

The residential construction market in the US continues to evolve, with apartments and condominiums being key contributors to its growth. Urbanization is a significant driver, as more Americans opt for the convenience and amenities of city living. In response, developers are constructing modern, sustainable, and community-focused high-rise buildings and condominium complexes. Smart home technology and energy efficiency standards are becoming increasingly important in these projects, with Building Information Modeling (BIM) software guiding the design process. Modular construction, geotechnical engineering, and quality control measures ensure structural integrity and safety. Building codes and permitting processes are strictly adhered to, with green building certifications such as LEED and Energy Star driving the adoption of sustainable building practices. Masonry techniques, foundation design, and exterior cladding are essential elements of the construction process, with insulation materials and HVAC systems ensuring energy efficiency. Safety regulations govern electrical wiring, roofing systems, and plumbing fixtures. Construction scheduling is facilitated by project management software, with prefabricated components and 3D building modeling streamlining the process. Construction automation and waste management are also crucial considerations, with cost estimation models helping developers stay within budget. Environmental impact assessments and structural engineering studies are essential to minimize the environmental footprint and ensure safety. Framing techniques and foundation design are optimized for durability and cost-effectiveness. Safety regulations and quality control measures are strictly enforced to ensure the safety and satisfaction of residents. Overall, the residential construction market in the US is dynamic and forward-thinking, with a focus on sustainability, safety, and community.

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The Apartments and condominiums segment was valued at USD 509.50 million in 2019 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2024 as

The US luxury residential market, encompassing high-end homes and bespoke properties, demonstrates robust growth potential. While the exact market size for 2025 is not provided, considering a conservative estimate based on industry reports showing a similar market segment with a size in the tens of billions, we can project the 2025 market size to be approximately $150 billion. This projection considers factors like the ongoing demand for luxury properties, increasing high-net-worth individuals, and the resilience of the luxury real estate sector to economic fluctuations. With a Compound Annual Growth Rate (CAGR) exceeding 3%, the market is poised for significant expansion over the forecast period (2025-2033). Key drivers include increasing disposable incomes among affluent households, a preference for larger and more luxurious homes, and ongoing investment in high-end residential developments. Emerging trends such as smart home technology integration, sustainable building practices, and a rising demand for unique architectural designs further fuel market growth. However, constraints like rising construction costs, material shortages, and potential interest rate fluctuations could temper expansion to some degree. Prominent players such as Toll Brothers Inc., D R Horton, and several high-end custom builders are well-positioned to capitalize on these market trends. Segmentation analysis shows a strong preference for luxury homes within prime locations and exclusive communities. The continued expansion of the US luxury residential market is expected to be driven by several factors. The increasing number of high-net-worth individuals seeking high-end residences will significantly boost the sector. Furthermore, the preference for larger homes with modern amenities, coupled with a demand for unique architectural designs, remains a key driver of growth. The ongoing adoption of smart home technology is also anticipated to increase demand for luxury homes. However, potential challenges include government regulations impacting construction and potential economic downturns which could moderately affect market growth, requiring careful monitoring and strategic adaptation by developers and builders. Geographic variations in demand are likely, with prime locations in major metropolitan areas and coastal regions anticipated to maintain high demand and influence overall market growth patterns. Key drivers for this market are: Energy efficiency in construction, Flexibility and customization options. Potential restraints include: Limited availability of suitable land for construction, Lower quality compared to traditional construction. Notable trends are: Home Automation Becoming a Pre-requisite for Luxury Real Estate.

Nahb Housing Market Index in the United States remained unchanged at 32 points in September. This dataset provides the latest reported value for - United States Nahb Housing Market Index - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Overall, the share of home builders seeking loans for land acquisition, development, and construction (AD&C) was lower in early 2023 than a year earlier. Loans to cover the costs of speculative single-family construction were the most popular type, with over a third of respondents having sought them. Speculative construction refers to those projects that do not have yet a buyer or final user. That is in contrast to pre-sold single-family homes, which already have a buyer before they are finished.

Lumber and building material stores have enjoyed an uptick in revenue spurred by rising construction activity and elevated material prices. While these stores face fierce competition from big-box retailers like Home Depot, they've managed to carve a niche by focusing on specialized products and services. Customized offerings and eco-friendly lines have allowed them to stand out, especially as the construction sector has shown an upward trend. Meanwhile, price adjustments because of rising costs in lumber, HVAC and flooring have also contributed to revenue gains despite potentially discouraging consumer purchases. Tax incentives for energy-efficient home improvements and increased residential construction have further bolstered the industry's performance. Revenue is expected to climb at a CAGR of 0.7% to $160.8 billion through the end of 2025, including a projected growth of 0.4% in 2025 alone. In the same year, profit is anticipated to account for 5.0% of revenue. Over the past five years, lumber and building material stores have navigated a challenging environment marked by volatile pricing and supply chain disruptions. Yet, they've managed to maintain a steady course. While elevated lumber prices drove price-based gains, making certain products more expensive, these stores capitalized on the demand surge for public and private construction projects. Specialty contractors have become their largest customer base, frequently turning to local stores for materials tailored to specific needs. Consolidation within the industry has been a notable trend, with larger companies acquiring smaller competitors to remain viable against big-box giants. Moreover, embracing technology and e-commerce has aided operational efficiencies and customer retention despite external pressures. Looking ahead, lumber and building material stores are poised for sustained growth over the next five years, driven by residential construction and ongoing interest rate cuts. More stores are expected to consolidate to take advantage of economies of scale and compete with growing national chains. Environmental consciousness will also shape offerings, with more stores stocking green building materials to meet rising consumer demand for sustainable infrastructure. Though competition from home improvement stores will intensify, lumber and building material stores will thrive by focusing on local expertise, customer service and innovation to maintain their competitive edge in an evolving market. Revenue is forecast to inch upward at a CAGR of 0.8% to $167.3 billion through the end of 2030.

The global tiny homes market, valued at $16.24 billion in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 4.2% from 2025 to 2033. This expansion is driven by several key factors. Increasing urbanization and escalating housing costs in major metropolitan areas are pushing individuals and families to seek more affordable and sustainable housing solutions. The growing popularity of minimalist lifestyles, coupled with environmental concerns regarding large-scale construction, further fuels demand for eco-friendly tiny homes. The market segmentation reveals a strong preference for mobile tiny homes, reflecting the desire for flexibility and relocation options. The commercial application segment, encompassing uses such as short-term rentals and boutique hotels, is also experiencing significant growth, contributing to the overall market expansion. Competition within the industry is moderate, with established players like Tumbleweed Tiny House Co. and American Tiny House alongside emerging innovative companies like ICON Technology Inc. These companies are employing various competitive strategies, including product differentiation, technological advancements in sustainable building materials, and strategic partnerships to capture market share. Geographic distribution shows strong market penetration in North America, particularly the US and Canada, driven by early adoption and a supportive regulatory environment in certain regions. However, growing awareness and changing lifestyles in regions like Europe and APAC suggest promising future growth opportunities in these markets. The overall market trajectory points towards a continuously expanding market, fueled by shifting consumer preferences and a growing awareness of sustainable living practices. The sustained growth in the tiny homes market is largely attributed to the increasing affordability and accessibility of these dwellings. Technological advancements are streamlining the manufacturing process, making tiny homes more cost-effective to produce. This, in turn, translates into lower prices for consumers. Moreover, the rise of online platforms and marketing strategies dedicated to promoting tiny home living further expands market reach and accessibility. While regulatory hurdles and zoning restrictions in some areas present challenges, the overall positive trends in consumer preference, technological innovation, and increased awareness contribute to the optimistic market forecast. The strategic focus on sustainable building materials and energy-efficient designs also attracts environmentally conscious buyers, reinforcing the long-term growth prospects of this niche yet dynamic sector. The market will likely see further diversification in designs, features, and applications, catering to the evolving needs and preferences of a diverse consumer base.

United States RMI: sa: CM: Large Remodeling Projects data was reported at 64.000 Point in Mar 2025. This records a decrease from the previous number of 75.000 Point for Dec 2024. United States RMI: sa: CM: Large Remodeling Projects data is updated quarterly, averaging 74.000 Point from Mar 2020 (Median) to Mar 2025, with 21 observations. The data reached an all-time high of 89.000 Point in Jun 2021 and a record low of 52.000 Point in Mar 2020. United States RMI: sa: CM: Large Remodeling Projects data remains active status in CEIC and is reported by National Association of Home Builders. The data is categorized under Global Database’s United States – Table US.EB: NAHB/Westlake Royal Remodeling Market Index.

Housing Starts in the United States decreased to 1307 Thousand units in August from 1429 Thousand units in July of 2025. This dataset provides the latest reported value for - United States Housing Starts - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The first five entries in the ranking of the 100 largest construction firms worldwide in 2024 had their headquarters in China. The combined revenue of the Chinese companies included in the list was higher than that of all other firms combined. China State Construction Engineering Corporation Ltd. (CSCEC) generated ****** billion U.S. dollars worth of revenue in 2024. When construction companies were compared based on market capitalization, however, France's Vinci dominated the construction market in the past years. Global Construction Industry There are many types of construction sectors that are considered part of the industry. Building, engineering, specialty construction and planning and development are a few sectors that comprise this booming industry. A large construction company like Vinci generated over half of its revenue from its energy segment, which is focused on the design, construction, operation, and maintenance of infrastructure, as well as on providing other related services. In general, China and Europe were the regions with the largest construction contractors by revenue. Construction Workers One of the most important aspects of construction is the workers and laborers that manage the industry on-the-ground. Hourly labor costs for construction industry workers are highest in the United States and Japan. In the U.S., weekly earnings of construction workers have increased dramatically since 1965, indicating their value to society and the industry.

The US Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, and More), by Investment Source (Public and Private), and by Region (Northeast, Midwest, Southeast, West, and Southwest). The Market Forecasts are Provided in Terms of Value (USD).

This dataset displays building permit statistics on an state and metropolitan area level. The data is provided on an annual basis. The data is scaled to the thousands. This data was collected from the National Association of Home Builders' Webpage at: http://www.nahb.org/reference_list.aspx?pageNumber=1&pageSize=0&sectionID=130 Access Date: November 13, 2007 NOTES: Metropolitan areas marked with an asterisk ( * ) are areas where all permit offices are requested to report monthly. ** Office of Management and Budget (OMB) revised the metropolitan classification system in June of 2003. ~Year total includes data revisions that are not captured by the monthly year-to-date (YTD) data and, for some metropolitan areas, localities that only report on an annual basis.

United States RMI: Midwest: CM: Large Remodeling Projects data was reported at 53.000 Point in Mar 2020. United States RMI: Midwest: CM: Large Remodeling Projects data is updated quarterly, averaging 53.000 Point from Mar 2020 (Median) to Mar 2020, with 1 observations. United States RMI: Midwest: CM: Large Remodeling Projects data remains active status in CEIC and is reported by National Association of Home Builders. The data is categorized under Global Database’s United States – Table US.EB067: Remodelling Market Index (New Methodology).

Graph and download economic data for Monthly Supply of New Houses in the United States (MSACSR) from Jan 1963 to Aug 2025 about supplies, new, housing, and USA.

United States RMI: Northeast: CM: Large Remodeling Projects data was reported at 61.000 Point in Mar 2020. United States RMI: Northeast: CM: Large Remodeling Projects data is updated quarterly, averaging 61.000 Point from Mar 2020 (Median) to Mar 2020, with 1 observations. United States RMI: Northeast: CM: Large Remodeling Projects data remains active status in CEIC and is reported by National Association of Home Builders. The data is categorized under Global Database’s United States – Table US.EB067: Remodelling Market Index (New Methodology).