In February 2025, approximately 111,100 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 1501 Thousand units in February from 1350 Thousand units in January 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 2021, close to ten percent of the 152.8 million homes in the United States were from the first decade of the 21st century. Between 2000 and 2009, approximately 14.6 million homes were constructed.

Graph and download economic data for New Privately-Owned Housing Units Under Construction: Single-Family Units (UNDCON1USA) from Jan 1970 to Feb 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 79 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 350 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 Feb 2025 about housing starts, privately owned, 1-unit structures, family, 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.

In February 2025, there were less building permits for new residential construction in the United States a year earlier. 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.

VITAL SIGNS INDICATOR Housing Production (LU4)

FULL MEASURE NAME Produced housing units by unit type

LAST UPDATED October 2019

DESCRIPTION Housing production is measured in terms of the number of units that local jurisdictions produces throughout a given year. The annual production count captures housing units added by new construction and annexations, subtracts demolitions and destruction from natural disasters, and adjusts for units lost or gained by conversions.

DATA SOURCE California Department of Finance Form E-8 1990-2010 http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-8/

California Department of Finance Form E-5 2011-2018 http://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-5/

U.S. Census Bureau Population Estimates 2000-2018 https://www.census.gov/programs-surveys/popest.html

CONTACT INFORMATION vitalsigns.info@bayareametro.gov

METHODOLOGY NOTES (across all datasets for this indicator) Single-family housing units include single detached units and single attached units. Multi-family housing includes two to four units and five plus or apartment units.

Housing production data for metropolitan areas for each year is the difference of annual housing unit estimates from the Census Bureau’s Population Estimates Program. Housing production data for the region, counties, and cities for each year is the difference of annual housing unit estimates from the California Department of Finance. Department of Finance data uses an annual cycle between January 1 and December 31, whereas U.S. Census Bureau data uses an annual cycle from April 1 to March 31 of the following year.

Housing production data shows how many housing units have been produced over time. Like housing permit statistics, housing production numbers are an indicator of where the region is growing. However, since permitted units are sometimes not constructed or there can be a long lag time between permit approval and the start of construction, production data also reflects the effects of barriers to housing production. These range from a lack of builder confidence to high construction costs and limited financing. Data also differentiates the trends in multi-family, single-family and mobile home production.

Graph and download economic data for New Privately-Owned Housing Units Completed: Units in Buildings with 5 Units or More (COMPU5MUSA) from Jan 1968 to Feb 2025 about 5-unit structures +, new, private, housing, and USA.

United States Private Housing Units Completed: saar: South: 1 Unit data was reported at 424.000 Unit th in Oct 2018. This records a decrease from the previous number of 439.000 Unit th for Sep 2018. United States Private Housing Units Completed: saar: South: 1 Unit data is updated monthly, averaging 466.500 Unit th from Jan 1985 (Median) to Oct 2018, with 406 observations. The data reached an all-time high of 979.000 Unit th in Mar 2006 and a record low of 193.000 Unit th in Mar 2011. United States Private Housing Units Completed: saar: South: 1 Unit data remains active status in CEIC and is reported by US Census Bureau. The data is categorized under Global Database’s United States – Table US.EA010: Private Housing Units: Under Construction and Completed: Seasonally Adjusted Annual Rate.

The Department of Housing Preservation and Development (HPD) reports on projects, buildings, and units that began after January 1, 2014, and are counted towards either the Housing New York plan (1/1/2014 – 12/31/2021) or the Housing Our Neighbors: A Blueprint for Housing & Homelessness plan (1/1/2022 – present).

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 Jan 2025 about 5-unit structures +, construction, new, private, housing, and USA.

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US Residential Construction Market Size 2025-2029

The residential construction market size in the US is forecast to increase by USD 242.9 million at a CAGR of 4.5% between 2024 and 2029.

The residential construction market is experiencing significant growth, driven by several key factors. Firstly, the increasing household formation rates in the US continue to fuel demand for new housing units. Secondly, there is a rising focus on sustainability in residential construction projects, with homebuilders increasingly adopting energy-efficient and eco-friendly building materials and practices.
However, the market also faces challenges, including a shortage of skilled labor for large-scale residential real estate projects, which can impact project timelines and budgets. These trends and challenges are shaping the future of the residential construction industry in the US.

What will be the US Residential Construction Market Size During the Forecast Period?

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The residential construction market is experiencing a significant shift as the affordable housing trend gains momentum. The Federal Reserve's decision to keep the federal funds rate low has contributed to a decrease in mortgage rates, making it an opportune time for home buyers to enter the market. However, the housing supply remains a concern, with construction spending in the residential investment sector showing only modest growth. The labor market's current state is another factor influencing the residential construction industry. With a low unemployment rate, there is a high demand for labor, leading to increased wages and, in turn, higher construction costs.
Inflation also poses a challenge, as it erodes the purchasing power of home buyers and builders alike. The economy's overall health plays a crucial role in the residential construction market's dynamics. A strong economy typically leads to increased demand for new homes, as evidenced by the double-digit growth in housing starts and building permits for single-family homes. However, a recession can lead to a significant decrease in construction activity, as seen in the cancellation rate of housing projects. The Federal Reserve's interest rate decisions, inflation, and the economy's health all impact the residential construction market. Affordable housing programs, such as housing choice vouchers and fair housing programs, play a vital role in ensuring access to housing for a broader population. The construction sectors must navigate these market dynamics to remain competitive and meet the demand for new homes.
The US residential construction market is seeing significant shifts, driven by various housing market trends. Sustainable homebuilding practices are gaining momentum, with a focus on energy-efficient homes and green building materials. Modular construction and prefab housing are becoming increasingly popular for their cost-effective and timely solutions. Urban redevelopment projects are revitalizing city areas, while suburban expansion is fueling demand for new homes. Affordable housing projects are crucial in addressing housing shortages, and real estate investment continues to thrive in these sectors. Smart home integration is also on the rise, with luxury home construction embracing high-tech features. The impact of mortgage rates, coupled with multifamily housing growth and home renovation demand, adds complexity to the market's dynamics.

How is this market segmented and which is the largest segment?

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
  Villas
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


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 the apartment and condominium sectors, driven by shifting preferences and lifestyle choices. Urbanization is a significant factor fueling this trend, as more individuals opt for the conveniences and amenities offered in urban areas. As a result, developers are constructing modern, sustainable, and community-focused living spaces in the form of high-rise apartment buildings and condominium complexes. These structures cater to various demographics, including intergenerational groups and younger generations, reflecting diverse living circumstances. The labor economy and vaccination rates have also contributed to the continued activity in the residential sector, allowing for steady progress in construction projects. While the non-residential sector has faced challenges, the residential sector remains a vi

The NYC Department of City Planning's (DCP) Housing Database contains all NYC Department of Buildings (DOB) approved housing construction and demolition jobs filed or completed in NYC since January 1, 2010. It includes the three primary construction job types that add or remove residential units: new buildings, major alterations, and demolitions, and can be used to determine the change in legal housing units across time and space. Records in the Housing Database Project-Level Files are geocoded to the greatest level of precision possible, subject to numerous quality assurance and control checks, recoded for usability, and joined to other housing data sources relevant to city planners and analysts. Data are updated semiannually, at the end of the second and fourth quarters of each year. Please see DCP's annual Housing Production Snapshot summarizing findings from the 21Q4 data release here. Additional Housing and Economic analyses are also available. All previously released versions of this data are available at BYTES of the BIG APPLE - Archive.

Housing construction in the United States plummeted between 2006 and 2010, followed by a gradual increase until 2021. In early 2022, the number of new building permits and construction starts rose to one of the highest levels since 2006. As the economic environment worsened and construction material prices soared, however, permits issuance and building starts slowed. As of February 2025, the 12-month rolling number of new privately owned housing units completed amounted to 1.59 million, while the number of units started was 1.5 million.

The consumer price of housing in urban areas of the United States increased by over six percent in 2023. That was the second-largest increase on a year-over-year basis since 2000. Meanwhile, 2009 was the only year in which housing prices decreased. One of the main reasons for that may have been the subprime mortgage crisis of 2007. During that period, the value of new residential construction put in place in the U.S. stagnated.

New Home Sales in the United States increased to 676 Thousand units in February from 664 Thousand units in January of 2025. This dataset provides the latest reported value for - United States New Home Sales - 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 Total Construction Spending: Residential in the United States (TLRESCONS) from Jan 2002 to Jan 2025 about residential, expenditures, construction, and USA.

United States Private Housing Units Completed: saar: Midwest : 1 Unit data was reported at 124.000 Unit th in Oct 2018. This records a decrease from the previous number of 129.000 Unit th for Sep 2018. United States Private Housing Units Completed: saar: Midwest : 1 Unit data is updated monthly, averaging 198.000 Unit th from Jan 1985 (Median) to Oct 2018, with 406 observations. The data reached an all-time high of 371.000 Unit th in May 2005 and a record low of 65.000 Unit th in Feb 2010. United States Private Housing Units Completed: saar: Midwest : 1 Unit data remains active status in CEIC and is reported by US Census Bureau. The data is categorized under Global Database’s United States – Table US.EA010: Private Housing Units: Under Construction and Completed: Seasonally Adjusted Annual Rate.