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.

The index relates to costs ruling on the first day of each month. NATIONAL HOUSE CONSTRUCTION COST INDEX; Up until October 2006 it was known as the National House Building Index Oct 2000 data; The index since October, 2000, includes the first phase of an agreement following a review of rates of pay and grading structures for the Construction Industry and the first phase increase under the PPF. April, May and June 2001; Figures revised in July 2001due to 2% PPF Revised Terms. March 2002; The drop in the March 2002 figure is due to a decrease in the rate of PRSI from 12% to 10 3/4% with effect from 1 March 2002. The index from April 2002 excludes the one-off lump sum payment equal to 1% of basic pay on 1 April 2002 under the PPF. April, May, June 2003; Figures revised in August'03 due to the backdated increase of 3% from 1April 2003 under the National Partnership Agreement 'Sustaining Progress'. The increases in April and October 2006 index are due to Social Partnership Agreement 'Towards 2016'. March 2011; The drop in the March 2011 figure is due to a 7.5% decrease in labour costs. Methodology in producing the Index Prior to October 2006: The index relates solely to labour and material costs which should normally not exceed 65% of the total price of a house. It does not include items such as overheads, profit, interest charges, land development etc. The House Building Cost Index monitors labour costs in the construction industry and the cost of building materials. It does not include items such as overheads, profit, interest charges or land development. The labour costs include insurance cover and the building material costs include V.A.T. Coverage: The type of construction covered is a typical 3 bed-roomed, 2 level local authority house and the index is applied on a national basis. Data Collection: The labour costs are based on agreed labour rates, allowances etc. The building material prices are collected at the beginning of each month from the same suppliers for the same representative basket. Calculation: Labour and material costs for the construction of a typical 3 bed-roomed house are weighted together to produce the index. Post October 2006: The name change from the House Building Cost Index to the House Construction Cost Index was introduced in October 2006 when the method of assessing the materials sub-index was changed from pricing a basket of materials (representative of a typical 2 storey 3 bedroomed local authority house) to the CSO Table 3 Wholesale Price Index. The new Index does maintains continuity with the old HBCI. The most current data is published on these sheets. Previously published data may be subject to revision. Any change from the originally published data will be highlighted by a comment on the cell in question. These comments will be maintained for at least a year after the date of the value change. Oct 2008 data; Decrease due to a fall in the Oct Wholesale Price Index.

The average construction cost of a single-family home in the United States was about ******* U.S. dollars in 2024, about ****** U.S. dollars more expensive than in 2022. The source also adds that interior finishes – which includes insulation, flooring, and appliances – accounted for the largest share of costs at ** percent. U.S. housing construction slows Construction work was underway on over 1,000 single-family housing units in the United States in 2024. This number increased year-on-year between 2011 and 2021, followed by a notable decline in the next two years. Despite this trend, the industry experts are optimistic about construction levels picking up until 2026. The median size of a new single-family home has also shrunk. In 2023, the average home had approximately ***** square feet of floor space, about *** square feet less than in 2015. How many homes are sold each year in the United States? Less than ************ homes were sold in the United States in 2023, the majority of which were existing home sales. The median sales price of an existing single-family home was ******* U.S. dollars in that year, a figure that has risen steadily since 2011. Those in the market for a newly constructed single-family home will have to pay more, with the median sales price at ******* U.S. dollars in 2022.

The objective of the construction cost index is to show the development of costs incurred by the contractor/producer to carry out the construction process, in others words the cost of labour, materials and plant and overheads. The construction sector corresponds to the NACE Rev. 2 section F. Building construction (CC1) is further subdivided in residential building (CC11) and non-residential building (CC12). Data are not seasonally adjusted.

The cost of building a home in Mexico increased in 2024, but at a lower pace than in previous years. In the first 11 months of 2024, residential construction costs were *** percent higher than in 2023. Labor costs was the type of construction cost that increased the most in Mexico in 2023.

Dataset Overview

This dataset is a simulated dataset containing 1,000 entries of construction cost estimates. It is designed for use in predictive modeling, machine learning, and business analytics, particularly in the construction and project management domains. The dataset includes both numerical and textual data, providing opportunities for hybrid modeling approaches that combine structured data and natural language processing.

The primary objective of this dataset is to facilitate modeling of construction cost estimation while considering policy-driven adjustments (discounts or markups). It can be used to analyze and predict how various factors, such as material costs, labor costs, and policy reasons, affect final project estimates.

Feature Descriptions

1) Material_Cost (numeric):

• Represents the cost of materials required for a construction project, measured in USD.
• Range: $10,000–$50,000.
• This is one of the primary cost components in project estimation.

2) Labor_Cost (numeric):

• Represents the labor cost involved in completing the project, measured in USD.
• Range: $5,000–$30,000.
• Indicates the cost of human resources required for the construction.

3) Profit_Rate (numeric):

• Represents the percentage of profit added to the combined material and labor costs.
• Range: 10%–30% (5 distinct values: 10%, 15%, 20%, 25%, 30%).
• Reflects the margin a company expects from the project.

4) Discount_or_Markup (numeric):

• Represents the adjustment amount applied to the project cost, measured in USD.
• Range: -$10,000 to $10,000.
• A negative value indicates a discount, and a positive value indicates a markup, based on the

5) Policy_Reason (text):

• A textual explanation (up to 50 words) justifying the discount or markup applied to the cost. Examples include: "This client is new but has potential for growth." "The client is a repeat customer, deserving a loyalty discount." "Strategic importance of this client justifies special pricing." This feature is ideal for natural language processing (NLP) applications.

6) Total_Estimate (numeric): - The final estimated project cost, calculated as:

    (Material_Cost + Labor_Cost) × (1 + Profit_Rate/100) + Discount_or_Markup

• Represents the overall cost of the project after including the profit margin and any adjustments

Building construction price indexes (BCPI), percent change, by type of building and construction division. Quarterly data are available from the first quarter of 1982. The table presents quarter-over-quarter and year-over-year percentage changes for various aggregation levels. The base period for the index is (2017=100).

Poland - Construction cost of new residential buildings was 3.50 % year-on-year in June of 2021, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Poland - Construction cost of new residential buildings - last updated from the EUROSTAT on December of 2025. Historically, Poland - Construction cost of new residential buildings reached a record high of 4.10 % year-on-year in September of 2019 and a record low of 2.50 % year-on-year in March of 2021.

Graph and download economic data for Producer Price Index by Commodity: Inputs to Industries: Net Inputs to Single Family Residential Construction, Services (WPUIP2311102) from Dec 2014 to Sep 2025 about 1-unit structures, family, residential, construction, services, commodities, PPI, industry, inflation, price index, indexes, price, and USA.

Graph and download economic data for Other Prices: Cost of Construction: Residential: Total for Italy (OPCNRE01ITM661N) from Jan 1967 to Oct 2023 about cost, Italy, residential, and construction.

Finland - Construction cost of new residential buildings was -0.60 % year-on-year in March of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Finland - Construction cost of new residential buildings - last updated from the EUROSTAT on December of 2025. Historically, Finland - Construction cost of new residential buildings reached a record high of 10.80 % year-on-year in June of 2022 and a record low of -0.90 % year-on-year in September of 2020.

Graph and download economic data for Other Prices: Cost of Construction: Residential: Total for Greece (OPCNRE01GRQ661N) from Q1 1974 to Q2 2023 about cost, Greece, residential, and construction.

Short-term business statistics (STS) give information on a wide range of economic activities. All STS data are index data. Additionally, annual absolute values are released for building permits indicators. Percentage changes are also available for each indicator: Infra-annual percentage changes - changes between two consecutive months or quarters - are calculated on the basis of non-adjusted data (prices) or calendar and seasonally adjusted data (volume and value indicators) and year-on-year changes - comparing a period to the same period one year ago - are calculated on the basis of non-adjusted data (prices and employment) or calendar adjusted data (volume and value indicators).

The index data are generally presented in the following forms:

• unadjusted
• calendar adjusted
• calendar and seasonally adjusted.

Depending on the EBS Regulation data are accessible as monthly, quarterly and annual data.

The STS indicators are listed below in five different sectors, reflecting the dissemination of these data in Eurostat’s online database “Eurobase”.

Based on the national data, Eurostat compiles short-term indicators for the EU and euro area. Among these, a list of indicators, called Principal European Economic Indicators (PEEIs) has been identified by key users as being of primary importance for the conduct of monetary and economic policy of the euro area. The PEEIs contributed by STS are marked with * in the text below.

The euro indicators are released through Eurostat's website.

INDUSTRY

• production (volume)*
• turnover: Total, Domestic market and Non-domestic market. A further breakdown of the non-domestic turnover into euro area and non-euro area is available for the euro area countries.
• producer prices (output prices)*: Total, Domestic market and Non-domestic market. A further breakdown of the non-domestic producer prices into euro area and non-euro area is available for the euro area countries.
• import prices*: Total, euro area market, Non euro area market (euro area countries only)
• labour input indicators: Number of employees and self-employed persons, Hours worked by employees, Gross wages and salaries

CONSTRUCTION

• production (volume)*
• building permits indicators*: number of dwellings, square meters of useful floor
• producer (output) prices in construction (if not available, they can be approximated by the construction costs variable)
• labour input indicators: number of employees and self-employed persons, hours worked by employees, gross wages and salaries

TRADE

• volume of sales (deflated turnover)*
• turnover (value)
• labour input indicators: number of employees and self-employed persons, hours worked by employees, gross wages and salaries

SERVICES

• production (volume)*
• turnover (in value)
• labour input indicators: number of employees and self-employed persons, hours worked by employees, gross wages and salaries
• producer prices (output prices)*

MARKET ECONOMY

• total market production (volume)
• registrations
• bankruptcies

National reference metadata of the reporting countries are available in the Annexes to this metadata file.

Norway Construction Cost Index: Residential Buildings data was reported at 186.700 2000=100 in Jun 2018. This records an increase from the previous number of 186.600 2000=100 for May 2018. Norway Construction Cost Index: Residential Buildings data is updated monthly, averaging 93.000 2000=100 from Jan 1978 (Median) to Jun 2018, with 486 observations. The data reached an all-time high of 186.700 2000=100 in Jun 2018 and a record low of 35.600 2000=100 in Jan 1978. Norway Construction Cost Index: Residential Buildings data remains active status in CEIC and is reported by Statistics Norway. The data is categorized under Global Database’s Norway – Table NO.EA010: Construction Cost Index: 2000=100.

Germany - Construction cost of new residential buildings was 0.50 % year-on-year in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Construction cost of new residential buildings - last updated from the EUROSTAT on November of 2025. Historically, Germany - Construction cost of new residential buildings reached a record high of 16.40 % year-on-year in June of 2022 and a record low of 0.50 % year-on-year in December of 2023.

Archived - Non-residential building construction price index (NRBCPI), type of building of major subtrade groups. Quarterly Data are available from the first quarter 1981. The table presents data for the most recent reference period and the last four periods. The base period for the index is (2002=100).

Greece - Construction cost of new residential buildings was 4.00 % year-on-year in March of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Greece - Construction cost of new residential buildings - last updated from the EUROSTAT on December of 2025. Historically, Greece - Construction cost of new residential buildings reached a record high of 9.60 % year-on-year in September of 2022 and a record low of -0.10 % year-on-year in June of 2020.

Comprehensive 2025 construction cost dataset for single family home projects in New York, including labor rates, material costs, permit fees, timeline data, and market trends

Snapshot img

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

Romania - Construction cost of new residential buildings was 11.30 % year-on-year in March of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Romania - Construction cost of new residential buildings - last updated from the EUROSTAT on December of 2025. Historically, Romania - Construction cost of new residential buildings reached a record high of 25.40 % year-on-year in March of 2022 and a record low of 0.00 % year-on-year in June of 2020.