Graph and download economic data for New Privately-Owned Housing Units Started: Units in Buildings with 5 Units or More (HOUST5F) from Jan 1959 to May 2025 about 5-unit structures +, housing starts, privately owned, housing, and USA.

Housing Starts Multi Family in the United States increased to 414 Thousand units in June from 317 Thousand units in May of 2025. This dataset includes a chart with historical data for the United States Housing Starts Multi Family.

In the United States, it is expected that there will be approximately ***** multifamily housing starts less in 2025 than in 2024. However, it is forecasted that the number of construction starts for multifamily housing units will pick up slightly in 2026, after two years of falling starts. Multifamily vs single-family housing demand Multifamily housing includes various types of housing, such as apartment buildings, condominiums, duplexes, and townhouses. The number of housing starts of single-family has also fallen in 2022 and 2023, but it already started growing again in 2024, showing a faster recovery than the multifamily housing segment.

Are multifamily homes getting smaller? The median size of multifamily homes has median size of multifamily homes has shrunk by nearly *** square feet between 2007 and 2023. This trend towards smaller homes suggests that space is becoming increasingly limited, or that consumers prefer smaller homes due to smaller mortgages, lower maintenance costs and lower utility costs.

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.

Housing Starts in the United States increased to 1321 Thousand units in June from 1263 Thousand units in May 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.

Graph and download economic data for New Privately-Owned Housing Units Completed: Units in Buildings with 2-4 Units (COMPU24USA) from Jan 1968 to Jun 2025 about 2-4 unit structures, new, private, housing, and USA.

The U.S. multifamily housing market has experienced a significant increase in supply over the past 10 years. In 2023, the number of units completed reached ******* units, marking a notable increase from the previous year's ******* units. This uptick comes after a period of a spike in multifamily construction starts. Nevertheless, forecasts suggest a decline in future supply as construction starts decline in 2024 and 2025. Despite these fluctuations, multifamily housing remains a significant share of the U.S. housing stock. Multifamily buildings are a popular choice among renters, with approximately ** million American households occupying a rental home in a residential building with more than two units.

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

In 2024, there were roughly ******* building permits for multifamily housing units granted in the United States. The number of housing authorized that year was lower than in previous years, given that multifamily housing permits have fallen two years in a row. In contrast, the number of building permits for single-family housing units did not have such a sharp decrease. Multifamily housing projects on the increase Multifamily homes refer to buildings that contain at least two housing units, including apartment buildings and duplexes. In 2022, building work had started on over **** a million multifamily housing units in the United States – the highest number recorded in the past decades, but those numbers have fallen significantly in the years after that. However, it is expected that multifamily housing starts will grow again in 2025. What are the trends in size of different properties? One of the noticeable differences between multifamily and single-family housing is the size of the units. In 2023, the median size of a multifamily unit in the United States was over ***** square feet. In contrast, the median size of a single-family housing unit that same year was well over ***** as large.

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

New York-Northern New Jersey-Long Island was the metro area in the U.S. with the highest value of construction starts of multifamily and commercial buildings in 2024. The value of starts for commercial buildings and multifamily housing in Dallas-Fort Worth-Arlington, the second city in the ranking, amounted to 14.6 billion U.S. dollars. The third metropolitan area in the ranking was Washington-Arlington-Alexandria.

Snapshot img

US Residential Construction Market Size 2025-2029

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

The Residential Construction Market in the US is experiencing significant growth driven by increasing household formation rates and a rising focus on sustainability in new projects. According to the latest data, household formation is projected to continue growing at a steady pace, fueling the demand for new residential units. This trend is particularly evident in urban areas, where population growth and limited space for new development are driving up demand. Meanwhile, the emphasis on sustainability in residential construction is transforming the market landscape. With consumers increasingly prioritizing energy efficiency and eco-friendly features in their homes, builders and developers are responding by incorporating green technologies and sustainable materials into their projects.
This shift not only appeals to environmentally-conscious consumers but also offers long-term cost savings and regulatory compliance benefits. However, the market is not without challenges. Skilled labor shortages continue to pose a significant hurdle for large-scale residential real estate projects. The ongoing shortage of skilled laborers, including carpenters, electricians, and plumbers, is driving up labor costs and delaying project timelines. To mitigate this challenge, some builders are exploring alternative solutions, such as modular construction and automation, to streamline their operations and reduce their reliance on traditional labor sources. The Residential Construction Market in the US presents significant opportunities for companies seeking to capitalize on the growing demand for new housing units and the shift towards sustainability.
However, navigating the challenges of labor shortages and rising costs will require innovative solutions and strategic planning. By staying informed of market trends and adapting to evolving consumer preferences, companies can effectively position themselves for success in this dynamic market.

What will be the size of the US Residential Construction Market during the forecast period?

Request Free Sample

The residential construction market in the United States continues to exhibit dynamic activity, driven by various economic factors. Housing supply remains a key focus, with ongoing discussions surrounding the affordable housing trend and efforts to increase inventory, particularly for single-family homes and new constructions. Mortgage and federal funds rates have an impact on residential investment, with fluctuations influencing buyer decisions and construction costs. The labor market plays a crucial role, as workforce availability and wages affect both housing starts and cancellation rates. Inflation and interest rates, monitored closely by the Federal Reserve, also shape the market's direction. Recession risks and economic conditions influence construction spending across various sectors, including multifamily and single-family homes.
Federal programs, such as housing choice vouchers and fair housing initiatives, continue to support home buyers and promote equitable housing opportunities. Building permits and housing starts serve as essential indicators of market health and future growth, with some sectors experiencing double-digit growth. Overall, the residential construction market in the US remains a significant economic driver, shaped by a complex interplay of economic, demographic, and policy factors.

How is this market segmented?

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
  Luxury Homes
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Construction Material

  Wood-framed
  Concrete
  Steel
  Modular/Prefabricated


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 both the apartment and condominium sectors, driven by the increasing trend toward urbanization and changing lifestyle preferences. Apartments, typically owned by property management companies, and condominiums, with individually owned units within a larger complex, contribute significantly to the market. The Federal Reserve's influence on the economy through the federal funds rate and mortgage rates impacts borrowing rates and home construction activity. The affordability of housing, particularly for younger generations, is a concern due to factors such as inflation, labor market conditions, and savings

The drastic need for apartments has led to an expansion for apartment and condominium construction contractors over the past five years. Still, changing interest rates have led to years of expansion and contractions for contractors. Overall, revenue has been increasing at a CAGR of 3.8% to total an estimated $91.8 billion through the end of 2025, including an estimated 2.2% increase in 2025. Low interest rates amid the pandemic led residential investment to swell, which included apartment complexes. As inflationary concerns and interest rate hikes lingered, many contractors delayed construction, leading to a contraction in 2023 as housing starts sank. Profit has risen slightly as materials price inflation has cooled and contractors have been able to adjust their rates, passing along higher prices to customers. This has also been a driver of revenue growth. Multifamily complexes are still very much needed as young professionals and immigrants move to major cities, leading to growth in 2025. Home prices are set to see slower growth in the coming years than in the previous five, causing a shift in the housing market back to homeownership. Also, continued rate cuts will incentivize home construction. Mortgage rates have remained stubbornly high in the face of cuts to the federal funds rate, however. Elevated mortgage rates will keep buying a house out of reach for many, pushing more people to rent. Apartment construction is set to continue to account for the growing population in the US. Affordable housing complexes remain crucial in many large cities and will be needed as more people enter. Rental vacancies will continue threatening contractors, as many consumers may split housing with roommates and fulfill current stock to save money. Overall, industry revenue is forecast to expand at a CAGR of 1.8% to total an estimated $100.5 billion through the end of 2030.

Housing Starts Single Family in the United States decreased to 883 Thousand units in June from 926 Thousand units in May of 2025. This dataset includes a chart with historical data for the United States Housing Starts Single Family.

Despite the pandemic's broader economic disruptions, low interest rates in 2020 initially fueled a housing market boom driven by work-from-home orders and a shift toward residential construction. This surge was a lifeline for builders amid economic turbulence. However, the tide turned in 2022 and 2023 as the Federal Reserve's interest rate hikes curbed housing investments, dampening consumer enthusiasm and slowing residential construction activity. Low housing stock and rate cuts late in 2024 led to growth in single-family housing starts, boosting revenue. Single-family home development climbed in more affordable and less densely populated areas in 2024, but new multifamily developments have plummeted. Industry revenue has been climbing at a CAGR of 0.8% over the past five years to total an estimated $233.5 billion in 2025, including an estimated increase of 0.2% in 2025 alone. The initial boom in 2020 and 2021 led to one of the most significant expansions in home-building in recent memory, yet interest rate hikes soon tempered this growth. As smaller-scale developers struggled with escalating construction costs and regulatory hurdles, larger, financially robust companies like DR Horton, Lennar and PulteGroup managed to thrive and expand their operations. These larger companies maximized their market share, leveraging their resources to navigate the challenging economic climate and maintain momentum despite the pressures of rising material costs and labor shortages. These rising material costs and labor shortages have driven up purchase and wage costs, contributing to profit declines over the past five years. Expected interest rate cuts will boost housing developers. Developers will benefit from these favorable conditions, especially those who strategically invest in less densely populated areas to meet the growing appetite for affordable housing. Rate cuts will also provide relief to smaller housing developers more sensitive to interest rate fluctuations. Sustainability also looms on the horizon, with tax incentives and energy-efficient building standards encouraging developers to explore eco-friendly construction. Still, rising material costs and labor shortages will continue to stifle profit growth and increase housing prices. Larger companies will continue to gain market share, strategically developing homes near areas with strong job growth near new large manufacturing facilities. Industry revenue is forecast to expand at a CAGR of 1.4% to total an estimated $250.6 billion through the end of 2030.

The purpose of the Survey of Construction (SOC) is to provide national and regional statistics on starts and completions of new single-family and multifamily housing units and statistics on sales of new single-family houses in the United States. The United States Code, Title 13, authorizes this survey and provides for voluntary responses. The Department of Housing and Urban Development partially funds this survey. The SOC also provides statistics on characteristics of new privately-owned residential structures in the United States. Data included are various characteristics of new single-family houses completed, new multifamily housing completed, new single-family houses sold, and new contractor-built houses started.

Construction start delays in the U.S. in December 2022 were more likely to be caused by economic uncertainty than June of that year. The major cause of delays for multifamily construction and development housing were permitting, entitlement, and professional services.

With ***** 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 ******* in 2022, with apartment demand accounting for the greatest share of that figure. The average size of multifamily units in the United States was ***** square feet in 2021, a figure that has declined in recent years.

The duration of multifamily home construction projects in the United States fell slightly in 2024. On average, it took *** months for a multifamily home to be authorized by a building permit and reach its construction start phase in 2021, but that same process required *** months in 2024. Meanwhile, the time from start to completion of a multifamily home increased from **** months in 2021 to **** months in 2024. Multifamily homes were the most time-intensive type of residential construction project.

Graph and download economic data for New Private Housing Units Authorized by Building Permits: 1-Unit Structures for Florida (FLBP1FH) from Jan 1988 to Jun 2025 about privately owned, 1-unit structures, permits, family, buildings, FL, housing, and USA.