The US real estate market experienced six active years of high price growth. However, it is slowing down today. According to an investment analysis by Global Property Guide, the rise of house prices is getting slower. As a result, construction activity is decreasing as well. Currently, Twenty major US cities are still experiencing a surge in prices despite this overall dip with Las Vegas leading with an increase of 12.07% in November last year. The real estate market is still hot as the US resident population is still increasing, albeit home sales are decreasing.
Furthermore, real estate management software adoption is rising. Will this help make the industry more viable? Here are some real estate statistics to ponder on.
Population and Real Estate Statistics
The health and growth of the real estate industry rest on many economic factors. Residential firms take into account population growth and inflation, among others, to steer their company in the right direction. Moreover, future forecasts seem to favor the industry, especially Millennials, who become first-home buyers. Here are some data and statistics to help you gauge the state of the market today and its future.
- United States civilian population as of May 2019 is 327.6 million. (US Census)
- Resident population (including non-citizens, undocumented immigrants, etc.) is at 328.8 million, May 2019 (US Census)
- A 6% increase in population was observed from April 2010 to July 2018 (US Census)
- US population increased by 9.7% from 2000 to 2010 (University of Michigan)
- Urban land area increased by 15% from 2000 to 2010 (University of Michigan)
- Housing units increased by 13.6%, 2000-2010 (University of Michigan)
- Total housing units estimate in 2018 is 138,537,078 (US Census)
- The owner-occupied housing units from 2013-2017 is at 63.8% (US Census)
- 1,328,827 new private-owned housing units with building permits, 2013-2017 (US Census)
- 118, 825,921 households in the country, 2013-2017 (US Census)
- 2.3 persons in households, 2013-2017 (US Census)
- Housing starts increased by 6.2% year-on-year (Trading Economics)
- Building permits decreased 6.6% year on year (Trading Economics)
- Only 9% of housing units were occupied by a single person in 1950. This increased to 28% in 2017. (University of Michigan)
- New home sales in the US averaged 650.17 thousand units from 1963 to 2019. (Trading Economics)
- The all-time record for new home sales was in July of 2005 at 1.3 million units. (Trading Economics)
- The record low for new home sales was in February 2011, with only 270,000 units. (Trading Economics)
- New home sales increased by 4.5% year on year. (Trading Economics)
- 64.2% of Non-Hispanic Whites are homeowners. (US Census)
- 41.1% of African Americans are homeowners. (US Census)
- 47.4% of Hispanics of any race own their own homes. (US Census)
- 56.9% of Asian, Native Hawaiian or Pacific Islanders are homeowners (US Census)
- Millennials make 65% of first-time home buyers. Generation X is at second at 24% (NAR)
As can be seen, the real estate market share of Millennials will rise in the near future. Also, Millenials use technology more often than not to find things that they need and want. Indeed, the real estate industry needs to cater to this market segment more and more if firms are to keep themselves relevant. We will tackle the role of technology a little later.
Residential Rental Statistics
Certainly, not everyone can own their first homes right after they move out. Also, moving out is getting less and less viable for Millennials these days because of lesser job prospects. Moreover, most people struggle with their personal finance, and rental is the most viable option. For you to get a better grasp of the state of housing rental in the US, we have compiled relevant real estate market statistics about it below.
- The rental vacancy rate in the first quarter of 2018 and 2019 did not change at 7% (US Census)
- Around 2.4% of total housing units are for rent (US Census)
- Only 0.7% of housing units were sold or rented but remain unoccupied (US Census)
- Average year-on-year national rent growth is at 1.6%, 2014 -2019 (Apartment List)
- Rent growth is trailing behind 1.8% inflation (Apartment List)
- Rent growth is behind average hourly earnings which increased by 3.1 in the past year (Apartment List)
- Henderson, NV has the fastest year-on-year rent growth at 5% (Apartment List)
- The national median for 1 bedroom rent is $959 (Apartment List)
- The national median for 2 bedroom rent is $1,190 (Apartment List)
- Month-on-month rent change is at 4%, while year-on-year rent change is at 1.6% (Apartment List)
- Rental vacancy in Metropolitan Statistical Areas is at 6.8% in 1Q of ‘18 and 6.6% in 1Q of ‘19 (US Census)
- Rental vacancy in places outside Metropolitan Statistical Areas is at 8% in 1Q of ‘18 and 10% in 1Q of ‘19 (US Census)
- Renter-occupied units make up 31.4% of total inventory in 1Q of ‘19 (US Census)
- It is estimated that 87.9% of housing units in the US in 1Q of ‘19 were occupied (US Census)
- 48% of increase of renters are making equal or more than $100,000 a year, 2008-2017 (Apartment List)
- 18% increase of renters with an income of $50,000 to $100,000 per year, 2008-2017 (Apartment List)
- Only 8% increase of renters are making less than $50,000 (Apartment List)
- 68.1% of respondents think that high-income apartments are overpriced (PWC)
- 28.9% think that high-income apartments are fairly priced while only 3% feel they are underpriced (PWC)
Source: US Census Bureau, PWC Designed by
While many may think that high-income apartments are overpriced, the number of high-income renters are still on the rise. Their numbers are increasing for various reasons, and real estate firms need to find out why and how to service them.
Commercial Real Estate Statistics
The total revenue in the commercial leasing industry in the US increased in 2019 to around $216 billion. There are 352, 737 businesses that employ 487, 433 people, and the numbers are expected to rise. The overall health of the business sector mostly determines the growth of the industry. More entrepreneurs are putting up businesses, and if this continues to grow, there is more opportunity for the industry to expand as well.
- Properties of 10,000 square feet or less make up 72% of all commercial buildings (NAR)
- Commercial vacancy rates have dropped overall from 2010 to 2018 (NAR)
- Office rental vacancy rate in Q3 of 2018 is at 12.9% (NAR)
- The industrial rental vacancy rate is at 6.8%, Q3 2018 (NAR)
- The retail rental vacancy rate is at 12.6%, Q3 2018 (NAR)
- The multifamily rental vacancy rate is at 6.2%, Q3 2018 (NAR)
- Hotel rental vacancy rate is at 14.7%, Q3 2018 (NAR)
- In large markets, commercial sales volume dipped by 11% to $106.3 in Q1 2019 (Real Capital Analytics)
- Survey respondents reported a decrease of 8% in volume in smaller markets (NAR)
- Commercial prices are up 4.5% in major metro areas (NAR)
- Commercial prices are up 6% in non-major metro areas (NAR)
- Apartment prices have increased by 147% since Q1 of 2010 (NAR)
- Industrial property prices increased by 75% since Q1 of 2010 (NAR)
- Quarter-to-quarter change of new commercial constructions is 2.2% in 2019 (NAR)
New commercial construction projects are rising at a respectable 2.2% in the country. The number of vacancies may also decrease as new businesses are getting put up. There’s no way to know what will happen in the future, but the prospects of commercial leasing are not dim.
Statistics on Real Estate Sales and Financing
Real estate prices are on the rice, but financing may be hard to come by. As a result, purchases and sales have been affected. This is because most real estate buyers rely on financing for their homes or commercial ventures. The future is still not very clear, but here are some important real estate data that industry professionals should use for insights.
- The average sales price of houses sold in the US in 2016 is $307,800 (US Census)
- Average sales price of houses sold in 2017 is $323, 100 (US Census)
- The average sales price of houses sold in 2018 rose to $326,400 (US Census)
- Commercial land purchase was the most prevalent since 2017 at 19% (NAR)
- Commercial land transactions rose to 21% in 2018 and dipped to 20% in 2019 (NAR)
- Retail spaces in malls received the least action at 2% in 2018, 0% in 2017, and 2% again in 2019 (NAR)
- Industrial properties had the highest increase in net operating income among respondents, 2017 to 2019 (NAR)
- 561,000 houses were sold in 2016 (US Census)
- Most houses, at 132,000, were sold at prices ranging from $300,000 to $399,999 (US Census)
- Only 5,000 houses were sold costing under $125,000 in 2016 (US Census)
- A total of 617,000 houses were sold in 2018 (US Census)
- Most houses, at 153,000, were sold with prices from $300,000 to $399,999 (US Census)
- A total of 7,000 houses were sold costing under $125,000 (US Census)
- 36,000 houses costing $750,000 and above were sold in 2018 (US Census)
- 69% of survey respondents reported that they used debt financing to purchase a commercial property (NAR)
- The average rate for loans range from 5% to 7% (NAR)
- Median loan term is 10 years. (NAR)
- 54% used local and regional banks to source financing in commercial purchases (NAR)
- 33% of respondents reported failed transactions because of lack of financing, 2019 (NAR)
Source: National Association of Realtors Designed by
Banks and other financing institutions have strict guidelines and rules on who to finance. These rules vary depending on bank and lender situation. There are many different options out there should you need a loan to finance your home or business. Accurate and wide research is key. It is good to know about financing options if you are a real estate professional. This can be handy when facing prospects, and sharing it is a good tactic to increase your sales.
Real Estate Employment Outlook Statistics
Real estate agents can look forward to a good future. The market is creating more and more jobs, increasing the demand for good agents. Even with the rise of technology, face-to-face contact with a trustworthy agent or broker is still valuable. Here are real estate agent statistics for you.
- Median yearly salary in real estate in 2018 is $50,300 (BLS)
- The median hourly pay in 2018 is $24.18 (BLS)
- Average real estate employee age is 46.3 years old (Data USA)
- Average male real estate employee salary is $71, 487 while the average female salary is $50,489 (Data USA)
- 456,300 jobs generated in real estate-related activities in 2018 alone (NAR)
- Projected job growth from 2016 to 2026 is at 6%(BLS)
- Employment change from 2016 to 2026 is projected to be at 24,900 (BLS)
- Real estate agents have a median annual salary of $48, 690 in May 2018 (BLS)
- The median annual salary for brokers was $58, 210 in May 2018 (BLS)
Real estate employment is not in any trouble. Expect to see an influx of new jobs, people, firms, and technology. This may mean that the industry will get more competitive.
Technology Use & Outlook Statistics
Technology permeates every imaginable industry today. ICT has revolutionized how we communicate and transact. This is likely to affect the real state industry more in the future. The real estate market size is poised for growth, and this brings with it the influx of technology-savvy Millennials in the business. This is not only as employees, but Millennials are quickly becoming first-home buyers. They, unlike other generations, are the most comfortable in using technology to find their new homes. If real estate firms don’t make it a point to catch up with Millennial technology use, they may be left behind. Face-to-face interactions go a long way, but technologies like CRM software are also indispensable.
- 22% of homebuyers in 1981 read newspaper ads to find homes (NAR)
- In 2017, most realtors planned to invest $500 in technology like iPads and digital cameras (Veon)
- 44% of homebuyers in 2018 go online to shop for homes (NAR)
- Most buyers still worked with an agent 87% of the time even when their canvassing process started online (NAR)
- 90% of real estate businesses have websites. The most common feature is property listings.
- 40% of Millenials go online for information (NAR)
- Only 17% of all home buyers contacted a sales agent first (NAR)
- 58% of Millenials found their homes via mobile devices (NAR)
- 46% of Generation X found their homes via mobile devices (NAR)
- Real estate management software market will reach $12.89 billion in 2025 (Adroit)
- CRM software sales reached $2.69 billion in 2017 globally (Adroit)
- The CRM software market is expected to grow at a CAGR of 5% (Adroit)
- 85% of residential firms encourage the use of multiple listing software (NAR)
- 93% of realtors prefer email and phones for communication (NAR)
- 92% of realtors prefer text messages (NAR)
- Only 37% prefer the use of instant messaging (NAR)
- 48% of firms cited keeping up with technology as one of the biggest challenges in the next two years (NAR)
Source: National Association of Realtors Designed by
Specialized tools for the industry like real estate management software will likely increase. Real estate professionals have also been using non-specialized platforms by refitting them for their use. Additionally, the use of social media is becoming more rampant, and people access them through their mobile phones. Companies need to catch up with technologies that their target customers are using if they want to stay relevant. Additional tools like mobile marketing software, for instance, can be used to upgrade your technology stack. Reach more. Engage with more.
Most Popular Real Estate Management Software
- IBM Tririga is an intelligent real estate management solution that lets you improve your space and facility utilization. With the use of an integrated workplace management system, it assists you in capital projects, delivering an excellent occupant experience, and other key areas. You can learn more about its features in our IBM Tririga review.
- Salesforce Essentials is an industry-leading CRM platform that automates processes and helps you allocate resources based on their availability. It also allows you to manage leads, opportunities, and accounts. Our Salesforce Essentials review discusses its complete capabilities.
- Arthur Online is a full-suite property management platform perfect for social housing, single outlets, student housing, residential blocks, and commercial properties. It consolidates all your tenant and property data in one dedicated financial console. For more details about the product, you can check our Arthur Online review.
- Property Meld provides advanced maintenance tools that let you manage and track your properties. It assists commercial and residential property managers to ensure compliance with regulations and schedule maintenance jobs. Find out more about this product in our Property Meld review.
- Entrata incorporates property accounting, purchasing, facilities, and leasing data into one innovative property management platform. It has a flexible structure with open APIs, allowing you to integrate it with the applications you are already using. You can learn more about it in our Entrata review.
Real Estate and the Environment Statistics
Real estate construction, usage, and maintenance have impacted the balance of our environment. Many environment-conscious consumers are now taking steps to convince producers to put out more environment-friendly products. As a result, this might swell as a movement within the real state industry. Therefore, you might as well be aware of how real estate impacts the environment today. Hopefully, you can leverage the data below to find a new niche or incorporate environment-friendly features into your unique selling proposition.
- The average size of houses has increased by 73% from 1970 to 2017 (US Census)
- The Residential sector’s energy consumption increased 13-fold from 1950 to 2017 (DOE)
- The residential sector accounts for 37% of total electricity sales (DOE)
- The average single-family house built in 2000 used 19 tons of concrete, 3,061 square feet of insulation, and 13,837 board-feet of lumber (EPA)
- Approximately 24% of wood products in the US were for residential construction in 2012 (APA)
- Around 10 million tons of waste was created in new residential construction in 2003 (EPA)
- Houses built under the Energy Star requirements are 15% more energy-efficient than houses built under 2009 IECC or higher (University of Michigan)
- Wasteful energy like temperature control for unoccupied rooms and homes, thermostat over setting, loss from standby power, and inefficient appliances account for 39% of residential energy usage (Meyers et al.)
Saving on energy saves money. This is true for businesses and buyers alike. The current market for green homes is smaller. However, when the right movers and shakers come along, this demand may soar in the future. If you have yet to cater to this niche, why not think about it?
Leverage Statistics into Insights: On technology adoption
This short real estate report shows some aspects of the current state of the real estate industry. Clever readers would use this to paint a picture of the future, as well. We now know that Millenials are coming to the age where they would become homeowners or start their own businesses. They are on their phones all day. If you are not in their digital world, you have a lesser chance of connecting with them. It would be hard for them to find you and know about what you offer.
There are many ways to reach tech users today. Apps and programs such as business intelligence systems can help turn data into insights. You can even go the route of promoting your services via offering good information being managed by a content marketing software. This is an effective yet subtle way of building a good relationship with prospects.
All of these tools are predicated on technology, and adopting these technologies is one of the biggest challenges that real estate businesses face today. This is why we at Finances Online strive to help in making it easier to choose the best software stack for our readers. Keep checking back here in Finances Online for more technology and real estate market share reports in the future.