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 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.

Home builders construct single-family homes while also remodeling houses and other residential buildings. Perennially low housing stock has driven new housing development throughout the current period. Still, from early 2022 through mid-2024, the Federal Reserve rose or maintained interest rates up from historic lows; these rate hikes sent housing starts into a steady decline. Loans have become less accessible, with mortgage rates increasing, discouraging property developers from breaking ground on more residential projects. Even as the Federal Reserve has cut rates since mid-2024, mortgage rates, which are only indirectly impacted by the federal funds rate, have largely increased. Even as housing starts have fallen over recent years, house prices have seen strong growth, allowing builders to see growth. Overall, industry revenue is set to push up at a CAGR of 2.9% to $166.9 billion over the five years through 2025, including a 1.6% increase in 2025 alone. Spikes in the 30-year conventional mortgage rate reduced the number of projects available for home builders. Inflationary concerns have also led more consumers to rent instead of buy. A bright spot has been state and federal projects like affordable housing programs in large metropolitan cities. Home builders also cut expenses and raised profit by hiring subcontractors. The basic underlying need for more housing has remained strong throughout the period. Interest rates are set to gradually fall over the coming years, while the nation will remain in its housing shortage, driving growth for home builders. Home builders will aim to differentiate themselves by building homes that meet sustainability standards to achieve Leadership in Energy and Environmental Design (LEED) certification. Government programs and households will continue to be a source of income for many homebuilders. The Trump administration has proposed using federal lands for housing development but is also set to drive up costs for builders through its tariff policies. Overall, revenue is set to climb at a CAGR of 1.8% to reach $182.8 in 2030.

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.

Subcontractor delays were the number one challenge for one third of respondents, according to a 2023 survey among home builders in the United States. Client selections decisions emerged as the second-biggest issue, according to almost 20 percent of the respondents.

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US Residential Construction Market Size 2025-2029

The us residential construction market size is valued to increase USD 242.9 million, at a CAGR of 4.5% from 2024 to 2029. Increasing household formation rates will drive the us residential construction market.

Major Market Trends & Insights

By Product - Apartments and condominiums segment was valued at USD 509.50 million in 2022
By Type - New construction segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 39.65 million
Market Future Opportunities: USD 242.90 million
CAGR from 2024 to 2029 : 4.5%

Market Summary

The Residential Construction Market in the US is a dynamic and evolving industry, shaped by various factors and trends. Core technologies and applications, such as Building Information Modeling (BIM) and energy-efficient systems, are increasingly adopted to enhance project efficiency and sustainability. In fact, the use of BIM in residential construction is projected to reach 50% penetration by 2025, according to industry reports. Service types and product categories, including general contracting, design-build, and modular housing, cater to diverse residential construction needs. However, challenges persist, including rising material costs and skilled labor shortages for large-scale residential real estate projects. Regulations, such as the International Energy Conservation Code, drive the focus on sustainability in residential construction projects. The regional landscape is diverse, with the South and West regions leading in residential construction activity due to population growth and favorable economic conditions. These evolving market dynamics offer significant opportunities for industry players to innovate and adapt to the changing landscape.

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

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How is the Residential Construction in US Market Segmented and what are the key trends of market segmentation?

The residential construction in us industry 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. ProductApartments and condominiumsLuxury HomesOther typesTypeNew constructionRenovationApplicationSingle familyMulti-familyConstruction MaterialWood-framed ConcreteSteel Modular/PrefabricatedGeographyNorth AmericaUS

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 continues to evolve, with apartments and condominiums being key contributors to its growth. Urbanization is a significant driver, as more Americans opt for the convenience and amenities of city living. In response, developers are constructing modern, sustainable, and community-focused high-rise buildings and condominium complexes. Smart home technology and energy efficiency standards are becoming increasingly important in these projects, with Building Information Modeling (BIM) software guiding the design process. Modular construction, geotechnical engineering, and quality control measures ensure structural integrity and safety. Building codes and permitting processes are strictly adhered to, with green building certifications such as LEED and Energy Star driving the adoption of sustainable building practices. Masonry techniques, foundation design, and exterior cladding are essential elements of the construction process, with insulation materials and HVAC systems ensuring energy efficiency. Safety regulations govern electrical wiring, roofing systems, and plumbing fixtures. Construction scheduling is facilitated by project management software, with prefabricated components and 3D building modeling streamlining the process. Construction automation and waste management are also crucial considerations, with cost estimation models helping developers stay within budget. Environmental impact assessments and structural engineering studies are essential to minimize the environmental footprint and ensure safety. Framing techniques and foundation design are optimized for durability and cost-effectiveness. Safety regulations and quality control measures are strictly enforced to ensure the safety and satisfaction of residents. Overall, the residential construction market in the US is dynamic and forward-thinking, with a focus on sustainability, safety, and community.

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The Apartments and condominiums segment was valued at USD 509.50 million in 2019 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2024 as

Housing developers have navigated pronounced economic swings over the past five years, as borrowing environments and Federal Reserve rate policy have dictated industry growth and contraction. Early pandemic-era interest rate cuts and remote work fueled a boom in home building, especially in suburban and affordable regions, but subsequent rate hikes sharply reversed momentum. Developers enjoyed robust sales from projects initiated during the low-rate period, even as new housing starts declined under pressure from rising mortgage costs and weakening consumer demand. The struggle has been particularly acute for small and medium-sized housing developers, which continue to close their doors or merge as cost pressures mount and competition from large developers intensifies. Persistent labor shortages and escalating input costs, driven partly by tariffs, have prevented profit growth, boosting the market share and pricing power of prominent developers able to pass costs to buyers or access strategic partners. Overall, industry revenue has been increasing at a CAGR of 5.2% over the past five years to total an estimated $324.2 billion in 2025, including an estimated decrease of 0.7% in 2025. Single-family construction marked a bright spot in 2024, with leading developers like DR Horton capitalizing on demand for space and affordability. However, the pipeline for single-family projects has been hindered by high rates and tariff uncertainty that persisted throughout most of 2025. Multifamily development endured deeper contractions, particularly in 2023 and 2024, with vacancy rates and losses intensifying among even the largest developers before rebounding in 2025 as starts and demand recovered. Continued rate cuts by the Federal Reserve will set the stage for housing developers to regain growth momentum. Developers are poised to benefit from pent-up demand, housing shortages and renewed construction activity, particularly in the single-family segment, where affordability remains critical. However, rising material and labor costs will continue to pose operational challenges, leading developers to seek efficiencies or pass costs downstream. The expiration of federal green building credits in 2026 will prompt a rush to complete qualifying projects, but may curb longer-term investment in sustainable construction unless new incentives emerge. Expansions near newly announced manufacturing hubs are expanding, with developers acquiring land and prepping communities to meet workforce housing needs as the national focus on domestic manufacturing spurs regional population inflows and rising housing demand. Overall, industry revenue is forecast to climb at a CAGR of 1.8% to total an estimated $354.7 billion through the end of 2030.

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.

Graph and download economic data for Nasdaq US Large Cap Home Construction CAD NTR Index (NASDAQNQUSL40202010CADN) from 2024-03-18 to 2025-10-10 about large cap, market cap, NASDAQ, large, construction, housing, indexes, and USA.

Graph and download economic data for Nasdaq US Large Cap Home Construction TR Index (NASDAQNQUSL40202010T) from 2024-03-18 to 2025-10-10 about large cap, market cap, NASDAQ, large, construction, housing, indexes, and USA.

In the first quarter of 2025, San Francisco, Chicago, New York, and Honolulu were some of the U.S. cities with the highest housing construction costs. Meanwhile, Phoenix had one of the lowest construction costs for high-end multifamily homes at *** U.S. dollars per square foot and Las Vegas for single-family homes between *** and *** U.S. dollars per square foot. Construction cost disparities As seen here, the construction cost for a high-end multi-family home in San Francisco in the first quarter of 2024 was over ***** more expensive than in Phoenix. Meanwhile, there were also great differences in the cost of building a single-family house in New York and in Portland or Seattle. Some factors that may cause these disparities are the construction materials, installation, and composite costs, differing land values, wages, etc. For example, although the price of construction materials in the U.S. was rising at a slower level than in 2022 and 2023, several materials that are essential in most construction projects had growth rates of over **** percent in 2024. Growing industry revenue Despite the economic uncertainty and other challenges, the size of the private construction market in the U.S. rose during the past years. It is important to consider that supply and demand for housing influences the revenue of this segment of the construction market. On the supply side, single-family home construction fell in 2023, but it is expected to rise in 2024 and 2025. On the demand side, some of the U.S. metropolitan areas with the highest sale prices of single-family homes were located in California, with San Jose-Sunnyvale-Santa Clara at the top of the ranking.

Graph and download economic data for Nasdaq US Home Construction Large Mid Cap NTR Index (NASDAQNQUSB40202010LMN) from 2009-09-30 to 2025-10-13 about mid cap, market cap, NASDAQ, large, construction, housing, indexes, and USA.

US And Canada Residential Construction ERP Software Market size was valued at USD 353.65 Million in 2024 and is projected to reach USD 808.13 Million by 2032, growing at a CAGR of 10.95% from 2025 to 2032.The complexity involved in modern residential construction projects is one of the main drivers in the market today. Such complexity is characterized by innovative architectural designs, advanced building materials and technologies, stringent regulatory requirements, and the necessity for seamless integration among various stakeholders. This increasingly necessitates the use of software solutions that are robust and integrated in order to cope with complex workflows and allow visibility in real time along the project life cycle. Another critical factor going for ERP implementation has been the consistent requirement across the industry for improving efficiencies and productivity.

Graph and download economic data for Nasdaq US Large Cap Home Construction AUD NTR Index (NASDAQNQUSL40202010AUDN) from 2024-03-18 to 2025-09-25 about large cap, market cap, NASDAQ, large, construction, housing, indexes, and USA.

*****, *********, 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.

New Home Sales in the United States increased to 800 Thousand units in August from 664 Thousand units in July of 2025. This dataset provides the latest reported value for - United States New Home Sales - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The global tiny homes market, valued at $16.24 billion in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 4.2% from 2025 to 2033. This expansion is driven by several key factors. Increasing urbanization and escalating housing costs in major metropolitan areas are pushing individuals and families to seek more affordable and sustainable housing solutions. The growing popularity of minimalist lifestyles, coupled with environmental concerns regarding large-scale construction, further fuels demand for eco-friendly tiny homes. The market segmentation reveals a strong preference for mobile tiny homes, reflecting the desire for flexibility and relocation options. The commercial application segment, encompassing uses such as short-term rentals and boutique hotels, is also experiencing significant growth, contributing to the overall market expansion. Competition within the industry is moderate, with established players like Tumbleweed Tiny House Co. and American Tiny House alongside emerging innovative companies like ICON Technology Inc. These companies are employing various competitive strategies, including product differentiation, technological advancements in sustainable building materials, and strategic partnerships to capture market share. Geographic distribution shows strong market penetration in North America, particularly the US and Canada, driven by early adoption and a supportive regulatory environment in certain regions. However, growing awareness and changing lifestyles in regions like Europe and APAC suggest promising future growth opportunities in these markets. The overall market trajectory points towards a continuously expanding market, fueled by shifting consumer preferences and a growing awareness of sustainable living practices. The sustained growth in the tiny homes market is largely attributed to the increasing affordability and accessibility of these dwellings. Technological advancements are streamlining the manufacturing process, making tiny homes more cost-effective to produce. This, in turn, translates into lower prices for consumers. Moreover, the rise of online platforms and marketing strategies dedicated to promoting tiny home living further expands market reach and accessibility. While regulatory hurdles and zoning restrictions in some areas present challenges, the overall positive trends in consumer preference, technological innovation, and increased awareness contribute to the optimistic market forecast. The strategic focus on sustainable building materials and energy-efficient designs also attracts environmentally conscious buyers, reinforcing the long-term growth prospects of this niche yet dynamic sector. The market will likely see further diversification in designs, features, and applications, catering to the evolving needs and preferences of a diverse consumer base.

In 2024, the size of the construction industry relative to the gross domestic product of the United States was slightly higher than in the previous year. That means that the construction industry grew at a faster pace than the economy as a whole. The value added of that sector peaked in 2006 at **** percent of the GDP. The amount of construction investment as a share of GDP is, however, another indicator that provides a somewhat different insight into the industry as it is calculated differently. U.S. construction: a sizable market The construction market in the United States is one of the largest in the world, with private spending still increasing on a year-to-year basis. Most of that money comes from the private construction market, which is also the segment that has traditionally been more volatile. The number of people employed in the industry has also increased in the past years. During the coming years, it is also expected that the volume of new construction put in place will also keep increasing. Construction industry challenges To maintain its competitive standing, the construction industry must overcome various barriers, including those within the industry and external complications like the state of the U.S. economy. For example, a shortage in skilled labor, particularly for specific trade jobs, can be a relevant challenge. In 2022, many home builders also reported shortages of building materials and appliances.

The North American modular housing market, valued at $24.97 billion in 2025, is poised for robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 6.99% from 2025 to 2033. This expansion is driven by several key factors. Increasing demand for affordable housing, particularly in urban centers facing housing shortages, fuels the market's ascent. Furthermore, the inherent efficiency and sustainability of modular construction, leading to faster build times and reduced waste, are significant attractors for both developers and consumers. Government initiatives promoting sustainable building practices and affordable housing solutions further bolster market growth. The market is segmented by housing type, with single-family and multi-family units representing distinct but interconnected segments. The single-family segment currently holds a larger market share, reflecting established consumer preferences, but the multi-family segment is projected to experience faster growth due to increasing urbanization and rental demand. Leading companies like Skyline Corporation, Clayton Homes, and others are driving innovation and expansion within the industry, leveraging technological advancements to enhance construction methods and design capabilities. The preference for customizable designs and improved aesthetics is also contributing to rising adoption rates. Growth will likely be concentrated within the US, given its larger housing market and the increasing adoption of modular techniques. However, Canada and Mexico are expected to contribute to regional growth, though at potentially slower paces relative to the United States. Potential restraints include regulatory hurdles related to building codes and zoning regulations, as well as the perception of modular housing as less aesthetically pleasing compared to traditional construction. However, ongoing innovations in design and materials are mitigating these concerns, paving the way for sustained market expansion throughout the forecast period. The continued focus on sustainability, coupled with technological advancements and supportive government policies, suggests that the North American modular housing market will remain a dynamic and lucrative sector in the coming years. Recent developments include: April 2022: Clayton Homes, a national builder of both off-site and on-site homes, showed off its first single-section CrossMod home at the Manufactured Housing Institute's Congress & Expo. This gives another group of homebuyers and locations a new affordable housing option., January 2022: Volumetric Building Companies (VBC), one of the largest multifamily volumetric modular and components businesses in the United States, announced a merger with Polcom Group (Polcom), a premium steel modular building and custom furniture manufacturing conglomerate for the hospitality market. By combining VBC's innovative wood construction technology with Polcom's advanced steel modular system, the deal will change the way people build things. The Polycom merger comes right after VBC bought the assets of Katerra Inc., which included its offices and state-of-the-art manufacturing facility in Tracy, CA.. Notable trends are: Increase in Prefabricated Housing Market in North America.

New York-Northern New Jersey-Long Island was the metro area in the U.S. with the highest value of construction starts of multifamily and commercial buildings in 2024. The value of starts for commercial buildings and multifamily housing in Dallas-Fort Worth-Arlington, the second city in the ranking, amounted to **** billion U.S. dollars. The third metropolitan area in the ranking was Washington-Arlington-Alexandria.