The number of U.S. home sales in the United States declined in 2024, after soaring in 2021. A total of four million transactions of existing homes, including single-family, condo, and co-ops, were completed in 2024, down from 6.12 million in 2021. According to the forecast, the housing market is forecast to head for recovery in 2025, despite transaction volumes expected to remain below the long-term average. Why have home sales declined? The housing boom during the coronavirus pandemic has demonstrated that being a homeowner is still an integral part of the American dream. Nevertheless, sentiment declined in the second half of 2022 and Americans across all generations agreed that the time was not right to buy a home. A combination of factors has led to house prices rocketing and making homeownership unaffordable for the average buyer. A survey among owners and renters found that the high home prices and unfavorable economic conditions were the two main barriers to making a home purchase. People who would like to purchase their own home need to save up a deposit, have a good credit score, and a steady and sufficient income to be approved for a mortgage. In 2022, mortgage rates experienced the most aggressive increase in history, making the total cost of homeownership substantially higher. Are U.S. home prices expected to fall? The median sales price of existing homes stood at 413,000 U.S. dollars in 2024 and was forecast to increase slightly until 2026. The development of the S&P/Case Shiller U.S. National Home Price Index shows that home prices experienced seven consecutive months of decline between June 2022 and January 2023, but this trend reversed in the following months. Despite mild fluctuations throughout the year, home prices in many metros are forecast to continue to grow, albeit at a much slower rate.

Key information about House Prices Growth

• US house prices grew 5.2% YoY in Dec 2024, following an increase of 5.4% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 1992 to Dec 2024, with an average growth rate of 5.4%.
• House price data reached an all-time high of 17.7% in Sep 2021 and a record low of -12.4% in Dec 2008.

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.

Housing Index in Tunisia increased to 147.60 points in the fourth quarter of 2021 from 146.70 points in the third quarter of 2021. This dataset provides - Tunisia Housing Index- actual values, historical data, forecast, chart, statistics, economic calendar and news.

The value of single-family housing construction in the United States is expected to reach over 300 billion U.S. dollars by 2025. Single family housing starts were not heavily affected by COVID-19 in 2020, as there was an increase in dollar value when compared to 2019. Indeed, starts grew by over 20 billion U.S. dollars - or more than 10 percent - between 2019 to 2020, even though new residential construction figures for the United States did decline significantly early in 2020. It is also forecasted that U.S. home sales will further increase.

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.

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 Median Sales Price of Houses Sold for the United States (MSPUS) from Q1 1963 to Q1 2025 about sales, median, housing, and USA.

Global Microelectronics Package Housing Market size is expected to grow at a CAGR of approximately around 7%, North America which is the largest region in the industry.
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House prices in Germany rose by about 12 percent in 2021 but price growth is forecast to slow down until 2024. According to a report by the Deutsche Bundesbank, the German housing market is set to experience a 1.2 percent increase in the average house price in 2023 and 3.2 percent increase in 2024. According to the source, despite higher construction costs, financing costs, and overall economic uncertainty, the high housing demand alongside insufficient supply are likely to continue to drive prices up. Residential real estate prices in the largest cities have grown substantially since 2012. In Munich - Germany's most expensive residential market - the square meter price reached almost 11,000 euros per square meter in 2022.

Nahb Housing Market Index in the United States increased to 33 points in July from 32 points in June of 2025. 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.

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

Housing Starts in Iceland increased to 4338 units in 2021 from 2406 units in 2020. This dataset provides - Iceland Housing Starts- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Housing Index in Australia increased to 183.90 points in the fourth quarter of 2021 from 175.60 points in the third quarter of 2021. This dataset provides the latest reported value for - Australia House Price Index - 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 All-Transactions House Price Index for the United States (USSTHPI) from Q1 1975 to Q1 2025 about appraisers, HPI, housing, price index, indexes, price, and USA.

According to Cognitive Market Research, the global Real Estate Sector market size will be USD 3625.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.50% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 1450.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 1087.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 833.87 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 181.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 72.51 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
The Commercial real estate is the fastest-growing segment, driven by economic development, urbanization, and a shift toward modern, multi-use spaces

Market Dynamics of Real Estate Sector Market

Key Drivers for Real Estate Sector Market

Urbanization and Population Growth to Boost Market Growth

Urbanization is one of the primary drivers of the real estate sector. As more people migrate from rural areas to urban centers, there is an increasing demand for both residential and commercial properties. The growth of megacities around the world has spurred significant development in infrastructure, housing, and office spaces. This trend is expected to continue as populations in cities grow, creating new opportunities for real estate developers to meet the expanding demand for housing, retail spaces, and industrial areas. Additionally, urbanization leads to an increase in disposable income, further boosting the demand for better housing options and modern amenities. For instance, in October 2021, the Reserve Bank of India (RBI) stated that the benchmark interest rate would remain at 4%, providing a substantial boost to the country's real estate sector. Low house loan interest rates are predicted to fuel housing demand and boost sales by 35-40% during the holiday season of 2021

Economic Expansion and Rising Income Levels to Drive Market Growth

The overall economic expansion in many countries is another key driver for the real estate market. As economies grow, the demand for residential, commercial, and industrial properties rises in tandem. Rising income levels also contribute to increased purchasing power, allowing more people to invest in homes and businesses. Furthermore, a strong economy often leads to higher investor confidence, attracting more capital into the real estate sector. The construction of new infrastructure projects such as highways, airports, and transport systems also fuels further demand for real estate, thereby benefiting the market.

Restraint Factor for the Real Estate Sector Market

High Construction Costs, will Limit Market Growth

One of the significant restraints in the real estate sector is the rising cost of construction materials and labor. The volatility in the prices of raw materials such as steel, cement, and timber, combined with labor shortages, leads to higher construction costs, which can delay projects and reduce profit margins. Additionally, increased costs can make property prices unaffordable for potential buyers, thus slowing the pace of development. This situation is exacerbated by global supply chain disruptions and inflationary pressures, which negatively affect the overall cost structure in real estate development. Developers must navigate these challenges while maintaining competitive pricing to ensure market viability.

Impact of Covid-19 on the Real Estate Sector Market

Covid-19 pandemic significantly impacted the real estate sector, leading to shifts in both demand and operational dynamics. During the early phases of the pandemic, lockdowns and economic uncertainties caused a slowdown in construction activities, delays in project completions, and a decline in property transactions. The residential market experienced a surge in demand for larger homes and properties in suburban areas as people ...

House Price Index: Tehran data was reported at 14.478 Apr2021-Mar2022=100 in Jan 2023. This records a decrease from the previous number of 14.741 Apr2021-Mar2022=100 for Dec 2022. House Price Index: Tehran data is updated monthly, averaging 44.712 Apr2021-Mar2022=100 from Apr 2016 (Median) to Jan 2023, with 82 observations. The data reached an all-time high of 191.358 Apr2021-Mar2022=100 in Apr 2016 and a record low of 14.478 Apr2021-Mar2022=100 in Jan 2023. House Price Index: Tehran data remains active status in CEIC and is reported by Statistical Center of Iran. The data is categorized under Global Database’s Iran – Table IR.EB001: Housing Price Index: April 21-March 22=100.

Ireland Ref. Year = 2021: GDP: Volume: Gross Capital Formation: GFCF: Housing data was reported at 12.103 EUR bn in Dec 2025. This records an increase from the previous number of 11.971 EUR bn for Sep 2025. Ireland Ref. Year = 2021: GDP: Volume: Gross Capital Formation: GFCF: Housing data is updated quarterly, averaging 9.400 EUR bn from Mar 1990 (Median) to Dec 2025, with 144 observations. The data reached an all-time high of 23.389 EUR bn in Mar 2007 and a record low of 3.717 EUR bn in Sep 2012. Ireland Ref. Year = 2021: GDP: Volume: Gross Capital Formation: GFCF: Housing data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Ireland – Table IE.OECD.EO: GDP by Expenditure: Volume: Forecast: OECD Member: Quarterly. IHV - Gross fixed capital formation, housing, volume

The number of housing transactions in the United Kingdom was forecast to increase between 2024 and 2029, according to a November 2024 forecast. In 2029, the number of transactions was expected to reach 1.4 million. House prices are expected to continue their year-on-year increase in this period.

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.