Residential Real Estate Brokerage & Management
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, 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 Hong Kong, Slovenia, Hungary, Turkey, and Mexico, 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 230,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $200 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 residential property. Many companies provide multiple services; for example, companies that lease
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms