Graph and download economic data for New Privately-Owned Housing Units Started: Units in Buildings with 5 Units or More (HOUST5F) from Jan 1959 to May 2025 about 5-unit structures +, housing starts, privately owned, housing, and USA.

Housing Starts Multi Family in the United States increased to 414 Thousand units in June from 317 Thousand units in May of 2025. This dataset includes a chart with historical data for the United States Housing Starts Multi Family.

In the United States, it is expected that there will be approximately ***** multifamily housing starts less in 2025 than in 2024. However, it is forecasted that the number of construction starts for multifamily housing units will pick up slightly in 2026, after two years of falling starts. Multifamily vs single-family housing demand Multifamily housing includes various types of housing, such as apartment buildings, condominiums, duplexes, and townhouses. The number of housing starts of single-family has also fallen in 2022 and 2023, but it already started growing again in 2024, showing a faster recovery than the multifamily housing segment.

Are multifamily homes getting smaller? The median size of multifamily homes has median size of multifamily homes has shrunk by nearly *** square feet between 2007 and 2023. This trend towards smaller homes suggests that space is becoming increasingly limited, or that consumers prefer smaller homes due to smaller mortgages, lower maintenance costs and lower utility costs.

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 14.6 billion U.S. dollars. The third metropolitan area in the ranking was Washington-Arlington-Alexandria.

Graph and download economic data for New Privately-Owned Housing Units Under Construction: Units in Buildings with 5 Units or More (UNDCON5MUSA) from Jan 1970 to May 2025 about 5-unit structures +, construction, new, private, housing, and USA.

Graph and download economic data for New Privately-Owned Housing Units Completed: Units in Buildings with 2-4 Units (COMPU24USA) from Jan 1968 to Jun 2025 about 2-4 unit structures, new, private, housing, and USA.

The U.S. multifamily housing market has experienced a significant increase in supply over the past 10 years. In 2023, the number of units completed reached ******* units, marking a notable increase from the previous year's ******* units. This uptick comes after a period of a spike in multifamily construction starts. Nevertheless, forecasts suggest a decline in future supply as construction starts decline in 2024 and 2025. Despite these fluctuations, multifamily housing remains a significant share of the U.S. housing stock. Multifamily buildings are a popular choice among renters, with approximately ** million American households occupying a rental home in a residential building with more than two units.

The drastic need for apartments has led to an expansion for apartment and condominium construction contractors over the past five years. Still, changing interest rates have led to years of expansion and contractions for contractors. Overall, revenue has been increasing at a CAGR of 3.8% to total an estimated $91.8 billion through the end of 2025, including an estimated 2.2% increase in 2025. Low interest rates amid the pandemic led residential investment to swell, which included apartment complexes. As inflationary concerns and interest rate hikes lingered, many contractors delayed construction, leading to a contraction in 2023 as housing starts sank. Profit has risen slightly as materials price inflation has cooled and contractors have been able to adjust their rates, passing along higher prices to customers. This has also been a driver of revenue growth. Multifamily complexes are still very much needed as young professionals and immigrants move to major cities, leading to growth in 2025. Home prices are set to see slower growth in the coming years than in the previous five, causing a shift in the housing market back to homeownership. Also, continued rate cuts will incentivize home construction. Mortgage rates have remained stubbornly high in the face of cuts to the federal funds rate, however. Elevated mortgage rates will keep buying a house out of reach for many, pushing more people to rent. Apartment construction is set to continue to account for the growing population in the US. Affordable housing complexes remain crucial in many large cities and will be needed as more people enter. Rental vacancies will continue threatening contractors, as many consumers may split housing with roommates and fulfill current stock to save money. Overall, industry revenue is forecast to expand at a CAGR of 1.8% to total an estimated $100.5 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

Construction start delays in the U.S. in December 2022 were more likely to be caused by economic uncertainty than June of that year. The major cause of delays for multifamily construction and development housing were permitting, entitlement, and professional services.

Graph and download economic data for New Privately-Owned Housing Units Started: Single-Family Units (HOUST1F) from Jan 1959 to Jun 2025 about housing starts, privately owned, 1-unit structures, family, housing, and USA.

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.

The duration of multifamily home construction projects in the United States fell slightly in 2024. On average, it took *** months for a multifamily home to be authorized by a building permit and reach its construction start phase in 2021, but that same process required *** months in 2024. Meanwhile, the time from start to completion of a multifamily home increased from **** months in 2021 to **** months in 2024. Multifamily homes were the most time-intensive type of residential construction project.

Multifamily housing starts in 2023 fell slightly in comparison to the previous year. That year, construction starts in apartments, semi-detached homes, and rows reached 185,651 units. Ontario was the province with most of those construction starts. The volume of new home construction in Canada has fluctuated significantly in the past years.

As provided by the Census, start occurs when excavation begins for the footings or foundation of a building. All housing units in a multifamily building are defined as being started when this excavation begins. Beginning with data for September 1992, estimates of housing starts include units in structures being totally rebuilt on an existing foundation.

This table contains data described by the following dimensions (Not all combinations are available): Geography (11 items: Canada; Prince Edward Island; Nova Scotia; Newfoundland and Labrador ...), Housing estimates (3 items: Housing starts; Housing under construction; Housing completions ...), Type of unit (6 items: Total units; Semi-detached; Single-detached; Multiples ...).

In 2024, approximately 792.1 thousand housing starts were initiated in Japan. This represented a decline of 3.4 percent compared to the previous year. It was the second time since 1995 that the number of new dwellings started fell below 800 thousand. Housing construction in Japan Both, the number of and floor area of new construction projects declined compared to 2023. Broken down by type of building, apartment construction starts exceeded the number of single-family home construction starts for the second time in the past decade. Looking at the number of construction starts by use, construction starts for single family homes for sale saw the sharpest decline, while construction starts for homes for rent remained the largest category. Housing stock in Japan Japan’s housing stock comprises more than 65 million dwellings, with detached houses accounting for the largest number of occupied dwellings, followed by apartment buildings. As a result of the demographic development, the growing housing stock already exceeds the number of households, resulting in rising vacancy rates across the country. As of 2018, around seven million dwellings were estimated to not meet the requirements of a new seismic code for buildings introduced in 1981, a share of around 13 percent which the government aims to reduce to zero by 2025.

The purpose of the Survey of Construction (SOC) is to provide national and regional statistics on starts and completions of new single-family and multifamily housing units and statistics on sales of new single-family houses in the United States. The United States Code, Title 13, authorizes this survey and provides for voluntary responses. The Department of Housing and Urban Development partially funds this survey. The SOC also provides statistics on characteristics of new privately-owned residential structures in the United States. Data included are various characteristics of new single-family houses completed, new multifamily housing completed, new single-family houses sold, and new contractor-built houses started.

How does your organization use this dataset? What other NYSERDA or energy-related datasets would you like to see on Open NY? Let us know by emailing OpenNY@nyserda.ny.gov. The Multifamily Performance Program (MPP) serves residential buildings with five or more units. Funds are targeted at energy efficiency measures that help to reduce on-site electricity, oil, natural gas, steam, and propane energy demand and energy consumption in multi-unit residential buildings. All buildings receive program support for energy assessments to identify and determine cost-effective measures, expected energy savings, and installation costs. Our dataset is then compiled from the information. The dataset includes information collected throughout the project application process and energy assessments from several NYSERDA-funded programs, including Multifamily Performance Program-Existing Buildings, Multifamily Performance Program-New Construction, and Multifamily Performance Program-Energy Star Pilot. The Multifamily Residential Existing and New Construction Energy Efficiency Projects Reported by NYSERDA: Beginning 2005 dataset includes the following data points for completed projects: Project Name, Program Type, Building Address1, Building City, Building ZIP, Property County, Electric Utility, Gas Utility, Market Type, Number of Buildings, Number of Units, Application NYSERDA Approved Date, Project Completed Date, Funding Amount, Proposed Install Unit Cost, Total Estimated Electric Savings, Total Estimated Annual Energy Savings, and Total Estimated Electric Demand Reduction (MW). Information about the Projects’ measures, measure category, and estimated energy savings by fuel type can be found in the Multifamily Residential Existing and New Construction Energy Efficiency Measures Reported by NYSERDA: Beginning 2005 dataset. Reported savings account for interactive effects between measures.

Investment pouring into residential housing construction has benefited apartment and condominium construction activity in Canada in recent years. Immigration into Canada has spurred record population growth, fueling a deepening housing crisis. In major urban centres, demand for housing units has exceeded the supply for years, inciting investment in retrofits and multistory apartment dwellings. Apartment contractors have been vital in filling the gaps in housing, with a low-interest environment and chronically low vacancy rates enticing investors. The imbalance between housing supply and demand kept investors bullish on apartments through COVID-19 pandemic uncertainty, supporting growth. Still, the pandemic's disruption to global supply chains didn't spare contractors, with equipment and material costs reaching unprecedented highs. Particularly through 2021 and 2022, materials price and wage inflation pushed up contractors rates, contributing to industry revenue growth. While the year following saw slower building construction price inflation, high demand has kept the price level from falling. In all, industry-wide revenue has been rising at an expected CAGR of 4.2% over the past five years, totaling an estimated $62.3 billion in 2025, when revenue will rise an expected 2.6%. Beginning in 2022, the Bank of Canada steadily raised or maintained interest rates to combat inflation. Higher interest rates made developers more hesitant to invest in projects, driving up costs for builders and impeding profit. In 2024, however, the Bank of Canada began cutting interest rates, continuing the policy into 2025. Contractors will navigate a challenging landscape over the coming years. While interest rates will continue to fall, they will not reach pandemic lows. Labour shortages and elevated costs will also strain contractors' capacity. These challenges will face the broader construction sector, pushing federal and provincial governments to introduce infrastructure and workforce development programs. Over the next five years, apartment and condominium construction revenue is expected to expand at a CAGR of 1.9% to reach $68.4 billion in 2030.