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Report Overview

2023

Base Year

2018-2023

Historical Year

2024-2032

Forecast Year

United States Real Estate Market Size

The United States real estate market was valued at USD 3.43 trillion in 2023. The market is further projected to grow at a CAGR of 2.8% between 2024 and 2032, reaching a value of USD 4.40 trillion by 2032.

United States Real Estate Market Report Summary Description Value
Base Year USD Trillion 2023
Historical Period USD Trillion 2018-2023
Forecast Period USD Trillion 2024-2032
Market Size 2023 USD Trillion 3.43
Market Size 2032 USD Trillion 4.40
CAGR 2018-2023 Percentage XX%
CAGR 2024-2032 Percentage 2.8%
CAGR 2024-2032 - Market by Region Far West 3.6%
CAGR 2024-2032 - Market by Region Rocky Mountain 3.4%
CAGR 2024-2032 - Market by Type Rental 3.4%
CAGR 2024-2032 - Market by Property Industrial 3.7%
Market Share by Country 2023 Mideast 18.0%

United States Real Estate Market Outlook

  • The residential real estate market is expected to reach a projected value of USD 94.39 trillion by 2024, making it the most dominant segment among others.
  • As more people choose to work remotely, the demand for suburban homes in the United States real estate market is rising.
  • In 2022, there were over 85 million owner-occupied homes and about 44 million rental units in the US.

United States Real Estate Market Growth

Real estate refers to land and any permanent or non-permanent structures that have been built upon the land, such as buildings. Depending upon customer requirement, real estate land can be sold directly, after construction of structures, or post-renovations. Real estate properties are typically developed as residential, commercial, or industrial and can be rented, leased, or sold.

The real estate market development in the country is driven by various factors, such as population growth, income growth, urbanisation, availability of credit, consumer preferences, government policies, and environmental factors.

Some of the key real estate trends are the increasing demand for affordable housing, the rising popularity of online platforms, the growing adoption of smart home technologies, and the emergence of green buildings. These factors are collectively influencing the United States real estate market growth.

Key Trends and Developments

Rising demand for suburban properties, increased adoption of smart technology, and growing interest in eco-friendly buildings are creating several United States real estate market opportunities.

Date Company Event Impact
February 2024 CBRE Group, Inc. Announced agreement to acquire J&J Worldwide Services This acquisition will expand CBRE's capabilities and services.
January 2024 CBRE Group, Inc. Maintained leading position in global commercial real estate investment sales activity As per United States real estate market dynamics and trends, this will help to solidify CBRE’s reputation and attract more clients.
December 2023 Colliers International Joined World Green Building Council’s Net Zero Carbon Buildings Commitment This commitment improved Colliers’ sustainability and attracted environmentally conscious clients.
June 2023 Prologis, Inc. Reached an agreement with Blackstone to purchase industrial properties for USD 3.1 billion This purchase expanded Prologis' portfolio and increased its revenue.
Trends Impact
Increased adoption of technology Real estate agents, buyers, and sellers are using more digital tools to facilitate transactions, such as virtual tours, online listings, e-signatures, and video conferencing.
Growing interest in sustainability and wellness Homebuyers are looking for homes that are energy-efficient, eco-friendly, and healthy. Features such as solar panels, smart thermostats, air filters, and green spaces are becoming more desirable and can aid the United States real estate market value.
Shifts in demographics and preferences The ageing of the baby boomers, the rise of the millennials, and the increase in diversity are changing the needs and wants of homebuyers. For example, some may prefer multigenerational living, co-living, or renting over owning a house.

United States Real Estate Market Trends

Widespread adoption of work from home policies is among the key trends anticipated to have a long-term impact on the country’s real estate market. As more workers swich to work from home, the demand for residential real estate is changing, with a switch from major cities and nearby suburbs to low cost and remote locations.

The increasing use of technology in the real estate sector is further driving the United States real estate market growth. Utilisation of dedicated apps and websites is enabling easier access to a wider range of properties with virtual reality offering immersive experiences remotely. Through technology, users can browse real estate located anywhere in the country and streamline the various rental and purchasing processes.

Furthermore, government of US is significantly investing in real estate, which has thereby increased the value of real estate market. Investment in real estate aids in the development of critical infrastructure, commercial real estate, and smart city development, as a result providing a positive United States real estate market outlook.

Industry Outlook

Rapid urbanization, a robust construction sector, and a flourishing housing demand propel the growth of the USA real estate market.

From 2018 to 2023, the USA new single-family houses market exhibited significant fluctuations in sales and average prices, according to data from the U.S. Census Bureau. In 2018, 617,000 houses were sold at an average price of $379.3 thousand. As per the United States real estate industry analysis, in 2019, sales increased by 10.5% to 682,000 units, while the average price decreased slightly by 0.6% to $377.0 thousand. This rise in sales can be attributed to favorable economic conditions and lower interest rates.

In 2020, the market saw a substantial 20.4% increase in sales to 821,000 units, with the average price rising by 2.0% to $384.5 thousand, likely due to increased demand for housing as people sought more space during the COVID-19 pandemic. However, in 2021, sales decreased by 6.1% to 771,000 units, yet the average price saw a significant increase of 16.8% to $449.2 thousand, driven by supply chain disruptions and labor shortages, contributing to the United States real estate industry revenue. The trend continued in 2022 with a sharp 16.9% decline in sales to 641,000 units, while the average price surged by 13.7% to $510.6 thousand, reflecting ongoing supply constraints and increased material costs. In 2023, sales rebounded slightly by 3.9% to 666,000 units, with the average price decreasing marginally by 1.4% to $503.7 thousand as supply chains began to stabilize.

These trends indicate a dynamic interplay between supply and demand factors, significantly influencing both the number of houses sold and their prices. The notable rise in prices amidst fluctuating sales volumes highlights the volatility and resilience of the USA real estate market.

Data from Federal Housing Finance Agency (FHFA) elaborates that from 2020 to 2021, the USA real estate market saw significant price increases in various cities, which affected the growth of the United States real estate industry. Mesa, Arizona, experienced a 26.4% year-over-year (YoY) increase in median selling price to $424,977, with a 28.0% rise in the state house price index and a 14.9% population growth from 2010 to 2020. Phoenix, Arizona, had a 26.0% YoY increase to $409,925 and a similar 28.0% index rise. Raleigh, North Carolina, recorded a 25.2% YoY increase to $371,682, with a 20.7% index rise and 25.0% population growth.

Austin, Texas, saw a 24.5% YoY increase to $571,481, with a 20.0% index rise and 21.7% population growth. Las Vegas, Nevada, reported a 23.3% YoY increase to $384,748, with an 18.2% index rise and 10.0% population growth. Bakersfield, California, saw a 22.1% YoY increase to $365,000, with a 19.1% index rise and 16.1% population growth. Aurora, Colorado, experienced a 20.4% YoY increase to $440,751, with a 19.7% index rise and 18.8% population growth in United States real estate industry.

These trends indicate robust growth in median selling prices and state house price indices, driven by strong population growth in many areas. The overall increase in housing prices reflects the rising demand and limited supply, which have significant implications for affordability and investment in the real estate market.

What Factors are Strengthening the Growth of the USA Real Estate Market?

  • Population Growth: Increasing population in various regions drives higher demand for housing.
  • Low Interest Rates: Favorable mortgage rates make home buying more accessible, boosting sales and real estate demand forecast.
  • Economic Stability: Strong economic conditions enhance consumer confidence and purchasing power.
  • Supply Constraints: Limited housing inventory and supply chain disruptions elevate property values.

What Challenges are Impacting the USA Real Estate Market?

  • Housing Affordability: Rising home prices make it difficult for many buyers to afford properties.
  • Supply Chain Issues: Delays and shortages in construction materials slow down new home construction and negatively impact United States real estate demand growth.
  • Interest Rate Increases: Potential rises in mortgage rates could reduce affordability and buyer demand.
  • Regulatory Hurdles: Zoning laws and other regulations can limit the availability of new housing developments.

What are the Key Trends Shaping the USA Real Estate Market?

  • Remote Work: Increased remote work options are driving demand for suburban and rural properties.
  • Sustainability: Growing emphasis on eco-friendly and energy-efficient homes can boost real estate demand in United States.
  • Technology Integration: Enhanced use of smart home technology and virtual tours in real estate transactions.
  • Urban Redevelopment: Revitalization projects in urban areas are attracting investments and residents.

Key Demand Indicators in the USA Real Estate Market

  • Key demand indicators in the United States real estate market include population growth, employment rates, and income levels.
  • As of 2021, the U.S. population increased to 331 million, driving housing demand and growth of the United States real estate market. 
  • Employment rates are another crucial indicator; the U.S. Bureau of Labor Statistics reported an unemployment rate of 3.9% at the end of 2021, suggesting strong economic conditions supporting home purchases.
  • Rising median household incomes, which reached $70,784 in 2021, enhance purchasing power.
  • Mortgage interest rates, which remained historically low in 2021, further stimulated demand by making home financing more accessible for buyers.

Competitive Factors in the USA Real Estate Market

  • The market is highly competitive, driven by market fragmentation with numerous local and regional players. 
  • Technological advancements, such as virtual tours and smart home integrations, are crucial for firms seeking a competitive edge, which can further aid in increasing the United States real estate market revenue. 
  • Established brands with strong reputations, like Zillow and Redfin, dominate the market, attracting more clients and listings. 
  • Additionally, superior customer service and personalized client experiences differentiate market leaders. In 2021, Zillow reported 2.2 billion visits to its mobile apps and websites, reflecting the significant role of technology and brand reputation in maintaining competitiveness in the real estate sector.

Key Players in the USA Real Estate Market and their Strategic Initiatives

  • Anywhere Real Estate Inc.: Enhances agent productivity through technology adoption and expands market reach via strategic partnerships.
  • RE/MAX Holdings, Inc.: Empowers agents with extensive training, integrates technology for efficient transactions, and focuses on customer satisfaction.
  • CBRE Group, Inc.: Offers comprehensive real estate services, including advisory and capital markets, with a focus on global expansion and sustainability that can aid demand of United States real estate market.
  • JLL (Jones Lang LaSalle): Specializes in real estate investment management and advisory services, emphasizing workplace experience solutions and innovation.
  • Zillow Group: Revolutionizes residential real estate with an online marketplace and data-driven services, focusing on expanding their iBuying program and enhancing user engagement.  
  • Redfin Corporation: Disrupts traditional brokerage models with a technology-driven platform, offering online brokerage services, expanding their RedfinNow (iBuyer) program, and using AI for personalized customer experiences.

United States Real Estate Industry Segmentations

“United States Real Estate Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup Categories
Type Sales, Rental, Lease
Property Residential, Commercial, Industrial, Land
Region New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, Far West
CAGR 2024-2032 - Market by Type
Rental 3.4%
Lease 2.6%
Sales XX%
CAGR 2024-2032 - Market by Property
Industrial 3.7%
Residential 3.2%
Commercial XX%
Land XX%

United States Real Estate Market Share

Sales and lease segments are expected to hold significant market shares due to rising demand for flexible office spaces

The sales segment of the United States real estate market refers to the transactions involving the purchase and sale of residential properties, such as single-family homes, condos, townhomes, and co-ops. The sales segment is influenced by factors such as supply and demand, real estate prices, interest rates, income levels, and credit or house loan availability. According to the U.S. Census Bureau, the total number of housing units in the U.S. was 138.5 million as of the second quarter of 2021, of which 87.8% were occupied and 12.2% were vacant. The occupied housing units can be further divided into owner-occupied (65.4%) and renter-occupied (34.6%). This market data shows that sales in residential sector is increasing, which has also driven the segment’s growth.

The rental segment, on the other hand, refers to the transactions involving the payment of rent for the use of residential properties, such as apartments, duplexes, and mobile homes. According to United States real estate market analysis, the rental segment is influenced by factors such as population growth, migration patterns, affordability, vacancies, and favourable rental regulations.

The lease segment of the United States real estate market refers to the transactions involving the transfer of property rights for a specified period, usually longer than one year, in exchange for periodic payments, such as monthly or annual rent. The lease segment is typically associated with commercial properties, such as office buildings, retail spaces, industrial warehouses, and hotels. Leasing of commercial real estate provide end users with enhanced flexibility, as they can switch between locations depending upon the business response they receive. The segment is further influenced by factors such as rising employment levels, increasing consumer spending, and demand for smart offices or buildings.

Residential estate holds the largest market share due to rising demand for housing in urban areas

Residential accounts for significant share in the market, driven by the increasing population and rising demand for housing, especially in urban areas due to the availability of low interest rates and favourable financing options. Also, working from home is a significant trend in United States real estate market which has allowed consumers greater flexibility in terms of purchasing residential real estate properties, as they can choose their preferred location to maximise returns on their investment.

The market forecasts predicts that the commercial segment will likely account for a larger share of the market. This segment includes office buildings, retail spaces, hotels, restaurants, and other non-residential properties that generate income for the owners. The commercial segment is influenced by the improved economic conditions, rising consumer spending, growing business sector, and increasing tourism in the country.

The industrial segment accounts for the steady share of the United States real estate market and it includes warehouses, factories, distribution centres, and other properties that are used for industrial purposes. The industrial segment is boosted by the growth of e-commerce, logistics, manufacturing, and trade sectors in the country.

Competitive Landscape

The market players are expanding their real estate services to stay ahead in the competition, further increasing their sustainability efforts to meet the evolving regulatory landscape.

Company Name Year Founded Headquarters Products/Services
Brookfield Corporation 1899 Toronto, Canada Real estate, renewable energy, infrastructure, private equity
Prologis, Inc. 1991 San Francisco, United States Logistics real estate, warehouse, distribution centres
Simon Property Group, L.P. 1993 Indianapolis, United States Shopping malls, retail properties, outlets, lifestyle centres
AvalonBay, Inc. 1978 Arlington, United States Multifamily housing, apartments, communities

Other key players in the USA real estate market include Equity Residential, CBRE, Inc., Jones Lang LaSalle Incorporated, Colliers International Group Inc., Greystar Worldwide, LLC, and Lincoln Property Company, among others.

United States Real Estate Market Regional Analysis

Southwest is one of the prominent regions due to availability of affordable housing and lower crime rates

With vast geographical space and relatively low population, the real estate market in the United States varies significantly between regional states, depending upon affordability, proximity to major cities, and general development in the area. The Southwest region of the country, led by states such as Texas and Arizona, is anticipated to witness a rapidly growing United States real estate market share over the coming years. The demand for real estate in colder regions of the United States, such as New England, has witnessed a decline as more people prefer warmer climates.

CAGR 2024-2032 - Market by Region
Far West 3.6%
Rocky Mountain 3.4%
Great Lakes 2.4%
New England XX%
Mideast XX%
Plains XX%
Southeast XX%
Southwest XX%
2023 Market Share by Region
Mideast 18.0%
New England XX%
Great Lakes XX%
Plains XX%

Areas such as Houston, Dallas, and San Antionio in Texas, and Phoenix, Arizona, are part of an emerging ‘Super Sun Belt’ because of their warm temperatures and growing real estate demand. Additionally, absence of a coastline leads to lower home maintenance requirements and reduced risks of extreme weather. Moreover, according to United States real estate market report, low crime rates and affordable real estate developments are also attracting buyers to the Southwest of the United States, particularly the medium income group of families.

Key Highlights of the Report

REPORT FEATURES DETAILS
Base Year 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Type
  • Property
  • Region
Breakup by Type
  • Sales
  • Rental
  • Lease
Breakup by Property
  • Residential
  • Commercial
  • Industrial
  • Land
Breakup by Region
  • New England
  • Mideast
  • Great Lakes
  • Plains
  • Southeast
  • Southwest
  • Rocky Mountain
  • Far West
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Brookfield Corporation
  • Prologis, Inc.
  • Simon Property Group, L.P.
  • AvalonBay, Inc.
  • Equity Residential
  • CBRE, Inc.
  • Jones Lang LaSalle Incorporated
  • Colliers International Group Inc.
  • Greystar Worldwide, LLC
  • Lincoln Property Company
  • Others

United States Real Estate Market Report Snapshots

United States Real Estate Market Size

United States Real Estate Market Growth

United States Real Estate Market Trends

United States Real Estate Market Share

United States Real Estate Companies

United States Real Estate Market Regional Analysis

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

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Key Questions Answered in the Report

In 2023, the United States real estate market reached an approximate value of USD 3.43 trillion.

The United States real estate market is expected to grow at a CAGR of 2.8% between 2024 and 2032.

The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach USD 4.40 trillion by 2032.

Real estate refers to property in the form of land or buildings, including any natural or artificial structures permanently attached to it. It encompasses residential, commercial, industrial, and special purpose properties, with real property rights associated with ownership and usage.

The major drivers of the market include rising disposable income, increasing investments towards real estate development, and growing demand for home ownership.

Key trends aiding the market expansion in United States include increasing utilisation of technology and tools for real estate management and sales, growing demand for real estate in rural areas, and government initiatives to support the market.

The various types of real estate in the United States are sales, rental, and lease.

The leading properties in the market for real estate in the US are residential, commercial, industrial, and land.

The significant regional markets for real estate in the United States are New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West.

Key players in the market are Brookfield Corporation, Prologis, Inc., Simon Property Group, L.P., AvalonBay, Inc., Equity Residential, CBRE, Inc., Jones Lang LaSalle Incorporated, Colliers International Group Inc., Greystar Worldwide, LLC, and Lincoln Property Company, among others.

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