Market Size for Apartment communities in 2026 [Example]

The total available market (TAM) for apartment communities worldwide can be estimated by looking at the global housing market. Approximately 1.5 billion individuals live in rental accommodations, which includes apartments. Assuming an average annual rental spending of $300 per person (a conservative estimate reflecting rental costs in various global markets), the TAM calculates to $450 billion annually. This figure encompasses all rental dwellings, not limiting it to high-end or luxury apartments, thus casting a wide net relevant to your business.

To define the Serviceable Addressable Market (SAM), we need to consider your specific focus within apartment communities. If we take the top 10% of the TAM, which consists of quality apartment complexes that cater to middle-income renters, the SAM would account for around 150 million renters. Assuming they average a rental spend of $300 per year, the SAM would amount to $45 billion. This market segmentation is realistic given that your product would cater primarily to communities that offer mid-range rental options and not the entire spectrum of the rental market.

For the Serviceable Obtainable Market (SOM), we’ll take a conservative approach where you might realistically capture about 1% of your SAM in the first year through effective marketing and community engagement. Therefore, with a SAM of $45 billion, achieving a 1% market share would translate to $450 million. On the customer side, this equates to approximately 1.5 million renters, reflecting those likely to engage with and choose your apartment communities over competitive offerings in the market.