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 19.78 billion U.S. The value of U.S. commercial construction put in place has been growing between 2019 and 2023.

Housing Starts in the United States increased to 1501 Thousand units in February from 1350 Thousand units in January 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.

In February 2025, approximately 111,100 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.

In 2024, construction works for 344.7 thousand detached houses were launched in Japan. The number of construction starts of single-family homes decreased compared to the previous year.

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US Residential Construction Market Size 2025-2029

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

The residential construction market is experiencing significant growth, driven by several key factors. Firstly, the increasing household formation rates in the US continue to fuel demand for new housing units. Secondly, there is a rising focus on sustainability in residential construction projects, with homebuilders increasingly adopting energy-efficient and eco-friendly building materials and practices.
However, the market also faces challenges, including a shortage of skilled labor for large-scale residential real estate projects, which can impact project timelines and budgets. These trends and challenges are shaping the future of the residential construction industry in the US.

What will be the US Residential Construction Market Size During the Forecast Period?

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The residential construction market is experiencing a significant shift as the affordable housing trend gains momentum. The Federal Reserve's decision to keep the federal funds rate low has contributed to a decrease in mortgage rates, making it an opportune time for home buyers to enter the market. However, the housing supply remains a concern, with construction spending in the residential investment sector showing only modest growth. The labor market's current state is another factor influencing the residential construction industry. With a low unemployment rate, there is a high demand for labor, leading to increased wages and, in turn, higher construction costs.
Inflation also poses a challenge, as it erodes the purchasing power of home buyers and builders alike. The economy's overall health plays a crucial role in the residential construction market's dynamics. A strong economy typically leads to increased demand for new homes, as evidenced by the double-digit growth in housing starts and building permits for single-family homes. However, a recession can lead to a significant decrease in construction activity, as seen in the cancellation rate of housing projects. The Federal Reserve's interest rate decisions, inflation, and the economy's health all impact the residential construction market. Affordable housing programs, such as housing choice vouchers and fair housing programs, play a vital role in ensuring access to housing for a broader population. The construction sectors must navigate these market dynamics to remain competitive and meet the demand for new homes.
The US residential construction market is seeing significant shifts, driven by various housing market trends. Sustainable homebuilding practices are gaining momentum, with a focus on energy-efficient homes and green building materials. Modular construction and prefab housing are becoming increasingly popular for their cost-effective and timely solutions. Urban redevelopment projects are revitalizing city areas, while suburban expansion is fueling demand for new homes. Affordable housing projects are crucial in addressing housing shortages, and real estate investment continues to thrive in these sectors. Smart home integration is also on the rise, with luxury home construction embracing high-tech features. The impact of mortgage rates, coupled with multifamily housing growth and home renovation demand, adds complexity to the market's dynamics.

How is this market segmented and which is the largest segment?

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
  Villas
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


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 the apartment and condominium sectors, driven by shifting preferences and lifestyle choices. Urbanization is a significant factor fueling this trend, as more individuals opt for the conveniences and amenities offered in urban areas. As a result, developers are constructing modern, sustainable, and community-focused living spaces in the form of high-rise apartment buildings and condominium complexes. These structures cater to various demographics, including intergenerational groups and younger generations, reflecting diverse living circumstances. The labor economy and vaccination rates have also contributed to the continued activity in the residential sector, allowing for steady progress in construction projects. While the non-residential sector has faced challenges, the residential sector remains a vi

Graph and download economic data for New Privately-Owned Housing Units Started: Single-Family Units (HOUST1F) from Jan 1959 to Feb 2025 about housing starts, privately owned, 1-unit structures, family, housing, and USA.

In 2024, the expanse of newly started real estate construction in China amounted to less than 739 million square meters. This was again a significant decline of more than 20 percent from the previous year, despite the initial expectation of recovery after the end of COVID-19 control measures. The construction boom The housing market reforms initiated in 1998 unleashed a two-decade-long golden era for China's real estate and construction sectors. With the dramatic rise in home prices and nationwide urban renewal projects, a significant number of residential properties, mainly consisting of high-rise complexes, were erected across China for sale to its growing middle-class population. By 2013, the annual expanse of newly started construction projects exceeded 2,000 million square meters. Despite a decline in the years that followed, with the government's stimulus policies, constructions reached an all-time high of 2,217.54 million square meters by 2019, before the start of the COVID-19 pandemic. Increased risks in the real estate sector The continuous expansion of the real estate industry has resulted in a substantial oversupply in the market. This is particularly noticeable in smaller cities and towns in the provinces. Many property developers, including giants such as Evergrande and Country Garden, found themselves in financial hardship owing to the large number of unsaleable or vacant homes they had built. This has resulted in more than one million unfinished homes across China, exposing homebuyers and their banks to significant financial risks. Moreover, due to the slowdown of China's economy, the outstanding mortgages accumulated over the last two decades will also become a long-term concern for the country's financial institutions and industries.

In 2024, non-residential construction starts in Japan covered a floor area of 39.2 million square meters. The floor space of new construction decreased by 9.8 percent compared to the previous year.

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.

Graph and download economic data for New Privately Owned Housing Starts in the United States by Purpose of Construction, Built for Sale Two or More Units (HOUSTPFST2UMQ) from Q1 1974 to Q4 2024 about 2 units +, housing starts, privately owned, construction, new, sales, housing, and USA.

Building Permits in the United States decreased to 1459 Thousand in February from 1473 Thousand in January of 2025. This dataset provides the latest reported value for - United States Building Permits - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In 2024, most of the newly constructed floor space in France was dedicated to one-dwelling buildings. Nevertheless, the figures for the other types of housing refer to the number of buildings whose construction started that year, and not the number of housing units, which would be higher, as every multifamily building contains several homes.

Housing Starts in Turkey increased to 17734 units in December from 8633 units in November of 2024. This dataset provides the latest reported value for - Turkey Housing Starts - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Germany Construction Started: NB: Non Residential (NR) data was reported at 580.000 Unit in Dec 2024. This records a decrease from the previous number of 608.000 Unit for Nov 2024. Germany Construction Started: NB: Non Residential (NR) data is updated monthly, averaging 776.000 Unit from Jan 2003 (Median) to Dec 2024, with 264 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.EA048: Construction Started: New Building.

Housing Starts Multi Family in the United States increased to 370 Thousand units in February from 330 Thousand units in January of 2025. This dataset includes a chart with historical data for the United States Housing Starts Multi Family.

Germany Construction Started: NB: BD: RS: Households data was reported at 139.000 sq m th in Nov 2024. This records a decrease from the previous number of 141.000 sq m th for Oct 2024. Germany Construction Started: NB: BD: RS: Households data is updated monthly, averaging 195.000 sq m th from Jan 2003 (Median) to Nov 2024, with 263 observations. The data reached an all-time high of 527.000 sq m th in Mar 2021 and a record low of 102.000 sq m th in Feb 2009. Germany Construction Started: NB: BD: RS: Households data remains active status in CEIC and is reported by Statistisches Bundesamt. The data is categorized under Global Database’s Germany – Table DE.EA048: Construction Started: New Building.

Construction Started: NB: Dwellings: Germany data was reported at 2,210.000 Unit in Nov 2024. This records a decrease from the previous number of 2,655.000 Unit for Oct 2024. Construction Started: NB: Dwellings: Germany data is updated monthly, averaging 2,027.000 Unit from Jan 2003 (Median) to Nov 2024, with 263 observations. The data reached an all-time high of 5,413.000 Unit in Dec 2021 and a record low of 899.000 Unit in Jan 2010. Construction Started: NB: Dwellings: Germany data remains active status in CEIC and is reported by Statistisches Bundesamt. The data is categorized under Global Database’s Germany – Table DE.EA048: Construction Started: New Building.

In 2024, commercial building construction dominated the non-residential building work expected to start in that year in New Zealand at over 2,110 buildings. In contrast, only 206 health buildings were expected to start being worked on in that year.

Housing Starts in the United Kingdom increased to 29310 units in the third quarter of 2024 from 25020 units in the second quarter of 2024. This dataset provides the latest reported value for - United Kingdom Housing Starts - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In February 2025, there were less building permits for new residential construction in the United States a year earlier. Despite some fluctuations, the number of building permits issued in the past couple of years has been falling. The number of U.S. new home construction starts has also been lower than in previous years.