US Real Estate Sector

The 412,900 establishments in the real estate sector are involved in the purchase, sale, rental, leasing, and management of properties. Establishments typically specialize in a particular type of property, such as residential, commercial, or industrial.

Dependence on Credit

The real estate sector is capital-intensive and highly dependent on credit.

Maintaining Occupancy

For commercial and residential lessors, maintaining occupancy is critical to generating steady streams of rental income, which are necessary to cover operating expenses and debt costs.

Sep 23, 2026 - Apartment Debt Pressures Landlords

• The Wall Street Journal reports that apartment landlords face a potential debt crisis as many properties financed at low pandemic-era rates must refinance at much higher borrowing costs. Over the next decade, $1.8 trillion in apartment loans will mature, including $757 billion through 2028, according to the Mortgage Bankers Association. A recent quarter-percentage-point Fed rate hike could contribute to higher refinancing costs. Heavy new apartment supply in some Sun Belt markets also has limited rent growth, pushing some owners toward sales, lender workouts, or cost reductions. Refinancing pressure could affect the broader real estate sector by increasing distressed property sales, weighing on multifamily valuations, constraining new investment, and reducing spending on renovations and capital improvements. Greater financial strain also could affect lenders, investors, brokers, property managers, developers, and other firms that depend on apartment transactions and investment activity.
• Commercial landlords that lease space to the federal government are being asked to accept new lease language related to diversity, equity, and inclusion policies, according to Bisnow. The General Services Administration has incorporated the language into new lease solicitations and awards and has sent amendments to affected existing lessors. Landlords with federal tenants may face additional compliance review and legal analysis when renewing or pursuing government leases. The changes arrive as the government also continues efforts to consolidate office space, adding another source of uncertainty for owners of federally leased properties and for investors evaluating the stability of government-backed rental income.
• Thousands of designated affordable apartments are sitting vacant in some US cities even as extremely low-income households struggle to find housing they can afford, the Associated Press reports. The US has about 4 million affordable rental units available for roughly 11 million extremely low-income renter households, and about three-quarters of those households spend more than half their income on rent and utilities, according to the National Low Income Housing Coalition. Recently financed affordable housing targets households earning at least 50% of the area median income, while the poorest renters often require additional subsidies such as vouchers. Developers, owners, and policymakers may face growing pressure to align rents, subsidies, and income targeting more closely so new or existing affordable properties can reach households with the fewest housing options.
• Mall property values increased 13% over the past year, outperforming other commercial real estate sectors, according to The Wall Street Journal, citing Green Street. Stable occupancy and rents, limited new supply, and investments in restaurants, entertainment, and higher-end retailers have helped strengthen the sector. Improving mall fundamentals could support greater investor interest, property sales, redevelopment, and refinancing activity across the real estate sector. Rising values may also encourage owners and developers to pursue renovations, reposition underperforming properties, or expand mixed-use concepts that combine retail with residential, hospitality, or entertainment uses. Brokers, lenders, appraisers, developers, and other real estate professionals could benefit from increased transaction and valuation activity if stronger performance persists. The rebound may also reinforce investor interest in well-located retail properties after years of weaker sentiment toward malls.

Industry size & Structure

The real estate sector is comprised of 412,900 establishments that employ more than 1.8 million workers and generate $668 billion in annual revenue, according to government sources.

• The real estate sector represents 10% of the nation's Gross Domestic Product (GDP). The real estate sector employs 1.2% of the country's workers.
• The sector is fragmented with the 20 largest firms representing 14% of revenue.
• In addition to employer establishments, the real estate sector has 3 million owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are lessors of real estate (44%) and offices of real estate agents and brokers (27%). The owners of nonemployer establishments typically perform the work and may outsource support functions like marketing and accounting.
• The real estate sector has shed about 27,000 establishments annually, which equals about 9.6% of existing establishments. However, the sector has added about 36,000 new establishments annually, which is equivalent to 12.7% of existing establishments. As a result, the sector has an average growth rate of 3.1%.
• The real estate sector is forecast to grow its employment base by 1.6% between 2025-2035, which is below the national average for all jobs, according to the Bureau of Labor Statistics.