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
Jan 13, 2025 - Insurance Rates, Property Taxes Push up Homeowner Costs
- Many US homeowners are seeing their housing costs spiral higher amid rising insurance rates and property taxes, according to the Wall Street Journal. More frequent natural disasters and higher costs for home repairs have prompted insurance companies to increase premiums, while soaring home values have led to higher property taxes. According to Intercontinental Exchange, 32% of the average single-family mortgage payment was for home insurance and property taxes in September 2024, marking the highest rate for these costs since 2014. For about 9% of homeowners, insurance and taxes account for more than half of their monthly mortgage payments. Higher tax and insurance costs combined with elevated home prices and interest rates have prompted many would-be homebuyers to quit looking.
- In the third quarter of 2024, the volume of outstanding residential acquisition, development, and construction (AD&C) loans made by FDIC-insured institutions declined for the third quarter in a row, according to the National Association of Home Builders (NAHB). The value of residential AD&C loans in Q3 2024 was $490.7 billion compared to $495.8 billion in Q2 2024. The volume of residential AD&C loans is expected to rise in 2025 as the Federal Reserve continues its monetary easing policies, but potential headwinds include the federal deficit and economic uncertainty.
- In December 2024, Greystar Real Estate Partners – the largest apartment owner in the country – opened a six-building, 312-unit complex assembled using modular construction methods, according to The Wall Street Journal. The development – called “Ltd. Findlay” – near Pittsburgh is Greystar’s first modular apartment project, as the company hopes the alternative method can speed construction in an industry often mired by delays. The project was built at Greystar’s factory in Knox, Pennsylvania, and the firm has six other modular projects in the works. Modular housing is built in factories and assembled on-site, which proponents suggest reduces construction time and labor and materials costs. While modular housing remains a small part of the overall market, it is gaining ground amid a shrinking construction labor force and rising costs.
- According to some industry insiders’ estimates, the 2024 housing market may have been the slowest in nearly 30 years as high mortgage rates and home prices combined with extremely low housing inventories have kept homeowners locked in place and would-be homebuyers priced out of the market, according to The New York Times. The National Association of Realtors estimates that four million homes were sold in 2024, marking the second straight year of historically weak activity, and the slowest home sales since 1995. Market observers note that the housing crisis is a product of weak supply. Builders have struggled amid lingering pandemic-era problems, including high borrowing, labor, and materials costs. Freddie Mac estimates the housing shortage equals about 3.7 million homes. The outlook for 2025 remains uncertain as home prices and mortgage rates are expected to remain stubbornly high.
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