The US real estate market experienced six strong 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 technology adoption is rising. Will this help make the industry more viable? Here are some real estate statistics to ponder on.
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.
As seen, the real estate market share of Millennials will soon rise in the future. Also, Millenials use technology more often than not to find things that they need and want. Certainly, the real estate industry needs to cater to this market segment more and more if firms want to keep themselves relevant in the future. We will tackle the role of technology a little later.
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. In order for you to get a better grasp of the state of housing rental in the United States, we have compiled relevant real estate market statistics about it below.
of housing units are occupied
of respondents think that high-income apartments are overpriced
of total inventory are renter occupied
of rental units remain vacant
Source: US Census Bureau, PWCDesigned 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.
The total revenue in the commercial leasing industry in the United States increased in 2019 to around $216 billion. There are 352, 737 businesses that employ 487,433 people and the numbers are still 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 grow as well.
New commercial constructions 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 future of commercial leasing is not dim.
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 real estate professionals should use for insights.
of commercial real estate buyers used debt financing
of commercial real estate buyers used local and regional banks for financing
of prospective buyers lacked financing options for commercial purchases
Source: National Association of RealtorsDesigned by
Banks and other financing institutions have strict guidelines and rules on who to finance. These rules vary depending on every 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 have knowledge of 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 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.
Real estate employment is not in any trouble. Expect to see an influx of new jobs, people, firms, and technology in the future. This may mean that the industry will get more competitive.
Technology pervades 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 in the future. Face-to-face interactions go a long way but technologies like CRM software are also indispensable.
of realtors prefer email and phones for communication
of residential firms encourage multiple listing software use
of firms cited keeping up with technology as one of the biggest challenges for the next two year
Source: National Association of RealtorsDesigned 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 round out your technology stack. Reach more. Engage with more.
Real estate construction, usage, and maintenance have impacted the balance of our environment. Many environmentally conscious consumers are now taking steps to convince producers into putting out more environmental-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 USP.
Saving on energy saves money. This is true for business and true for buyers. 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 do not cater to this niche today, why not think about it?
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 upon 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.
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