Market Size of North America Residential Construction Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.85 Trillion |
| Market Size (2029) | USD 1.06 Trillion |
| CAGR (2024 - 2029) | 4.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Residential Construction Market Analysis
The North America Residential Construction Market size is estimated at USD 0.85 trillion in 2024, and is expected to reach USD 1.06 trillion by 2029, growing at a CAGR of 4.5% during the forecast period (2024-2029).
- Prior to the epidemic, there was already pent-up demand. It was false to say that millennials preferred renting over owning homes. Simply put, millennials lack the resources to own real estate. Some were affected by the Great Recession upon starting their careers; therefore, they did not have the savings of previous generations. Mortgages became less accessible as a result since banks were subject to tougher regulations and had to agree to lower down payments of at least 15-20%. Millennials were finally given the opportunity to buy homes, which boosted the already competitive market. Lockdown forced people to save, government stimulus programs improved their purchasing power, and steeply rising asset values The expectation of more remote employment and different COVID-19 constraints also contributed to significant migrant movements, which further fueled the purchasing frenzy. Strong investment in United States residential will drive industry spending through 2022.
- Cheap home supplies and historically low borrowing rates have boosted residential investment. In 2021, growth intensified as a result of increased home construction activity brought on by pent-up demand and improved vaccination rates among the populace. The demand for housing has also been supported by improvements in the labor economy. Despite this, the Federal Reserve has been forced to hike interest rates in 2022 due to growing inflation and worries of a recession. The time is now to update long-standing housing and urban planning rules and rebalance the supply and demand imbalance. The price of delay might be a severe social catastrophe brought on by a big, intergenerational group of people's discontent with their living circumstances, which would disproportionately affect younger generations.
In November 2022, Canada's investments in building construction dropped 1.4% to USD 20.4 billion. Most of the drop (5.6%) came from Alberta. While the non-residential sector in Canada grew 0.2% to USD 5.5 billion, the residential sector fell 2.0% to USD 14.9 billion.
