PUBLISHER: The Business Research Company | PRODUCT CODE: 1678318
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678318
Residential building construction encompasses various activities such as altering, building, repairing, planning, acquiring, and designing residential structures. This construction process involves the assembly and erection of structures using diverse engineering techniques to enhance the quality of buildings and infrastructure in residential areas.
Residential building construction is primarily divided into new-single-family housing construction, new-multi-family housing construction, and others. Multi-family housing construction involves buildings constructed side by side or stacked without a ground-to-roof partition or shared amenities. Sales types include new construction and renovation, serving private and public end-users.
The residential building construction market research report is one of a series of new reports from The Business Research Company that provides residential building construction market statistics, including the residential building construction industry global market size, regional shares, competitors with a residential building construction market share, detailed residential building construction market segments, market trends and opportunities, and any further data you may need to thrive in the residential building construction industry. This residential building construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The residential building construction market size has grown strongly in recent years. It will grow from $4415.32 billion in 2024 to $4666.39 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to population growth, economic conditions and mortgage rates, government policies and incentives, consumer confidence, demographic shifts.
The residential building construction market size is expected to see strong growth in the next few years. It will grow to $6023.61 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to sustainability and green building practices, affordable housing initiatives, adaptation to remote work, aging population and universal design, supply chain resilience. Major trends in the forecast period include digitalization in construction management, technological advancements in construction, prefabrication and modular construction, smart home technology integration, digitalization and building information modeling (BIM).
The increasing population is anticipated to drive the growth of the residential building construction market in the future. Population growth is a key factor influencing the volume of building construction, thus, a rising population is expected to directly correlate with an expansion in building activity. For example, in March 2024, the United States Census Bureau, a primary agency of the Federal Statistical System, reported that approximately 60% (1,876) of U.S. counties experienced population growth from 2022 to 2023, up from 52% (1,649 counties) the previous year, with an average growth rate of 0.29% compared to 0.17% from 2021 to 2022 across the 3,144 counties. Therefore, the growing population is a significant driver of growth in the residential building construction market.
Rising economic growth and disposable incomes are expected to further accelerate the growth of the residential building construction market. Economic growth refers to the increase in a country's productivity and wealth, as measured by the rise in the production and consumption of goods and services over time. The increase in disposable income often results from a stronger economy, leading to higher wages and salaries, which in turn boosts healthcare spending. Growing economic conditions and disposable incomes tend to heighten demand for housing, thus driving residential building construction due to increased purchasing power and investment capacity among individuals. For instance, in June 2023, the Australian Bureau of Statistics, a national statistical agency in Australia, reported that the Australian economy grew by 0.2% in the September quarter of 2023. Additionally, in August 2023, the Bureau of Economic Analysis, a U.S. government agency, indicated that disposable personal income rose by $7.3 billion (less than 0.1%) in July 2021. Therefore, the rise in disposable income is propelling the growth of the residential building construction market.
Technological innovations represent a significant trend gaining traction in the residential building construction market, with major companies actively introducing innovative products to maintain their positions. In February 2022, Black Buffalo 3D Corporation, a US-based company in residential construction, launched NEXCON 3D printers, a 3D modular construction printer. This technology addresses traditional challenges in the construction industry, delivering a stronger and more durable end product through a motion-centric modular gantry design capable of producing more effective structures. The multi-axis gantry system is optimized for accurate prints based on 3D-modeled designs created using standard CAD software, and it has the capability to 3D print buildings up to three stories high.
In response to evolving industry demands and the need for operational optimization, major companies in the residential building construction market are also focusing on advanced solutions such as building construction software. This software encompasses computer programs designed to assist in various aspects of construction project management, including planning, design, scheduling, budgeting, and collaboration among stakeholders. For example, in April 2023, Topcon Positioning Systems Inc., a US-based precision positioning equipment and solutions manufacturer, launched Digital Layout software. This user-friendly tool aims to streamline the adoption of digital layout processes within the building construction industry, enhancing efficiency, precision, and overall productivity. Tailored for both beginners and experienced users, the cost-effective field software complements 3D laser technology, such as the Topcon LN or Topcon GT robotic total station, providing a systematic approach to optimizing construction routines and workflows.
In December 2022, D.R. Horton Inc., a US-based building construction company, acquired Riggins Custom Homes for an undisclosed amount. This strategic acquisition is expected to enhance D.R. Horton Inc.'s ingredient offerings, expanding its construction portfolio in the US and abroad. Riggins Custom Homes, a US-based building construction company, operates in the residential building construction market.
Major companies operating in the residential building construction market include SFK Construction Holdings Limited, China State Construction Engineering Corporation Limited, Country Garden Holdings Limited, Bouygues S.A., Laing O'Rourke Plc, Lennar Corporation, D.R. Horton Inc., Hochtief AG, Greystar Worldwide LLC, Larsen & Toubro Limited, Bechtel Corporation, Turner Construction Company, PulteGroup Inc., Skanska AB, Kiewit Corporation, Taylor Morrison Inc., Gilbane Building Company, Meritage Homes Corporation, Century Communities Inc., Bridge Investment Group LLC, Alliance Residential Company, Mill Creek Residential, Continental Properties Company Inc., Legacy Housing Corporation, The NRP Group LLC, DHI Communities Inc., Clayton Properties Group Inc., Black Buffalo 3D Corporation, Related Group
North America was the largest region in the residential building construction market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global residential building construction market during the forecast period. The regions covered in the residential building construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the residential building construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The residential building construction market includes revenues earned by entities by services of building construction such as lodging or boarding houses, hostels, dormitories, apartment houses, flats, private garage and individual houses. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Residential Building Construction Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on residential building construction market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for residential building construction ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The residential building construction market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.