Graph and download economic data for Total Construction Spending: Commercial in the United States (TLCOMCONS) from Jan 2002 to May 2025 about expenditures, commercial, construction, and USA.

This statistic represents the value of commercial building construction starts in the United States from 2015 to 2017 with a forecast for the years up to 2022. In the United States, around *** billion U.S. dollars worth of commercial buildings were started in 2017.

The value of commercial construction starts in the United States in 2024 varied significantly depending on the property type. Road and highway construction starts were the category with the highest market share. The construction starts of warehouses amounted to ***** billion U.S. The value of U.S. commercial construction put in place has been growing between 2019 and 2023.

New York-Northern New Jersey-Long Island was the metro area in the U.S. with the highest value of construction starts of multifamily and commercial buildings in 2024. The value of starts for commercial buildings and multifamily housing in Dallas-Fort Worth-Arlington, the second city in the ranking, amounted to 14.6 billion U.S. dollars. The third metropolitan area in the ranking was Washington-Arlington-Alexandria.

Graph and download economic data for Total Construction Spending: Nonresidential in the United States (TLNRESCONS) from Jan 2002 to May 2025 about nonresidential, expenditures, construction, and USA.

This statistic projects the value of new commercial building construction starts in the United States in 2022, broken down by building type. According to the source, the estimated value of new private offices was about **** billion U.S. dollars in that year.

Graph and download economic data for Private New Construction Activity, Commercial Buildings for United States (A02187USA398NNBR) from 1920 to 1963 about buildings, commercial, construction, new, private, and USA.

Commercial building construction contractors have endured declines. Interest rate hikes plunged business sentiment, decreasing expansion projects and hindering new commercial construction. Also, the transition to remote and hybrid work environments has hampered demand for office building construction, with office rental vacancies reaching a 30-year high in the fourth quarter of 2024. Industry revenue has been declining at a CAGR of 0.2% over the past five years to total an estimated $40.0 billion in 2025, including an estimated gain of 1.5% in 2025 as interest rate cuts begin to encourage new construction. Contractors have managed to expand profit from lows in 2020 but surging wage costs have strained considerable profit growth. Some of the growth for commercial building construction contractors has been price-based because of rising material costs for commercial buildings. This trend has been particularly true with office building construction, which increased as a share of revenue despite square footage under construction being at its lowest point in twenty years in the fourth quarter of 2024. Still, growth in additions and improvements spending, particularly from hotels, restaurants and bars, have buoyed the performance of contractors. Also, new construction in markets like warehouses, indoor recreational buildings and retail and wholesale outlets has provided contractors with avenues for growth. Commercial building construction contractors will enjoy solid growth. Continued rate cuts through 2025 will incentivize new construction. One market that will greatly benefit contractors is new hotel construction. While other markets will improve, office building construction may lag as vacancy rates remain high and 90.0% of active office building construction is set to be complete in 2025. Contractors will struggle to expand profit as labour shortages persist and push up wage costs. Tariffs may hike construction material prices, particularly HVAC equipment, potentially disincentivizing downstream construction expenditures. Also, contractors will have to adapt to some evolving trends, like the increased use of modular construction and changing building codes to improve commercial building sustainability. Modular construction techniques will help contractors combat labour shortages and higher wage costs because they are less labour-intensive. Overall, industry revenue is forecast to expand at a CAGR of 1.9% to total an estimated $44.0 billion through the end of 2030.

In 2024, the type of non-residential construction with the highest volume of floor space started were warehouses. That same year, there were around **** million square meters of office space constructed, and **** million square meters of industrial spaces. The floor space of agricultural construction starts has decreased a lot since its peak value in 2008.

Graph and download economic data for Total Private Construction Spending: Nonresidential in the United States (PNRESCONS) from Jan 1993 to May 2025 about nonresidential, expenditures, construction, private, and USA.

Germany Construction Started: NB: Non Residential (NR) data was reported at 611.000 Unit in Mar 2025. This records an increase from the previous number of 578.000 Unit for Feb 2025. Germany Construction Started: NB: Non Residential (NR) data is updated monthly, averaging 771.000 Unit from Jan 2003 (Median) to Mar 2025, with 267 observations. The data reached an all-time high of 1,543.000 Unit in Oct 2016 and a record low of 510.000 Unit in Feb 2009. Germany Construction Started: NB: Non Residential (NR) data remains active status in CEIC and is reported by Statistisches Bundesamt. The data is categorized under Global Database’s Germany – Table DE.EA: Construction Started: New Building.

Israel Construction Area: Started: Non Residential data was reported at 1,044.000 sq m th in Dec 2024. This records an increase from the previous number of 711.000 sq m th for Sep 2024. Israel Construction Area: Started: Non Residential data is updated quarterly, averaging 702.000 sq m th from Mar 1990 (Median) to Dec 2024, with 140 observations. The data reached an all-time high of 1,684.000 sq m th in Jun 2023 and a record low of 280.000 sq m th in Dec 2003. Israel Construction Area: Started: Non Residential data remains active status in CEIC and is reported by Central Bureau of Statistics. The data is categorized under Global Database’s Israel – Table IL.EA003: Construction Area Completed, Started and Under Construction.

In 2024, the value of construction of commercial buildings in the United States decreased noticeably, falling to lower levels than in 2022. After a noticeable drop in the U.S. commercial construction market during the 2008 recession, the value of commercial construction that has been put in place has recovered to pre-recession figures, reaching *** billion U.S. dollars in 2022. Warehouses and private offices were the most common type of commercial construction starts in the United States. How does commercial construction differ? Commercial construction is for the purpose of business through new buildings like offices or a new industrial facility. In the commercial market, contractors must also take into account the needs of other businesses that may also be established within the building. The larger size in commercial construction tends to lead to the utilization of steel as well as other equipment such as cranes. Such equipment also requires skilled personnel for safe and efficient operations.

Graph and download economic data for Total Construction Spending: Total Construction in the United States (TTLCONS) from Jan 1993 to May 2025 about headline figure, expenditures, construction, and USA.

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US Residential Construction Market Size 2025-2029

The US residential construction market size is forecast to increase by USD 242.9 million at a CAGR of 4.5% between 2024 and 2029.

The Residential Construction Market in the US is experiencing significant growth driven by increasing household formation rates and a rising focus on sustainability in new projects. According to the latest data, household formation is projected to continue growing at a steady pace, fueling the demand for new residential units. This trend is particularly evident in urban areas, where population growth and limited space for new development are driving up demand. Meanwhile, the emphasis on sustainability in residential construction is transforming the market landscape. With consumers increasingly prioritizing energy efficiency and eco-friendly features in their homes, builders and developers are responding by incorporating green technologies and sustainable materials into their projects.
This shift not only appeals to environmentally-conscious consumers but also offers long-term cost savings and regulatory compliance benefits. However, the market is not without challenges. Skilled labor shortages continue to pose a significant hurdle for large-scale residential real estate projects. The ongoing shortage of skilled laborers, including carpenters, electricians, and plumbers, is driving up labor costs and delaying project timelines. To mitigate this challenge, some builders are exploring alternative solutions, such as modular construction and automation, to streamline their operations and reduce their reliance on traditional labor sources. The Residential Construction Market in the US presents significant opportunities for companies seeking to capitalize on the growing demand for new housing units and the shift towards sustainability.
However, navigating the challenges of labor shortages and rising costs will require innovative solutions and strategic planning. By staying informed of market trends and adapting to evolving consumer preferences, companies can effectively position themselves for success in this dynamic market.

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

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The residential construction market in the United States continues to exhibit dynamic activity, driven by various economic factors. Housing supply remains a key focus, with ongoing discussions surrounding the affordable housing trend and efforts to increase inventory, particularly for single-family homes and new constructions. Mortgage and federal funds rates have an impact on residential investment, with fluctuations influencing buyer decisions and construction costs. The labor market plays a crucial role, as workforce availability and wages affect both housing starts and cancellation rates. Inflation and interest rates, monitored closely by the Federal Reserve, also shape the market's direction. Recession risks and economic conditions influence construction spending across various sectors, including multifamily and single-family homes.
Federal programs, such as housing choice vouchers and fair housing initiatives, continue to support home buyers and promote equitable housing opportunities. Building permits and housing starts serve as essential indicators of market health and future growth, with some sectors experiencing double-digit growth. Overall, the residential construction market in the US remains a significant economic driver, shaped by a complex interplay of economic, demographic, and policy factors.

How is this market segmented?

The market 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.

Product

  Apartments and condominiums
  Luxury Homes
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Construction Material

  Wood-framed
  Concrete
  Steel
  Modular/Prefabricated


Geography

  US

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 is experiencing growth in both the apartment and condominium sectors, driven by the increasing trend toward urbanization and changing lifestyle preferences. Apartments, typically owned by property management companies, and condominiums, with individually owned units within a larger complex, contribute significantly to the market. The Federal Reserve's influence on the economy through the federal funds rate and mortgage rates impacts borrowing rates and home construction activity. The affordability of housing, particularly for younger generations, is a concern due to factors such as inflation, labor market conditions, and savings

Japan Bldg Construction Started: Area: sa: ND: Commercial & Services data was reported at 1,351.000 sq m th in May 2018. This records a decrease from the previous number of 1,587.000 sq m th for Apr 2018. Japan Bldg Construction Started: Area: sa: ND: Commercial & Services data is updated monthly, averaging 2,442.000 sq m th from Jan 1965 (Median) to May 2018, with 641 observations. The data reached an all-time high of 5,142.000 sq m th in Aug 1990 and a record low of 959.000 sq m th in Aug 1965. Japan Bldg Construction Started: Area: sa: ND: Commercial & Services data remains active status in CEIC and is reported by CEIC Data. The data is categorized under Global Database’s Japan – Table JP.EA001: Building Construction Started.

Housing Starts in the United States increased to 1321 Thousand units in June from 1263 Thousand units in May 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.

Graph and download economic data for New Privately-Owned Housing Units Started: Units in Buildings with 5 Units or More (HOUST5F) from Jan 1959 to May 2025 about 5-unit structures +, housing starts, privately owned, housing, and USA.

Israel Construction Area: Non Residential: Started: Agriculture Buildings data was reported at 33.000 sq m th in Mar 2018. This records a decrease from the previous number of 55.000 sq m th for Dec 2017. Israel Construction Area: Non Residential: Started: Agriculture Buildings data is updated quarterly, averaging 79.000 sq m th from Mar 1996 (Median) to Mar 2018, with 89 observations. The data reached an all-time high of 213.000 sq m th in Sep 2005 and a record low of 33.000 sq m th in Mar 2018. Israel Construction Area: Non Residential: Started: Agriculture Buildings data remains active status in CEIC and is reported by Central Bureau of Statistics. The data is categorized under Global Database’s Israel – Table IL.EA003: Construction Area Completed, Started and Under Construction.

The surface area of construction starts for industrial buildings in the United States decreased sharply in late 2022 and 2023. However, it is expected to recover in 2024, as it is forecast that the construction of approximately ********** square feet of industrial buildings will start in the last quarter of 2024.