Residential Real Estate Market Forecast 2031: USD 15+ Trillion Opportunity Driven by 59% Apartments and Condominiums Share, Says Mordor Intelligence

HYDERABAD, India, April 7, 2026 /PRNewswire/ -- According to Mordor Intelligence, the residential real estate market size stood at USD 11.6 trillion in 2026 and is projected to reach USD 15.53 trillion by 2031, growing at a 6.05% CAGR. Expansion is being driven by ongoing housing shortages across major economies and government-backed construction initiatives that are accelerating new supply, while rising institutional participation is reshaping rental housing into a more professionally managed asset class. In developed markets, affordability pressures linked to high price-to-income ratios and elevated borrowing costs are pushing first-time buyers toward rental options, strengthening multifamily and single-family rental demand. At the same time, large-scale public housing programs in countries such as India, Saudi Arabia, and Brazil are supporting private investment through funding commitments, regulatory reforms, and mortgage assistance, while stricter energy-efficiency regulations in Europe are channeling capital into retrofits and low-emission residential developments.

Asia-Pacific Leads Global Residential Real Estate Market Expansion with Strong Urban Demand and Investment Momentum

The residential real estate market share in the Asia-Pacific region is the largest and fastest-growing globally, supported by strong policy initiatives and rapid urbanization. In India, programs like PMAY-Urban 2.0 are driving demand through interest subsidies, streamlined approvals, and transparent project tracking. In China, state-owned developers are stabilizing premium urban districts while managing overall supply. Japan's urban centers benefit from steady rent growth and long-term low-rate mortgages, maintaining transactional stability. Australia's tight rental markets, fueled by migration and limited supply, continue to attract development interest, while Southeast Asia is witnessing the rise of integrated townships that accommodate employment-driven urbanization and strengthen mid-market and starter-home demand.

North America continues to face a notable housing shortage alongside ongoing affordability pressures, though stabilizing interest rates and developer incentives on new projects are gradually improving transaction activity. Builders are adjusting pricing strategies and offering financing support to maintain sales momentum, increasingly tailoring communities to specific buyer segments. In the United States, lengthy approval processes and regulatory hurdles in several regions still restrict new supply, slowing market balance in high-demand cities. Canada's largest urban centers remain tight on inventory as strong population growth sustains housing demand, with lending policies shaping purchasing power. Meanwhile, Mexico is seeing rising residential demand in key industrial regions, supported by manufacturing expansion and employment growth linked to nearshoring trends.

Jayveer V, Senior Research Manager, Mordor Intelligence, says, "The residential real estate market reflects evolving demand patterns shaped by urbanization, financing conditions, and regulatory shifts. Mordor Intelligence applies consistent, cross-market validation and structured data review, offering decision-makers a more dependable and comparable view than fragmented or less transparent alternatives."

Residential Real Estate Market Growth Drivers

Growing Institutional Investment in Rental Housing

Institutional interest in rental housing, including build-to-rent (BTR) and single-family rental (SFR) portfolios, is expanding rapidly across global markets. Investors such as sovereign wealth funds and pension plans are increasingly treating rental assets as stable, income-generating infrastructure, attracted by predictable cash flows, regulatory support, and demographic trends like delayed homeownership among younger generations. In Europe, professionally managed rental supply is helping address structural shortages and support declining homeownership rates, while Asia-Pacific is emerging as a key growth region with supportive zoning policies and strategic funding commitments. This influx of capital is professionalizing property management, integrating ESG practices, and aligning rental yields more closely with traditional financial benchmarks, though it also heightens competition with individual buyers. Regulatory oversight in major markets ensures compliance, tenant protection, and transparency, further solidifying rental housing as a mainstream institutional asset.

Urbanization and Rising Middle-Class Driving Housing Demand

Rapid urbanization and the growth of the middle class are shaping residential real estate market trends across Asia and Africa. With urban populations set to expand significantly over the coming decades, countries like India are seeing household formation outpace housing supply, creating pressure on affordability despite government initiatives. Rising incomes in Southeast Asian economies are boosting demand for condominiums and mid-market housing, while slower wage growth in some areas continues to challenge affordability. The combination of limited land, infrastructure investment, and policy support is encouraging developers to focus on vertical housing and transit-oriented projects, particularly in tier-2 and tier-3 cities. Regulatory frameworks and land-management policies are helping mitigate delivery risks and attract institutional investment.

Major Segments Highlighted in the Residential Real Estate Market Report

By Property Type

• Apartments & Condominiums
• Landed Houses & Villas

By Price Band

• Affordable
• Mid-Market
• Luxury / Super-prime

By Mode of Sale

• Primary (New-Build)
• Secondary (Existing-home Resale)

By Region

• North America
  • United States
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Chile
  • Rest of South America
• Europe
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Middle East & Africa
  • United Arab Emirates
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of Middle East & Africa

Overview – Residential Real Estate Industry

Residential Real Estate Companies: (Covers a global overview, detailed market insights, key segment analysis, available financial data, strategic intelligence, market share and ranking of leading companies, product and service offerings, and recent developments)

• D.R. Horton, Inc.
• Lennar Corporation
• PulteGroup, Inc.
• NVR, Inc.
• Toll Brothers, Inc.
• Meritage Homes Corporation
• KB Home
• Taylor Morrison Home Corporation
• China Vanke Co., Ltd.
• Poly Developments and Holdings Group Co., Ltd.
• China Overseas Land & Investment Limited
• China Resources Land Limited
• Vonovia SE
• Emaar Properties PJSC
• Aldar Properties PJSC
• DLF Limited
• Godrej Properties Limited
• Mahindra Lifespace Developers Ltd.
• MRV Engenharia e Participações S.A.
• Cyrela Brazil Realty S.A.
• Direcional Engenharia S.A.

Get in-depth industry insights on the residential real estate market research report: https://www.mordorintelligence.com/industry-reports/residential-real-estate-market?utm_source=prnewswire

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SOURCE Mordor Intelligence Private Limited