United States Real Estate Market Size, Share, Growth, Trends: By Type: Sales, Rental, Lease; By Property: Residential, Commercial, Industrial, Land; Regional Analysis; Market Dynamics: SWOT Analysis, Porter’s Five Forces Analysis, Key Indicators for Demand; Competitive Landscape; Key Trends and Developments in the Market; 2024-2032

United States Real Estate Market Outlook

The United States real estate market size 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.

Key Takeaways

• 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.

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 United States real estate market development 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 opportunities in the market

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.

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.

Market Segmentation

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

Sales and lease segments are expected to hold a 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 United States real estate 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 United States real estate 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 availability of low interest rates and favourable financing options. Also, as work from home have gained prominence, consumers have had greater flexibility in terms of purchasing residential real estate properties, as they can choose their preferred location to maximise returns on their investment.

The United States real estate 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

Other key players in the United States 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 Analysis by Region

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.

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

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.