The US Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, and More), by Investment Source (Public and Private), and by Region (Northeast, Midwest, Southeast, West, and Southwest). The Market Forecasts are Provided in Terms of Value (USD).

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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

Europe Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), Construction Type (New Construction, Renovation), Construction Method (Conventional On-Site, Modern Methods of Construction), Investment Source (Public, Private), and Geography (Germany, United Kingdom, France, Italy, Spain, Netherlands, and More). The Market Forecasts are Provided in Terms of Value (USD).

Global Residential Building Construction market size is expected to reach $5789.04 billion by 2029 at 6.5%, segmented as by product type, new-single family housing construction, new-multi family housing construction, other types

The North American Residential Construction Market Report is Segmented by Property Type (single Family and Multi-Family), Construction Type (new Construction and Renovation), and Region (United States, Canada, and Mexico). The Report Offers Size and Forecasts for the North American Residential Construction Market in Terms of Value (USD Billion) for all the Above Segments.

In 2023, the construction contractor with the most multifamily housing units started in the United States was Summit Contracting Group. Mill Creek Residential and Greystar followed in the ranking, but they generated a significantly smaller revenue in that segment. All three of those companies were headquartered in the United States.

The global residential construction market size reached approximately USD 4.92 Trillion in 2024. Further, the residential construction industry is further projected to grow at a CAGR of 5.00% between 2025-2034, reaching a value of USD 8.01 Trillion by 2034.

India Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), Construction Type (New Construction, Renovation), Construction Method (Conventional On-Site, Modern Methods of Construction), Investment Source (Public, Private), and Geography (North India, South India, West India, East & North-East India, and More). The Market Forecasts are Provided in Terms of Value (USD).

With 9,151 unit starts in 2023, Greystar was the leading apartment developer in the United States. This was just slightly higher than the number of units started by Mill Creek Residential, that ranked second. Helping to meet the housing demand in the U.S. Unit starts – also known as housing starts – refer to the number of new residential construction projects on which ground has already been broken. In the United States, the number of multifamily housing starts, which includes the development of apartments, has been increasing in the last ten years. In comparison, the number of single-family housing starts in the United States was much higher at over a million units in 2022. Apartment living increases in popularity Alliance Residential is a real estate company that specializes in the development, construction, and management of multifamily residential properties. The number of completed multifamily housing units in the United States was around 274,000 in 2022, with apartment demand accounting for the greatest share of that figure. The average size of multifamily units in the United States was 1,046 square feet in 2021, a figure that has declined in recent years.

The North American residential construction market, valued at $850 million in 2025, is projected to experience robust growth, driven by several key factors. A burgeoning population, particularly in urban centers, coupled with increasing household formations, fuels consistent demand for new housing units. Furthermore, low mortgage interest rates (historically, though this is subject to fluctuation) and government incentives aimed at boosting homeownership have stimulated market activity. The market segmentation reveals a strong preference for single-family homes, particularly in suburban and rural areas, alongside a notable increase in multi-family dwellings catering to urban renters and the growing demand for rental properties. New construction continues to dominate the market share, although renovation and remodeling projects represent a significant and growing segment, particularly as existing housing stock ages and requires upgrades. Leading players like Lennar Corporation, D.R. Horton, and PulteGroup are well-positioned to capitalize on these trends, utilizing innovative building techniques and sustainable materials to meet evolving consumer preferences. However, the market also faces challenges. Rising material costs, labor shortages, and increasing regulatory compliance requirements pose significant headwinds. Supply chain disruptions, though less severe than in recent years, still impact project timelines and budgets. Furthermore, fluctuations in interest rates and economic uncertainty can influence buyer confidence and affect overall market demand. Despite these hurdles, the long-term outlook for the North American residential construction market remains positive, fueled by demographic shifts and sustained investment in infrastructure development. The market is expected to maintain a compound annual growth rate (CAGR) of 4.50% from 2025 to 2033, indicating a substantial expansion in market size and value over the forecast period. The continued evolution of building technologies, focusing on energy efficiency and smart home integration, will further shape market dynamics in the coming years. 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.. Notable trends are: 800,000 Housing Units Must Be Built Annually in Mexico to Keep Up with Demand.

The UK Residential Construction Market is Segmented by Type (Apartments & Condominiums, Landed Houses & Villas, and Other Types), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (London, Birmingham, and More). The Market Forecasts are Provided in Terms of Value (USD).

According to Cognitive Market Research, the Residential Construction Market Size was USD XX Million in 2024 and is set to achieve a market size of USD XX Million by the end of 2033, growing at a CAGR of XX% from 2025 to 2033.

Asia-Pacific held largest share of xx% in the year 2024 
Europe held share of xx% in the year 2024 
North America held significant share of xx% in the year 2024 
South America held significant share of xx% in the year 2024
Middle East and Africa held significant share of xx% in the year 2024 

MARKET DYNAMICS: Residential Construction Market

KEY DRIVERS

The increasing global population is driving the need for the residential construction market.

The worldwide population has been consistently rising and is expected to keep expanding over the upcoming years. As per the United Nations, the global population is projected to hit 8 billion in 2024 and is projected to reach a maximum of approximately 10 billion. The effects of this population increase are substantial, influencing multiple sectors such as housing and healthcare. With the rise in population, there is a related increase in the demand for residential housing, requiring careful planning and resource distribution to meet the escalating needs. To meet the demand, both government entities and private sector firms are elevating their construction activities. Governments in various nations, like India, are also focusing on the advancement of rural regions. These are the main factors that have been driving the expansion of the residential construction market. Moreover, the younger population is prevalent in the age demographics of emerging markets like India, Japan, and China. The younger generation is more drawn to newly designed homes than to older buildings. The need for increased living space during and following the coronavirus pandemic resulted in heightened demand for housing, with a significant flow of new immigrants driving household formation. This is yet another element that fuels the expansion of the residential building sector. Thus, the rising global population is fuelling the demand for the residential construction sector.

(Source:https://population.un.org/wpp/assets/Files/WPP2024_Summary-of-Results.pdf

https://www.cbo.gov/publication/60727)

Restraints

Volatility of raw material prices, such as steel, concrete, is hindering the growth of the residential construction market.

The expansion of the residential building market is increasingly hindered by fluctuations in raw material costs, especially for crucial materials like aluminium, steel, concrete, and softwood lumber. With the increasing prices of these construction materials, housing affordability suffers, creating greater difficulties for both developers and homebuyers.

This increase in prices is mainly influenced by the fundamental economic concept of supply and demand. In peak construction periods, the demand for building supplies increases significantly, yet availability frequently stays limited because of worldwide shortages and disruptions. These constraints inherently drive prices upward, worsening the problem. Adding to the issue are uncertainties in the production process and erratic timelines for material arrivals, which hinder builders from finishing projects on time. Widespread inflationary pressures in the overall economy further increase expenses, as the overall increase in prices for products and services inevitably affects construction materials.

Furthermore, numerous raw materials employed in home construction are commodities traded worldwide. This makes the market more vulnerable to additional volatility resulting from geopolitical conflicts, trade disagreements, and alterations in global trade regulations, all of which can interfere with supply chains and cause price surges. As reported by the Associated Builders and Contractors, construction material prices increased by 1.3% in January 2023 alone. This figure is not only 1.3% above December 2022, but it also indicates a 4.9% rise from the prior year. Even though this is the least annual rise since January 2021, it highlights the ongoing upward trend in material expenses.

In conclusion, the fluctuations in raw material prices caused by supply-demand disparities, inflation, and global market disturbances are greatly obstructing the expansion of the residential construction sector by increasing expenses ...

Based on short-term projections, the U.S. non-residential construction market is expected to increase by approximately *** percent in 2025. That year, growth is expected to be the highest in the data center construction segment, with a year-on-year change of **** percent. Meanwhile, the value of spending on warehouses was expected to decrease that year, but to recover in 2026. The value of private non-residential buildings put in place in the U.S. soared in 2023 and continued growing in 2024. That was similar to how public non-residential construction has evolved, which also had a noticeable growth in 2023 and 2024. Non-residential construction market There are various drivers that impact the non-residential construction market and can be highly dependent on the sector. Demand for leisure travel has a major influence on the value of hotel construction in the United States. For example, construction spending on the hotels fell sharply in the first years of the COVID-19 pandemic, when travel was constrained. On the other hand, the growth in the office building market is guided to a large extent by corporate relocations, the lack of vacant spaces in major metropolitans, and trends in the hybrid working policies of companies. Industrial real estate receives most investment The value of investment in commercial real estate in the U.S. fell significantly in 2022 and 2023, but it started recovering slightly in 2024. The value of investment in office real estate fell the most in the past years, but it grew at a faster pace than other segments in 2024.

The global Residential Construction market size was valued at USD XXX million in 2023 and is projected to reach USD XXX million by 2033, exhibiting a CAGR of XX% during the forecast period (2023-2033). The residential construction market is mainly driven by factors such as rising urbanization, increasing population, and growing disposable income. Additionally, government initiatives to promote affordable housing and increasing investment in infrastructure development are further contributing to the growth of the market. The market is segmented by application into commercial, personal, and others. Among these, the commercial segment is expected to hold the largest market share during the forecast period due to the increasing demand for office buildings, retail spaces, and other commercial establishments. In terms of geography, North America is expected to dominate the global residential construction market throughout the forecast period. The region has a well-established construction industry and a strong demand for housing. The United States is the largest market in North America, followed by Canada and Mexico. Europe is another major market for residential construction, with countries such as the United Kingdom, Germany, and France being the key contributors. The Asia Pacific region is also expected to witness significant growth in the residential construction market due to rising urbanization and increasing population. China, India, and Japan are the major markets in the Asia Pacific region. Report Description This comprehensive report provides an in-depth analysis of the residential construction industry, examining its concentration, trends, key regions/segments, and growth drivers. It offers valuable insights into the market's evolving landscape and opportunities for stakeholders.

The value of public residential construction spending in the United States has risen significantly from 2019 to 2024. In 2019, the public sector spent nearly **** billion U.S. dollars on residential construction projects, while that figure reached **** billion U.S. dollars in 2024. The overall value of new residential construction put in place in the U.S. is expected to increase over the coming years.

The Saudi Arabia Residential Construction Market is Segmented by Type (Apartments & Condominiums, Landed Houses & Villas, and More), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (Riyadh, Jeddah, Dammam, and More). The Market Forecasts are Provided in Terms of Value (USD).

North America Residential Construction Market size was valued at USD 850 Billion in 2024 and is projected to reach USD 1300 Billion by 2032, growing at a CAGR of 6.5% from 2026 to 2032.North America Residential Construction Market DynamicsThe key market dynamics that are shaping the North America residential construction market include:Key Market Drivers:Housing Demand and Demographic Shifts: U.S. Census Bureau's comprehensive demographic analysis reports 17.3% increase in first-time homebuyers under 35. Millennials now account for 43% of mortgage applications, driving historic USD 1.5 trillion in housing market demand and profoundly changing residential real estate dynamics.Sustainable Building Technologies: In accordance to the thorough sustainability report published by the United States Green Building Council, green certifications are now used in 48% of new residential construction. Energy-efficient buildings consistently attract 7.1% higher market values, indicating a significant economic incentive for sustainable residential construction techniques.

The Canada Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, and Villas & Landed Houses), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, and More), by Investment Source (Public and Private), and by Geography (Toronto, Vancouver, Montreal, Calgary and the Rest of Canada). The Market Forecasts are Provided in Terms of Value (USD).

The value of non-residential building construction put in place in 2029 in the United States is expected to reach *** billion U.S. dollars. Non-residential construction can include segments like the construction of lodging, offices, commercial buildings, health care, and education. Generally, the U.S. construction industry is linked to the economic wellbeing of the country. Construction industry needs Within the non-residential building industry, commercial building construction in the U.S. decreased in 2024 after increasing considerably the prior two years. However, the construction industry faces challenges such as the rising construction costs. The modernization of a typically conservative industry will be important in the near future to support customer demands and to improve operation models. Integrating sustainable building processes and features in projects as well as establishing technological advancements like building information modeling (BIM) will be essential for the future of the construction industry. Non-residential vs. residential During the past years, new residential construction in the United States usually had a higher value than non-residential construction. Until 2019, the values of new residential and non-residential construction had remained fairly similar. However, the value of new residential construction started quite fast between 2020 and 2022. Nevertheless, the number of permits for private housing construction started decreasing since late 2022