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.
