Fascinating Real Estate Statistics That You Should Know
April 16, 2021
Just like every other business, COVID-19 hit the real estate market hard. However, the good news is that there are a number of positive signs which reflect that the future for investing in real estate is bright.
In this blog post, we have assembled some fascinating stats about the real estate market that you need to know. We have categorized these facts based on different parameters for your better understanding.
The Real Estate Market Overall
- According to data obtained from the National Association of Realtors, there were a total of 5.34 million existing homes sold in the year 2019. Of these, 682,000 homes were newly constructed, as per the figures provided by the U.S. Consensus Bureau.
- In an estimate provided by ARELLO (Association of Real Estate Licenses Law Officials), there are close to 2 million active real estate licensees in the U.S. Of these, only 1.4 million are real estate agents (the only difference between the two is that the former are a member of the National Association of Realtors, and the latter are not).
- There were 309,393 real estate brokerage firms operating in the country in the report released by the U.S. Consensus Bureau titled: Real Estate and Rental and Leasing: Summary Statistics for the U.S., States, and Selected Geographies: 2017.
Facts About Real Estate Agents
According to figures provided by the National Association of Realtors (NAR) for the year 2020:
- 65% of real estate agents work as licensed sales agents; meaning they can only help you select a property. Only 22% hold broker licenses, which means they are licensed to run their own real estate firm. Only 15% of all real estate agents hold the license of a broker associate.
- Email is the most commonly used source of communication amongst real estate agents and their clients, with more than 93% of agents preferring to use it. Text messaging and instant messaging rank second and third respectively.
- Keeping up with emerging technologies has been cited as the biggest challenge that real estate firms will face in the coming years.
Facts About Real Estate Investments
- According to stats from Zillow, there has been a 9.9% increase in home values since 2018, and it is expected to go up another 11.4% in coming years.
- According to ApartmentList, the national rent index has been showing positive growth, being up by 1.1%.
- According to an article published on Reality Biz, we are going to see millennials owning more than 20 million new households by 2025.
Facts About Rental Properties
- According to Apartment Guide, Playa Vista (CA) is the most expensive city to rent a studio apartment. The average rent for a studio apartment here is $5,153 which is $1,213 more than the second city on this list (Englewood, NJ).
- The same source published that the most competitive rental markets in the country are in New York, New Jersey, California, and Massachusetts.
- Per the PWC Emerging Trends in Real Estate, renters today are spending on average more than 30% of their total income on rent.
Facts About Property Management
- According to statistics provided by iProperty Management, the American property management industry generates annual revenue of $88 billion between estimated 281,345 property management companies.
- In the same article, it was stated that efficiency and management are two of the biggest challenges associated with property management.
- Smart security devices can be an effective way to bring down home insurance costs on investment properties, reducing home insurance rates by up to 20% according to Policy Advice.
Buyer And Seller Facts
- According to an article published in the Wall Street Journal, the millennial generation prefers shorter commutes and is more than happy to trade square footage for it.
- In the year 2019, millennial buyers accounted for 45% of mortgage borrowers in the country.
- According to Zillow, 36% of homeowners cited unexpected repair and maintenance expenses as the biggest regret they had about buying property. This clearly reflects the importance of having a thorough knowledge about the property before you buy a home.
Fascinating Real Estate Stats From 2020
- In the month of July 2020 alone, there were more than 900,000 houses sold in the US, with the median price for a home being $304,100.
- It took an average of 30 to 45 days for a new buyer to buy a property, with first-time homebuyers making 33% of the entire buyer market.
- Online search was the preferred source of finding a home.
- Millennials and GenX made up 43% of the total number of home sellers, citing relocation to be the number one factor for selling their homes.
As you can see from these statistics, there is a lot happening in the real estate market. Buying and selling trends keep changing. Whether you are looking to buy a home or sell one now or in the near future, it’s important to stay up to date on all this information.
Following all these trends and staying updated on all this information can be quite a challenge. This is why it is always a great idea to get in touch with an expert negotiator who can guide you, and take care of all your worries related to the real estate market.
An NRP or a Negotiator Recognized Partner is exactly the help you need if you are looking to make a real estate transaction. These professionals will negotiate on your behalf and give their full attention to your real estate needs, ensuring that you get only the best deal.
All the best!