Residential Brokers & Property Managers

The 94,000 residential real estate and property management firms in the US work with owners to find buyers for property for sale, lessees for property for rent, and to maintain and manage rental property. Over 60% of industry revenues come from the sale of residential property, and the remainder comes from property management services.

Fewer Qualified Buyers

Mortgage lenders adopted stricter lending practices in the wake of the 2008 financial crisis, making it more difficult, especially for first time home buyers, to qualify for new loans.

Greater Internet Marketing

Residential real estate brokers and property managers are increasing their use of both the internet and multiple listing services (MLS) to advertise available properties to prospective buyers and renters.

Oct 23, 2026 - Pending Home Sales Reach Record Low

• Pending home sales fell to a record low in September as rising mortgage rates discouraged prospective buyers, according to the National Association of Realtors. The NAR's pending home sales index declined 7.3% from August and 11% from September 2025. NAR Chief Economist Lawrence Yun said housing market conditions deteriorated in September due to rapidly rising mortgage rates, despite job and income growth. Residential real estate brokers could face fewer transactions, longer listing periods, and increased pressure to help sellers adjust their pricing expectations. Property managers may benefit if households postpone home purchases and remain in rental properties, potentially supporting tenant retention and demand for professionally managed housing.
• Wealthy cash buyers are helping to support US home prices, while higher mortgage rates are constraining purchases among less affluent households, according to The Wall Street Journal. Mortgage rates above 7% have sidelined many prospective buyers, particularly those seeking entry-level and moderately priced properties. Sellers in some markets are reducing asking prices to attract buyers, while affluent households purchasing luxury homes with cash are less sensitive to borrowing costs. The divergence creates uneven conditions for residential real estate brokers, who may find stronger transaction opportunities in luxury markets than in properties serving first-time buyers. Brokers specializing in affordable and mid-priced homes could face longer marketing periods and increased pricing negotiations.
• Financial distress in the multifamily housing sector continued to increase in September, according to Multifamily Dive. Data from Trepp shows the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) rose 35 basis points to 8.04%, up from 6.59% a year earlier. The share of multifamily CMBS loans transferred to special servicing increased to 8.54%. Delinquency rates vary considerably by loan type, with private-label securities experiencing substantially more distress than Freddie Mac-backed loans. Higher financing costs, changing property valuations, and insufficient rental income are making it harder for some property owners to meet debt obligations. Residential property managers could face increased pressure to maximize occupancy, improve rent collections, control operating expenses, and maintain property cash flow. Growing financial distress could also lead to more foreclosures, changes in ownership, and turnover in property management contracts.
• Existing-home sales increased in September despite continued affordability pressures, according to the National Association of Realtors (NAR). Sales rose 1.5% from August, providing some evidence of buyer activity amid elevated mortgage rates and persistent housing costs. However, the improvement does not eliminate the broader challenges confronting homebuyers, including borrowing costs and difficulty finding affordable properties. Residential real estate brokers may benefit from the monthly increase in completed transactions, although sustained growth will depend on financing conditions and sellers' willingness to negotiate. Agents may need to emphasize realistic pricing, affordability calculations, and available housing alternatives to convert interested buyers into completed sales.

Industry size & Structure

The typical residential broker and property manager employs 3-12 workers and generates about $1 million in annual revenue.

• There are about 94,000 firms in the US with $179 billion in annual revenue and about 929,300 employees.
• The industry is highly fragmented with the 50 largest firms totaling 20-32% of industry revenue.
• The largest firms include Century 21, Re/Max Realtors, and Coldwell Banker.
• The majority of industry employees are property managers and real estate agents. The remainder are office/administrative support and management.