United States Real Estate Market Outlook: Growth and Forecast
The United States real estate market plays a crucial role in the nation’s economy, influencing both residential and commercial sectors. As one of the most developed countries, the real estate industry in the U.S. remains a major driver of economic growth. According to Renub Research, the U.S. real estate market is expected to reach USD 1,751 billion by 2027, growing at a CAGR of 5.45% from 2020 to 2027.
Resilience Amid COVID-19
Despite the global economic challenges posed by the COVID-19 pandemic, the U.S. real estate market has shown remarkable resilience. In fact, real estate remains one of the most significant sources of wealth and investment for Americans. The National Association of Realtors (NAR) reported that in October 2020, existing home sales hit their highest level since 2006. By 2020, the U.S. real estate industry was valued at USD 1,208 billion, with both residential and non-residential sectors contributing significantly to this growth.
Factors Driving Market Growth:
- Residential and Non-Residential Sectors
- Residential Real Estate: Homeownership is a major component of wealth for many Americans. With changing lifestyles, increasing population, and a growing demand for housing, the residential sector continues to drive market expansion.
- Non-Residential Real Estate: Commercial real estate, which includes lodging, office spaces, healthcare facilities, educational institutions, and transportation hubs, also contributes to significant revenue generation. Non-residential construction projects are diverse, encompassing sectors such as manufacturing, recreation, and transportation, among others.
- Booming Infrastructure Projects
The U.S. is one of the largest construction markets in the world, and infrastructure development is a key factor in the real estate sector’s growth. Major infrastructure projects are in progress across the country, many of which are funded through collaborations between government entities and private companies. Examples of upcoming projects include:- Northern Arizona University’s construction of STEM buildings and renovation of its Biological Sciences Building.
- Southwest Florida International Airport’s $250 million terminal expansion.
- Shoreline city’s $64.3 million roadway reconstruction project.
Such large-scale projects highlight the consistent demand for real estate in the public and private construction sectors.
- Changing Population and Lifestyle Trends
With a growing population and evolving lifestyle preferences, the demand for both residential and non-residential properties is rising. This, in turn, is fueling the U.S. real estate market as developers respond to the need for modern housing, improved commercial spaces, and expanded public infrastructure.
Market Segmentation:
The U.S. real estate market is broadly categorized into Private Construction and Public Construction, each with residential and non-residential components:
Private Construction:
- Residential: Includes individual homes, multi-family housing, and apartment buildings.
- Non-Residential: Encompasses a variety of commercial structures such as lodging, offices, retail spaces, healthcare facilities, educational institutions, and manufacturing sites.
Public Construction:
- Residential: Primarily focuses on government-funded housing projects.
- Non-Residential: Includes public infrastructure like highways, sewage and waste disposal systems, water supply facilities, transportation networks, and conservation projects.
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Key Industry Players:
Several companies lead the U.S. real estate market through their substantial contributions in both residential and commercial sectors. Some of the key players include:
- Jones Lang Lasalle Incorporated
- CBRE Group Inc.
- Brookfield Properties LLC
- Berkshire Hathaway HomeServices
- Cushman & Wakefield Holdings Inc.
These companies are known for their large-scale real estate developments, innovative projects, and a strong focus on expanding their portfolios across different market segments.
Related Report :
For more detailed insights and analysis on the United States Real Estate Market, Renub Research provides a comprehensive report covering key segments, categories, and companies involved in the industry.
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