Total Housing Inventory in the United States increased to 1550 Thousands in July from 1540 Thousands in June of 2025. This dataset includes a chart with historical data for the United States Total Housing Inventory.

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

The US residential real estate market, a cornerstone of the American economy, is projected to experience steady growth over the next decade. While the provided CAGR of 2.04% is a modest figure, it reflects a market maturing after a period of significant expansion. This sustained growth is driven by several key factors. Firstly, population growth and urbanization continue to fuel demand for housing, particularly in densely populated areas and emerging suburban markets. Secondly, low interest rates (historically, though this can fluctuate) have made mortgages more accessible, stimulating buyer activity. Thirdly, a robust construction sector, though facing challenges in material costs and labor shortages, is gradually increasing the housing supply, mitigating some of the upward pressure on prices. However, challenges remain. Rising inflation and potential interest rate hikes pose a risk to affordability, potentially dampening demand. Furthermore, the ongoing evolution of remote work is reshaping residential preferences, with a shift toward larger homes in suburban or exurban locations. This trend impacts the relative demand for various property types, potentially increasing the appeal of landed houses and villas compared to apartments and condominiums in certain regions. The segmentation of the market into apartments/condominiums and landed houses/villas provides crucial insights into consumer preferences and investment strategies. High-density urban areas will continue to see strong demand for apartments and condos, while suburban and rural areas are likely to experience a greater increase in landed property sales. Major players like Simon Property Group, Mill Creek Residential, and others are strategically adapting to these trends, focusing on both development and management across various property types and geographic locations. Analyzing regional data within the US (e.g., comparing growth in the Northeast versus the Southwest) will highlight market nuances and potential investment opportunities. While the global data provided is valuable for understanding broader market forces, focusing the analysis on the US market allows for a more granular understanding of the specific drivers, trends, and challenges within this significant segment of the real estate sector. The forecast period (2025-2033) suggests continued, albeit measured, expansion. Recent developments include: May 2022: Resource REIT Inc. completed the sale of all of its outstanding shares of common stock to Blackstone Real Estate Income Trust Inc. for USD 14.75 per share in an all-cash deal valued at USD 3.7 billion, including the assumption of the REIT's debt., February 2022: The largest owner of commercial real estate in the world and private equity company Blackstone is growing its portfolio of residential rentals and commercial properties in the United States. The company revealed that it would shell out about USD 6 billion to buy Preferred Apartment Communities, an Atlanta-based real estate investment trust that owns 44 multifamily communities and roughly 12,000 homes in the Southeast, mostly in Atlanta, Nashville, Charlotte, North Carolina, and the Florida cities of Jacksonville, Orlando, and Tampa.. Key drivers for this market are: Investment Plan Towards Urban Rail Development. Potential restraints include: Italy’s Fragmented Approach to Tenders. Notable trends are: Existing Home Sales Witnessing Strong Growth.

The number of home sales in the United States peaked in 2021 at almost ************* after steadily rising since 2018. Nevertheless, the market contracted in the following year, with transaction volumes falling to ***********. Home sales remained muted in 2024, with a mild increase expected in 2025 and 2026. A major factor driving this trend is the unprecedented increase in mortgage interest rates due to high inflation. How have U.S. home prices developed over time? The average sales price of new homes has also been rising since 2011. Buyer confidence seems to have recovered after the property crash, which has increased demand for homes and also the prices sellers are demanding for homes. At the same time, the affordability of U.S. homes has decreased. Both the number of existing and newly built homes sold has declined since the housing market boom during the coronavirus pandemic. Challenges in housing supply The number of housing units in the U.S. rose steadily between 1975 and 2005 but has remained fairly stable since then. Construction increased notably in the 1990s and early 2000s, with the number of construction starts steadily rising, before plummeting amid the infamous housing market crash. Housing starts slowly started to pick up in 2011, mirroring the economic recovery. In 2022, the supply of newly built homes plummeted again, as supply chain challenges following the COVID-19 pandemic and tariffs on essential construction materials such as steel and lumber led to prices soaring.

The house price index (HPI) shows changes in the value of residential properties in England, Scotland, Wales, and Northern Ireland. With the HPI set at a base of 100 in January 2023, a value of over 100 would mark an increase in the average dwelling price. A value of under 100 points, on the other hand, would indicate that the average price has dropped. In April 2025, the index measured 101.7 index points, showing an increase of 1.7 percent since January 2023. UK house prices grew rapidly during the COVID-19 pandemic House prices in the UK grew steadily between 2015 and 2020, fueled by stable economic growth and low borrowing costs. In the following two years, a combination of factors exacerbated this trend. These factors included a stamp duty holiday, low interest rates, a shortage of new homes supplied, and a high housing demand. As a result, house price growth soared, hitting a record 13.6 percent in July 2022. This trend in the index, and therefore the value of UK residential properties, has also been observed by the Halifax house price index. What is the average house price in the UK? Average house prices are affected by several factors. Economic growth, unemployment, interest rates and mortgage availability can all drive them up or down. A shortage of supply means that the need for housing and the competitive market created will push house prices up. An excess of housing, on the other hand, means prices fall to stimulate buyers.

The average sales price of new homes in the United States experienced a slight decrease in 2024, dropping to 512,2000 U.S. dollars from the peak of 521,500 U.S. dollars in 2022. This decline came after years of substantial price increases, with the average price surpassing 400,000 U.S. dollars for the first time in 2021. The recent cooling in the housing market reflects broader economic trends and changing consumer sentiment towards homeownership. Factors influencing home prices and affordability The rapid rise in home prices over the past few years has been driven by several factors, including historically low mortgage rates and increased demand during the COVID-19 pandemic. However, the market has since slowed down, with the number of home sales declining by over two million between 2021 and 2023. This decline can be attributed to rising mortgage rates and decreased affordability. The Housing Affordability Index hit a record low of 98.1 in 2023, indicating that the median-income family could no longer afford a median-priced home. Future outlook for the housing market Despite the recent cooling, experts forecast a potential recovery in the coming years. The Freddie Mac House Price Index showed a growth of 6.5 percent in 2023, which is still above the long-term average of 4.4 percent since 1990. However, homebuyer sentiment remains low across all age groups, with people aged 45 to 64 expressing the most pessimistic outlook. The median sales price of existing homes is expected to increase slightly until 2025, suggesting that affordability challenges may persist in the near future.

Proportion of the total number of dwellings that can be built on sites that are ready to develop. Source: Communities and Local Government (CLG) Publisher: DCLG Floor Targets Interactive Geographies: Local Authority District (LAD), County/Unitary Authority, Government Office Region (GOR), National Geographic coverage: England Time coverage: 2008/09 Guidelines: Good performance will be where a Local Planning Authority can demonstrate a supply of sites that are ready to develop and on which housing schemes can be built quickly over a minimum of 5 years or more. Specifically, where LAs exceed their target for housing supply (that is when the proportion of housing supply is over 100%).

This is the housing supply rate status data for Haenam-gun, Jeollanam-do. This data consists of 9 types: year, number of households, total, single-family homes, multi-family homes, apartments, townhouses, multi-family homes, and supply rate. It shows the numerical changes in the number of households and residential homes over 14 years from 2009 to 2022. - The number of single-family homes, multi-family homes, apartments, and townhouses has steadily increased. - Multi-family homes have increased until 2017 and then decreased. - The supply rate has gradually increased and is maintained at over 110% as of 2018. - Vacant houses, which are one of the biggest problems in rural areas, are included in the figures.

The municipality’s assessment of the housing market situation in particular housing for the elderly in the municipality. Balance, surplus or deficit of housing. Housing deficits do not always mean that there are housing social problems such as overcrowding or extensive subletting as a widespread phenomenon. Housing deficits can mean that there is a dynamic economy in the municipality, where increased income leads to increased demand for housing. The fact that a municipality reports a deficit on housing means in many cases that it is difficult to move to, or within the municipality. surplus of housing means that there are constantly more vacant dwellings, or homes for sale, than is demanded. The existence of unleashed apartments in a single residential area does not necessarily mean that the local housing market is characterised by a surplus. A surplus of housing does not necessarily mean that there are suitable housing in relation to the demand and/or need in the municipality. Special forms of housing for the elderly refer to housing in accordance with Chapter 5, Section 5 of the Social Services Act. In order to be able to live in special housing, you need an aid assessment and a decision from the municipality.

Proportion of the total number of dwellings that can be built on sites that are ready to develop. Source: Communities and Local Government (CLG) Publisher: DCLG Floor Targets Interactive Geographies: Local Authority District (LAD), County/Unitary Authority, Government Office Region (GOR), National Geographic coverage: England Time coverage: 2008/09 Guidelines: Good performance will be where a Local Planning Authority can demonstrate a supply of sites that are ready to develop and on which housing schemes can be built quickly over a minimum of 5 years or more. Specifically, where LAs exceed their target for housing supply (that is when the proportion of housing supply is over 100%).

The municipality’s assessment of the housing market situation for special forms of housing for persons with disabilities in the municipality. Special forms of accommodation for persons with disabilities are housing under the Act on Support and Services for Persons with Certain Disabilities (LSS), or Chapter 5, Section 7 of the Social Services Act. Balance, surplus or deficit of housing. Housing deficits do not always mean that there are housing social problems such as overcrowding or extensive subletting as a widespread phenomenon. Housing deficits can mean that there is a dynamic economy in the municipality, where increased income leads to increased demand for housing. The fact that a municipality reports a deficit on housing means in many cases that it is difficult to move to, or within the municipality. surplus of housing means that there are constantly more vacant dwellings, or homes for sale, than is demanded. The existence of unleashed apartments in a single residential area does not necessarily mean that the local housing market is characterised by a surplus. A surplus of housing does not necessarily mean that there are suitable housing in relation to the demand and/or need in the municipality.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

Despite the pandemic's broader economic disruptions, low interest rates in 2020 initially fueled a housing market boom driven by work-from-home orders and a shift toward residential construction. This surge was a lifeline for builders amid economic turbulence. However, the tide turned in 2022 and 2023 as the Federal Reserve's interest rate hikes curbed housing investments, dampening consumer enthusiasm and slowing residential construction activity. Low housing stock and rate cuts late in 2024 led to growth in single-family housing starts, boosting revenue. Single-family home development climbed in more affordable and less densely populated areas in 2024, but new multifamily developments have plummeted. Industry revenue has been climbing at a CAGR of 0.8% over the past five years to total an estimated $233.5 billion in 2025, including an estimated increase of 0.2% in 2025 alone. The initial boom in 2020 and 2021 led to one of the most significant expansions in home-building in recent memory, yet interest rate hikes soon tempered this growth. As smaller-scale developers struggled with escalating construction costs and regulatory hurdles, larger, financially robust companies like DR Horton, Lennar and PulteGroup managed to thrive and expand their operations. These larger companies maximized their market share, leveraging their resources to navigate the challenging economic climate and maintain momentum despite the pressures of rising material costs and labor shortages. These rising material costs and labor shortages have driven up purchase and wage costs, contributing to profit declines over the past five years. Expected interest rate cuts will boost housing developers. Developers will benefit from these favorable conditions, especially those who strategically invest in less densely populated areas to meet the growing appetite for affordable housing. Rate cuts will also provide relief to smaller housing developers more sensitive to interest rate fluctuations. Sustainability also looms on the horizon, with tax incentives and energy-efficient building standards encouraging developers to explore eco-friendly construction. Still, rising material costs and labor shortages will continue to stifle profit growth and increase housing prices. Larger companies will continue to gain market share, strategically developing homes near areas with strong job growth near new large manufacturing facilities. Industry revenue is forecast to expand at a CAGR of 1.4% to total an estimated $250.6 billion through the end of 2030.

Graph and download economic data for Existing Home Sales: Housing Inventory (HOSINVUSM495N) from Jul 2024 to Jul 2025 about inventories, sales, housing, and USA.

The China residential real estate industry is expected to grow at a CAGR of XX% during 2025-2033. The market size was valued at XX million in 2025 and is projected to reach XX million by 2033. The growth of the market is attributed to the increasing urbanization, rising disposable income, and government policies that support homeownership. The key drivers of the market include the increasing demand for housing from the growing middle class, the government's focus on affordable housing, and the development of smart cities. However, the market is also facing some challenges, such as the rising cost of land, the strict regulations on real estate development, and the increasing competition from the rental market. The market is segmented by type into apartments & condominiums, villas & landed houses, and by key cities into Shenzhen, Beijing, Shanghai, Hangzhou, Guangzhou, and other key cities. The major players in the market include Evergrande Real Estate Group Limited, China Overseas Land & Investment Limited, Longfor Group Holdings Limited, China State Construction Engineering Corporation Ltd (CSCEC), Shimao Group Holdings Limited, Sunac China Holdings Limited, China Resources Land Limited, China Vanke Co Ltd, China Merchants Shekou Industrial Zone Holdings Co Ltd, and Country Garden Holdings Company Limited. The market concentration is moderate, with the top 5 players accounting for XX% of the market share. The companies are focusing on expanding their presence in key cities, developing new projects, and offering innovative products and services to meet the evolving needs of consumers. The China residential real estate industry is one of the largest and most important in the world. In 2021, the industry was valued at over $4 trillion USD and is projected to grow to over $6 trillion USD by 2025. The industry is characterized by a high concentration of large developers, with the top 10 developers accounting for over 50% of the market share. The industry is also highly regulated, with the government implementing a number of policies to control prices and prevent speculation. Recent developments include: February 2022: Dar Al-Arkan, a Saudi real estate corporation, announced the creation of an office in Beijing, China. The move is in accordance with Dar Al-strategic Arkan's expansion ambitions and builds on the company's global brand development efforts. The company's Beijing office is expected to serve a variety of tasks, including establishing joint ventures between Dar Al-Arkan and renowned Chinese real estate developers for both the Chinese and Saudi markets, as well as enhancing investment and knowledge-sharing opportunities between the two countries. Dar Al-office Arkan's will serve as a hub for Chinese enterprises and investors looking to expand, start businesses, or invest in the Kingdom., February 2022: China Evergrande Group announced that it sold stakes and "right to debt" in four developments to two state-owned trust firms for CNY 2.13 billion (USD 0.35 billion), in a move to ensure their construction goes ahead as well as delivery of its other projects. The world's most indebted property developer is struggling to complete projects and homes - deemed a priority by China's policymakers to ensure social stability - while weighed down by its more than USD 300 billion in liabilities. Evergrande sold its stake and right to debt in a residential development in Chongqing and Dongguan to Everbright Trust for CNY 1.03 billion (USD 0.19 billion), as well as those in a housing project in Foshan and a theme park development in Guangzhou to Minmetals Trust for CNY 1.1 billion (USD 0.16 billion).. Key drivers for this market are: Government Infrastructure Spending, Urbanization and Increasing Disposable Incomes. Potential restraints include: Oversupply in the Real Estate, Labor Shortages. Notable trends are: Urbanization Driving the Residential Real Estate Market.

The U.S. housing market has seen significant price growth since 2011, with the median sales price of existing single-family homes reaching a record high of ******* U.S. dollars in 2024. This represents a substantial increase of ******* over the past five years, highlighting the rapid appreciation of home values across the country. The trend of rising prices can also be observed in the new homes sold. Regional variations and housing shortage While the national median price provides a broad overview, regional differences in home prices are notable. The West remains the most expensive region, with prices twice higher than in the more affordable Midwest. This disparity persists despite efforts to increase housing supply. In 2024, approximately ******* building permits for single-family housing units were granted, showing a slight increase from previous years but still well below the 2005 peak of **** million permits. The ongoing housing shortage continues to drive prices upward across all regions. Market dynamics and future outlook The number of existing home sales has plummeted since 2020, reflecting the growing cost of homeownership. Factors such as high home prices, unfavorable economic conditions, and aggressive increases in mortgage rates have contributed to affordability challenges for many potential homebuyers. Despite these challenges, forecasts suggest a potential recovery in the housing market by 2025, though transaction volumes are expected to remain below long-term averages.

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.

Manufactured & Mobile Homes Market Outlook

The global manufactured and mobile homes market size was valued at USD 25 billion in 2023 and is projected to reach USD 45 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2032. This market is primarily driven by increasing demand for affordable housing solutions and the rising cost of traditional home construction, making manufactured and mobile homes a viable alternative for many consumers.

One of the key growth factors for the manufactured and mobile homes market is the affordability it offers compared to conventional housing. With rising property prices and urbanization, many individuals and families are seeking cost-effective living solutions. Manufactured homes offer a lower cost per square foot, which appeals to budget-conscious consumers. Additionally, advancements in manufacturing technology have significantly improved the quality and aesthetic appeal of these homes, making them an attractive option for a broader audience.

Another significant driver is the speed and efficiency of manufactured home construction. Traditional home building can take several months to over a year, subject to weather conditions and other delays. In contrast, manufactured homes are built in controlled factory environments, which greatly reduces construction time and minimizes weather-related delays. This rapid production capability addresses the urgent demand for housing in many markets, particularly in regions facing housing shortages.

Sustainability and environmental concerns are also propelling the market. Manufactured and mobile homes are often built with energy-efficient materials and techniques, reducing their ecological footprint. The controlled manufacturing environment allows for more precise use of resources, reducing waste. Additionally, these homes can be equipped with sustainable features such as solar panels and energy-efficient appliances, appealing to environmentally conscious consumers.

Regionally, North America is a significant player in the manufactured and mobile homes market, driven by the need for affordable housing and favorable government policies. The Asia Pacific region is also experiencing robust growth due to rapid urbanization and population growth, particularly in countries like China and India. Europe shows steady demand, particularly in areas facing housing shortages and high real estate prices.

Product Type Analysis

The product type segment in the manufactured and mobile homes market includes single-wide, double-wide, and triple-wide homes. Single-wide homes are usually the most affordable option and consist of a single section. These homes are easy to transport and set up, making them a popular choice for budget-conscious buyers. The simplicity and cost-effectiveness of single-wide homes contribute significantly to their market demand, especially in regions with lower disposable incomes.

Double-wide homes are composed of two sections that are joined together on-site. These homes offer more space and amenities compared to single-wide homes and are often more customizable. The increased living space and the improving design aesthetics make double-wide homes a preferred choice for families. The market for double-wide homes is growing as consumers seek more spacious and comfortable living environments without the high costs associated with traditional housing.

Triple-wide homes are the largest in this category, consisting of three joined sections. These homes offer the most space and luxury features, making them comparable to traditional homes. They are often chosen by consumers seeking a more permanent housing solution with ample living space and high-end amenities. The triple-wide segment is expected to witness steady growth, driven by demand from higher-income consumers looking for quality and spaciousness in their homes.

Advancements in manufacturing technology have also played a crucial role in the evolution of these product types. Modern design and construction techniques have improved the durability, energy efficiency, and aesthetic appeal of both single, double, and triple-wide homes. This technological progress is expected to attract a wider range of consumers, further bolstering market growth across all product segments.

Report Scope

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.