Real Estate - United States | Statista Market Forecast

The Real Estate market market in the United States is expected to reach a staggering value of US$132.00tn by 2024.
Among the various segments, Residential Real Estate is poised to dominate with a projected market volume of US$106.70tn in the same year.
Looking ahead, the market is anticipated to exhibit a steady annual growth rate (CAGR 2024-2029) of 3.34%, resulting in a market volume of US$155.60tn by 2029.
It is worth noting that in terms of global comparison, United States is projected to generate the highest value in the Real Estate market market, with an estimated worth of US$132.0tn in 2024.
The United States real estate market is experiencing a surge in demand for suburban homes due to the shift towards remote work.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in United States has been experiencing significant growth and development in recent years.

Customer preferences: One of the main factors driving the growth in the Real Estate market in United States is the increasing demand for housing. With a growing population and a strong economy, more people are looking to buy homes or invest in real estate properties. Additionally, there has been a shift in customer preferences towards more sustainable and energy-efficient homes. Buyers are now looking for properties that are not only aesthetically pleasing but also environmentally friendly.

Trends in the market: One of the major trends in the Real Estate market in United States is the rise of urbanization. More people are moving to cities, leading to an increased demand for housing in urban areas. This has resulted in the development of high-rise condominiums and apartment complexes in major cities. Additionally, there is a growing trend of mixed-use developments, where residential, commercial, and retail spaces are combined in a single project. Another trend in the Real Estate market in United States is the increasing popularity of real estate investment trusts (REITs). REITs allow individuals to invest in real estate properties without actually owning them. This has made real estate investment more accessible to a wider range of investors, leading to increased investment in the market.

Local special circumstances: One of the unique aspects of the Real Estate market in United States is the presence of a diverse range of property types. From single-family homes to luxury condominiums, there is a wide variety of options available for buyers. This diversity in the market caters to different customer preferences and budgets. Another special circumstance in the Real Estate market in United States is the impact of government policies and regulations. The real estate industry is heavily regulated, with strict zoning laws and building codes. These regulations can have a significant impact on the development and pricing of properties.

Underlying macroeconomic factors: The growth in the Real Estate market in United States can be attributed to several underlying macroeconomic factors. The strong economy and low unemployment rate have increased consumer confidence and purchasing power. Additionally, low interest rates have made borrowing more affordable, encouraging more people to invest in real estate. In conclusion, the Real Estate market in United States is experiencing growth and development due to increasing customer preferences for sustainable and energy-efficient homes, the rise of urbanization, the popularity of REITs, and the presence of diverse property types. The impact of government policies and regulations, as well as underlying macroeconomic factors such as a strong economy and low interest rates, also contribute to the growth of the market.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - United States

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