Apartment and Condominium Construction

Apartment and Condominium Construction over the five years to 2020, the construction sector has benefited from broad economic reforms. Operators in the industry construct modern multifamily residential units, such as high-rise apartments and condominiums.

Reduced rental vacancy rates and renewed investment in residential building activity have fuelled growth in multifamily apartment starts over the next five years. For the next five years, industry revenue is forecast to rise at a 5.9 percent annualized rate to $54.8 billion. This involves a 4.8 percent drop in 2020 alone due to the COVID-19 (coronavirus) pandemic.

The Apartment and Condominium Contractors industry is mainly made up of general contractors, at-risk and agency construction management firms, and multifamily unit builders for a range of markets throughout the United States.

Individual owners, real estate investment trusts, corporate limited liability corporations, nonprofit groups, and federal and state governments are all part of these sectors.

The bulk of industry operators serve as general contractors for programs, which includes all facets of project preparation and organization, such as securing supplies, recruiting subcontractors, and adhering to local regulations.

As this sector serves a wide variety of customer markets, demand for industry contractors is heavily influenced by total rental accommodation demand.

The apartment and condominium construction industry is expected to develop slowly, at a 1.5 percent annualized pace, to $59.1 billion in the five years to 2025.

As the domestic economy recovers from the COVID-19 (coronavirus) pandemic, demand for property construction, especially in the condominium segment, is expected to increase.

The suburban population, in particular, is projected to grow throughout the time, driving demand for complex projects outside of major metropolitan areas such as New York City, Boston, and Austin.

However, due to a normalizing residential housing sector, the industry is expected to expand at a slightly slower rate than in the previous five-year cycle.

Due to a comparatively low housing supply as of 2020, demand for new housing construction is likely to restrict sales growth for industry operators, with an increase in homeownership and housing starts expected over the next five years.