Residential Building Construction Global Market Report 2024

The residential building construction market size has grown strongly in recent years. It will grow from $4389.83 billion in 2023 to $4628.16 billion in 2024 at a compound annual growth rate (CAGR) of 5.4%. TThe growth observed in the historic period can be attributed to various factors, including population growth, economic conditions, mortgage rates, government policies, and incentives, as well as consumer confidence and demographic shifts.

The residential building construction market size is expected to see strong growth in the next few years. It will grow to $5802.69 billion in 2028 at a compound annual growth rate (CAGR) of 5.8%. The anticipated growth in the forecast period can be attributed to sustainability and green building practices, affordable housing initiatives, adaptation to remote work, the aging population and universal design principles, as well as an emphasis on supply chain resilience. Major trends expected in the forecast period include digitalization in construction management, technological advancements in the construction industry, the rise of prefabrication and modular construction methods, integration of smart home technology, and the increasing prevalence of digitalization and Building Information Modeling (BIM) in construction practices.

The residential building construction market is anticipated to experience growth due to the expanding population. Population, comprising the citizens of a specific region or nation, plays a pivotal role in determining the scale of building construction. An upsurge in population directly correlates with increased demand for building construction. For instance, data from the World Health Organization (WHO) in October 2022 revealed that between 2015 and 2050, the proportion of the global population aged over 60 is projected to almost double from 12% to 22%. With 1.4 billion people aged over 60 in 2020, the figure is expected to double to 2.1 billion by 2050, while the number of individuals aged 80 or above is estimated to triple, reaching 426 million. Hence, the upward trend in population is a significant driver for the growth of the residential building construction market.

The growth of the residential building construction market is also expected to be fueled by rising economic growth and disposable incomes. Economic growth is indicative of a country's increased productivity and wealth, measured by a surge in the production and consumption of goods and services. Simultaneously, an increase in disposable income is often a result of an improved economy, leading to higher wages and salaries, and an increase in healthcare expenditures. The augmented economic growth and disposable incomes tend to spur housing demand, driving residential building construction as individuals experience heightened purchasing power and investment capability. For example, in June 2023, the Australian Bureau of Statistics reported a 0.2% growth in the Australian economy for the September quarter of 2023. Moreover, in August 2023, the Bureau of Economic Analysis noted a $7.3 billion (less than 0.1%) increase in disposable personal income in July 2021 in the United States. Consequently, the surge in disposable income is contributing to 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 report are 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., TechnipFMC PLC, 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 2023. 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.

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 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 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.