Overview

Inquire within: More cautious consumers have chosen to rent, increasing demand for multifamily units

IBISWorld’s Apartment & Condominium Construction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$39bn
Annual Growth
11-16
11.0%
Annual Growth
16-21
Profit
Employment
46,269
Business
14,851

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 is expected to benefit from investments in higher-valued community developments

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    Industry Analysis & Industry Trends

    Over the five years to 2016, the Apartment and Condominium Construction industry has experienced one of the fastest expansions within the construction sector. Decreasing vacancy rates over the time period, along with increase investment in residential construction, has facilitated growth in multifamily complex starts. In the five years to 2021, a slower level of growth will be due to higher rental vacancy rates and significant improvements in the general economy, which encourages consumers to purchase houses. In addition, revenue will grow at a slower rate due to a surplus of projects in certain key markets. However, continued migration of the US population toward metropolitan areas will still generate strong demand for industry services over the period...

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    Industry Report - Industry SWOT Analysis Chapter

    The Apartment and Condominium Construction industry is in a mature stage of its life cycle. The industry's contribution to the overall economy, measured by the industry's value added (IVA), is expected to increase at an annualized rate of 7.7% in the 10 years to 2021. By comparison, US GDP is forecast to rise at an annualized rate of 2.0% over this same period. Typically, an industry is considered mature or growing if IVA mirrors or outperforms GDP growth. However, the rise in IVA is largely a result of a spike in construction demand after the economic downturn. Over the five years to 2021, the industry is forecast to grow moderately as the economy continues to accelerate and demand for new multifamily complexes rises. As ..

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    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,
    Construction management, at risk agency or fee only
    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 (home builders 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
  • Building contractors expand
  • Chart: Revenue Growth

  • Industry Outlook
    Margins settling at a new normalJob 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,
  • Construction management, at risk agency or fee only
  • Other construction services
  • Chart: Apartment & Condominium Construction Industry Products and Services Segmentation

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

  • Major Markets
  • General rental and sale market
  • Tourist and retirement communities
  • Real estate investment trusts
  • Special needs accommodation
  • Owner-operated construction
  • Refurbishment of converted buildings
  • 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
    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
    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 (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Multi-Unit Housing Starts (2007-2021)

  • 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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