US Residential Real Estate Market Estimated to Grow at 2.04% CAGR from 2025 to 2030

Mordor Intelligence has published a new report on the US Residential Real Estate Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

The US residential real estate market is set for steady growth over the next five years, with an expected Compound Annual Growth Rate (CAGR) of 2.04% from 2025 to 2030. This steady growth reflects a complex mix of factors, including shifting demographic preferences, regional disparities in property values, and evolving housing demands. Given the diverse trends and challenges across different regions, stakeholders need to consider localized market dynamics when making decisions in the U.S. residential real estate market.

Report Overview: https://www.mordorintelligence.com/industry-reports/residential-real-estate-market-in-usa?utm_source=openpr

Key Trends Influencing the Market

Urbanization and Demand for Multifamily Housing

Urbanization remains a key driver of the residential real estate market. As more individuals migrate toward metropolitan areas, the demand for multifamily housing has surged. The number of multifamily housing starts has increased by 55% compared to the previous year, which illustrates the growing interest in urban living spaces. Developers are responding by constructing high-density, multifamily housing projects designed to meet the preferences of city dwellers. The trend toward urbanization is expected to continue driving growth in this sector over the forecast period.

Regional Disparities in Property Values

One of the defining characteristics of the U.S. residential real estate market is the significant variation in property values across different regions. States like Arizona, Utah, Idaho, Florida, and Tennessee have seen residential property values rise by over 20%. In comparison, other regions are experiencing more moderate increases. This regional variation presents both challenges and opportunities for buyers, investors, and developers. For instance, while high-growth states offer great investment potential, more stable regions may provide a more predictable environment for those seeking long-term property ownership.

Rental Market Dynamics

The rental market has proven to be resilient, even amid various market challenges. There are significant differences in average rents across states, with Hawaii and California being two of the highest-ranking states. Hawaii's average monthly rent stands at approximately USD 2,312, while California follows closely with USD 2,032. Other regions like the District of Columbia have rents reaching up to USD 1,851. While rental prices continue to rise in some of these high-demand areas, the market has also seen some moderate declines. In May 2025, national rents dropped 1.7% year-over-year, indicating that renters in specific regions may benefit from more favorable conditions in the near future.

Market Segmentation

By Property Type

Apartments and Condominiums: The demand for apartments and condominiums is expected to grow at a CAGR of approximately 4% during the forecast period. This growth is driven by urbanization trends and the increasing demand for flexible living arrangements in metropolitan areas. Developers are investing more in these types of properties to accommodate a growing number of urban residents.

Landed Houses and Villas: This segment continues to dominate the U.S. residential real estate market, primarily due to the enduring preference for single-family homes. The demand for landed houses and villas is expected to grow at a moderate pace, as these properties remain highly sought after by families looking for more space and privacy. Despite more moderate growth compared to apartments and condominiums, single-family homes remain the preferred choice for many Americans.

By Region

Coastal Markets: Coastal markets in areas like California, New York, and Florida continue to command premium property values. These regions benefit from strong demand due to proximity to key urban centers, amenities, and desirable coastal living conditions. Investors and homebuyers alike continue to favor these areas, contributing to sustained property value growth.

Inland Markets: In contrast to coastal areas, inland markets are experiencing more moderate price increases. However, these regions have become more appealing for first-time homebuyers and individuals seeking more affordable housing options. The affordability factor has been a key driver of growth in inland markets, with many buyers opting for homes in these areas to avoid the higher costs associated with coastal cities.

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Key Players in the Market

The U.S. residential real estate market is characterized by a mixture of well-established companies and emerging players. Some of the key players include:

Greystar Real Estate Partners: A leading property management and development firm, Greystar has a significant presence in the residential real estate sector. The company's involvement in both the development and management of properties has made it one of the most influential players in the market.

Brookfield Properties: Brookfield is a global real estate services company with a focus on residential and commercial real estate. The company has been actively expanding its residential footprint, responding to the growing demand for housing in urban markets.

Simon Property Group: Known primarily for its retail properties, Simon Property Group is increasingly venturing into residential real estate. Its focus on mixed-use developments that combine retail and residential spaces reflects the company's strategy to capitalize on urbanization trends.

Mill Creek Residential: Specializing in the development and operation of residential communities, Mill Creek Residential is one of the leading companies in the multifamily housing sector. The firm is known for its focus on sustainable building practices and quality residential communities.

Alliance Residential: Alliance Residential is a major player in the development, construction, and management of residential properties. The company's portfolio spans a wide range of housing types, including high-end and affordable multifamily communities.

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Conclusion

The US residential real estate market in 2025 presents a complex but promising outlook. With an expected CAGR of 2.04% from 2025 to 2030, the market is positioned for gradual growth, driven by urbanization, regional disparities in property values, and evolving consumer preferences. While some regions continue to experience substantial property value increases, others are seeing more moderate growth, offering opportunities for both investors and homebuyers. Staying informed about these trends will be crucial for stakeholders looking to make well-informed decisions in this dynamic market. With the right strategies, real estate professionals, buyers, and investors can navigate the market effectively and take advantage of emerging opportunities.

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