Multifamily Housing Construction (Apartments) Global Market Report 2024

The multifamily housing construction (apartments) market size has grown strongly in recent years. It will grow from $816.88 billion in 2023 to $887.81 billion in 2024 at a compound annual growth rate (CAGR) of 8.7%. The growth observed during the historical period can be attributed to demographic trends, economic conditions, and urbanization, as well as factors such as interest rates and financing, dynamics in the rental market, and broader social and cultural shifts.

The multifamily housing construction (apartments) market size is expected to see strong growth in the next few years. It will grow to $1.26 trillion in 2028 at a compound annual growth rate (CAGR) of 9.3%. Forecasted growth is driven by changing work and living patterns, affordability challenges, sustainable building practices, urban redevelopment, and demographic changes. Key trends include technology integration in residential spaces, urbanization, adaptable and flexible spaces, and a focus on wellness and health-centric design.

The expected growth in population is anticipated to drive the expansion of the multi-family housing construction (apartments) market. Population growth, representing the annual average rate of change in population size for a specific nation, territory, or geographic area over a defined time period, directly impacts the demand for housing. With the increase in population, there is a corresponding need to accommodate a larger number of people, thereby leading to a rise in the construction of multi-family housing units such as apartments. As per data from the United Nations, a global intergovernmental organization, the global human population reached 8 billion in mid-November 2022, compared to 7.79 billion in 2020. This surge in population serves as a driving force behind the growth of the multi-family housing construction market.

The growing desire for urban living is expected to drive the expansion of the multifamily housing construction (apartments) market. Urban living, characterized by a lifestyle associated with densely developed areas and increased access to amenities, services, and cultural opportunities, has become a preference for many. Multifamily housing construction, particularly apartments, offers efficient and compact residential solutions that cater to the demands of urban living. As indicated by data from the World Bank Group in April 2023, over half of the global population resides in urban regions, and this urban population is projected to increase to 6 billion by 2045, representing a 1.5 times surge. Hence, the growing desire for urban living serves as a driving force behind the multifamily housing construction (apartments) market.

Sustainability stands out as a prominent trend gaining traction in the multi-family housing construction market, with companies actively incorporating new technologies to maintain their market positions. An illustrative case is DAHLIN Architecture | Planning | Interiors, a US-based architecture, planning and interiors practice, which, in December 2021, introduced a tiny home prototype called Mod Hive to address the affordable housing shortage in Salt Lake City. The Mod Hive prototype offers flexibility, allowing its utilization as a compact cluster on a single lot or as part of a well-planned development spanning multiple lots. The sustainable concept revolves around creating a small community with features such as a community garden, outdoor gathering area, and firepit, all designed with an inward-looking site plan. Through a lower-density arrangement at the front of the lot and a higher density at the back, this approach emulates the feel of a traditional neighborhood with two-story, single-family detached homes. The Mod Hive prototype exemplifies an innovative approach to achieving sustainable living in the multi-family housing construction market, showcasing how thoughtful design and technology can address housing challenges while promoting community and environmental well-being.

Prominent companies in the multifamily housing construction, particularly in the apartments market, are directing their focus towards the development of advanced tools, such as carbon emissions calculators, to empower customers and secure a competitive advantage in the market. A carbon emissions calculator is a tool designed to compute and compare carbon emissions data, taking into account specific factors such as water and energy consumption. As an example, in November 2023, SilverDoor, a UK-based company specializing in serviced apartments, introduced a Carbon Calculator for the serviced apartment sector. This innovative tool enables users to calculate and compare carbon emissions data associated with their stays. The Carbon Calculator utilizes a proprietary methodology grounded in building-specific water and energy consumption to estimate per-night CO2 emissions for serviced apartment accommodations. The resulting emissions score is prominently displayed on property profiles within the SilverDoor platform, offering users a transparent comparison to equivalent hotel stays based on the Cornell Hotel Sustainability Benchmarking Index. This initiative underscores a commitment to environmental sustainability within the multifamily housing construction sector, emphasizing transparency and consumer empowerment through the use of advanced tools and data-driven insights.

In January 2023, Habyt, a technologically-empowered co-living operator based in Germany, successfully merged with Common, a U.S.-based coliving company specializing in the multi-family housing construction market. The undisclosed financial transaction led to the creation of the premier global co-living company, overseeing nearly 30,000 units comprising co-living spaces, studios, and standard rental apartments. The amalgamation of Habyt and Common positions the united company as a major player in the co-living sector, benefitting from their combined expertise and resources to offer a diverse range of housing solutions on a global scale.

Major companies operating in the multifamily housing construction (apartments) market report are PulteGroup Inc., Turner Construction Company, AECOM Technology Corporation, Greystar Real Estate Partners LLC, Balfour Beatty US, The Whiting-Turner Contracting Company, Skanska USA Inc., Gilbane Building Company, Lendlease Corporation, The Michaels Organization LLC, Clark Construction Group LLC, Lincoln Property Company, JE Dunn Construction Company, Suffolk Construction Company Inc., Alliance Residential Company LLC, The Bozzuto Group, McCarthy Building Companies Inc., Swinerton Incorporated, Ryan Companies US Inc., The Weitz Company, Mortenson Construction, Wood Partners LLC, The Richman Group of Companies, Continental Properties Company Inc., Mill Creek Residential Trust LLC, JPI Companies, Habyt Ltd., Brasfield & Gorrie LLC, TRG Realty Company, Nestcon Shelters Private Limited.

North America was the largest region in the multifamily housing construction (apartments) market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global multifamily housing construction market(apartments) report during the forecast period. The regions covered in the multifamily housing construction (apartments) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the multifamily housing construction (apartments) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary construction activities in multifamily housing construction, specifically apartments, encompass new construction, repair and maintenance, refurbishment, and demolition. New construction involves the development of entirely new buildings that have not been previously occupied. The costs associated with constructing apartments encompass construction materials, construction equipment, and construction services. These costs are incurred for both owned and rental applications, reflecting the comprehensive nature of the construction process in creating new living spaces. Additionally, the construction activities extend to repair and maintenance, refurbishment, and, when necessary, demolition, contributing to the overall lifecycle and evolution of multifamily housing developments.

The multifamily housing construction (apartments) market research report is one of a series of new reports that provides multifamily housing construction (apartments) market statistics, including multifamily housing construction (apartments) industry global market size, regional shares, competitors with a multifamily housing construction (apartments) market share, detailed multifamily housing construction (apartments) market segments, market trends, and opportunities, and any further data you may need to thrive in the multifamily housing construction (apartments) industry. This multifamily housing construction (apartments) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The multifamily housing construction market(apartments) consists of sales of new duplexes, triplexes, quadplexes. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.