In June 2025, approximately ******* home construction projects started in the United States. The lowest point for housing starts over the past decade was in 2009, just after the 2007-2008 global financial crisis. Since 2010, the number of housing units started has been mostly increasing despite seasonal fluctuations. Statista also has a dedicated topic page on the U.S. housing market as a starting point for additional investigation on this topic. The impact of the global recession The same trend can be seen in home sales over the past two decades. The volume of U.S. home sales began to drop in 2005 and continued until 2010, after which home sales began to increase again. This dip in sales between 2005 and 2010 suggests that supply was outstripping demand, which led to decreased activity in the residential construction sector. Impact of recession on home buyers The financial crisis led to increased unemployment and pay cuts in most sectors, which meant that potential home buyers had less money to spend. The median income of home buyers in the U.S. fluctuated alongside the home sales and starts over the past decade.

Housing Starts in the United States increased to 1321 Thousand units in June from 1263 Thousand units in May of 2025. This dataset provides the latest reported value for - United States Housing Starts - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In May 2025, there were ******* permits for new residential construction in the United States. Despite some fluctuations, the number of building permits issued in the past couple of years has been falling. The number of U.S. new home construction starts has also been lower than in previous years.

Graph and download economic data for New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Units in Buildings with 2-4 Units (PERMIT24) from Jan 1960 to Jun 2025 about permits, buildings, new, private, housing, and USA.

This dataset contains data on permits for residential construction collected in the Census Bureau's Building Permits Survey. Data is aggregated to the County level. Data is only for final permits, not preliminary permits. Final permit data is published in May of the following year. Annual data are available from 1980 through the most recent reporting year, and may also contain imputed values. This dataset is part of the State of the Cities Data Systems (SOCDS).

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.

The two metropolitan areas with the highest value of new residential construction in 2024 were in Texas. Those two areas, Dallas-Fort Worth-Arlington and Houston-Pasadena-The Woodlands, were the only ones in the United States where new homes authorized were worth over 17 billion U.S. dollars. Those figures were significantly higher than the following entries in the list, the areas around Phoenix (Arizona) and in New York, where home construction amounted to over ten billion U.S. dollars.

Building Permits in the United States decreased to 1393 Thousand in June from 1394 Thousand in May of 2025. This dataset provides the latest reported value for - United States Building Permits - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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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

Texas and Florida were the states with most residential building permits issued in 2024, with roughly ******* and ******* permits issued, respectively. On the other side of the spectrum, Alaska and Rhode Island issued fewer permits than any other state. The overall number of building permits for new residential construction in the U.S. has fluctuated a lot in the past years.

The U.S. Census Bureau.s economic indicator surveys provide monthly and quarterly data that are timely, reliable, and offer comprehensive measures of the U.S. economy. These surveys produce a variety of statistics covering construction, housing, international trade, retail trade, wholesale trade, services and manufacturing. The survey data provide measures of economic activity that allow analysis of economic performance and inform business investment and policy decisions. Other data included, which are not considered principal economic indicators, are the Quarterly Summary of State & Local Taxes, Quarterly Survey of Public Pensions, and the Manufactured Homes Survey. For information on the reliability and use of the data, including important notes on estimation and sampling variance, seasonal adjustment, measures of sampling variability, and other information pertinent to the economic indicators, visit the individual programs' webpages - http://www.census.gov/cgi-bin/briefroom/BriefRm.

New Residential Construction provides national and regional data on the number of new housing units authorized by building permits; authorized, but not started; started; under construction; and completed. The data are for new, privately-owned housing units, excluding "HUD-code" manufactured (mobile) homes. The data are from the Building Permit Survey, and from the Survey of Construction (SOC), which is partially funded by the Department of Housing and Urban Development (HUD).

Graph and download economic data for New Privately-Owned Housing Units Started: Units in Buildings with 5 Units or More (HOUST5FNSA) from Aug 1963 to Jun 2025 about 5-unit structures +, housing starts, privately owned, housing, and USA.

Idaho and North Carolina were in 2024 the U.S. states with the highest volume of new residential construction, with **** and **** units authorized per 1,000 residents, respectively. On average, that year in the U.S. there were **** homes authorized per 1,000 residents. In overall terms, however, the most populous states in the U.S. tend to have the highest demand for housing.

Graph and download economic data for New Privately-Owned Housing Units Under Construction: Total Units (UNDCONTSA) from Jan 1970 to Jun 2025 about construction, new, private, housing, and USA.

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

Housing Starts in China increased to 30364.32 Tens of Thousands Square Metre in June from 23183.61 Tens of Thousands Square Metre in May of 2025. This dataset includes a chart with historical data for China Housing Starts.

Croatia Number of Construction Permits Issued: BD: New: Residential: Two Dwellings data was reported at 72.000 Unit in Feb 2025. This records an increase from the previous number of 64.000 Unit for Jan 2025. Croatia Number of Construction Permits Issued: BD: New: Residential: Two Dwellings data is updated monthly, averaging 59.000 Unit from Jan 2002 (Median) to Feb 2025, with 278 observations. The data reached an all-time high of 204.000 Unit in Dec 2004 and a record low of 19.000 Unit in Jan 2016. Croatia Number of Construction Permits Issued: BD: New: Residential: Two Dwellings data remains active status in CEIC and is reported by Croatian Bureau of Statistics. The data is categorized under Global Database’s Croatia – Table HR.EA002: Number of Building Permits Issued and Size of Buildings with Permits.

Residential building permits in United States were in short demand in 2018, rising only *** percent across the country. Many large cities have reduced the number of residential building permits, such as Chicago, which handed out ** percent less permits in 2018 than the previous year. Building permits may specifically apply to large housing units with multiple living spaces, to single family houses. Before construction can begin on any new or existing building, a permit must be obtained from the appropriate city council. Building permit numbers have increased significantly in both Houston, Texas and Orlando, Florida metro areas, with **** and **** percent more permits issued in 2018 than 2017, respectively.

Homes are where the heat is Generally speaking, the construction of new homes can be a good indicator of how local economies are fairing, as it can mean that individuals have acquired enough wealth to own their own home or businesses are expanding. The 2018 residential building permit figures provide some insight into the current demographic of cities, particularly with regards to the job market. For instance, in the „snowbird“state of Florida, ** percent of new residents in Orlando were between ages 25 and **, and presumably their careers still play a large role. Orlando-Kissimmee-Sandford metro area is within close range of engineering firms such as Lockheed Martin, as well as new tech companies, which offer higher salaries and better prospects than other industries. Florida unemployment continues to decline and dropped to *** percent in 2018.
Incidentally, cities that tend to be popular for Americans in their early twenties, tend to be the cities that are reducing their number of new residential building permits (Chicago, Illinois; New York, New York; and Los Angeles, California). But this does not mean that these cities are in financial trouble. Chicago’s GDP is steadily growing and unemployment in Illinois was at *** percent in 2018. Bigger and denser cities tend to attract younger groups as they can walk from location to location and remain amongst the excitement that cities have to offer.

What is Building Permit Data?

Building Permit Data is a detailed repository of records related to the permits issued by local authorities for various construction-related projects. These permits are mandatory for any significant building activity, ensuring that all developments comply with local zoning laws, safety standards, and building codes.

This data typically includes a wealth of information such as:

• Permit Types: Whether it’s a new construction, renovation, or demolition, the type of permit issued is recorded.
• Issuance Dates: The date when the permit was issued, providing a timeline of construction activities.
• Project Descriptions: Detailed descriptions of the construction or renovation work being undertaken.
• Contractor Information: Information about the contractors responsible for the work, offering insights into the key players in local development.
• Valuation Estimates: Estimated costs associated with the projects, crucial for understanding the scale and economic impact of the developments.

This granular level of detail makes building permit data an indispensable resource for various applications.