In July 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.

Home builders construct single-family homes while also remodeling houses and other residential buildings. Perennially low housing stock has driven new housing development throughout the current period. Still, from early 2022 through mid-2024, the Federal Reserve rose or maintained interest rates up from historic lows; these rate hikes sent housing starts into a steady decline. Loans have become less accessible, with mortgage rates increasing, discouraging property developers from breaking ground on more residential projects. Even as the Federal Reserve has cut rates since mid-2024, mortgage rates, which are only indirectly impacted by the federal funds rate, have largely increased. Even as housing starts have fallen over recent years, house prices have seen strong growth, allowing builders to see growth. Overall, industry revenue is set to push up at a CAGR of 2.9% to $166.9 billion over the five years through 2025, including a 1.6% increase in 2025 alone. Spikes in the 30-year conventional mortgage rate reduced the number of projects available for home builders. Inflationary concerns have also led more consumers to rent instead of buy. A bright spot has been state and federal projects like affordable housing programs in large metropolitan cities. Home builders also cut expenses and raised profit by hiring subcontractors. The basic underlying need for more housing has remained strong throughout the period. Interest rates are set to gradually fall over the coming years, while the nation will remain in its housing shortage, driving growth for home builders. Home builders will aim to differentiate themselves by building homes that meet sustainability standards to achieve Leadership in Energy and Environmental Design (LEED) certification. Government programs and households will continue to be a source of income for many homebuilders. The Trump administration has proposed using federal lands for housing development but is also set to drive up costs for builders through its tariff policies. Overall, revenue is set to climb at a CAGR of 1.8% to reach $182.8 in 2030.

In 2021, close to ten percent of the ***** million homes in the United States were from the first decade of the 21st century. Between 2000 and 2009, approximately **** million homes were constructed.

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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

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.

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).

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.

View monthly updates and historical trends for US Housing Starts. from United States. Source: Census Bureau. Track economic data with YCharts analytics.

D.R. Horton was the homebuilder with the highest gross revenue in the United States in 2024. The Texas-based company reached a homebuilding revenue of 33.83 billion U.S. dollars. It was closely followed by D.R. Horton, which had its headquarters in Florida and generated a revenue of 33.78 billion U.S. dollars. Challenges to the residential construction marketThe number of private housing units started fell around the time of the global financial crisis (2007-2009), but has since recovered – though not to the heights of 2006. The value of residential construction in the U.S. fell in 2023, but it is expected to start growing again in the next years.New home sales follow the same trend After a fall in the number of new houses sold in 2021 and 2022, home sales have increased again, with those figures in the U.S. expected to reach 683,000 in 2024. The number of single-family homes started has followed a similar trend, and it is expected to increase in the next couple of years.

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

Number of Businesses statistics on the Home Builders industry in the US

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.

Graph and download economic data for New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units from Jan 1959 to Aug 2025 about permits, buildings, new, private, housing, and USA.

The United States home construction market, valued at approximately $700 billion in 2025, is experiencing robust growth, projected to maintain a compound annual growth rate (CAGR) exceeding 3% through 2033. This expansion is fueled by several key factors. Firstly, a persistent housing shortage, particularly in desirable urban areas like New York City, Los Angeles, and San Francisco, continues to drive demand. Secondly, favorable demographic trends, including millennial household formation and an increasing preference for homeownership, are bolstering the sector. Furthermore, low interest rates (though this is subject to change depending on economic conditions) have historically made mortgages more accessible, stimulating construction activity. However, the market isn't without its challenges. Rising material costs, labor shortages, and supply chain disruptions continue to exert upward pressure on construction prices, potentially impacting affordability and slowing growth in certain segments. The market is segmented by dwelling type (apartments & condominiums, villas, other), construction type (new construction, renovation), and geographic location, with significant activity concentrated in major metropolitan areas. The dominance of large national builders like D.R. Horton, Lennar Corp, and PulteGroup highlights the industry's consolidation trend, while the growth of multi-family construction reflects shifting urban preferences. Looking ahead, the market's trajectory will depend on macroeconomic factors, interest rate fluctuations, government policies impacting housing affordability, and the ability of the industry to address supply-chain and labor challenges. Innovation in construction technologies, sustainable building practices, and prefabricated homes are also emerging trends expected to significantly influence market dynamics over the forecast period. The competitive landscape is characterized by a mix of large publicly traded companies and smaller regional builders. While established players dominate the market share, opportunities exist for smaller firms specializing in niche markets, such as sustainable or luxury home construction, or those focused on specific geographic areas. The ongoing expansion of the market signifies significant potential for investment and growth, despite the hurdles currently impacting the sector. Addressing supply chain disruptions and labor shortages will be crucial for sustained growth. Continued demand in key urban centers and evolving consumer preferences toward specific dwelling types will be critical factors determining the market's future trajectory. Recent developments include: June 2022 - Pulte Homes - a national brand of PulteGroup, Inc. - announced the opening of its newest Boston-area community, Woodland Hill. Offering 46 new construction single-family homes in the charming town of Grafton, the community is conveniently located near schools, dining, and entertainment, with the Massachusetts Bay Transportation Authority commuter rail less than a mile away. The collection of home designs at Woodland Hill includes three two-story floor plans, ranging in size from 3,013 to 4,019 sq. ft. with four to six bedrooms, 2.5-3.5 baths, and 2-3 car garages. These spacious home designs feature flexible living spaces, plenty of natural light, gas fireplaces, and the signature Pulte Planning Center®, a unique multi-use workstation perfect for homework or a family office., December 2022 - D.R. Horton, Inc. announced the acquisition of Riggins Custom Homes, one of the largest builders in Northwest Arkansas. The homebuilding assets of Riggins Custom Homes and related entities (Riggins) acquired include approximately 3,000 lots, 170 homes in inventory, and 173 homes in the sales order backlog. For the trailing twelve months ended November 30, 2022, Riggins closed 153 homes (USD 48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of USD 313,600. D.R. Horton expects to pay approximately USD 107 million in cash for the purchase, and the Company plans to combine the Riggins operations with the current D.R. Horton platform in Northwest Arkansas.. Notable trends are: High-interest Rates are Negatively Impacting the Market.

Graph and download economic data for Total Construction Spending: Residential in the United States (TLRESCONS) from Jan 2002 to Jul 2025 about expenditures, residential, construction, and USA.

Graph and download economic data for Work Started: Construction: Dwellings and Residential Buildings: Total for United States (USAWSCNDW01MLSAM) from Jan 1960 to Nov 2023 about not started, buildings, residential, and construction.

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.

Building Permits in the United States decreased to 1330 Thousand in August from 1362 Thousand in July 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.

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.

Graph and download economic data for All Employees, Residential Building Construction (CES2023610001) from Jan 1985 to Aug 2025 about buildings, establishment survey, residential, construction, employment, and USA.