Residential Real Estate Market in the United States - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Residential real estate refers to properties that are exclusively designed for human occupation. Furthermore, the report provides key insights into the US residential real estate market. It includes technological developments, trends, and initiatives taken by the government in this sector, while also focusing on the market dynamics. Additionally, the competitive landscape of the US residential real estate market is depicted through the profiles of key active players. In the report, the market is segmented by property type (apartments and condominiums, landed houses, and villas). The report offers market size and forecasts for the US residential real estate market in value (USD billion) for all the above segments.

Residential Real Estate Market in United States Snapshot

Residential Real Estate Market in USA Outlook
Study Period: 2018-2027
Base Year: 2021
CAGR: >5.77 %
Residential Real Estate Market in USA Companies

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Market Overview

The US residential real estate market is expected to register a CAGR of more than 5.77% during the forecast period. Furthermore, the COVID-19 impact was severe on the market. Despite the pandemic crisis, the residential real estate in the country is in the recovery phase, as the sales in the country quickly bounced back to pre-pandemic levels.

Meanwhile, the demand for multifamily houses increased when compared to single-family homes. Whereas housing starts in single-family homes, at 1.11 million units based on seasonally adjusted annual rate (SAAR) in the second quarter of 2021, and multifamily housing starts were at 467,000 units (SAAR) in the second quarter, which is 9% greater than the previous quarter, and 55% higher than the same quarter in the previous year.

Furthermore, the inventory of homes on the market increased for both new and existing homes. The listed inventory of new homes for sale at the end of the second quarter was 348,000 units based on seasonal adjustments (SA), at a growth rate of more than 14% from Q1 2021. Also, it registered a growth of 16% compared to the previous year.

Scope of the Report

Residential real estate refers to properties that are exclusively designed for human occupation. Furthermore, the report provides key insights into the US residential real estate market. It includes technological developments, trends, and initiatives taken by the government in this sector. It also focuses on the market dynamics. Additionally, the competitive landscape of the US residential real estate market is depicted through the profiles of key active players. In the report, the market is segmented by property type (apartments and condominiums, landed houses, and villas). The report offers market size and forecasts for the US residential real estate market in value (USD billion) for all the above segments.

By Property Type
Apartments and Condominiums
Landed Houses and Villas

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Key Market Trends

Existing Home Sales Witnessing Strong Growth

Existing home sales, including single-family homes, townhomes, condominiums, and cooperatives, account for more than 85% of the market. Meanwhile, new home sales represent the remaining 15% of the market. The sales of existing homes are measured nationwide, giving breakdowns for the west, midwest, south, and northeast regions of the country. The southern region of the United States leads in sales by more than 45%, followed by the midwest, west, and northeast.

According to the National Association of Realtors, the sales are varied by price range. In 2021, most of the sales saw significant growth in the USD 250,000 to USD 500,000 price range by more than 42%, followed by the USD 100,000 to USD 250,000 price range.

Furthermore, sales of existing homes are leveraged by increasing first-time buyers, investors' interest, more cash sales, etc. Also, in 2022, more than 6.5 million sales have been registered, with month-on-month growth of 6.7% and Y-o-Y growth of more than 2.3%. Whereas the median sales price accounts for USD 350,300 with a growth rate of 15.4% compared to 2021.

Residential Real Estate Market in USA Trends

Demand for the Housing Market to Remain Elevated

Residential real estate has been hard hit by the pandemic. Despite this disruption, the housing market is resilient with increasing homeownership in this sector.

Furthermore, in the fourth quarter of 2021, more than 142,406 housing units were available to meet consumer demand, in which more than 89% of housing units were occupied by owners and renters. In addition, most of the sales in the sector are contributed by middle-aged and aged citizens in the country. For instance, people aged from 45 to 65 years accounted for more than 70% of homeownership rates in the country in four quarters of 2021.

Furthermore, in Q4 2021, the housing market experienced the highest ownership growth rate in the midwest region with 70.1%, followed by the south (67%), northeast (62%), and west (60%). In addition, the growth rate of homeownership in 2021 remained resilient, despite the slight decline from the previous year due to changes in consumer behavior during the pandemic.

Most of the demand in this sector is obtained from condominiums and apartments. Apartments are expected to dominate the sector when compared to condominiums because 64,000 apartment units were completed in Q2 2021.

Residential Real Estate Market in USA Forecast

Competitive Landscape

The report covers the major players operating in the US residential real estate market. The US residential real estate market is fragmented, with the top 50 companies accounting for nearly 30-40% of the market share. Large companies have advantages in terms of financial resources, while small companies can compete effectively by developing expertise in local markets. Some of the major companies include Equity Residential, Brookfield, Essex Property Trust, and Simon Property Group.

Recent Developments

  • September-2021: Essex Property Trust (a fully integrated real estate investment trust) acquired a 155-unit apartment complex in Lynwood for USD 53 million, or approximately USD 341,935 per unit, from Sares Regis (a real estate investment company). These acquisitions resulted in the expansion of the company’s business in the Seattle metropolitan area.
  • August-2021: Equity Residential (a publicly-traded real estate investment trust) entered a strategic partnership with Toll Brothers Inc. (a leading builder of luxury homes) to develop new rental communities over the next three years in six key US markets, accounting for USD 1.9 billion. The key markets include Atlanta, Boston, Denver, Seattle, Orange County in California, Austin, Texas, and Dallas-Fort. Under this partnership, Equity Residential is investing 75% of the equity for each project, and Toll Brothers, through its Toll Brothers Apartment Living division, will invest 25%.
  • January 2021: Canada Pension Plan Investment Board (a global investment management organization) and Greystar Real Estate Partners LLC (a global leader in the investment, development, and management of high-quality rental housing properties) formed a new joint venture to pursue multifamily real estate development opportunities in target markets in the United States. CPP Investments allocated USD 350 million in equity to the joint venture for a 90% stake, and Greystar allocated USD 39 million for the remaining 10%. Greystar will manage and operate the portfolio on behalf of the joint venture.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Market Drivers

      2. 4.2.2 Market Restraints

      3. 4.2.3 Market Opportunities

    3. 4.3 Insights into Technological Innovation in the Residential Real Estate Sector

    4. 4.4 Government Regulations and Initiatives

    5. 4.5 Supply Chain/Value Chain Analysis

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Property Type

      1. 5.1.1 Apartments and Condominiums

      2. 5.1.2 Landed Houses and Villas

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 Greystar Real Estate Partners

      2. 6.2.2 Brookfield

      3. 6.2.3 Simon Property Group

      4. 6.2.4 Mill Creek Residential

      5. 6.2.5 Alliance Residential

      6. 6.2.6 Lincoln Property Company

      7. 6.2.7 The Michaels Organization

      8. 6.2.8 AvalonBay Communities

      9. 6.2.9 Equity Residential

      10. 6.2.10 Essex Property Trust

      11. 6.2.11 RE/MAX

      12. 6.2.12 Keller Williams Realty Inc.*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE US RESIDENTIAL REAL ESTATE MARKET

  8. 8. APPENDIX

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Frequently Asked Questions

The Residential Real Estate Market in United States market is studied from 2018 - 2027.

The Residential Real Estate Market in United States is growing at a CAGR of >5.77% over the next 5 years.

Essex Property Trust, Greystar Real Estate Partners, Equity Residential, Simon Property Group, Brookfield Asset Management Inc. are the major companies operating in Residential Real Estate Market in United States.

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