U.S. Real Estate Market (2025 - 2030) Size, Share & Trends Analysis Report By Property (Residential, Commercial, Industrial, Land), By Type (Sales, Rental, Lease), Key Companies, Competitive Analysis, And Segment Forecasts

U.S. Real Estate Market Size & Trends

The U.S. real estate market size was estimated at USD 130.02 billion in 2024 and is expected to grow at a CAGR of 4.1% from 2025 to 2030. The U.S. real estate market has experienced significant shifts, influenced by a range of economic, demographic, and technological factors such as population growth and urbanization, economic growth and employment rates, millennial homeownership trends, mortgage rates, and financing conditions.

According to data published by Sortis Capital, by 2024, the U.S. population is expected to reach around 336.6 million, with 82.7% already living in urban areas as of 2020. This significant urban population growth fuels higher demand for residential and commercial properties. In response, developers are focusing more on high-density housing projects to accommodate the rising need. The influx into cities also drives up property values for existing homeowners and encourages additional investment in infrastructure and commercial developments. Together, this increased demand and continued investment are propelling the growth of the real estate market, highlighting the broader economic effects of population trends and urbanization.

In the second quarter of 2024, the U.S. real GDP expanded by 2.8%, while the unemployment rate declined to 3.5% by July 2023. This combination of economic growth and higher employment levels has boosted disposable incomes, strengthening the purchasing power of consumers and businesses alike. Consequently, demand for real estate has increased across both the residential and commercial sectors.

According to CRBE, the declining property values and rising cap rates influence U.S. real estate as the property values across most sectors have decreased by approximately 20% since early 2022, with cap rates increasing by 150-200 basis points. Investors will most likely favor multifamily and industrial assets in 2024. Both property types have relatively strong fundamentals (demand, vacancy, rent growth, etc.) and long-term tailwinds bolster their attractiveness.

In 2024, multifamily housing is emerging in the U.S. real estate market. The ongoing housing shortage, compounded by high construction costs and rising mortgage rates, has made homeownership increasingly out of reach for many Americans, driving up the demand for rental properties. According to CBRE, the completion of 440,000 new apartment units in 2024, along with over 900,000 units under construction, is expected to moderate rent growth and enhance affordability for renters. Additionally, the development of multi-generational living is further propelling demand for multifamily housing. The U.S. Census reports that 43.9 million homes-31.4% of the total housing stock-now house multiple generations, reflecting a shift toward communal living. This trend prompts developers to create multifamily units catering to various family structures.

Artificial intelligence and cloud computing advancements fuel a surge in demand for data centers, leading to significant expansion within the U.S. commercial real estate industry. As a result, developers and investors are actively targeting this asset class, viewing it as a key area for future growth and portfolio diversification. Data center pricing continues to climb, driven by tight supply and robust demand. According to CRBE, after a projected 16% year-over-year increase in pricing for 250-to-500-kW requirements in 2023, another 10% to 15% rise is expected in 2024. This upward trend is fueled by ongoing supply constraints and consistently high market demand. Additionally, the growing need for new data center developments will likely attract increased institutional investment in 2024, as investors remain under-allocated to digital infrastructure by approximately 1.5% to 3% compared to other asset classes.

Property Insights

The residential property segment led the market in 2024 and accounted for a revenue share of 57.09% in 2024. Residential real estate encompasses properties designed for individuals and families, including single-family homes, townhouses, apartments, and similar structures. According to Forbes Advisor, in February 2025, existing home sales, which include completed transactions of single-family homes, townhouses, condominiums, and co-ops-rose as mortgage rates eased to 6.76% by the end of the month.

Monthly existing home sales increased by 4.2%, reaching a seasonally adjusted annual rate of 4.26 million, up from 4.08 million in the previous month, according to the latest National Association of Realtors (NAR) report. However, on a year-over-year basis, sales were down 1.2%. Similarly, the new-home market saw a rebound after a sluggish January, with sales of newly constructed single-family homes climbing 1.8% month-over-month and rising 5.1% compared to February 2024, based on data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD).

Demand for commercial type is projected to rise at a CAGR of 5.0% from 2025 to 2030. Commercial real estate refers to properties intended for business activities, including retail spaces, office buildings, data centers, and warehouses. The value of commercial real estate is influenced by factors like location, zoning regulations, accessibility, property conditions, and the health of the local economy. The rising need for data centers primarily drives commercial real estate demand growth. The retail sector is also witnessing increased demand; however, supply remains constrained due to elevated asking rents. According to CBRE’s 2024 Occupier Sentiment Survey, the U.S. office market is planning to expand its portfolio requirements over the next two years, with much of this growth expected to be driven by smaller firms with fewer than 1,000 employees.

Type Insights

The rental model segment accounted for a revenue share of 52.77% in 2024. According to CRBE Group, the cost of homeownership has increased sharply. By late 2023, average monthly mortgage payments were about 38% higher than the average rent cost, making renting a more affordable option for many households. Additionally, a limited supply of available homes has made it challenging for buyers to find properties that meet their requirements. This shortage has prompted high-income individuals to favor renting over purchasing, as suitable homes are often scarce or priced at a premium.

The lease industry is expected to grow at a CAGR of 4.3% from 2025 to 2030Net-lease investments have gained significant traction in the U.S. commercial real estate industry, especially in 2024, due to their attractiveness to both investors and property owners. In 2024, the net lease market saw an increase of 13%, reaching $43.7 billion, highlighting the strong investor demand for properties with long-term tenants and stable cash flows. Properties leased to creditworthy tenants, such as retail chains, fast-food restaurants, or healthcare providers, are in high demand because they offer a steady, reliable return on investment. Additionally, net leases often attract lower vacancy risks, making them a safer bet in a volatile market. This shift toward net-lease investments is expected to continue as investors seek secure, long-term income amid economic uncertainty.

Key U.S. Real Estate Company Insights

The U.S. real estate industry is characterized by a highly fragmented yet dynamic competitive landscape, shaped by a mix of national institutional players, regional developers, private equity firms, real estate investment trusts (REITs), and independent brokerages. Market competitiveness is driven by asset class diversification, geographic footprint, capital access, and the ability to leverage technology for operational efficiency and client engagement.

Large, vertically integrated firms such as CBRE, JLL, and Cushman & Wakefield command significant market share in commercial services due to their expansive service portfolios and global reach. In contrast, the residential sector remains more decentralized, with dominant regional players coexisting alongside nationwide firms like Keller Williams, RE/MAX, and Compass. These entities compete based on brand equity, agent productivity, and proprietary technology platforms.

In the investment and development segments, institutional capital continues to flow into high-performing asset classes such as logistics, multifamily, life sciences, and data centers, intensifying competition and compressing yields. Meanwhile, REITs maintain a strong presence in publicly traded markets, offering liquidity and scale advantages, though they face rising pressure from private capital and alternative investment vehicles.

• Prologis, Inc., is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. The company owns properties and development projects expected to total approximately 1.3 billion square feet (120 million square meters) in 20 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,500 customers principally across two major categories: business-to-business and retail/online fulfillment. As the global leader in logistics real estate, the company is committed to achieving net-zero greenhouse gas emissions across its value chain.

• Equinix Inc. is recognized as the world’s digital infrastructure company. Its trusted platform is harnessed by digital leaders to bring together and interconnect foundational infrastructure at software speed. It enables organizations to access all the right places, partners, and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences, and multiply their value while supporting their sustainability goals. It has 85+ data centers in North America and South America, strategically situated in Brazil, Canada, Colombia, Mexico, and the U.S.

Recent Developments

• In April 2024, Equinix announced a $600 million joint venture with PGIM Real Estate to develop and operate its first xScale data center in the U.S. The facility, named SV12x, is located at Equinix's Great Oaks data center campus in San Jose, California. This two-story data center is being constructed in two phases and is expected to provide over 28 megawatts (MW) of power capacity upon full completion.

• In October 2024, Equinix entered into a joint venture agreement exceeding $15 billion with GIC and the Canada Pension Plan Investment Board (CPP Investments). This partnership aims to accelerate the expansion of Equinix's xScale data center portfolio in the U.S., supporting the growing needs of hyperscale companies, particularly in artificial intelligence and cloud innovation. The venture plans to develop multiple data center campuses, each exceeding 100 MW, ultimately adding more than 1.5 gigawatts of new capacity for hyperscale customers. ​

• In March 2025, responding to the surging demand for digital infrastructure, CBRE was instrumental in the expansion of data center developments across North America. The company has facilitated significant construction projects in regions like Washington, D.C., to accommodate the growing needs of the cloud computing and artificial intelligence industries.

U.S. Real Estate Market Report Scope

U.S. Real Estate Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. real estate market report based on property and type:

• Property Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Commercial

  • Industrial

  • Land

  • Others

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Sales

  • Rental

  • Lease