Residential Real Estate Market Report 2026

The residential real estate market size has grown steadily in recent years. It will grow from $10.55 trillion in 2025 to $11.01 trillion in 2026 at a compound annual growth rate (CAGR) of 4.4%. The growth in the historic period can be attributed to rising urbanization and population growth, expansion of residential construction activities, increasing adoption of traditional rental housing, reliance on conventional financing models, development of basic apartment and housing layouts.

The residential real estate market size is expected to see strong growth in the next few years. It will grow to $13.51 trillion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to growing demand for smart and sustainable housing, increasing integration of digital tools in property transactions, expansion of luxury and premium residential projects, rising interest in hybrid ownership and rental models, higher investment in large-scale residential redevelopment. Major trends in the forecast period include rising demand for multifamily housing in urban centers, increasing adoption of vacation rentals and short-term leasing models, growth in luxury and premium residential developments, expansion of renovation and redevelopment projects in aging neighborhoods, higher consumer preference for larger living spaces and modern layouts.

The anticipated growth in the residential real estate market is primarily fueled by the increasing demand for residential properties. Residential structures, designed to meet the living needs of individuals or families, are witnessing a surge in demand, prompting the construction of high-rise and mixed-use buildings. This uptick in demand not only fuels housing needs but also creates opportunities for urban renewal and redevelopment, thereby contributing to the overall expansion of the residential real estate sector. For instance, in March 2023, the United States Census Bureau reported a significant year-over-year increase of 13.8% in the number of privately owned housing units approved by building permits, reaching 1,524,000 on a seasonally adjusted basis.

Leading companies in the residential real estate market are increasingly focused on developing technologically advanced solutions, such as AI-powered smart buyer's agents, to streamline property searches, enhance customer experiences, and provide personalized recommendations tailored to buyer preferences and market trends. These AI-driven agents offer significant advantages in residential real estate by analyzing data to provide customized property suggestions and facilitate the purchasing process. For example, in April 2024, reAlpha Tech Corp., a US-based real estate technology firm, introduced Claire, an AI-powered smart buyer's agent designed to assist homebuyers from the property search phase to closing, serving as a no-cost alternative to traditional agents. Featuring a 24/7 conversational interface and sophisticated generative AI, Claire utilizes over 400 data attributes to match buyers with suitable properties while offering support for tours, offers, and negotiations. This launch represents a notable shift in the residential real estate market toward a zero-commission model, which could save homebuyers billions in realtor fees.

In March 2023, The Cadillac Fairview Corporation Limited, a Canada-based real estate company, made a strategic move by acquiring Lincoln Residential, a US-based real estate development and management company specializing in multifamily residential properties. This acquisition allows Cadillac Fairview Corporation to expand its presence in residential real estate, increase market share, and enhance its customer offerings. The specific terms and amount of the acquisition remain undisclosed.

Major companies operating in the residential real estate market are Real Estate Maximums, Sotheby’s International Realty, CBRE Group Inc., Keller Williams Realty Inc., Colliers International, Christie's International Real Estate, D. R. Hortons Inc., DLF Ltd., IJM Corporation Berhad, Lennar Corporation, Pultegroup Inc., Savills plc, Cushman Wakefield Inc., Anywhere Real Estate Inc., Coldwell Banker Real Estate LLC, The Cadillac Fairview Corporation Limited, Century 21 Real Estate LLC, ERA Real Estate, Better Homes and Gardens Real Estate, Redfin Corporation, Zillow Group Inc., Movoto Real Estate, Compass Inc., Realogy Holdings Corp, Allen Tate Companies, William Raveis Real Estate, John L. Scott Real Estate, Houlihan Lawrence, Douglas Elliman Real Estate.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on construction materials, imported fixtures, and building components have raised development and renovation costs in the residential real estate market, slowing new housing supply growth in regions heavily reliant on foreign materials, particularly North America, Europe, and Asia-Pacific. Higher tariffs impact apartments, condominiums, and luxury homes the most due to their greater material intensity. However, tariffs can also stimulate local manufacturing, promote regional supply chains, and encourage developers to adopt cost-efficient construction methods, yielding long-term benefits despite short-term pricing pressures.

The residential real estate market research report is one of a series of new reports that provides residential real estate market statistics, including the residential real estate industry global market size, regional shares, competitors with a residential real estate market share, detailed residential real estate market segments, market trends and opportunities, and any further data you may need to thrive in the residential real estate industry. This residential real estate 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.

Residential real estate encompasses properties intended for individual or family habitation, comprising single-family homes, townhouses, and condominiums.

The primary categories of residential real estate comprise apartments, condominiums, landed houses, and villas. Apartments represent individual units within a larger building or complex, typically owned by a single entity or a property management company. Pricing options range from affordable to mid-range and luxury, with unit sizes categorized as less than 50 square meters, 51 to 80 square meters, 81 to 110 square meters, 111 to 200 square meters, and more than 200 square meters. Sales and rental are the core business activities, facilitated through various channels, including online and offline platforms.Asia-Pacific was the largest region in the global residential real estate market size in 2025. The regions covered in the residential real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the residential real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The residential real estate market includes revenues earned by entities by constructing properties, rental income, and vacation rentals. 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.

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