US Real Estate Developers Market

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US Real Estate Developers Market

The market size of residential real estate development in the US is around $149.2 billion. There are approximately 54,981 housing developers in the US. The size of the commercial real estate development market is not publicly available, but it contributed $1.01 trillion to the US economy in 2020. Also, the value of office, retail, industrial, and warehouse construction was $177.68 billion in direct costs and $531.2 billion in total economic contribution to GDP.


Findings

Real Estate Development Market - Helpful Findings

  • The market size of real estate development in the US is likely available in the paid report by Industry Research.
  • At the beginning of 2020, it was predicted that the total real estate investment in 2020 would be between $478 and $502 billion.
  • However, it was likely lower due to the pandemic. In Q2 and Q3 2020, the investment was only $107 billion.
  • In 2018, the real estate industry contributed $2.7 trillion (or 13% of GDP) to the US economy.
  • The size of the real estate sales and brokerage market in the US is around $164.8 billion. The 2016-2021 CAGR is 1.3%.

Residential Real Estate Development Market

  • According to IBISWorld, the market size of the housing development market in the US is around $149.2 billion.
  • There are around 54,981 housing developers in the country.
  • The construction value for residential real estate development is not available. However, the figure for both residential and public construction was $355.4 billion in 2020.
  • In 2020, there were around 1.383 million residential constructions started.
  • Also, the housing construction value grew by 4.7% in 2020.
  • Some of the key players in the market are Lennar Corporation, DR Horton, Pulte Group, and KB Home.

Commercial Real Estate Development Market

  • The market size is not available. However, in 2020, the commercial real estate development and operations market contributed $1.01 trillion to the US economy.
  • Office, industrial, warehouse, and retail construction value (including soft construction, site development, hard construction, and tenant improvements) was $177.68 billion in direct expenditures and $531.2 billion in total economic contribution to GDP.
  • According to REIT, the total commercial property value is between $14.4 and $17 trillion.
  • While the number of commercial real estate developers in the US is not publicly available, there are around 10,000 such companies that are listed on LinkedIn.
  • Out of those, around 6,300 have 1-10 employees, 3,100 have 11-50 employees, 879 have 51-200 employees, 288 have 201-500 employees, 109 have 501-1000 employees, 87 have 1001-5000 employees, 17 have 5001-10,000 employees, and 21 have over 10,001 employees.
  • Please note that the above results may not be completely precise because they include some companies and organizations that provide services related to commercial real estate development but don't focus on such development in itself. However, we screened the results to verify that the vast majority of companies are in commercial real estate development.

Research Strategy

We searched for the requested data points in reports by research organizations, major consultancies, and real estate-focused organizations and associations. We also looked through articles in business, real estate, and news media. However, only a few requested figures are available pre-compiled. For the size of the real estate development market, we attempted to triangulate the answer. Still, there were not enough figures available to use. It is impossible to find sizes for all submarkets to sum them up. At the same time, the market share of real estate development in the US real estate market is not available.

Similarly, it was impossible to provide the market size for commercial real estate development. We substituted it for the total contribution to GDP. There is quite a lot of quantitative information on the sector in the report "Economic Impacts of
Commercial Real Estate" by the Commercial Real Estate Development Association. However, most of the figures weren't relevant to the request.

There was also no pre-compiled information on the average portfolio size by either commercial or residential real estate development companies in industry reports, company white papers, or articles in the industry media.

The screenshots from reports from IBISWorld can be found here.


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