Overview

Open house: Low interest rates and improved incomes have fueled industry rebound

IBISWorld’s Real Estate Sales & Brokerage market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$127bn
Annual Growth
11-16
6.4%
Annual Growth
16-21
Profit
Employment
984,842
Business
791,808

Industry Threats & Opportunities

  • Increasing disposable incomes and historically low interest rates helped increase home affordability
  • Both US GDP and corporate profit margins are expected to continue to increase
  • Rising home prices will directly benefit agent commission rates, increasing industry revenue

  • shopping_cartBUY NOW TO READ MORE

    Industry Analysis & Industry Trends

    Starting in 2011, increasing per capita disposable income and historically low interest rates helped increase home affordability, contributing to the Real Estate Sales and Brokerage industry's recovery from the recession. The residential market represents more than two-thirds of industry revenue, making the industry especially sensitive to housing prices and existing home sales. Revenue is anticipated to continue improving over the next five years, though higher interest rates could increase borrowing costs and temper demand for homeownership. Nevertheless, general economic improvements and strong corporate profit will help improve the commercial market, and new residential construction will lift industry sales...

    shopping_cartBUY NOW TO READ MORE

    Industry Report - Industry Investment Chapter

    The Real Estate Sales and Brokerage industry has a low level of capital intensity. IBISWorld estimates that the average operator spends about $0.02 in capital investment for every $1.00 spent in wages. The majority of industry expenses are related to labor; like most service industries, real estate agencies and brokerages rely on the knowledge and abilities of employees (whether in-house or contracted agents), rather than the productive capabilities of depreciable machinery, to generate revenue. Agents are typically paid on a commission basis, the fees for which range from 2.5% to 5.0% of the transaction value. The industry's capital intensity has remained relatively constant since 2011 and is not expected to shift noticeably during the five years to 2021.

    ..

    shopping_cartBUY NOW TO READ MORE

    Additional Insights for the Real Estate Sales & Brokerage Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Sales & Brokerage Industry are

  • Effective product promotion
  • Effective cost controls
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as year conventional mortgage rate and Existing home sales in the Real Estate Sales & Brokerage industry impact industry performance..

    shopping_cartBUY NOW TO READ MORE

    Look under the hood?

    Download a FREE sample report

    Industry Products

    What is the Real Estate Sales & Brokerage Industry?

    This industry comprises brokers and agents who sell, buy or rent real estate for others. Industry operators do not own these properties but act as intermediaries between owners or sellers and buyers or tenants.

    Industry Products
    Residential sales
    Commercial sales
    Residential rentals
    Commercial rentals
    Transaction, advisory and other services
    Industry Activities
    Selling residential or commercial real estate for others
    Buying residential or commercial real estate for others
    Renting residential or commercial real estate for others

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • year conventional mortgage rate
  • Existing home sales
  • House price index
  • Corporate profit
  • Per capita disposable income

  • Current Performance
  • Back from the brink
  • The commercial market
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential recovery
  • Commercial growth
  • Online listings
  • Table: Real Estate Sales & Brokerage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Sales & Brokerage Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Real Estate Investment Trusts
  • Apartment Rental
  • Commercial Leasing
  • Storage & Warehouse Leasing

  • Key Selling Industries
  • Billboard & Outdoor Advertising
  • Newspaper Publishing
  • Printing
  • VoIP
  • Wired Telecommunications Carriers
  • Wireless Telecommunications Carriers

  • Products & Services
  • Residential sales
  • Transaction, advisory and other services
  • Commercial rentals
  • Commercial sales
  • Residential rentals
  • Chart: Real Estate Sales & Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Married or partnered residential homeowners and renters
  • Single residential homeowners and renters
  • Office and professional space
  • Retail space
  • Warehousing and other commercial space
  • Manufacturing space
  • Chart: Major Market Segmentation for the Real Estate Sales & Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases, depreciation and marketing
  • Rent and utilities
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Sales & Brokerage

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Sales & Brokerage Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Sales & Brokerage Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Real Estate Sales & Brokerage Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Existing Home Sales (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Foreclosure
  • The legal process in which an owner's right to a property is terminated, usually because the owner defaulted on the property's mortgage.
  • Franchise
  • A form of business that operates under a contract agreement and usually pays a business organization a fee to operate under the franchiser's trade name.
  • Real Estate Broker
  • An individual who runs a real estate office and manages agents.
  • Write-Down
  • The process of reducing the book value of an asset because it is overvalued compared with its current market value.
  • Why buy this report?

    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 Real Estate Sales & Brokerage:
    • 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 Real Estate Sales & Brokerage 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 Real Estate Sales & Brokerage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Join IBISWorld today

    Contact Us

    Want to speak to a representative? Call us.

    clear