Residential Real Estate Market In United States - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Residential Real Estate Market In United States - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The US residential real estate market is expected to register a CAGR of more than 5.77% during the forecast period. Furthermore, the COVID-19 impact was severe on the market. Despite the pandemic crisis, the residential real estate in the country is in the recovery phase, as the sales in the country quickly bounced back to pre-pandemic levels.

Meanwhile, the demand for multifamily houses increased when compared to single-family homes. Whereas housing starts in single-family homes, at 1.11 million units based on seasonally adjusted annual rate (SAAR) in the second quarter of 2021, and multifamily housing starts were at 467,000 units (SAAR) in the second quarter, which is 9% greater than the previous quarter, and 55% higher than the same quarter in the previous year.

Furthermore, the inventory of homes on the market increased for both new and existing homes. The listed inventory of new homes for sale at the end of the second quarter was 348,000 units based on seasonal adjustments (SA), at a growth rate of more than 14% from Q1 2021. Also, it registered a growth of 16% compared to the previous year.

Existing home sales, including single-family homes, townhomes, condominiums, and cooperatives, account for more than 85% of the market. Meanwhile, new home sales represent the remaining 15% of the market. The sales of existing homes are measured nationwide, giving breakdowns for the west, midwest, south, and northeast regions of the country. The southern region of United States leads in sales by more than 45%, followed by the midwest, west, and northeast.

According to the National Association of Realtors, the sales are varied by price range. In 2021, most of the sales saw significant growth in the USD 250,000 to USD 500,000 price range by more than 42%, followed by the USD 100,000 to USD 250,000 price range.

Furthermore, sales of existing homes are leveraged by increasing first-time buyers, investors' interest, more cash sales, etc. Also, in 2022, more than 6.5 million sales have been registered, with month-on-month growth of 6.7% and Y-o-Y growth of more than 2.3%. Whereas the median sales price accounts for USD 350,300 with a growth rate of 15.4% compared to 2021.

Residential real estate has been hard hit by the pandemic. Despite this disruption, the housing market is resilient with increasing homeownership in this sector.

Furthermore, in the fourth quarter of 2021, more than 142,406 housing units were available to meet consumer demand, in which more than 89% of housing units were occupied by owners and renters. In addition, most of the sales in the sector are contributed by middle-aged and aged citizens in the country. For instance, people aged from 45 to 65 years accounted for more than 70% of homeownership rates in the country in four quarters of 2021.

Furthermore, in Q4 2021, the housing market experienced the highest ownership growth rate in the midwest region with 70.1%, followed by the south (67%), northeast (62%), and west (60%). In addition, the growth rate of homeownership in 2021 remained resilient, despite the slight decline from the previous year due to changes in consumer behavior during the pandemic.

Most of the demand in this sector is obtained from condominiums and apartments. Apartments are expected to dominate the sector when compared to condominiums because 64,000 apartment units were completed in Q2 2021.

The report covers the major players operating in the US residential real estate market. The US residential real estate market is fragmented, with the top 50 companies accounting for nearly 30-40% of the market share. Large companies have advantages in terms of financial resources, while small companies can compete effectively by developing expertise in local markets. Some of the major companies include Equity Residential, Brookfield, Essex Property Trust, and Simon Property Group.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support