Overview

For rent: More consumers have chosen to rent, increasing demand for multifamily units

The Apartment & Condominium Construction industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$32bn
Annual Growth
12-17
6.9%
Annual Growth
17-22
Profit
Employment
42,395
Business
14,218

Industry Threats & Opportunities

  • The industry has experienced one of the fastest expansions within the construction sector
  • The recovery of the US housing sector has led to increased property values
  • The industry will benefit from investments in higher-valued community developments
  • Industry Analysis & Industry Trends

    Over the past five years, the Apartment and Condominium Construction industry experienced one of the fastest expansions within the construction sector. Decreasing vacancy rates, along with increased investment in residential construction, has facilitated growth in multifamily complex starts over the period. Over the next five years, industry revenue is expected to continue growing, albeit at a slower rate due to higher rental vacancy rates and significant improvements in the general economy, which encourages consumers to purchase houses. Nevertheless, continued migration of the US population toward metropolitan areas is expected to generate strong demand for industry services over the five years to 2022.

    Industry Report - Industry Key Buyers Chapter

    The Apartment and Condominium Construction industry is characterized by many small- to medium-size contractors that operate in relatively narrow regional markets. IBISWorld estimates the three largest players in the industry generate a combined 10.2% of industry revenue in 2017. Many participants operate on a national basis and within other related industries, including single-family home construction, nonresidential building and property development, to hedge against income fluctuations and decrease downturn risks. Demand for property construction generally fluctuates with economic cycles, while individual market conditions dictate changes in demand for the residential and commercial subsectors. Com

    Additional Insights for the Apartment & Condominium Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Apartment & Condominium Construction Industry are

  • Effective product promotion
  • Having a high prior success rate (including completed prior contracts)
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Urban population in the Apartment & Condominium Construction industry impact industry performance..

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    Industry Products

    What is the Apartment & Condominium Construction Industry?

    This industry is composed of general contractors responsible for constructing new multifamily residential units, including high-rise apartments, townhouses, condominiums and medium-to-high density units (i.e. units not separated by a ground-to-roof wall). All of the complexes may be constructed for sale as condominiums or cooperatives, or used as rental apartments. This industry does not include speculative builders or contractors who build on their own account for sale.

    Industry Products
    General contracting
    Construction management, (at-risk)
    Construction management (agency or fee)
    Other construction services
    Industry Activities
    Constructing multifamily residential housing units
    Constructing apartment complexes (high-rise and low-rise buildings)
    Constructing condominiums (attached and detached units)
    Constructing townhouses and duplexes
    Constructing multiunit special-needs complexes (e.g. low-income, senior care and campus housing)
    Construction management of multifamily building projects (homebuilders and general contractors)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Urban population
  • Rental vacancy rates
  • House price index
  • National unemployment rate

  • Current Performance
  • Rental activity increases
  • Shifting demographics
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit margins increasing to new normal
  • Job growth will follow revenue
  • Table: Apartment & Condominium Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Apartment & Condominium Construction Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Real Estate Investment Trusts
  • Apartment Rental
  • Educational Services
  • Healthcare and Social Assistance
  • Public Administration

  • Key Selling Industries
  • Architects
  • Construction
  • Construction & Mining Equipment Wholesaling
  • Industrial Banks
  • Lumber Wholesaling
  • Manufactured Home Wholesaling
  • Ready-Mix Concrete Manufacturing
  • Roofing, Siding & Insulation Wholesaling
  • Stone, Concrete & Clay Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • General contracting
  • Construction management, (at-risk)
  • Construction management (agency or fee)
  • Other construction services
  • Chart: Apartment & Condominium Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Demand for rental accommodation
  • Demographic trends
  • Residential property investment
  • Housing preferences
  • One-off factors

  • Major Markets
  • Individual investors
  • LLP, LP, LLC or general partnership
  • Real estate ownership
  • Nonprofit organizations and housing cooperatives
  • Trustees for estate
  • Chart: Major Market Segmentation for the Apartment & Condominium Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Apartment & Condominium Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Apartment & Condominium Construction Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Apartment & Condominium Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Apartment & Condominium Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Multi-Unit Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Developer
  • An enterprise that prepares a real estate site for residential or commercial use and raises capital, gains zoning approvals and hires contractors to design, construct and develop property.
  • Government National Mortgage Assn. (Ginnie Mae)
  • A US government-owned corporation that provides guarantees on mortgage-backed securities that meet certain criteria.
  • Government-Sponsored Enterprise (Gse)
  • A financial services corporations created by the US Congress to enhance the flow of credit to targeted sectors of the economy.
  • Housing Starts
  • The number of new homes under construction during a specified period of time and a key economic indicator of the health of the housing market.
  • Real Estate Investment Trust (Reit)
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as an REIT, the entity must distribute at least 90.0% of taxable income.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Apartment & Condominium Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Apartment & Condominium Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Apartment & Condominium Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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