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

The Real Estate Sales and Brokerage industry is closely aligned with the health of the residential and commercial real estate markets in the United States. In 2012, increasing per capita disposable income and historically low interest rates helped increase home affordability, which bolstered demand for real estate brokerage services. Since then, the industry has demonstrated steady growth over the five-year period to 2017 due to interest rates remaining low and increasing consumer spending. Furthermore, rising house prices paved the way for steady gains in industry revenue. IBISWorld expects industry revenue to continue to improve over the five years to 2022...read more.

Industry Statistics & Market Size
Revenue
$158bn
Annual Growth 12-17
9.1%
Forecast Growth 17-22
Profit
Employment
1.1m
Businesses
857,492
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Rising disposable incomes and historically low interest rates helped increase home affordability
  • Commercial real estate volumes will likely improve due to low interest rates and high corporate profit
  • Rising home prices will directly benefit agent commission rates, increasing industry revenue
  • Industry Report - Industry Products Chapter

    Real estate agents are generally paid on a 100.0% commission basis, and Real Estate Sales and Brokerage industry revenue often fluctuates significantly depending on sale volumes and prices. The majority of commissions are related to the sale and rental of residential property, with this segment generating about 71.7% of industry revenue. The remaining portion of industry revenue is largely due to non-residential sales and rentals, the sale and rental of land and other ancillary services, such as property management.Residential sales and rentalsThe residential market is composed of all single-family homes, attached homes for sale or rent and individual apartments. The...purchase 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 House price index and year conventional mortgage rate in the Real Estate Sales & Brokerage industry impact industry performance..

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    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • House price index
  • year conventional mortgage rate
  • Existing home sales
  • 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

  • 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
  • Commercial rentals
  • Transaction, advisory and other services
  • 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
    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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Real Estate Sales & Brokerage Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Existing Home Sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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’s industry research report on Real Estate Sales & Brokerage provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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.

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