Residential Real Estate Market in the United States Market Size (2024 - 2029)

The market size of the residential real estate sector in the United States is expected to grow significantly in the coming years. Despite the impact of the COVID-19 pandemic, the market is in a recovery phase with sales bouncing back to pre-pandemic levels. The low-interest rates have encouraged many to purchase their first homes, leading to a sharp increase in home sales. The "race for space" among homebuyers has resulted in properties being sold above their advertised prices. The lack of available inventory and rising construction costs are anticipated to continue pushing up home prices. The demand for multifamily houses has also increased compared to single-family homes. The inventory of homes on the market has increased for both new and existing homes, indicating a growing market size.

Market Size of Residential Real Estate Industry in the United States

Residential Real Estate Market in the United States Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 2.04 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

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US Residential Real Estate Market Analysis

The Residential Real Estate Market in the United States is estimated at USD 2.53 trillion in 2023, and is expected to reach USD 2.80 trillion by 2028, growing at a CAGR of 2.04% during the forecast period (2023-2028).

  • Furthermore, the COVID-19 impact was severe on the market. Despite the pandemic crisis, residential real estate in the country is in the recovery phase, as the sales in the country quickly bounced back to pre-pandemic levels.
  • Since the start of the COVID-19 pandemic, the property market in the United States has been thriving. Many purchasers took advantage of the low-interest rates to restructure their mortgages, relocate, or take a step toward the American Dream by purchasing their first home. Owing to this, the number of home sales increased sharply in the second half of 2020 and has since stayed higher than before the pandemic. Prior to the pandemic, home prices had been on the rise, but with demand at an all-time high in 2020, the Freddie Mac House Price Index recorded a startling 11.3% increase.
  • At the beginning of 2021, about 60% of properties were sold above their advertised prices as a result of the "race for space" among homebuyers. Although the market has begun to moderate, the lack of available inventory and rising construction costs are anticipated to keep pushing up the price of homes.
  • The price of single-family homes increased by more than 20% in numerous states of the United States. As of the end of 2021, some of the states with the highest property appreciation rates were Arizona, Utah, Idaho, Florida, and Tennessee.
  • Furthermore, the mean value of a single-family home was significantly higher than the average sales price of both new homes and existing homes in states like California, Washington, and Massachusetts.
  • The housing market in the Golden State is among the most competitive when compared to other metropolitan areas. A home in San Jose, Sunnyvale, Santa Clara, or San Francisco would cost purchasers more than USD 1,000,000.
  • The demand for multifamily houses increased when compared to single-family homes. Housing starts in single-family homes were at 1.11 million units based on the seasonally adjusted annual rate (SAAR) in the second quarter of 2021, and multifamily housing starts were at 467,000 units (SAAR), which is 9% greater than the previous quarter in 2021, and 55% higher than the same quarter in the previous year (2020).
  • 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. Additinally, it registered a growth of 16% compared to the previous year.

US Residential Real Estate Industry Segmentation

Residential real estate refers to properties that are exclusively designed for human occupation. Furthermore, the report provides key insights into the residential real estate market in the United States. It includes technological developments, trends, and initiatives taken by the government in this sector. It also focuses on market dynamics. Additionally, the competitive landscape of the residential real estate market in the United States is depicted through the profiles of key active players.

The Residential Real Estate Market in the United States is Segmented by Property Type (Apartments and Condominiums, Landed Houses and Villas). The report offers market size and forecasts for the residential real estate market in the United States in value (USD Trillion) for all the above segments.

By Property Type
Apartments and Condominiums
Landed Houses and Villas

Residential Real Estate Market in the United States Size Summary

The U.S. Residential Real Estate Market has been forecasted to experience steady growth in the coming years. Despite the negative impact of the COVID-19 pandemic, the market is in a recovery phase with sales bouncing back to pre-pandemic levels. The low-interest rates have encouraged many buyers to restructure their mortgages, relocate or purchase their first homes. This trend has resulted in a significant increase in home sales and a sharp rise in home prices. However, the market is currently facing challenges such as a lack of available inventory and rising construction costs, which are expected to continue driving up home prices. The demand for residential properties varies across the country, with the southern region leading in sales, followed by the midwest, west, and northeast. Existing home sales, including single-family homes, townhomes, condominiums, and cooperatives, make up the majority of the market. The market has also seen a surge in demand for multifamily houses. Despite the disruptions caused by the pandemic, the housing market remains resilient with a steady increase in homeownership. The residential real estate industry in the U.S. is fragmented, with large companies having financial advantages, and smaller companies competing effectively by focusing on local markets.

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Residential Real Estate Market in the United States Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

      2. 1.2.2 Market Restraints

      3. 1.2.3 Market Opportunities

    3. 1.3 Insights into Technological Innovation in the Residential Real Estate Sector

    4. 1.4 Government Regulations and Initiatives

    5. 1.5 Supply Chain/Value Chain Analysis

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Property Type

      1. 2.1.1 Apartments and Condominiums

      2. 2.1.2 Landed Houses and Villas

Residential Real Estate Market in the United States Market Size FAQs

The United States Residential Real Estate Market is projected to register a CAGR of 2.04% during the forecast period (2024-2029)

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

US Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)