The U.S. Real Estate Market was valued at USD 130.02 billion in 2024, and is projected to reach USD 172.13 billion by 2030, rising at a CAGR of 4.10%. The U.S. real estate market is experiencing robust growth, driven by several key factors reshaping the landscape and presenting significant opportunities for investors and developers such as population growth and urbanization, economic growth and employment rates, millennial homeownership trends, and mortgage rates and financing conditions. According to a blog from Sortis Capital, the U.S. population is projected to reach approximately 336.6 million by 2024, with 82.7% of the population already residing in urban areas as of 2020. This significant growth in urban populations is driving a surge in demand for residential and commercial properties. In response, developers increasingly prioritize high-density housing projects to meet the growing demand.
The population influx into cities also contributes to higher property values for existing homeowners, spurring further investment in infrastructure and commercial real estate. This combination of rising demand and sustained investment is fueling the real estate market's expansion, reflecting the broader economic impacts of urbanization and population growth.
Alongside this rising population, the U.S. real estate market is being influenced by declining property values and rising capitalization (cap) rates, with property values across most sectors having dropped by about 20% since early 2022 while cap rates have increased by 150-200 basis points. As a result, investors are expected to gravitate toward multifamily and industrial assets in 2024. These property types are more attractive due to their solid fundamentals-such as strong demand, low vacancy rates, and rent growth-and the long-term trends supporting their continued appeal.
Moreover, In 2024, multifamily housing is gaining momentum in the U.S. real estate market. According to CBRE, the completion of 440,000 new apartment units, along with more than 900,000 units currently under construction, is expected to help moderate rent growth and improve affordability for renters. Additionally, the rise of multi-generational living is driving increased demand for multifamily housing. The U.S. Census reports that 43.9 million homes-representing 31.4% of the total housing stock-are now occupied by multiple generations, highlighting a shift toward communal living. This trend is encouraging developers to create multifamily units that cater to diverse family dynamics.
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The population influx into cities also contributes to higher property values for existing homeowners, spurring further investment in infrastructure and commercial real estate. This combination of rising demand and sustained investment is fueling the real estate market's expansion, reflecting the broader economic impacts of urbanization and population growth.
Alongside this rising population, the U.S. real estate market is being influenced by declining property values and rising capitalization (cap) rates, with property values across most sectors having dropped by about 20% since early 2022 while cap rates have increased by 150-200 basis points. As a result, investors are expected to gravitate toward multifamily and industrial assets in 2024. These property types are more attractive due to their solid fundamentals-such as strong demand, low vacancy rates, and rent growth-and the long-term trends supporting their continued appeal.
Moreover, In 2024, multifamily housing is gaining momentum in the U.S. real estate market. According to CBRE, the completion of 440,000 new apartment units, along with more than 900,000 units currently under construction, is expected to help moderate rent growth and improve affordability for renters. Additionally, the rise of multi-generational living is driving increased demand for multifamily housing. The U.S. Census reports that 43.9 million homes-representing 31.4% of the total housing stock-are now occupied by multiple generations, highlighting a shift toward communal living. This trend is encouraging developers to create multifamily units that cater to diverse family dynamics.
U.S. Real Estate Market Report Highlights
- The residential property market led the overall U.S. market in 2024. The sustained low interest rates have facilitated favorable borrowing conditions, encouraging increased home purchases and investments in real estate. Additionally, demographic trends such as population growth and urbanization continue to drive demand for housing, particularly in metropolitan areas experiencing economic expansion.
- The rental model showcases strong growth in the U.S. real estate market in 2024. The expansion of the rental model within the U.S. real estate industry is underpinned by a confluence of economic, demographic, and lifestyle factors. Elevated home prices and stringent mortgage qualification standards have rendered homeownership less accessible for a significant portion of the population, thereby increasing reliance on rental accommodations. Simultaneously, the rising mobility of the workforce, particularly among younger demographics, has fostered a preference for flexible living arrangements over long-term property commitments.
- In the second quarter of 2024, the U.S. real GDP expanded by 2.8%, while the unemployment rate declined to 3.5% by July 2023. This combination of economic growth and higher employment levels has boosted disposable incomes, strengthening the purchasing power of consumers and businesses alike. Consequently, demand for real estate has increased across both the residential and commercial sectors.
- According to CBRE, following a projected 16% year-over-year price increase for 250-to-500-kW requirements in 2023, prices are expected to rise by an additional 10% to 15% in 2024. This upward trend is driven by persistent supply constraints and strong market demand. Furthermore, the increasing demand for new data center developments is likely to draw more institutional investment in 2024, as investors remain under-allocated to digital infrastructure by approximately 1.5% to 3% compared to other asset classes.
This report addresses:
- Market intelligence to enable effective decision-making
- Market estimates and forecasts from 2018 to 2030
- Growth opportunities and trend analyses
- Segment and regional revenue forecasts for market assessment
- Competition strategy and market share analysis
- Product innovation listings for you to stay ahead of the curve
Why Should You Buy This Report?
- Comprehensive Market Analysis: Gain detailed insights into the market across major regions and segments.
- Competitive Landscape: Explore the market presence of key players.
- Future Trends: Discover the pivotal trends and drivers shaping the future of the market.
- Actionable Recommendations: Utilize insights to uncover new revenue streams and guide strategic business decisions.
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Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. U.S. Real Estate Market Variables and Trends
Chapter 4. U.S. Real Estate Market: Property Estimates & Trend Analysis
Chapter 5. U.S. Real Estate Market: Type Estimates & Trend Analysis
Chapter 6. U.S. Real Estate Market: Competitive Analysis
List of Tables
List of Figures
Companies Mentioned
The major companies featured in this U.S. Real Estate market report include:- Prologis, Inc.
- American Tower Corporation
- Equinix, Inc.
- Welltower Inc
- Simon Property Group, Inc
- Public Storage
- Digital Realty Trust, Inc
- Realty Income Corporation
- AvalonBay Communities, Inc
- CRBE Group Inc.
- Equity Residential
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 100 |
Published | May 2025 |
Forecast Period | 2024 - 2030 |
Estimated Market Value ( USD | $ 130.02 Billion |
Forecasted Market Value ( USD | $ 172.13 Billion |
Compound Annual Growth Rate | 4.1% |
Regions Covered | United States |
No. of Companies Mentioned | 12 |