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

The Apartment and Condominium Construction industry has experienced mixed results over the past five years. Low rental vacancy rates during the five-year period and increased investment in residential construction have fueled development in multifamily apartment starts. Additionally, declining rates of homeownership and aggressive lending to the multifamily sector have further boosted demand for apartments and condominiums. Over the five years to 2023, industry revenue is projected to grow at a slower rate...purchase to read more.

Industry Statistics & Market Size
Revenue
$32bn
Annual Growth 13-18
3.3%
Forecast Growth 18-23
Profit
Employment
41,791
Businesses
13,945
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Continued migration of the US population toward metropolitan areas will bolster demand for industry services
  • Changes in national demographic trends have lowered demand for homeownership
  • As demand for rental property grows, so will demand for industry services
  • Industry Report - Starting a New Business Chapter

    There are relatively few formal and substantial barriers to entry for prospective operators, other than the need to obtain state-based licenses and registration. However, highly competitive conditions across all segments of this industry may make it difficult for new entrants to quickly establish a foothold in the market due to their lack of experience and proven performance.Established contractors have an advantage relative to new entrants in several ways. Existing contractors have access to a pool of skilled subcontractors and have ongoing arrangements with materials suppliers for bulk discounted prices. Existing contractors also typically have established relationships with financial institutions and property developers in key regional markets. The...purchase to read more.

    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..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
  • LLPs, LPs, LLCs and general partnerships
  • Real estate ownership
  • Individual investors
  • 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Apartment & Condominium Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Multi-Unit Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Apartment & Condominium Construction provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear