In June 2025, approximately ******* home construction projects started in the United States. The lowest point for housing starts over the past decade was in 2009, just after the 2007-2008 global financial crisis. Since 2010, the number of housing units started has been mostly increasing despite seasonal fluctuations. Statista also has a dedicated topic page on the U.S. housing market as a starting point for additional investigation on this topic. The impact of the global recession The same trend can be seen in home sales over the past two decades. The volume of U.S. home sales began to drop in 2005 and continued until 2010, after which home sales began to increase again. This dip in sales between 2005 and 2010 suggests that supply was outstripping demand, which led to decreased activity in the residential construction sector. Impact of recession on home buyers The financial crisis led to increased unemployment and pay cuts in most sectors, which meant that potential home buyers had less money to spend. The median income of home buyers in the U.S. fluctuated alongside the home sales and starts over the past decade.

Graph and download economic data for New Privately-Owned Housing Units Started: Units in Buildings with 5 Units or More (HOUST5FNSA) from Aug 1963 to Jun 2025 about 5-unit structures +, housing starts, privately owned, housing, and USA.

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: Single-Family Units (HOUST1F) from Jan 1959 to Jun 2025 about housing starts, privately owned, 1-unit structures, family, housing, and USA.

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.

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.

In the United States, the projected number of single-family housing unit starts in 2026 is estimated to increase. After a peak in 2021, the number of home construction starts decreased two years in a row. However, those figures are expected to pick back up in the next years. Single-family homes are the preferred option for Americans Single-family homes were the most common type of home purchased in 2023 in the United States, making up roughly ** percent of all purchases, showing that demand for single-family units remains strong. That explains why there is usually a far higher number of single-family homes than of other type of homes being built any given year. There were roughly *** multifamily homes whose construction started in 2024. Single family housing units in the United States The median size of a single family housing unit in the United States based on square footage has remained relatively consistent over the past two decades. The cost of housing varies around the United States. In 2023, the most expensive median price of an existing single-family home was on the West coast. However, it was in the Northeast where the median price of a new single-family home was the most expensive.

Graph and download economic data for Work Started: Construction: Dwellings and Residential Buildings: Total for United States (USAWSCNDW01MLSAM) from Jan 1960 to Nov 2023 about not started, buildings, residential, and construction.

Housing Starts in China increased to 30364.32 Tens of Thousands Square Metre in June from 23183.61 Tens of Thousands Square Metre in May of 2025. This dataset includes a chart with historical data for China Housing Starts.

Housing Starts Multi Family in the United States increased to 414 Thousand units in June from 317 Thousand units in May of 2025. This dataset includes a chart with historical data for the United States Housing Starts Multi Family.

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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

Texas and Florida were the states with most residential building permits issued in 2024, with roughly ******* and ******* permits issued, respectively. On the other side of the spectrum, Alaska and Rhode Island issued fewer permits than any other state. The overall number of building permits for new residential construction in the U.S. has fluctuated a lot in the past years.

Graph and download economic data for Work Started: Construction: Dwellings and Residential Buildings: Total for Sweden (WSCNDW01SEA470N) from 1960 to 2022 about housing starts, Sweden, buildings, residential, construction, and housing.

The single-family home construction industry in the United States experienced a deacceleration in the decade of the 2010s, compared to the levels seen around 50 years back. In the *****, there was around **** single-family building construction starts, and by the *****, this figure decreased to just *** million construction starts. This analysis disregards the population growth rate of the country.

This table contains data described by the following dimensions (Not all combinations are available): Geography (11 items: Canada; Prince Edward Island; Nova Scotia; Newfoundland and Labrador ...), Housing estimates (3 items: Housing starts; Housing under construction; Housing completions ...), Type of unit (6 items: Total units; Semi-detached; Single-detached; Multiples ...).

In 2024, there were around 218.1 thousand construction starts for owned dwellings in Japan. The total number of housing starts declined by 3.4 percent compared to the previous year.

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.

New Privately Owned Housing Starts by Purpose of Construction, Built for Rent Two or More Units in the South Census Region was 34.00000 Thous. of Units in January of 2025, according to the United States Federal Reserve. Historically, New Privately Owned Housing Starts by Purpose of Construction, Built for Rent Two or More Units in the South Census Region reached a record high of 71.00000 in April of 2022 and a record low of 7.00000 in January of 1993. Trading Economics provides the current actual value, an historical data chart and related indicators for New Privately Owned Housing Starts by Purpose of Construction, Built for Rent Two or More Units in the South Census Region - last updated from the United States Federal Reserve on July of 2025.

New Privately Owned Housing Starts by Purpose of Construction, Built for Rent Two or More Units in the Midwest Census Region was 13.00000 Thous. of Units in January of 2025, according to the United States Federal Reserve. Historically, New Privately Owned Housing Starts by Purpose of Construction, Built for Rent Two or More Units in the Midwest Census Region reached a record high of 30.00000 in April of 1986 and a record low of 2.00000 in January of 2007. Trading Economics provides the current actual value, an historical data chart and related indicators for New Privately Owned Housing Starts by Purpose of Construction, Built for Rent Two or More Units in the Midwest Census Region - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Production, Sales, Work Started and Orders: Construction Work Started on Dwellings: Economic Activity: Construction of Buildings for United States (USAWSCNDW01IXOBSAM) from Jan 1959 to Mar 2024 about not started, buildings, residential, and construction.