|Last Quarterly Update:||12/12/2016|
|SIC Codes:||6513, 6514, 6531|
|NAICS Codes:||53111, 53121, 531311|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry act as agents or brokers in the buying and selling of residential real estate, in addition to leasing and managing residential properties. Major companies include Keller Williams, HomeServices of America, Long & Foster, Realogy, and Re/Max (all based in the US), as well as Countrywide Group (UK), Deutsche Wohnen (Germany), FirstService (Canada), and Leopalace21 (Japan).
The world's top-performing residential real estate markets, where home values are rising the fastest, include Turkey, New Zealand, Sweden, Australia, and Luxembourg, according to Knight Frank's Global House Price Index. Housing prices are mirroring the upturn in the global economy.
The US residential real estate brokerage and management industry includes about 195,000 firms with combined annual revenue of about $190 billion.
Demand is driven by population growth and construction activity. The profitability of residential real estate brokerage and management companies depends on demand for properties and the volume of transactions they handle. Demand and volume are usually higher during periods of strong economic growth and can be negatively impacted by a recession or too much new construction. Large companies have only modest economies of scale and benefit mainly from better name recognition than smaller rivals. Small companies compete effectively by developing expertise in a single market or region. The US industry is fragmented: the 50 largest companies account for about 25% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include sales, leasing, and management of ...
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