The consumer price of housing in urban areas of the United States increased by over four percent in 2024. 2022 and 2023 saw the largest price increases on a year-over-year basis since 2000. Meanwhile, 2010 was the only year in which housing prices decreased. One of the main reasons for that may have been the subprime mortgage crisis of 2007. During that period, the value of new residential construction put in place in the U.S. stagnated.

The median sales price of the existing privately owned single-family homes in the United States increased slightly in 2024. The most expensive homes were found in San Jose-Sunnyvale-Santa Clara, CA, where the median sales price was 1.9 million U.S. dollars. Hawaii and Delaware experienced the strongest home appreciation.

The number of U.S. home sales in the United States declined in 2023, after soaring in 2021. A total of four million transactions of existing homes, including single-family, condo, and co-ops, were completed in 2023, 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 are 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. Only 15 percent of U.S. renters could afford to become homeowners and in metros with highly competitive housing markets such as Los Angeles, CA, and Urban Honolulu, HI, this share was below five percent. Are U.S. home prices expected to fall? The median sales price of existing homes stood at 387,000 U.S. dollars in 2023 and was forecast to increase slightly until 2025. 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.

In 2024, the average rent for rental apartments increased in 27 of the 50 U.S. metropolitan areas with the largest populations. Providence-Warwick, RI-MA was the metro with the highest rental growth, an annual increase of 5.12 percent as of April that year. Conversely, Austin-Round Rock-Georgetown, TX experienced the highest decline in rents, at 7.42 percent.

The Report Covers Real Estate Company in US and it is segmented by Type (Apartments and Condominiums, Villas and landed houses) and by Cities (New York, Los Angeles, San Francisco, Miami, Washington DC and Other Cities). The report offers market size and forecasts for luxury residential real estate market in US for all above segments.

Graph and download economic data for Housing Inventory: Median Days on Market in the United States (MEDDAYONMARUS) from Jul 2016 to Feb 2025 about median and USA.

Salt Lake City was the U.S. metro with the highest retail real estate investment growth in 2024. The value of capital allocated to retail real estate in Salt Lake City was approximately 551 million U.S. dollars, an increase of 178 percent since 2023. Meanwhile, South Florida was the market with the highest volume of investment. Overall, the value of retail real estate investment has declined notably since 2021, mostly due to the overall cooling of the commercial property market.

This statistic shows the rent growth in student housing markets in primary metropolitan areas in the United States from 2015 to 2017. Rents increased by seven percent for student housing in Duke University between 2015 and 2017.

The US commercial real estate (CRE) market, valued at $1.66 trillion in 2025, is projected to experience steady growth, driven by several key factors. Strong economic fundamentals, including a robust job market and increasing demand for office, retail, and industrial space in major metropolitan areas like New York, Los Angeles, and Chicago, contribute to this positive outlook. The ongoing expansion of e-commerce fuels the demand for logistics and warehousing facilities, while the multi-family sector benefits from population growth and urbanization trends. However, rising interest rates and potential economic slowdown pose challenges, potentially impacting investment activity and rental growth. The diverse range of property types within the CRE market creates opportunities and risks. Office space faces ongoing adaptation to hybrid work models, requiring landlords to enhance amenities and improve workplace flexibility. Retail spaces are undergoing transformation, with a focus on experiential retail and omni-channel strategies to compete with online retailers. The industrial and logistics sector remains strong, driven by continued e-commerce growth and supply chain optimization efforts. Competition among CRE companies like Zillow, Keller Williams, and CBRE remains fierce, emphasizing the need for innovation in property management and technological advancements in market analysis and transaction processes. While several cities experience robust growth, others might face localized challenges that influence individual market dynamics. The overall trajectory suggests a moderate expansion, albeit with variations across sectors and geographic locations. Careful consideration of these factors is crucial for successful investment and strategic decision-making within the US CRE industry. The forecast period of 2025-2033 suggests a continuation of these trends. While the 2.61% CAGR indicates a moderate growth rate, significant variations are expected across specific segments. The industrial and logistics sectors are likely to outperform others due to sustained demand, while office space may exhibit slower growth reflecting the ongoing adjustments to hybrid work. Regional variations will also be significant, with major metropolitan areas and technology hubs likely leading the growth trajectory. Understanding these nuances and deploying appropriate risk mitigation strategies will be vital for all stakeholders in the US commercial real estate market. This comprehensive report provides an in-depth analysis of the USA commercial real estate industry, covering the period from 2019 to 2033. With a focus on key market segments – offices, retail, industrial, logistics, multi-family, and hospitality – across major cities like New York, Los Angeles, Chicago, San Francisco, Boston, Denver, Houston, Phoenix, Atlanta, and Salt Lake City, this report offers invaluable insights for investors, developers, and industry professionals. The study utilizes 2025 as the base and estimated year, with a forecast period spanning 2025-2033 and a historical period covering 2019-2024. This report projects the market value in the billions of dollars, providing granular data and analysis of market dynamics. Key drivers for this market are: Increasing number of startups. Potential restraints include: Low Awareness and Privacy Issues. Notable trends are: Industrial Sector Expected to Record High Demand.

This statistic shows the rent growth in student housing markets in tertiary metropolitan areas in the United States from 2015 to 2017. Rents increased by 14 percent for student housing in California Polytechnic between 2015 and 2017.

Metros with growing job opportunities naturally have higher housing shortages than other metros. Huntington-Ashland, WV-KY-OH and Akron, OH were the metros with the most acute housing need in the United States as of December 2023. For every new building permit, there were over 10 new jobs created during that period. The number of housing starts has increased in recent years, but in order for housing needs to be met, homes will need to be built in the metros where they are needed the most.

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Commercial Real Estate Market Size 2025-2029

The commercial real estate market size is forecast to increase by USD 427.3 billion at a CAGR of 4.6% between 2024 and 2029.

The market is experiencing significant shifts driven by key trends and challenges. The flexible office segment is gaining popularity due to the increasing preference for remote work and the rise of coworking spaces. Digital transformation is another major trend, with the integration of artificial intelligence, smart buildings, and virtual reality in real estate. Additionally, modular and portable buildings are becoming increasingly common, particularly in the logistics and industrial sectors, due to their cost-effectiveness and flexibility. Moreover, the advent of smart cities is revolutionizing the commercial real estate landscape. Visual content and analytics are becoming essential tools for real estate developers and investors, providing valuable insights into consumer behavior and market trends.
Hence, the market is undergoing a digital revolution, with flexible offices, smart buildings, and virtual reality leading the way. The increasing emphasis on remote work and online shopping, coupled with the rise of smart cities, is driving market growth. The integration of artificial intelligence, data analytics, and industrial automation is enabling automation solutions to transform the industry and enhance productivity.

What will be the Size of the Commercial Real Estate Market During the Forecast Period?

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The market encompasses various property types, including offices, retail and hospitality, industrial and logistics, and multifamily. Current market dynamics exhibit activity, driven by the increasing demand for flexible workspaces, such as coworking spaces and conventional offices. Technology development plays a pivotal role, with virtual property tours and artificial intelligence enhancing the real estate consultancy process. Business owners in diverse sectors, from IT to boutique businesses, continue to lease or sell offices and industrial spaces. The Smart Cities mission propels the integration of technology into commercial real estate, fostering energy efficiency and improved tenant experiences. The overall size of the market remains substantial, reflecting the essential role of commercial real estate in driving economic growth. Data analytics and industrial automation are also critical components of this digital transformation, enabling automation solutions to streamline operations and enhance efficiency.

How is this Commercial Real Estate Industry segmented and which is the largest segment?

The commercial real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Offices
  Retail
  Leisure
  Others


Channel

  Rental
  Lease
  Sales


Geography

  APAC

    China
    India
    Japan


  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  South America

    Brazil


  Middle East and Africa

By End-user Insights

The offices segment is estimated to witness significant growth during the forecast period.

The offices segment In the market is experiencing significant growth due to evolving work patterns and corporate demands. Flexible work arrangements, hybrid models, and technological integration are driving the need for adaptable and technologically advanced office spaces. Businesses prioritize contemporary workplaces to attract and retain talent. Co-working spaces like Regus and WeWork, offering flexible office solutions, are gaining popularity. Major corporations, such as Google and Amazon, are investing in innovative office designs that foster collaboration and employee satisfaction. The offices end-user segment is projected to expand from 2024 to 2028, reflecting the ongoing transformation of workspaces to align with modern business trends.

This shift includes the integration of technology, such as virtual property tours, artificial intelligence, data analytics, and virtual reality, into commercial real estate. Additionally, sectors like IT, engineering, manufacturing, e-commerce, start-ups, and hospitality, retail are key contributors to the market's growth. The stable economic environment further supports the expansion of commercial real estate, particularly in Smart Cities and the industrial and logistics sectors. Developers, flex space centers, and information technology companies are actively responding to these trends by providing flexible and technologically advanced office solutions.

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The offices segment was valued at USD 476.50 billion in 2019 and showed a gradual increase during the f

Montevideo, Uruguay's capital, leads Latin American cities with the highest apartment sale prices in 2024, averaging 3,454 U.S. dollars per square meter. This figure surpasses other major metropolitan areas like Mexico City and Buenos Aires, highlighting significant disparities in real estate markets across the region. The data underscores the varying economic conditions and housing demand in different Latin American urban centers. Regional housing market trends While Montevideo tops the list for apartment prices, other countries in Latin America have experienced notable changes in their housing markets. Chile, for instance, saw the most substantial increase in house prices since 2010, with its nominal house price index surpassing 342 points in early 2024. However, when adjusted for inflation, Mexico showed the highest inflation-adjusted percentage increase in house prices, growing by nearly five percent in the first quarter of 2024, contrasting with a global decline of one percent. Home financing in Mexico The methods of home financing vary across Latin America. A breakdown of homeownership by financing method in Mexico reveals that about two-thirds of owner-occupied housing units were financed through personal resources in 2022. Nevertheless, government-backed loans such as Infonavit (Mexico’s National Housing Fund Institute), Fovissste (Housing Fund of the Institute for Social Security and Services for State Workers), and Fonhapo (National Fund for Popular Housing), play an important role for homebuyers, with just over 20 percent of home purchases relying on such finance. Bank credit, which offers mortgage loans with interest rates ranging between nine and 12 percent, appeared as a less popular option.

Luxury home prices grew by more than 10 percent year-on-year in 10 of the 50 most populous metros in the United States in the first quarter of 2024. The average sales price of luxury homes in Providence, RI increased by over 16 percent in that period, making it the metro with the fastest growing luxury home prices. The luxury market is defined by the source as the most expensive five percent of the market.

According to Cognitive Market Research, the global Home Furniture market size will be USD 642514.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% 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 257005.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 192754.2 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 147778.2 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 32125.7 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% 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 12850.2 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The Beds and Mattresses category is the fastest growing segment of the Home Furniture industry

Market Dynamics of Home Furniture Market

Key Drivers for Home Furniture Market

Increasing the Use of Biodegradable and Compostable Materials to Boost Market Growth

The global real estate market is experiencing growth, with many governments promoting affordable housing initiatives and private developers launching new residential projects. This has led to a rise in demand for home furniture to furnish these new homes. According to the National Association of REALTORS, 4.09 million existing homes were sold in 2023. In May 2024, new single-family home sales reached a seasonally adjusted annual rate of 619,000, as the U.S. Census Bureau reported. The Federal Reserve's 2022 Survey of Consumer Finances indicated that 66.1% of families owned their primary residence. Additionally, over 360,000 real estate brokerage firms are operating in the U.S. The booming rental housing market, particularly in metropolitan areas, is also driving demand, with renters seeking affordable, durable, and easily transportable furniture to furnish temporary homes, boosting sales in certain home furniture categories.

Increased Consumer Spending and Urbanization to Drive Market Growth

As disposable incomes rise, particularly in emerging economies such as India, China, and Brazil, consumers increasingly invest in high-quality home furniture. This shift is motivated by the desire to improve living conditions, aesthetics, and comfort. The trend of rapid urbanization is also driving demand for modern homes, which in turn fuels the need for contemporary furniture. People relocating to urban areas are more likely to furnish their homes according to modern styles. Globally, a growing portion of the population resides in cities. In 2012, 52.5% of the population lived in urban areas, and by 2022, this was projected to rise to 56.9%. The urban population share is generally higher in developed regions (79.7% in 2022) than in developing ones (52.3%). In least-developed countries (LDCs), urban residents remain the minority at 35.8%. In the U.S., among cities with populations of 1 million or more, Austin, TX, saw the fastest growth at 32.8%, followed by Raleigh, NC, at 25.1%, and Orlando, FL, at 22.7%. Austin, TX, also led in land conversion from rural to urban, with an 18.5% increase.

Restraint Factor for the Home Furniture Market

Fluctuating Raw Material Prices, will Limit Market Growth

The cost of key raw materials like wood, metal, foam, and fabrics is often highly volatile, directly affecting production costs for manufacturers. This can lead to higher prices for consumers, which may dampen demand. As the furniture market is global, with manufacturers sourcing materials and shipping products internationally, rising freight and shipping costs can significantly impact pricing—particularly for large, bulky items like sofas, beds, and dining tables, where transportation forms a major part of the overall cost structure. Additionally, the furniture manufacturing industry in developed countries faces labor shortages due to an aging workforce and rising wages. These labor challenges drive up production costs, especially in regions with high labor expenses like the U.S., Canada, a...

According to projections, Florida's real state market will be the worst affected by sea level rise by 2100 among coastal states in the U.S. By the end of the century, 11 of the 20 cities with the highest share of total housing units projected to be in high risk flooding zones are in Florida. The city most exposed is Miramar, with 95.2 percent of its housing units expected to be at risk.

Rents for industrial real estate in the U.S. have increased since 2017, with flexible/service space reaching the highest price per square foot in 2024. In just a year, the cost of, flex/service space rose by nearly five U.S. dollars per square foot. Manufacturing facilities, warehouses, and distribution centers had lower rents and experienced milder growth. Los Angeles, Orange County, and Inland Empire, California, are some of the most expensive markets in the country. Office real estate is pricier Industrial real estate is far from being the most expensive commercial property type. For instance, average rental rates in major U.S. metros for office space are much higher than those for industrial space. This is most likely because office units are generally located in urban areas where there is limited space and thus higher demand, whereas industrial units are more suited to the outskirts of such urban areas. Industrial units, such as warehouses or factories, require much more space because they need to house large, heavy equipment or serve as a storage unit for future shipments. Big-box distribution space is gaining in importance Warehouses and distribution may currently command the lowest average rent per square foot among industrial space types, but the growing popularity of the asset class has earned it considerable gains over the past years. In 2021 and 2022, high occupier demand and insufficient supply led to soaring taking rent of big-box buildings. During that time, the vacancy rate of distribution centers fell below six percent. The development of industrial and logistics facilities has accelerated since then, with the new supply coming to market causing the vacancy rate to increase and the pressures on rent to ease.

Telluride, CO, was the most expensive market for luxury single-family home market in the United States in 2024. In February that year, the median sales price of a single-family home in Telluride was 6.3 million U.S. dollars. Park City, UT, Paradise Valley, AZ, and the Los Angeles Beach Cities, CA, were other locations that fetched prices over 4.3 million U.S. dollars.

Apartment prices in Tel Aviv are the highest among the major cities in Israel. In the first quarter of 2023, the average cost of dwellings in Tel Aviv amounted to over 4.2 million Israeli shekels (roughly 1.13 million U.S. dollars). That was a slight rise compared to the previous quarter. The average price of apartments in the city slightly fluctuated but overall increased during the observed period. Due to the high housing prices in the city, many who wish to live in the city can afford only rented housing. The The number of households  living in rented dwellings in Tel Aviv amounted to 110,000 in 2020, making it the most common type of residency that year.  

High demand for housing in Tel Aviv 

Tel Aviv is the financial and cultural capital of Israel. Important companies in the Israeli economy and most of the influential cultural institutions in Israel are located in the city. As a result, many are interested in living in the city permanently, so housing prices remain high and even rise. Tel Aviv is the most important city in the Israeli high-tech industry, one of the most essential industries in the Israeli economy. As a result, many of the industry workers live in the city. In 2022, StartupBlink ranked Tel Aviv first in its list of leading cities for startups in Israel, with a score of 54.89. 

Residence in Jerusalem and Haifa is more affordable 

Jerusalem, the largest city in Israel, offers more affordable housing than Tel Aviv. In the first quarter of 2023, the aaverage price of apartments in Jerusalem amounted to just over 2.5 million Israeli shekels (around 673,000 U.S. dollars). Although the price is lower than in Tel Aviv, many Israelis hesitate to reside there. Jerusalem has a traditional character; therefore, it has fewer leisure and nightlife options than Tel Aviv can offer. The standard price of dwellings in Haifa, the largest city in the northern part of Israel, is lower than both towns. In the same quarter, it reached almost 1.64 million Israeli shekels (approximately 440,000 U.S. dollars).

Following a period of stagnation over most of the 2010s, the number of owner occupied housing units in the United States started to grow in 2017. In 2023, there were over 86 million owner-occupied homes. Owner-occupied housing is where the person who owns a property – either outright or through a mortgage – also resides in the property. Excluded are therefore rental properties, employer-provided housing and social housing. Homeownership sentiment in the U.S. Though homeownership is still a cornerstone of the American dream, an increasing share of people see themselves as lifelong renters. Millennials have been notoriously late to enter the housing market, with one in four reporting that they would probably continue to always rent in the future, a 2022 survey found. In 2017, just five years before that, this share stood at about 13 percent. How many renter households are there? Renter households are roughly half as few as owner-occupied households in the U.S. In 2023, the number of renter occupied housing units amounted to almost 45 million. Climbing on the property ladder for renters is not always easy, as it requires prospective homebuyers to save up for a down payment and qualify for a mortgage. In many metros, the median household income is insufficient to qualify for the median-priced home.