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Residential Construction Industry: Top Market Reports

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Residential Construction Market Research

Residential construction is the business of building and selling individual and multi-family dwellings. A building is regarded as a residential building when more than half of the floor area is used for dwelling purposes. Industry participants in this market include developers and surveyors as well as building firms. In many countries, government or local authority planning permission is required for new buildings and regulations govern construction methods.

Generally in the construction of a new home, drawings and specifications form an important part of the process before construction begins. Drawings focus on a building’s shape, appearance, and dimensions, while the written construction specifications contain the list of materials to be used and how they should be installed. These documents help the surveyors, building contractors and suppliers to identify the work to be performed and also determine the finance needed.

Key Market Segments

The new housing market encompasses both apartment blocks and houses, which may be detached, semi-detached or terraced. There is a wide range of house and apartment prices, and different amenities such as gardens and garages are offered.

In many countries the housing construction market can be segmented into building for the private and public sectors, the second of which provides affordable housing for low-income families.

The residential construction market can also be segmented into timber-framed, which, for instance, accounts for around a quarter of new homes in the UK, concrete homes, particularly common in Asia, and prefabricated houses, which are engineered, constructed in factories and transported to the building site. In the USA more than 19 million people live in manufactured housing, which also accounts for about 9% of new US homes. 

Regional Market Shares

The global construction market is a more than $8 trillion industry of which residential construction is the largest sector, accounting for more than $2.5 trillion. Robust growth in Asia is likely to drive the home construction market to more than $2.9 billion globally in the short term.

The USA’s is one of the largest construction markets worldwide. The housing construction industry contributed significantly to its national economic growth until 2006. However from 2006 through 2009, the situation reversed and the industry faced a major downturn. In the period since 2009, the volume of home construction has improved as lending is again becoming available to many American. New residential construction spending in the USA is expected to reach more than $500 billion in the foreseeable future.

The construction industry is very important to the EU economy and contributes around 10% or $1.8 trillion to the $18 trillion GDP. The building industry, including home construction, experienced a major slowdown from the end of 2006 due to the economic crisis. After seven years, however, EU construction is recovering: house building recorded moderate growth of 1.4% in 2014.

Real estate has been a key factor in China’s rapid growth in recent decades. In residential real estate alone, China has been constructing more than one third of all the new buildings in the world. China’s National New-Type Urbanization Plan 2014-2020 aims to increase the percentage of China’s population living in cities to 60% by 2020, driving continued demand for home building.

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Search in Residential Construction Industry (About 17000 reports)
Parent industry: Construction
Related industries: Green Building, Heavy Construction, Construction Equipment, Civil Engineering, Construction Services, Building Materials, Non-Residential Construction, Building Products, Urban Development

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