Residential Brokers & Property Managers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
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.
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 $128 billion in annual revenue and about 1.1 million employees.
- The industry is highly fragmented with the 50 largest firms totaling 21-29% 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.
Industry Forecast
Residential Brokers & Property Managers Industry Growth
Recent Developments
Apr 19, 2024 - Industry to Return to Steady Growth
- The residential brokers and property management industry is expected to see weaker sales growth this year, but demand is projected to improve in the following four years. The industry’s year-over-year sales increased by 7.8% in 2022 before dropping to 6.1% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to moderate further to about 3.8% in 2024, then rise to 6.1% in 2025. The industry will then see steady but mostly flat average annual growth of about 6.1% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- A rise in application fraud is starting to hurt multifamily property managers’ bottom lines, according to a recent survey by multifamily software provider RealPage and reporting by Multifamily Dive. About 75% of multifamily managers report that rental fraud has increased over the last 12 months. The leading types of application fraud include false or manipulated identities, income misrepresentation, and identity theft. More than 70% of survey respondents said that most instances of fraud go undetected until after the tenant has moved in. Property managers surveyed said some of the most damaging impacts of fraud included reduced income/higher costs of 10-20% (77% of respondents), property damage (55%), harm to business reputation (51%), criminal activity in fraudulently rented units (49%), added costs from early lease termination/eviction (47%), and loss of good tenants due to bad behavior by fraudulent ones (42%).
- Sales of existing US homes decreased by 4.3% in March from February and were down 3.7% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves. There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market."
- After suffering a drop in demand during the pandemic, occupancy rates for private-pay senior-housing communities are showing signs of improvement, according to The Wall Street Journal. In Q4 2023, the average occupancy rate for private-pay senior housing was just over 85%, according to industry trade group the National Investment Center for Seniors & Housing Care. While that’s still two percentage points below Q2 2020, it’s a significant improvement over the COVID-era low of 77.8% in the first half of 2021. Some industry observers say the turnaround is partly due to pent-up demand by seniors with the most acute healthcare needs, as they postponed moving to assisted living during the pandemic. However, demand for senior housing with little or no healthcare offerings remains soft. Nearly 90% of people between the ages of 50 and 80 want to stay in their homes as long as they can, according to a 2022 poll by the University of Michigan.
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