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
Mar 12, 2025 - Buyers Gain Leverage in Housing Market
- The advantage in the US housing market may be shifting from sellers to buyers, according to The Wall Street Journal. The bidding wars that were common during the pandemic are giving way amid a less competitive market, which is giving potential buyers more leverage. On average, existing homes are selling for 2% below the asking price, according to Redfin. The reduction in seller pricing power is partly due to more homes coming onto the market. According to Redfin, new listings were up 5% in January compared to a year earlier. Houses are also staying on the market longer, creating an advantage for buyers. In January, the typical home sale had been on the market for two months, marking the most extended period since February 2020, according to Redfin.
- Affordability in the US housing market is expected to improve slightly in 2025 and 2026, but strides will be due to falling interest rates rather than lower home prices, according to a recent Reuters poll of property market insiders. Nearly two-thirds (62%) of those surveyed in February 2025 said that affordability conditions for first-time home buyers would improve over the coming year. Polling medians suggested survey respondents expect average 30-year mortgage rates to drop to 6.76% in 2025 and 6.32% in 2026. While home prices are expected to continue rising, the pace of price growth will slow. Moody’s Analytics estimates there is a shortage of about 2.6 million units. Homeowners who locked in low mortgage rates before they began rising are reluctant to sell, leaving potential buyers relying more on the new home market.
- High costs for financing reduced the development of single-family built-for-rent (SFBFR) construction activity in the fourth quarter of 2024 compared to a year earlier, according to National Association of Home Builders analysis of US Census Bureau data. In Q4 2024, there were about 15,000 SFBFR housing starts, down 38% from Q4 2023. However, during the four most recent quarters, 83,000 SFBFR homes began construction, which is up 8% compared to how many were built in the previous four-quarter period. While the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current share of the overall single-family market is about 8%. Single-family built-for-rent homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory and downpayment requirements in the for-sale market.
- Some cities are mitigating housing shortages by converting shuttered hospitals into residential space, according to The Wall Street Journal. Because hospitals’ patient rooms often have high ceilings and individual bathrooms, they’re easier to convert into housing than office buildings. Hospitals are also usually situated near city centers and transportation hubs. Federal tax incentives for redeveloping old hospitals are helping to fuel the trend as cities struggle with housing shortages. In 2023, the 20% federal historic tax credit for eligible projects reached $225 million, according to Wall Street Journal analysis of National Trust for Historic Preservation data. Such projects are particularly attractive for rural communities as more hospitals in outlying areas close. The Center for Healthcare Quality and Payment Reform estimates that as many as 700 rural hospitals are at risk of closing.
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