D.R. Horton was the homebuilder with the highest gross revenue in the United States in 2024. The Texas-based company reached a homebuilding revenue of 33.83 billion U.S. dollars. It was closely followed by D.R. Horton, which had its headquarters in Florida and generated a revenue of 33.78 billion U.S. dollars. Challenges to the residential construction marketThe number of private housing units started fell around the time of the global financial crisis (2007-2009), but has since recovered – though not to the heights of 2006. The value of residential construction in the U.S. fell in 2023, but it is expected to start growing again in the next years.New home sales follow the same trend After a fall in the number of new houses sold in 2021 and 2022, home sales have increased again, with those figures in the U.S. expected to reach 683,000 in 2024. The number of single-family homes started has followed a similar trend, and it is expected to increase in the next couple of years.

D.R. Horton was the homebuilding company with the largest share of single-family home closings in the United States in 2023. The two largest U.S. homebuilders, D.R. Horton and Lennar Corp., accumulated **** percent of the closings that took place throughout the whole country that year. The third company with the largest market share was PulteGroup, but it was at an important distance from the two leading firms.

D.R. Horton was the leading homebuilder company in the United States based on the number of closings in 2023. Some of the other companies in the highest positions of the ranking that year were Lennar Corp. with approximately ****** closings, PulteGroup with around ****** closings, and NVR with ****** closings.

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.

The North American residential construction market, valued at $850 million in 2025, is projected to experience robust growth, driven by several key factors. A steadily increasing population, particularly in urban centers, fuels the demand for new housing units, both single-family homes and multi-family dwellings. Furthermore, favorable government policies aimed at stimulating housing development and improving infrastructure contribute to this positive market outlook. The renovation segment also presents a significant opportunity, as older homes require upgrades and modernizations, catering to a rising preference for energy efficiency and sustainable building practices. While rising material costs and labor shortages pose challenges, the market's resilience stems from consistent demand and the innovative solutions adopted by major players like Lennar, D.R. Horton, and PulteGroup. These companies are strategically investing in technological advancements and streamlined construction processes to mitigate these challenges and maintain profitability. The market is segmented by property type (single-family and multi-family) and construction type (new construction and renovation), allowing for targeted investment and development strategies. The continued expansion of suburban areas and the increasing preference for larger living spaces further contribute to the market's expansion. The projected Compound Annual Growth Rate (CAGR) of 4.5% from 2025 to 2033 indicates sustained growth. This growth, however, is expected to fluctuate year-over-year depending on macroeconomic conditions such as interest rates and overall economic performance. Factors like fluctuating material prices, potential changes in building codes, and shifts in consumer preferences will influence the market’s trajectory. Nevertheless, the long-term forecast remains optimistic, supported by the continued need for affordable and sustainable housing solutions across North America, particularly in high-growth regions within the United States and Canada. The competitive landscape is characterized by both large national builders and regional players, leading to constant innovation and competition in pricing and design. This comprehensive report provides a detailed analysis of the North America residential construction market, offering invaluable insights for investors, builders, and industry stakeholders. Covering the period from 2019 to 2033, with a focus on 2025, this report meticulously examines market trends, growth drivers, challenges, and opportunities within the single-family, multi-family, new construction, and renovation sectors. Utilizing data from the historical period (2019-2024), the base year (2025), and an estimated forecast period (2025-2033), this report paints a clear picture of the market's trajectory. Recent developments include: December 2022: In southeast Columbus, D.R. Horton intends to build homes for USD 215 million., December 2022: According to the company's fourth-quarter results call, Lennar Corp. has decided not to proceed with its plans to spin off its multifamily subsidiary, Quarterra, by the end of the year owing to adverse market circumstances., December 2022: At the southeast corner of Idlewild Street and Plantation Road in south Fort Myers, a 17-acre site is being cleared. According to Lee County documents, the area will be transformed into the 52-home neighborhood of Addison Square. The land was purchased by Pulte Homes for USD 2.4 million in a deal facilitated by Chuck Mayhugh of Mayhugh Commercial Advisors. The homes will vary in price from more than USD 500,000 and have 1,600 to 3,400 square feet of living space, with the majority of the homesites being grouped together along a sizable, central lake. According to Pulte executives, construction on the model houses should start by the spring, with some of them being done by the summer.. Key drivers for this market are: Population Growth and Disposable Income, Demand from Office Sector Returning Post COVID-; Non-residential Construction on Upward Trend. Potential restraints include: Interests and Financing, Increase in Cost of Raw Materials. Notable trends are: 800,000 Housing Units Must Be Built Annually in Mexico to Keep Up with Demand.

The Market Report Covers US Residential Construction Companies and is segmented by Type (Single Family, and Multi-Family), by Construction Type (New Construction and Renovation), and by City (New York City, Los Angeles, San Francisco, Washington DC, Miami, and Other Cities). The market size and forecasts for the United States residential construction market are provided in terms of (USD Billion) for all the above segments.

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.

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US Residential Construction Market Size 2025-2029

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

The Residential Construction Market in the US is experiencing significant growth driven by increasing household formation rates and a rising focus on sustainability in new projects. According to the latest data, household formation is projected to continue growing at a steady pace, fueling the demand for new residential units. This trend is particularly evident in urban areas, where population growth and limited space for new development are driving up demand. Meanwhile, the emphasis on sustainability in residential construction is transforming the market landscape. With consumers increasingly prioritizing energy efficiency and eco-friendly features in their homes, builders and developers are responding by incorporating green technologies and sustainable materials into their projects.
This shift not only appeals to environmentally-conscious consumers but also offers long-term cost savings and regulatory compliance benefits. However, the market is not without challenges. Skilled labor shortages continue to pose a significant hurdle for large-scale residential real estate projects. The ongoing shortage of skilled laborers, including carpenters, electricians, and plumbers, is driving up labor costs and delaying project timelines. To mitigate this challenge, some builders are exploring alternative solutions, such as modular construction and automation, to streamline their operations and reduce their reliance on traditional labor sources. The Residential Construction Market in the US presents significant opportunities for companies seeking to capitalize on the growing demand for new housing units and the shift towards sustainability.
However, navigating the challenges of labor shortages and rising costs will require innovative solutions and strategic planning. By staying informed of market trends and adapting to evolving consumer preferences, companies can effectively position themselves for success in this dynamic market.

What will be the size of the US Residential Construction Market during the forecast period?

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The residential construction market in the United States continues to exhibit dynamic activity, driven by various economic factors. Housing supply remains a key focus, with ongoing discussions surrounding the affordable housing trend and efforts to increase inventory, particularly for single-family homes and new constructions. Mortgage and federal funds rates have an impact on residential investment, with fluctuations influencing buyer decisions and construction costs. The labor market plays a crucial role, as workforce availability and wages affect both housing starts and cancellation rates. Inflation and interest rates, monitored closely by the Federal Reserve, also shape the market's direction. Recession risks and economic conditions influence construction spending across various sectors, including multifamily and single-family homes.
Federal programs, such as housing choice vouchers and fair housing initiatives, continue to support home buyers and promote equitable housing opportunities. Building permits and housing starts serve as essential indicators of market health and future growth, with some sectors experiencing double-digit growth. Overall, the residential construction market in the US remains a significant economic driver, shaped by a complex interplay of economic, demographic, and policy factors.

How is this market segmented?

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
  Luxury Homes
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Construction Material

  Wood-framed
  Concrete
  Steel
  Modular/Prefabricated


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 both the apartment and condominium sectors, driven by the increasing trend toward urbanization and changing lifestyle preferences. Apartments, typically owned by property management companies, and condominiums, with individually owned units within a larger complex, contribute significantly to the market. The Federal Reserve's influence on the economy through the federal funds rate and mortgage rates impacts borrowing rates and home construction activity. The affordability of housing, particularly for younger generations, is a concern due to factors such as inflation, labor market conditions, and savings

Bechtel was the construction company in the United States with the highest value of new contracts in 2023. The Turner Construction Company, a firm headquartered in New York, was the second company in the ranking, it had new contracts valued at nearly ** billion U.S. dollars that year. Statista has a dedicated topic page about the Fluor Corporation that had over ** billion U.S. dollars. Industry building step by step A ranking based on the revenue of the largest construction firms in the United States showed that the Turner Corporation had the highest revenue. Turner's main activities include the construction of commercial and other non-residential buildings, infrastructure, and green buildings. The value of new industrial building construction in the U.S. is expected to decrease in 2023. Turner’s New York foundations Turner is an international construction services company founded in New York in 1902. The firm has worked on a number of projects across North America, notably constructing Madison Square Garden in 1962 and completing a full-scale renovation of the facility between 2010 and 2013. In turn, the Madison Square Garden Company generated an annual revenue of over *** million U.S. dollars in 2020. Turner is committed to sustainable building practices and has been a member of the U.S. Green Building Council since 1997. Nowadays, the Turner Corporation is a subsidiary of the German-based construction company Hochtief, a company for which Statista has another topic page.

United States Construction Software Market was valued at USD 8.4 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 8.6% through 2029.

*****, *********, and **************** had the least space is available for new single-family home construction in the United States as of the last quarter of 2024. Austin, Atlanta, and Dallas were the cities with the highest lot index values, which were close to 100, indicating that they had an appropriate supply of single-family lots.

With revenue figures of over ** billion U.S. dollars in 2023, the Turner Corporation was ranked the leading construction contractor in the United States. In this ranking, Bechtel ranked third, while Kiewit Corp. ranked second. Meanwhile, the Fluor Corporation, a company on which we have a report, fell to eighth place in the list.

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Over the past five years, hotel construction has navigated a highly dynamic environment marked by shifting travel habits, pandemic disruptions and rising competition from alternative lodging platforms. When travel restrictions eased, pent-up demand for both leisure and business trips initially revitalized renovation activity and selective new hotel projects, particularly in urban destinations and regions benefiting from major events. However, a series of challenges—including high interest rates, persistent labor shortages and softening demand due to rising consumer debt—constrained broader industry growth. Additional headwinds from tighter government travel budgets and a highly competitive landscape shaped by peer-to-peer rental services further impacted the hotel construction spending. As a result, industry revenue is expected to decline at a CAGR of 0.8% to $23.8 billion over the five years to 2025, despite an increase of 3.7% in 2025 alone. Profit has experienced a gradual improvement as hotel construction companies pivoted from lower-margin repair and maintenance work toward higher-value renovations and select ground-up projects. While rising material and labor costs presented ongoing hurdles, builders have increasingly focused on innovative, tech-enabled and flexible designs to capture premium contracts and distinguish themselves in a crowded market. The shift back toward larger renovation and new-build projects, paired with discipline in project selection and investments in sustainability, has provided a lift to profit, even though volatility in input costs and cautious lender activity kept pressures on the bottom line. Looking to the next five years, forecasts indicate a phase of moderate recovery and growth for hotel construction. Economic resilience, employment gains and potentially lower interest rates are expected to support new development. High-profile sporting and entertainment events such as the FIFA World Cup and the Summer Olympics are poised to spark a boom in event-driven travel, giving rise to construction opportunities in major markets and tourist corridors. Sustainability and digital innovation will further shape new projects, helping hotels remain competitive against emerging alternatives in the accommodation space. As a result, industry revenue is forecasted to grow at a CAGR of 2.6% to $27.0 billion over the next five years.

Despite continued robust private investment and federal funding, economic uncertainty subdued overall growth. However, an upswing in consumer sentiment towards the latter part of this period fueled a recovery in construction activity. Technological innovation played a pivotal role, with advancements like the GPS Ballast trains and rail unloading machinery reducing labor needs and enhancing efficiency. The essential nature of railroad construction to the economy ensured that the sector remained operational even amid global shutdowns, supported by significant public funding for transportation. Revenue has been increasing at a CAGR of 1.6% over the past five years, and is expected to reach $12.1 billion in 2024. In 2024, public funding for railway infrastructure is set to remain resilient, primarily driven by local and state governments focusing on upgrading outdated systems and meeting increasing demand. Infrastructure improvement programs, bolstered by the Build Back Better Act and the Infrastructure Investment and Jobs Act, are injecting new life into railroad construction projects. The influx of federal aid and grants is set to enhance construction activities, particularly emphasizing the development of more efficient cargo routes and high-speed passenger rail systems. These improvements are not just addressing present needs but are also laying the groundwork for future expansion and increased efficiency within the sector. Still, the volatility in the commodity markets, particularly in the global prices of steel, is hampering the performance of Railroad Track Construction contractors as they are forced to absorb higher costs, pressuring profitability. The Railroad Track Construction is poised for moderate expansion and modernization. Recovering consumer spending and trade activity are expected to drive increased demand for railway infrastructure, spurring investments in the maintenance of existing tracks and the construction of new ones. Rail transport's high efficiency and low emissions are expected to continue making it a preferred choice for distributing goods over long distances. Additionally, the ongoing development of passenger rails, including high-speed rail systems, will generate steady demand for construction services. Infrastructure improvement programs will remain a key driver, ensuring continued support through federal, local and state funding. As worn-down infrastructure is revamped and capacity limitations are addressed, the industry is set to experience healthy growth and enhanced operational efficiency. Industry revenue is set to expand by a CAGR of 2.1% to an estimated $13.4 billion through the end of 2029.

The Transmission Line Construction industry has grown over the five years through 2025, driven by expanding demand from the industry's primary downstream market, electric power companies. The construction and maintenance of electrical power and telecommunication lines are vital components to every sector of the economy and to society at large, reducing volatility for the industry. Demand for electricity is only growing, with computing power for the burgeoning AI and crypto industries putting new demands on the grid. Meeting the moment, the 2021 Infrastructure Investment and Jobs Act has benefitted the industry, making historic investments into infrastructure, including transmission line construction. Demand for transmission lines is also being driven by the transition to green energy, which will require the nation to significantly increase its transmission capacity to be successful. However, even with support from the Inflation Reduction Act, progress on this front has been limited as bureaucratic hurdles, including long and expensive environmental reviews, have stood in the way of many projects. Contractors have also faced volatile materials costs over recent years, pressuring profit. These high materials costs have also been passed along, driving up industry revenue. On the whole, Transmission Line Construction industry revenue has been expanding at a CAGR of 3.3% over the past five years and is expected to total $125.5 billion in 2025, when revenue will jump by an estimated 2.5%. Over the next five years, the industry will continue growing if government funding remains steady. Permitting reform is being pursued on several fronts, which, if successful, could accelerate industry growth. These include new rules from the Federal Energy Regulatory Commission (FERC), the new Coordinated Interagency Transmission Authorizations and Permits (CITAP) Program from the Department of Energy and legislative efforts. The second Trump administration has, however, looked to roll back federal support for the green energy transition, including by pausing some funding included in the Inflation Reduction Act (though this pause has faced legal challenge). Still, Transmission Line Construction industry revenue is expected to expand at a CAGR of 1.4% to $134.9 billion over the five years to 2030.

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The North America Construction Market report segments the industry into By Country (Canada, United States), By Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, Energy and Utilities Construction), and By Construction Type (Additions, Demolition and New Constructions). Five-year historical trends and forecasts are included.

The North America Data Center Construction Market was valued at USD 76.56 Billion in 2024 and is expected to reach USD 110.76 Billion by 2030 with a CAGR of 6.19% during the forecast period.