Graph and download economic data for New Privately-Owned Housing Units Under Construction: Single-Family Units (UNDCON1USA) from Jan 1970 to Aug 2025 about 1-unit structures, family, construction, new, private, 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 ** 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 *** 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.

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

The value of new residential construction put in place in the United States increased to *** U.S. dollars in 2024, and it is expected to keep increasing in the coming years. These figures refer to the construction of single-family and multi-family housing, as well as to the value of the home improvements segment, which includes additions, alterations, and major replacements. Non-residential construction spending rose significantly in 2024.

Housing Starts Single Family in the United States decreased to 890 Thousand units in August from 957 Thousand units in July of 2025. This dataset includes a chart with historical data for the United States Housing Starts Single Family.

There were approximately ******* building permits for single-family housing units granted in the United States in 2024. That number was lower than in 2021, when the number of building permits peaked. However, those figures increased again in 2024. The numbers still remain considerably lower than its 2005 peak with **** million building permits.

What is considered a single-family home? Single-family homes are detached, independent properties built as the residence for one person, family, or household. In 2025, it is expected that the number of single-family housing units under construction in the United States will increase to over *** million. In 2024, New York was one of the cities in the U.S. with the highest construction costs for residential single-family buildings. However, there were significant differences between the costs of a multi-family and a single-detached home. What is the price of a single-family home in the United States? Price is one of the main factors in deciding whether to buy an existing or new home. In 2023, the median sales price of an existing single-family home in the United States increased slightly, reaching ******* U.S. dollars. However, the price of single-family houses can vary a lot depending on its location and other factors.

The price of multifamily units under construction in the United States increased significantly more than that of single-family homes in 2024. While the price of single-family houses was *** percent higher than in the previous year, those figures amounted to over **** percent for multifamily residential units. The overall cost of construction materials in the U.S. increased noticeably in 2021 and 2022.

Graph and download economic data for New Privately-Owned Housing Units Completed: Single-Family Units (COMPU1USA) from Jan 1968 to Aug 2025 about 1-unit structures, family, new, private, housing, and USA.

New Single Family Housing Units Authorized for Construction in Maryland and its jurisdictions from 2010 to 2024. Source from the U.S. Department of Commerce. Bureau of the Census.

The duration of single-family home construction projects in the United States decreased significantly in 2024. That happened after years of noticeable increases in the length of time it took to complete projects. On average, it took a month for a house to be authorized by a building permit and reach its construction start phase in 2020, but that same process required *** months in 2024. Meanwhile, the time from start to completion of a single-family home increased from *** months in 2020 to *** months in 2024. Multifamily homes were nevertheless the most time-intensive type of residential construction project.

Residential Construction Market Outlook

The global residential construction market size was valued at $XX billion in 2023 and is projected to reach $XX billion by 2032, growing at a compound annual growth rate (CAGR) of XX% during the forecast period. This considerable growth is driven by several factors, including increasing urbanization, rising disposable incomes, and government initiatives focused on housing development. The expanding population, especially in emerging economies, and the growing trend toward nuclear families are also crucial drivers bolstering the market's growth.

One of the primary growth factors for the residential construction market is the rapid urbanization observed worldwide. As more people move from rural areas to urban centers in search of better employment opportunities and improved living standards, the demand for residential units in cities has skyrocketed. Urbanization not only increases the demand for new housing but also necessitates the renovation and upgrading of existing infrastructure to accommodate the growing population. Additionally, governments around the world are implementing policies and offering incentives to stimulate the housing sector, thus directly contributing to market growth.

Another significant driver is the rise in disposable incomes, especially in developing nations. Higher disposable incomes enable individuals and families to invest in better housing, resulting in increased demand for residential construction. Economic growth in various regions has led to a higher standard of living, with more people aspiring to own homes that offer enhanced comfort and amenities. This trend is complemented by the availability of favorable financing options and mortgage rates, which make home buying more accessible to a larger segment of the population.

Technological advancements in construction techniques and materials are also playing a pivotal role in the market's growth. Innovations such as prefabrication, 3D printing, and green building materials are not only making construction quicker and more cost-efficient but are also aligning with the growing demand for sustainable and energy-efficient homes. These technological improvements are attracting both homeowners and real estate developers, eager to reduce costs and enhance the quality of construction. Consequently, technology is evolving into a critical enabler of the marketÂ’s expansion.

Regionally, Asia Pacific is expected to dominate the residential construction market during the forecast period. Rapid economic development, substantial urban migration, and supportive governmental policies are driving the market in this region. Countries like China and India, with their massive populations and expanding middle classes, present immense opportunities for residential construction. However, North America and Europe are also experiencing steady growth, driven by urban renewal projects and an increasing focus on sustainable living spaces. The Middle East & Africa and Latin America, while smaller in market share, are anticipated to witness moderate growth fueled by urbanization and infrastructural investments.

Construction Spending plays a pivotal role in shaping the dynamics of the residential construction market. The allocation of funds towards building new homes and renovating existing structures directly influences the pace and scale of market growth. Governments and private investors are increasingly recognizing the importance of strategic construction spending to address housing shortages and improve living conditions. By channeling resources into construction projects, stakeholders can stimulate economic activity, create jobs, and enhance infrastructure. This financial commitment not only supports the development of new residential units but also ensures the modernization and sustainability of existing housing stock, aligning with broader urban development goals.

Type Analysis

The residential construction market can be segmented by type into single-family housing and multi-family housing. Single-family housing remains a dominant segment, driven by the growing preference for privacy and individual living spaces. This trend is particularly prominent in North America and Europe, where suburban living is highly popular. Single-family homes offer the luxury of private outdoor spaces, better control over living conditions, and more room for customization, making them highly desirable among homeowners. The financial incentives provided by g

Access expert Single Family Housing Construction Market research covering data intelligence and growth analysis. Syndicated reports for strategic decision-making and business planning.

Housing Starts in the United States decreased to 1307 Thousand units in August from 1429 Thousand units in July 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.

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.

Graph and download economic data for New Privately-Owned Housing Units Started: Single-Family Units in the West Census Region (HOUSTW1FNSA) from Jan 1964 to Aug 2025 about West Census Region, housing starts, 1-unit structures, family, housing, and USA.

Europe Residential Construction Market size was valued at USD 1.08 Trillion in 2024 and is projected to reach USD 1.64 Trillion by 2032, growing at a CAGR of 5.4% from 2026 to 2032.

Europe Residential Construction Market Drivers

Rising Demographic Shifts and Urbanization Trends: The continuous migration to urban centers across Europe is increasing the housing demands, particularly in major metropolitan areas. According to Eurostat's 2023 data, 75% of the EU population now resides in urban areas, marking a 2.3% increase from the previous year. This urbanization trend has created substantial pressure on residential construction, especially in cities like Berlin, Paris, and Amsterdam, where housing shortages have become increasingly acute.

Growing Sustainable Building Requirements: European nations are witnessing a fundamental shift toward sustainable and energy-efficient housing construction. The European Commission reported in November 2023 that 42% of new residential building permits across the EU now incorporate renewable energy systems. This transformation is driven by stringent environmental regulations, including the EU's Energy Performance of Buildings Directive, which mandates nearly zero-energy buildings for all new construction.

Escalating Government Housing Initiatives: The European government has intensified its commitment to addressing housing shortages through various support programs and incentives. The German Federal Statistical Office revealed in January 2024 that government spending on residential construction subsidies reached €18.2 billion, representing a 15% increase year-over-year. These initiatives have particularly focused on affordable housing development and first-time homebuyer assistance programs.

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.

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.

This statistic presents the distribution of single family home construction costs as of September 2017, by cost type. As of that time, framing costs of single family houses accounted for about 17 percent of total construction costs.

The coronavirus pandemic led to a marked increase in how many new construction homes made up single-family housing available for sale in the U.S. By early 2021, this was estimated to be between ** and ** percent - a significantly higher figure than before the pandemic. Likely this is caused by less Americans putting their homes up for sale during this economically uncertain period of time, as well as a general increase in U.S. homebuilding in the months after the first COVID-19 lockdowns.