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According to the latest market research study published by P&S Intelligence, the U.S. apartment and condominium construction market, valued at USD 91.1 billion in 2024, is on track to grow to USD 124.2 billion by 2032, achieving a CAGR of 4.1% during 2025–2032. This upward trajectory is underpinned by stabilizing inflation and falling interest rates, which have increased affordability and attracted substantial investment into suburban and urban housing developments—especially in high-demand metros such as New York, Dallas, and Austin.

The sector saw a record-breaking delivery of over 500,000 rental units in 2024, with a meteoric surge in lease and sale activity—666,000 units transacted, marking a sharp increase of roughly 216% year-over-year. Occupancy rates remained robust at 94.8%, even as rent growth moderated due to the influx of new inventory—demonstrating both strong demand and effective market balance.

Key Insights

• The U.S. apartment & condominium construction market is forecasted to grow from USD 91.1 billion in 2024 to USD 124.2 billion by 2032, expanding at a 4.1% CAGR, highlighting a stable growth foundation.
• Market fragmentation persists, indicating a competitive landscape with numerous regional and local builders making notable impacts.
• Government-led monetary easing, together with easing inflation, has enhanced financing opportunities for residential developers, reducing borrowing costs and enabling capital-intensive projects in metropolitan zones.
• A new milestone was reached in 2024 with 500,000+ rental units completed, signaling a momentum in both construction and delivery phases.
• Transaction volume surged to 666,000 units in 2024—substantially up from the prior year—underscoring thriving consumer and investor appetite for multi-family residential assets.
• Occupational efficiency remains strong, with a 94.8% occupancy rate, supporting sustained revenue streams even amidst tempered rental pricing.
• Regional leadership is concentrated in the South region as the largest market, with the West region showing the fastest growth rate, pointing to evolving residential preferences and regional economic vitality.
• Urbanization trends coupled with shifting demographic preferences—particularly toward rental living—are fueling demand across U.S. metros.
• Regulatory and zoning adjustments at state and local levels are shaping project viability, opening avenues for developers through public-private partnerships and incentives.
• Technological innovations in building methods, such as modular and prefab construction, are shortening timelines, cutting costs, and increasing time-to-market competitiveness.
• The strong market performance in major hubs—New York, Dallas, and Austin—reflects a favorable interplay of economic growth, job creation, and population influx.
• With the market expanding and fragmented, opportunities are ripe for mid-sized and niche developers to specialize in affordable, sustainable, or luxury segments, leveraging customization and branding.
• Evolving consumer expectations around amenities and sustainability are prompting developers to tailor new projects toward ESG-compliant designs, energy-efficient systems, and community-focused offerings.