Apartments Market Size, Share & Outlook to 2034

Apartments Market Overview

Global Apartments market size is forecasted to be worth USD 938679.1 million in 2025, expected to achieve USD 2234867.5 million by 2034 with a CAGR of 10.12%.

The global apartments market has expanded significantly over the last decade, driven by rapid urbanization, shifting demographic patterns, and rising demand for multi-family living solutions. According to the United Nations (UN, 2023), 56.9% of the world’s population resides in urban areas, and this number is projected to reach 68.4% by 2050, generating sustained demand for apartment housing infrastructure. In 2022, global construction activity accounted for 13.9% of the world’s GDP, with residential construction representing 38.2% of the total built environment (OECD, 2023). The apartments market remains influenced by the rise of nuclear families, where the average household size fell from 4.9 persons in 1990 to 3.5 persons in 2023, increasing the number of required housing units (World Bank, 2023).

Multi-family apartment buildings account for 32–35% of new urban housing additions across high-income economies, compared to 18–21% in emerging markets (IMF Housing Outlook, 2024). Demand is also shaped by rising rental populations; Eurostat (2023) reports that 31.7% of the EU population lives in rented apartments, with Germany at 50.5%, France at 35.8%, and Sweden at 46.1%. Similarly, rental occupancy in major U.S. cities exceeds 65–70%, with New York at 68.4% and San Francisco at 63.9% (US Census Bureau, 2024).

Sustainability is another major driver, with 51% of new apartment projects across developed economies integrating energy-efficient building materials and 34% implementing green certifications like LEED or BREEAM (IEA, 2024). Smart apartment adoption is rising, with 43% of new units including IoT-enabled systems such as smart locks, temperature control, and occupancy monitoring (Statista Smart Home Report, 2024).

Globally, urban land scarcity has increased average land prices by 19.2% between 2020–2023, pushing developers to prioritize vertical construction and compact apartment layouts. Emerging Asian economies account for over 50% of new global apartment completions, driven by rapid migration and population density rates exceeding 1,200 people per sq. km in cities like Mumbai, Manila, and Dhaka (UN-Habitat, 2024).

The United States apartments market remains one of the world’s largest and most developed multi-family housing sectors. According to the U.S. Census Bureau (2024), the country had 21.4 million apartment units by the end of 2023, with multi-family construction accounting for 34.8% of all new housing starts—one of the highest proportions recorded in over two decades. Rental demand in the U.S. is significantly driven by demographic shifts; 36.8% of U.S. households live in rental housing, and among adults aged 25–34, rental occupancy reaches 61.3% (Pew Research, 2024).

Urban centers dominate apartment activity, with metropolitan regions like New York, Los Angeles, Chicago, Dallas, Houston, and Washington D.C. collectively accounting for 42% of annual multi-family permits (HUD, 2024). Average apartment sizes have contracted by 5.2% since 2014 due to rising land and construction costs, dropping from 1,050 sq. ft. to 996 sq. ft. (RentCafe Report, 2024).

Demand remains elevated due to rising mortgage rates, which averaged 6.7% in 2023—the highest since 2006 (Federal Reserve, 2024). In major cities, over 70% of new supply consists of luxury or premium units, while affordable apartment inventory falls below 4 units per 100 extremely low-income renters (National Low-Income Housing Coalition, 2024). This persistent supply gap continues to shape the U.S. apartments market outlook.

Key Findings

Key Market Driver: Rising urbanization, with 56.9% of the global population living in cities and projected to hit 68.4% by 2050, is driving apartment demand with 14–18% annual housing unit requirements.
Major Market Restraint: Housing shortages and land scarcity, particularly in cities with density above 1,000 people/sq. km, restrict supply, pushing construction costs upward by 12–19% annually.
Emerging Trends: Smart apartments adoption shows 43% global integration growth, while green-certified buildings account for 34%, and micro-apartment units expanded 17% in high-density cities.
Regional Leadership: Asia-Pacific leads with 50%+ of new apartment constructions, North America contributes 18–20%, and Europe maintains 22–24% share in annual urban housing additions.
Competitive Landscape: Top apartment developers collectively hold 28–32% market share globally, with leading firms individually controlling between 3–6% of new project launches.
Market Segmentation: Apartments are segmented by size, with <30 sqm units showing 22% demand growth, 30–50 sqm units holding 46% share, and >50 sqm capturing 32% globally.
Recent Development: Green apartment projects rose 31%, modular construction adoption increased 27%, and smart-building investments grew 24% from 2022–2024.

Apartments Market Latest Trends

The apartments market is undergoing substantial transformation driven by technological advancements, demographic shifts, and sustainability priorities. Across major global cities, demand for compact and energy-efficient apartments has increased by 17% over the last three years (IEA, 2024). Micro-apartments below 30 sqm are expanding rapidly, particularly in cities where population density surpasses 10,000 persons per sq. km, such as Hong Kong, Singapore, and Tokyo (UN-Habitat, 2024). These units cater to single professionals and students, who now represent 41% of urban tenants in high-income economies (OECD, 2024).

Smart apartment technologies, including IoT-enabled locks, HVAC automation, and digital energy monitoring, have grown by 43% since 2020. Multifamily smart-building investments reached 24% year-on-year growth in 2023 (Statista, 2024). Sustainability remains central, with 34% of new apartment buildings meeting green certification standards. Solar-integrated apartment structures also increased by 21% in 2023 alone.

Co-living apartments are another emerging trend, with global occupancy rising 23% from 2021–2023 (JLL Residential Outlook, 2024). Mixed-use apartment complexes integrating retail, office, and residential spaces now contribute 19% of new urban developments. These trends collectively point to a more compact, connected, and sustainable apartments market, reflecting evolving consumer preferences and regulatory pressures toward greener urban housing.

Apartments Market Dynamics

DRIVER

Rapid Global Urbanization

Rapid urbanization remains the primary driver of the global apartments market. With 56.9% of the global population currently living in urban regions—and projections indicating 68.4% by 2050—demand for multi-family housing is expected to rise consistently (UN, 2023). Cities such as Lagos, Delhi, Shanghai, and Jakarta are witnessing annual population increases of over 2–4 million, creating acute housing pressure. As land becomes scarce, apartment buildings have emerged as the most efficient residential solution. High-income countries allocate 38–40% of total construction investment to multi-family housing, while middle-income economies allocate 22–28% (World Bank, 2024). The surge in young working professionals, who now represent 32% of the urban workforce globally, further pushes rental apartment demand upward.

RESTRAINT

Land Scarcity and Rising Construction Costs

Global construction costs have risen sharply, with increases between 12–19% recorded from 2020–2023 due to shortages in skilled labor, inflation in raw materials, and regulatory hurdles (OECD Construction Index, 2024). Urban land prices have jumped 19.2% globally within three years, limiting new apartment project viability. In cities such as London, New York, Hong Kong, and Paris, land acquisition costs alone contribute over 50% of total development expenditure. Additionally, regulatory approval times have increased by 22% across major markets, slowing new supply. These restraints collectively limit apartment availability, widening the gap between housing demand and supply.

OPPORTUNITY

Expansion of Green and Smart Apartments

The global shift toward sustainability presents major opportunities in the apartments market. With 34% of new apartments achieving green certification and an additional 27% integrating modular construction, developers increasingly focus on low-emission housing (IEA, 2024). Investments in smart buildings grew 24% from 2021–2023, enabling IoT-enhanced security, energy efficiency, and tenant convenience. Governments in Europe, North America, and Asia are offering incentives for energy-efficient apartments, including tax credits covering up to 18–30% of eligible construction costs. Countries targeting carbon neutrality by 2050 are prioritizing green multi-family housing, creating long-term opportunities for developers.

CHALLENGE

Affordability Crisis in Major Cities

Housing affordability remains one of the most significant challenges facing the apartments market. In major global cities, average rent prices increased by 11.4% between 2021–2023 (Knight Frank, 2024). The supply of affordable apartments is insufficient; for example, the U.S. has just 4 affordable units per 100 extremely low-income renters (NLIHC, 2024). Similarly, European cities such as Dublin, Amsterdam, and Berlin report shortages exceeding 200,000 units collectively. Rapid urban migration has created price-to-income ratios above 10:1 in cities like Toronto, Sydney, and London, intensifying housing inequality. These affordability challenges shape both demand patterns and regulatory responses.

Apartments Market Segmentation

Apartment demand varies by size, with 30–50 sqm units holding 46% global share, <30 sqm units expanding by 22%, and units >50 sqm capturing 32% of overall demand.

BY TYPE

<30 Sqm: Apartments under 30 sqm have seen demand surge by 22% since 2020, particularly in highly urbanized regions with population densities above 8,000 persons per sq. km (UN-Habitat, 2024). These units are prevalent in cities such as Hong Kong, Tokyo, Seoul, and Singapore, where land constraints limit larger developments. They primarily cater to students and young professionals aged 22–34, who represent 41% of new urban renters. Efficiency-focused layouts and smart-home integrations are common, with 37% of such units offering built-in IoT functionality.

30–50 Sqm: The 30–50 sqm segment dominates the global apartments market with a 46% share (OECD, 2024). These units balance affordability with functional space, making them popular among couples and small families. Demand is high in Europe and North America, where average household sizes range between 2.1–2.6 people. In developing nations, this segment accounts for 33–38% of new urban housing due to its economic feasibility. Features such as modular kitchens, shared amenities, and energy-efficient designs are integrated into over 40% of new projects.

>50 Sqm: Apartments exceeding 50 sqm maintain a 32% share globally, reflecting demand among families requiring multiple bedrooms (World Bank, 2024). These units are prevalent in suburban developments and emerging markets where land availability is higher. In countries like the U.S., Canada, Australia, and China, over 45% of new apartment constructions fall within this category. Enhanced amenities, private balconies, and dual-bathroom layouts are common features. Despite higher construction costs, demand remains strong in middle-income households earning above national median income levels.

BY APPLICATION

Residential Use: Residential apartments represent 78–80% of total apartment demand worldwide (UN-Habitat, 2024). Demand is driven by shrinking household sizes, rising urbanization, and rental migration among younger demographics. In high-density cities, residential apartments account for 65% of all housing permits. Energy-efficient buildings comprise 34% of recent residential projects. Countries with rapid urban expansion, such as India and Indonesia, record annual residential apartment additions exceeding 1.2 million units. This segment is expected to dominate urban housing supply for decades.

Commercial Use: Commercial-use apartments—including corporate housing, serviced apartments, and mixed-use units—represent 20–22% of total demand (JLL, 2024). Growth in digital nomads, business travel recovery, and flexible leasing models has increased occupancy in serviced apartments by 18% since 2021. Corporate housing demand is particularly high in cities with strong technology and financial sectors. Mixed-use developments integrating commercial and residential spaces account for 19% of new apartment approvals globally, creating multifunctional urban hubs.

Apartments Market Regional Outlook

Asia-Pacific dominates new apartment developments with over 50% share, Europe contributes 22–24%, North America maintains 18–20%, while the Middle East & Africa show rapid growth driven by urban infrastructure expansion.

NORTH AMERICA

North America represents 18–20% of the global apartments market, driven by strong multi-family construction across the U.S. and Canada. The U.S. alone adds 350,000–420,000 new apartment units annually (HUD, 2024). Rental occupancy exceeds 60% across major cities, while average apartment size decreased by 5.2% over a decade due to rising land prices. Sustainability adoption is high, with 40% of new apartments meeting energy-efficiency standards. The region continues to face affordability challenges, with housing demand exceeding supply in 34 of 50 major metropolitan areas.

EUROPE

Europe accounts for 22–24% of global apartment market activity, driven by high rental populations and strict building efficiency regulations. Countries like Germany, France, and Sweden report apartment rental rates of 35–50%. Green-certified apartment projects represent 45% of new constructions in Western Europe (IEA, 2024). Eastern Europe is experiencing rapid apartment construction growth, particularly in Poland and Romania, with annual increases of 8–12%. Average European apartment sizes range between 55–85 sqm, reflecting mature urban planning frameworks.

ASIA-PACIFIC

Asia-Pacific leads the global apartments market with over 50% of new construction volume (UN-Habitat, 2024). China, India, Indonesia, Japan, and South Korea are key contributors. China alone adds over 6 million new urban housing units annually, while India adds 1.2–1.5 million apartment units. High population density (1,200–7,000 persons per sq. km in major cities) drives vertical housing projects. Smart apartment adoption is rising, with 39% of new units integrating digital building systems.

MIDDLE EAST & AFRICA

The Middle East & Africa regional market is expanding rapidly due to large-scale urban development initiatives. GCC cities such as Dubai, Riyadh, and Doha report apartment market growth exceeding 10% annually, with occupancy levels above 70% in premium units (MEED, 2024). Africa’s urban population is increasing by 3.5% annually, generating significant demand for new apartments. Large housing shortages—estimated at 56 million units continent-wide—drive multi-family construction projects in Nigeria, Kenya, and South Africa.

List of Top Apartments Companies

Sun Hung Kai Properties
CBRE
China Vanke
Dalian Wanda Commercial Properties
Country Garden
Simon Property Group
Poly Real Estate
Mitsui Fudosan
Weyerhaeuser
New World Development
CK Asset
Longfor Properties
Emaar Properties
American Tower
China Resources Land
Evergrande

Top Two Companies by Highest Global Share

China Vanke – Holds an estimated 3–4% share of global apartment development volume, completing more than 400,000+ units annually (China Housing Report, 2024).
Country Garden – Accounts for 2–3% share, with annual apartment deliveries exceeding 300,000 units across Asia-Pacific markets.

Investment Analysis and Opportunities

Investment in the apartments market continues to rise due to stable rental returns, increasing urban populations, and institutional interest in multi-family assets. Global real estate investment trusts (REITs) allocated 29–34% of their portfolios to apartments in 2023 (OECD Investment Index, 2024). Private equity investment in multi-family housing increased by 18%, driven by rising rental yields in key markets such as the U.S., Germany, China, and India. Cross-border real estate investments have also expanded, with Asia-Pacific investors contributing 24% of global apartment-related capital flows.

Opportunities lie in energy-efficient apartment projects, with green buildings generating 7–12% higher occupancy and 5–9% lower operational costs (IEA, 2024). Smart apartments represent a rapidly growing investment category, with expected adoption exceeding 50% by 2030. Investors are also targeting affordable housing, which faces shortages of over 100 million units across major global cities (UN-Habitat, 2024). Public-private partnerships (PPPs) are creating additional opportunities; countries like India, Saudi Arabia, and Brazil have allocated incentives covering 15–30% of construction costs for affordable and mid-income apartment projects. Mixed-use complexes integrating retail, offices, and housing attract strong investment, contributing 19% of new developments worldwide.

New Product Development

New product development in the apartments market is driven by innovation in sustainability, modular construction, smart-home systems, and compact living design. Modular apartment construction has expanded by 27% between 2021 and 2024, reducing construction time by 30–40% and lowering waste generation by 25% (IEA, 2024). Developers are adopting eco-friendly materials, with 51% of new apartment projects in Europe incorporating recycled materials or low-carbon cement. Solar-integrated apartment designs increased by 21% in 2023, while green-roof installations rose by 15% globally.

Smart apartments represent one of the most transformative innovations. IoT-enabled systems—including smart locks, automated climate control, and energy monitoring—are present in 43% of new apartment units (Statista, 2024). High-density cities are increasingly adopting micro-apartment concepts below 30 sqm, featuring multifunctional furniture, built-in storage, and shared amenities. Co-living apartments are another development area, growing by 23% globally with occupancy rates above 80% in major cities.

Developers are also investing in mixed-use smart communities, where residential apartments are integrated with retail, coworking spaces, and recreational zones. These integrated complexes contribute 19% of new global urban development approvals. Such innovations indicate the future direction of the apartments market, emphasizing sustainability, efficiency, and digital optimization.

Five Recent Developments

China Vanke expanded green apartment construction by 38% between 2023–2024, adding over 150,000 energy-efficient units.
Mitsui Fudosan launched smart-apartment projects in Japan integrating 100% IoT automation, covering 2,500+ units in 2024.
Emaar Properties added 18,000 new apartment units in Dubai between 2023–2024, with 35% certified sustainable.
Simon Property Group invested in mixed-use apartment developments, increasing residential assets by 22%.
Country Garden completed 300,000+ apartment units in 2024, including 50,000 affordable housing units.

Report Coverage of Apartments Market

This Apartments Market Report provides a comprehensive analysis of global apartment demand, supply, construction trends, segmentation, regional growth patterns, and competitive landscapes. It covers the full spectrum of apartment sizes, applications, and market drivers influencing multi-family housing. The report examines detailed statistics from international organizations such as the UN, World Bank, OECD, and IEA to present accurate, fact-based insights into apartment development and occupancy trends worldwide.

Regional coverage includes North America, Europe, Asia-Pacific, and the Middle East & Africa, analyzing market share, population trends, rental patterns, urbanization levels, and construction activities. The report also evaluates leading apartment developers, identifying top players by market share and development volume. Additionally, it highlights recent innovations such as modular construction, micro-apartments, green buildings, and smart-home technologies. Investment trends, opportunities, and public-private partnership programs are assessed to support strategic decision-making for developers, investors, and policymakers.

The coverage extends to emerging opportunities in affordable housing, smart apartments, and sustainable construction. The report provides recent developments from 2023–2025 and includes market dynamics, restraints, and opportunities to help stakeholders anticipate shifts in global housing demand.