Residential Real Estate Brokerage & Management Industry Profile

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 Anywhere Real Estate, HomeServices of America, Keller Williams, and Re/Max (all based in the US), as well as Countrywide (UK), Deutsche Wohnen (Germany), FirstService (Canada), and Leopalace21 (Japan).

The global real estate market is forecast to grow about $634,9 trillion by the end of 2024 and is forecast to reach $727.8 trillion by 2029, according to Statista.

The US residential real estate brokerage and management industry includes about 240,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $300 million.

COMPETITIVE LANDSCAPE

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 30% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include the rental and leasing of homes, apartments, and rooming houses which accounts for ...