Texas and Florida were the states with most residential building permits issued in 2024. 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.

Idaho and North Caroline were in 2023 the U.S. states with the highest volume of new residential construction, with over nine units authorized per 1,000 residents. On average, that year in the U.S. there were 4.51 homes authorized per 1,000 residents. The most populous states in the U.S. tend to have the highest demand for housing.

The two metropolitan areas with the highest value of new residential construction in 2023 were in Texas. Those two areas, Dallas-Fort Worth-Arlington and Houston-The Woodlands-Sugar Land, were the only ones in the United States where new homes built were worth over 15 billion U.S. dollars. Those figures were significantly higher than the following entries in the list, the areas around Phoenix (Arizona) and in New York, where home construction amounted to over ten billion U.S. dollars.

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.

Graph and download economic data for New Private Housing Units Authorized by Building Permits for California (CABPPRIVSA) from Jan 1988 to Jan 2025 about permits, buildings, CA, new, private, housing, and USA.

Graph and download economic data for New Private Housing Structures Authorized by Building Permits for El Paso County, TX (BPPRIV048141) from 1990 to 2023 about El Paso County, TX; El Paso; permits; buildings; TX; private; housing; and USA.

New York-Northern New Jersey-Long Island was the metropolitan area in the United States with the most construction starts in 2023. Meanwhile, the value of starts for commercial buildings and multifamily housing in Dallas-Fort Worth-Arlington amounted to 14.2 billion U.S. dollars. The third metropolitan area in the ranking was Miami-Fort Lauderdale-Miami Beach, where construction starts were valued at around 11.5 billion U.S. dollars.

Graph and download economic data for New Private Housing Structures Authorized by Building Permits for Los Angeles-Long Beach-Anaheim, CA (MSA) (LOSA106BPPRIVSA) from Jan 1988 to Feb 2025 about Los Angeles, permits, buildings, CA, new, private, housing, and USA.

Snapshot img

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

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 79 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 350 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 New Private Housing Units Authorized by Building Permits for Dallas-Fort Worth-Arlington, TX (MSA) (DALL148BPPRIVSA) from Jan 1988 to Feb 2025 about Dallas, permits, buildings, new, TX, private, housing, and USA.

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

New Private Housing Authorized by Building Permits: 1-Unit Structures for Nashville-Davidson--Murfreesboro--Franklin, TN (MSA) was 1581.48541 Units in February of 2022, according to the United States Federal Reserve. Historically, New Private Housing Authorized by Building Permits: 1-Unit Structures for Nashville-Davidson--Murfreesboro--Franklin, TN (MSA) reached a record high of 1647.55875 in March of 2021 and a record low of 231.16257 in December of 1990. Trading Economics provides the current actual value, an historical data chart and related indicators for New Private Housing Authorized by Building Permits: 1-Unit Structures for Nashville-Davidson--Murfreesboro--Franklin, TN (MSA) - last updated from the United States Federal Reserve on March of 2025.

VITAL SIGNS INDICATOR
Housing Permits (LU3)

FULL MEASURE NAME
Permitted housing units

LAST UPDATED
February 2023

DESCRIPTION
Housing growth is measured in terms of the number of units that local jurisdictions permit throughout a given year. A permitted unit is a unit that a city or county has authorized for construction.

DATA SOURCE
California Housing Foundation/Construction Industry Research Board (CIRB) - https://www.cirbreport.org/
Construction Review report (1967-2022)

Association of Bay Area Governments (ABAG) – Metropolitan Transportation Commission (MTC) - https://data.bayareametro.gov/Development/HCD-Annual-Progress-Report-Jurisdiction-Summary/nxbj-gfv7
Housing Permits Database (2014-2021)

Census Bureau Building Permit Survey - https://www2.census.gov/econ/bps/County/
Building permits by county (annual, monthly)

CONTACT INFORMATION
vitalsigns.info@bayareametro.gov

METHODOLOGY NOTES (across all datasets for this indicator)
Bay Area housing permits data by single/multi family come from the California Housing Foundation/Construction Industry Research Board (CIRB). Affordability breakdowns from 2014 to 2021 come from the Association of Bay Area Governments (ABAG) – Metropolitan Transportation Commission (MTC) Housing Permits Database.

Single-family housing units include detached, semi-detached, row house and town house units. Row houses and town houses are included as single-family units when each unit is separated from the adjacent unit by an unbroken ground-to-roof party or fire wall. Condominiums are included as single-family units when they are of zero-lot-line or zero-property-line construction; when units are separated by an air space; or, when units are separated by an unbroken ground-to-roof party or fire wall. Multi-family housing includes duplexes, three-to-four-unit structures and apartment-type structures with five units or more. Multi-family also includes condominium units in structures of more than one living unit that do not meet the single-family housing definition.

Each multi-family unit is counted separately even though they may be in the same building. Total units is the sum of single-family and multi-family units. County data is available from 1967 whereas city data is available from 1990. City data is only available for incorporated cities and towns. All permits in unincorporated cities and towns are included under their respective county’s unincorporated total. Permit data is not available for years when the city or town was not incorporated.

Affordable housing is the total number of permitted units affordable to low and very low income households. Housing affordable to very low income households are households making below 50% of the area median income. Housing affordable to low income households are households making between 50% and 80% of the area median income. Housing affordable to moderate income households are households making below 80% and 120% of the area median income. Housing affordable to above moderate income households are households making above 120% of the area median income.

Permit data is missing for the following cities and years:
Clayton, 1990-2007
Lafayette, 1990-2007
Moraga, 1990-2007
Orinda, 1990-2007
San Ramon, 1990

Building permit data for metropolitan areas for each year is the sum of non-seasonally adjusted monthly estimates from the Census Building Permit Survey. The Bay Area values are the sum of the San Francisco-Oakland-Hayward MSA and the San Jose-Sunnyvale-Santa Clara MSA. The counties included in these areas are: San Francisco, Marin, Contra Costa, Alameda, San Mateo, Santa Clara, and San Benito.

Permit values reflect the number of units permitted in each respective year. Note that the data columns come from difference sources. The columns (SFunits, MFunits, TOTALunits, SF_Share and MF_Share) are sourced from CIRB. The columns (VeryLowunits, Lowunits, Moderateunits, AboveModerateunits, VeryLow_Share, Low_Share, Moderate_Share, AboveModerate_Share, Affordableunits and Affordableunits_Share) are sourced from the ABAG Housing Permits Database. Due to the slightly different methodologies that exist within each of those datasets, the total units from each of the two sources might not be consistent with each other.

As shown, three different data sources are used for this analysis of housing permits issued in the Bay Area. Data from the Construction Industry Research Board (CIRB) represents the best available data source for examining housing permits issued over time in cities and counties across the Bay Area, dating back to 1967. In recent years, Annual Progress Report (APR) data collected by the California Department of Housing and Community Development has been available for analyzing housing permits issued by affordability levels. Since CIRB data is only available for California jurisdictions, the U.S. Census Bureau provides the best data source for comparing housing permits issued across different metropolitan areas. Notably, annual permit totals for the Bay Area differ across these three data sources, reflecting the limitations of needing to use different data sources for different purposes.

New Private Housing Structures Authorized by Building Permits for Aiken County, SC was 1472.00000 Units in January of 2023, according to the United States Federal Reserve. Historically, New Private Housing Structures Authorized by Building Permits for Aiken County, SC reached a record high of 1719.00000 in January of 2022 and a record low of 341.00000 in January of 1995. Trading Economics provides the current actual value, an historical data chart and related indicators for New Private Housing Structures Authorized by Building Permits for Aiken County, SC - last updated from the United States Federal Reserve on March of 2025.

Several of the largest new residential construction projects in the United Kingdom with a construction start date in 2024 were found in London. Planned Internal and External Refurbishment Works Programme in London was valued at 340 million British pounds. The housing construction market in London London is one of the best-known cities in the world. It is an important financial and economic centre, accounting for the highest share of GDP out of all the regions in the UK. It is also home to the West-End and the British Museum, and it boasts a vibrant cultural life. The economic importance and popularity of the city are some of the factors fostering a high demand for housing construction in London. In addition to the 14,270 housing starts in London in 2023/24, there was also a similar volume of housing completions. In comparison, the number of private housing starts in the UK as was estimated to be 150,000 in 2023. House repairs in the UK Housing repair and maintenance was one of the segments with the highest market shares in the UK construction industry. Meanwhile, new private housing construction represented 19 percent of the construction market in the country in 2023. Two of the largest repair and maintenance projects in 2023 were in London and in the county of Tyne and Wear (the county were Newcastle is located). The revenue of housing repair and maintenance in Great Britain has been increasing at a fast pace in the past years.

Graph and download economic data for New Private Housing Units Authorized by Building Permits: 1-Unit Structures for Dallas-Fort Worth-Arlington, TX (MSA) (DALL148BP1FH) from Jan 1988 to Feb 2025 about privately owned, Dallas, 1-unit structures, permits, family, buildings, TX, housing, and USA.

This layer contains 2010-2014 American Community Survey (ACS) 5-year data, and contains estimates and margins of error. The layer shows housing units in structure by tenure (owner or renter). This is shown by tract, county, and state boundaries. There are also additional calculated attributes related to this topic, which can be mapped or used within analysis. This layer is symbolized by the percent of housing units that are single-family detached homes. To see the full list of attributes available in this service, go to the "Data" tab, and choose "Fields" at the top right. Vintage: 2010-2014ACS Table(s): B25024, B25032 (Not all lines of ACS table B25032 are available in this layer.)Data downloaded from: Census Bureau's API for American Community Survey Date of API call: November 11, 2020National Figures: data.census.govThe United States Census Bureau's American Community Survey (ACS):About the SurveyGeography & ACSTechnical DocumentationNews & UpdatesThis ready-to-use layer can be used within ArcGIS Pro, ArcGIS Online, its configurable apps, dashboards, Story Maps, custom apps, and mobile apps. Data can also be exported for offline workflows. For more information about ACS layers, visit the FAQ. Please cite the Census and ACS when using this data.Data Note from the Census:Data are based on a sample and are subject to sampling variability. The degree of uncertainty for an estimate arising from sampling variability is represented through the use of a margin of error. The value shown here is the 90 percent margin of error. The margin of error can be interpreted as providing a 90 percent probability that the interval defined by the estimate minus the margin of error and the estimate plus the margin of error (the lower and upper confidence bounds) contains the true value. In addition to sampling variability, the ACS estimates are subject to nonsampling error (for a discussion of nonsampling variability, see Accuracy of the Data). The effect of nonsampling error is not represented in these tables.Data Processing Notes:This layer has associated layers containing the most recent ACS data available by the U.S. Census Bureau. Click here to learn more about ACS data releases and click here for the associated boundaries layer. The reason this data is 5+ years different from the most recent vintage is due to the overlapping of survey years. It is recommended by the U.S. Census Bureau to compare non-overlapping datasets.Boundaries come from the US Census TIGER geodatabases. Boundary vintage (2014) appropriately matches the data vintage as specified by the Census. These are Census boundaries with water and/or coastlines clipped for cartographic purposes. For census tracts, the water cutouts are derived from a subset of the 2010 AWATER (Area Water) boundaries offered by TIGER. For state and county boundaries, the water and coastlines are derived from the coastlines of the 500k TIGER Cartographic Boundary Shapefiles. The original AWATER and ALAND fields are still available as attributes within the data table (units are square meters). The States layer contains 52 records - all US states, Washington D.C., and Puerto RicoCensus tracts with no population that occur in areas of water, such as oceans, are removed from this data service (Census Tracts beginning with 99).Percentages and derived counts, and associated margins of error, are calculated values (that can be identified by the "_calc_" stub in the field name), and abide by the specifications defined by the American Community Survey.Field alias names were created based on the Table Shells file available from the American Community Survey Summary File Documentation page.Negative values (e.g., -4444...) have been set to null, with the exception of -5555... which has been set to zero. These negative values exist in the raw API data to indicate the following situations:The margin of error column indicates that either no sample observations or too few sample observations were available to compute a standard error and thus the margin of error. A statistical test is not appropriate.Either no sample observations or too few sample observations were available to compute an estimate, or a ratio of medians cannot be calculated because one or both of the median estimates falls in the lowest interval or upper interval of an open-ended distribution.The median falls in the lowest interval of an open-ended distribution, or in the upper interval of an open-ended distribution. A statistical test is not appropriate.The estimate is controlled. A statistical test for sampling variability is not appropriate.The data for this geographic area cannot be displayed because the number of sample cases is too small.

Permits issued by the Department of Buildings in the City of Chicago from 2006 to the present. The dataset for each year contains more than 65,000 records/rows of data and cannot be viewed in full in Microsoft Excel. Therefore, when downloading the file, select CSV from the Export menu. Open the file in an ASCII text editor, such as Wordpad, to view and search. Data fields requiring description are detailed below. PERMIT TYPE: "New Construction and Renovation" includes new projects or rehabilitations of existing buildings; "Other Construction" includes items that require plans such as cell towers and cranes; "Easy Permit" includes minor repairs that require no plans; "Wrecking/Demolition" includes private demolition of buildings and other structures; "Electrical Wiring" includes major and minor electrical work both permanent and temporary; "Sign Permit" includes signs, canopies and awnings both on private property and over the public way; "Porch Permit" includes new porch construction and renovation (defunct permit type porches are now issued under "New Construction and Renovation" directly); "Reinstate Permit" includes original permit reinstatements; "Extension Permits" includes extension of original permit when construction has not started within six months of original permit issuance. WORK DESCRIPTION: The description of work being done on the issued permit, which is printed on the permit. PIN1 – PIN10: A maximum of ten assessor parcel index numbers belonging to the permitted property. PINs are provided by the customer seeking the permit since mid-2008 where required by the Cook County Assessor’s Office. CONTRACTOR INFORMATION: The contractor type, name, and contact information. Data includes up to 15 different contractors per permit if applicable.

Data Owner: Buildings.

Time Period: January 1, 2006 to present.

Frequency: Data is updated daily.

Related Applications: Building Data Warehouse (https://webapps.cityofchicago.org/buildingviolations/violations/searchaddresspage.html).

Graph and download economic data for New Private Housing Units Authorized by Building Permits for Michigan (MIBPPRIV) from Jan 1988 to Feb 2025 about permits, MI, buildings, new, private, housing, and USA.