Leases more: Declining homeownership is expected to sustain industry demand

The need for rental markets over the five years to 2017 provided a large boost to the Property Management industry. Over the past five years, the US economy has been primarily focused on recovery. At the residential level, rental vacancy rates declined steadily due to various hiccups in growth. These hardships proved favorable for renters, explaining vacancy rate declines during the period. On the opposite side of the spectrum, recovery improved the commercial sectors, causing demand for office space to exceed supply, curtailing office rental vacancy during the five-year period. Over the five years to 2022, the value of residential construction is expected to continue rising, expanding housing stock and lowering rental demand...read more.

Industry Statistics & Market Size
Revenue
$77bn
Annual Growth 12-17
4.4%
Forecast Growth 17-22
Profit
Employment
781,990
Businesses
263,580
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Economic recovery improved the commercial sectors, causing demand for office space to exceed supply, curtailing office rental vacancy
  • Uncertain corporate profit ensures that businesses choose to rent over purchase office space
  • Low interest rates are leading property developers to invest in new housing stock
  • Industry Report - Industry Key Buyers Chapter

    The US Property Management industry is mainly composed of small independent operators. Presently, over 90.0% of all industry operators employ fewer than five people (including nonemployers, which make up over 70.0% of all enterprises) and the largest three companies comprise less than 5.0% of industry revenue. Thus, the industry has a very low level of market share concentration. The industry is highly fragmented because participants must have strong contacts and personal knowledge of local markets. Additionally, the majority of industry costs are variable or semivariable, making it harder for operators to gain economies of scale than smaller companies. The...purchase to read more.

    Additional Insights for the Property Management Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Property Management Industry are

  • Having contacts within key markets
  • Having a well-defined strategy/goal
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Rental vacancy rates in the Property Management industry impact industry performance..

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    What is the Property Management Industry?

    Companies in this industry manage residential and nonresidential real estate for property owners. Property management responsibilities relate to the overall operation of a property, including maintenance, rent collection, trash removal, security and some renovation activities. Industry players may also help manage a property’s accounting, but operations related to the transactions of properties or real estate investments are not included in this industry.

    Industry Products
  • Residential property management
  • Nonresidential property management
  • Land management
  • Real estate brokerage
  • Construction
  • Industry Activities
  • Collecting rent
  • Managing facilities maintenance services
  • Managing security
  • Managing trash and recycling collection
  • Property accounting
  • Legally representing property owners
  • Finding and screening tenancy applicants
  • Coordinating repair contractors
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Rental vacancy rates
  • Homeownership rate
  • Office rental vacancy

  • Current Performance
  • Residential rental boost
  • Nonresidential markets
  • Industry expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential rental demand falls
  • Transition to nonresidential markets
  • Industry landscape
  • Table: Property Management Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Property Management Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Apartment Rental
  • Commercial Leasing
  • Storage & Warehouse Leasing
  • Land Leasing

  • Key Selling Industries
  • Conveyancing Services
  • Electricians
  • Heating & Air-Conditioning Contractors
  • Janitorial Services
  • Landscaping Services
  • Painters
  • Plumbers

  • Products & Services
  • Residential property management
  • Nonresidential property management
  • Other
  • Real estate brokerage
  • Land management
  • Construction
  • Chart: Property Management Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential properties
  • Other nonresidential properties
  • Industrial buildings
  • Commercial
  • Office buildings
  • Chart: Major Market Segmentation for the Property Management Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and marketingRent, utilities and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Property Management

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Property Management Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Property Management Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Property Management Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Rental vacancy rates (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Class A Building
  • A commercial office building that commands the highest rent due to the attractiveness and prestige associated with location, tenancy, amenities and overall desirability.
  • Dwelling
  • A place of residence, such as an apartment or house.
  • Real Estate Investment Trust
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as an REIT, the entity must distribute at least 90.0% of taxable income.
  • Vacancy Rate
  • The amount of real estate space unoccupied as a percentage of total available space.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Property Management is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Property Management:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Property Management market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Property Management, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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