Residential Building Construction Market Report 2026

The residential building construction market size has grown strongly in recent years. It will grow from $4.5 trillion in 2025 to $4.74 trillion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to growth in urban population, expansion of suburban housing projects, reliance on traditional construction labor, stable mortgage availability, historic government incentives for homeownership.

The residential building construction market size is expected to see strong growth in the next few years. It will grow to $6.24 trillion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to increasing adoption of modular housing, rising demand for affordable urban housing, growth in public-private housing partnerships, greater emphasis on energy-efficient residences, integration of smart home infrastructure. Major trends in the forecast period include rising demand for affordable residential units, growth in urban redevelopment and regeneration projects, increased use of prefabricated and modular housing solutions, expansion of private residential investment and financing models, shift toward smaller, flexible living spaces and adus.

Rising economic growth and higher disposable incomes are expected to drive the expansion of the residential building construction market going forward. Economic growth reflects the increase in a country’s productivity and wealth, indicated by greater production and consumption of goods and services over time, while growth in disposable income typically stems from an improving economy that raises wages and salaries and boosts overall spending capacity. Increasing economic growth and disposable incomes generally stimulate housing demand, supporting residential building construction as individuals gain greater purchasing power and investment capability. For example, in June 2023, according to the Australian Bureau of Statistics, an Australia-based national statistical agency, the Australian economy grew by 0.2% in the September quarter of 2023. Therefore, rising disposable income is fueling the growth of the residential building construction market.

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 April 2024, Sekisui House Ltd., a Japan-based provider of residential construction, real estate development, and urban design solutions, acquired M.D.C. Holdings, Inc. for approximately $4.9 billion. Through this acquisition, Sekisui House aims to expand its presence in the U.S. by enhancing the delivery of high-quality detached homes across 16 states and accelerating its global growth strategy in the homebuilding sector. M.D.C. Holdings, Inc. is a US-based home construction company.

Major companies operating in the residential building construction market 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., 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.

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 steel, lumber, electrical components, and imported construction materials have raised overall construction costs in residential building projects, especially affecting new single-family and multi-family housing across North America and Asia-Pacific. These price increases slow project execution and reduce affordability in private developments, while public-sector projects face extended timelines. However, tariffs have also encouraged domestic production of construction inputs and accelerated adoption of cost-efficient building techniques, providing long-term resilience for the residential construction industry.

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.

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.North America was the largest region in the residential building construction market in 2025. 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.

This product will be delivered within 1-3 business days.