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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 137,200 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 137,200 firms in the US with $128 billion in annual revenue and about 801,300 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
                              Source: Vertical IQ and Inforum

                              Coronavirus Update

                              Apr 7, 2022 - Rent Growth Streak Continues
                              • The decrease in US domestic migration during the coronavirus pandemic impacted cities, suburbs, and rural areas, according to a Pew Research Center analysis that compared data for movers in 2020 with data for movers in 2016 through 2018. The pandemic year of 2020 continued the same pre-pandemic pattern of net migration gain or loss for cities and suburban areas. More people moved out of US cities than into them, while suburbs had more people moving in from other US communities. The net flow for rural areas did not indicate strong movement in either direction between 2016 and 2018, while more people moved out of rural areas than moved into them in 2020.
                              • Rents for single-family homes increased 12.6% year over year in January 2022, according to CoreLogic. The analytics and business intelligence firm called the hikes the fastest increase in more than 17 years. The increase marked the tenth consecutive monthly record high.
                              • New single-family home sales decreased 6.2% month over month and declined 7.1% year over year in February 2022, according to the US Department of Commerce. According to the National Association of Realtors (NAR), sales of previously-owned homes fell 7.2% month over month and 2.4% year over year in February 2022. The median existing-home price for all housing types increased 15% year over year to $357,300. "Housing affordability continues to be a major challenge, as buyers are getting a double whammy: rising mortgage rates and sustained price increases," said Lawrence Yun, NAR's chief economist. "Some who had previously qualified at a 3% mortgage rate are no longer able to buy at the 4% rate.”
                              • After the Supreme Court struck down the moratorium on evictions last summer, many expected a flood of evictions, but that never materialized, according to CBS News. Congress enacted the Emergency Rental Assistance (ERA) program in 2021 to prevent evictions during the coronavirus pandemic. Of the $46 billion allocated, as of the end of February 2022, the ERA program had paid out $30 billion to 4.7 million households. The remainder of the ERA funds is expected to be paid out by mid-2022. Once emergency funds run out, the US Treasury Department urges state and local governments to provide additional funding from the $350 billion they received through the American Rescue Plan Act. In 2020 and 2021, US evictions fell to their lowest levels on record, in part due to federal government interventions, according to an analysis released in March 2022 by Princeton University’s Eviction Lab.
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