U.S. Apartment & Condominium Construction Market to Reach USD 124.2 Billion by 2032

According to the latest market research study published by P&S Intelligence, the U.S. apartment and condominium construction market is witnessing robust expansion, with its value expected to rise from USD 91.1 billion in 2024 to USD 124.2 billion by 2032, advancing at a CAGR of 4.1% during 2025–2032. This growth is supported by stabilizing inflation, falling interest rates, and a surge in housing demand across both suburban and urban centers such as New York, Dallas, and Austin.

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In 2024, the sector achieved a record-breaking milestone with over 500,000 rental units completed and 666,000 units sold or rented, marking a sharp year-on-year rise of 450,000 units. Occupancy rates remained high at 94.8%, supported by strong rental demand despite moderating rent growth due to the rapid supply addition.

Emerging strategies such as the adoption of sustainable construction materials, integration of smart building technologies, and development of mixed-use spaces are transforming the industry. Developers are aligning projects with green certification standards while leveraging REITs and private equity investments—especially in high-growth Sunbelt regions that benefit from favorable tax incentives and population influx.

Key Insights

• Low-rise and garden-style apartments dominate the market with a 45% share, favored for their affordability and faster development timelines, especially in suburban and exurban areas.
• High-rise buildings (10+ floors) represent the fastest-growing segment, driven by urban population density and demand for premium amenities.
• New construction projects hold a commanding 75% market share, fueled by population growth (U.S. population reached 340.1 million in 2024) and government-backed affordable housing initiatives.
• Sustainable and smart housing construction is the fastest-growing category, with developers targeting LEED and NGBS certifications to meet regulatory requirements and cater to eco-conscious buyers.
• Mid-range housing units (USD 250,000–USD 500,000) lead with a 55% share, offering the best balance between comfort, affordability, and value for money.
• Affordable & workforce housing is the fastest-growing price segment, addressing the needs of middle-income households priced out of single-family homeownership.
• Rental apartments dominate the market with an 80% share, driven by urban migration, lifestyle preferences of Gen Z and millennials, and high home ownership costs.
• Senior living & assisted housing is the fastest-growing end-user segment, reflecting the aging U.S. population and demand for specialized residential facilities.
• The South leads geographically with 45% of total revenue, delivering 359,000 new apartment units in 2024—over half of the nation’s total multifamily output.
• The West is the fastest-growing regional market, spurred by tech-driven urban hubs and an influx of new residents.
• Sunbelt cities such as Dallas, Austin, Miami, Orlando, Houston, and Atlanta are at the forefront of apartment construction, benefiting from strong job markets, tax advantages, and population growth.
• REITs and private equity funds are pivotal in financing large-scale projects, particularly in high-demand metropolitan and Sunbelt areas.
• Developers are increasingly adopting IoT-enabled security systems, automated lighting, and energy-efficient appliances, reducing utility costs by up to 20%.
• Over 30% of U.S. emissions originate from residential and commercial buildings, prompting widespread adoption of eco-friendly materials and technologies.
• The market remains fragmented, with both large developers and small contractors thriving due to diverse consumer needs and localized demand.
• Major industry players include Crow Holdings, Greystar Real Estate Partners, AvalonBay Communities, Camden Property Trust, and Lennar Corporation.
• Recent developments include Crow Holdings Capital securing USD 3.1 billion in February 2024 for real estate investments, and Bozzuto Construction initiating Avonlea Affordable Senior Housing in Virginia in January 2025.