The real estate industry is one of the largest industries driving the economy of any nation. And it was one of the giants that got affected due to COVID-19. Not just affected, the commercial sector was almost shut down due to the pandemic.
The recovery later is not huge but significant.
So, let us dive into the industry and understand the market with all essential real estate industry statistics.
These statistics include stats for buying, selling, employment, rental, investing, and much more. So, whether you are a newbie to the industry or a seasoned investor, this blog will help everyone.
Real Estate Industry Statistics (Top Findings)
- Homebuyers are shifting to suburban areas post-pandemic
- Rent prices have risen significantly with a 29.4%
- Real estate technology is expected to reach $17.22 billion by 2029
- The market size of commercial property remodeling in the United States reached $51 billion
- The median sales price of existing homes was $392,000, expected to drop to $380,000.
- The median mortgage down payment has more than doubled since 2012, reaching up to $28,000.
Top Real Estate Statistics and Trends 2024
Current Real Estate Market Trends
Knowing current real estate market trends helps everyone make an informed decision. And one of the notable trends is that people are shifting to suburban areas after the pandemic to lead affordable and healthy lives. Some other trends are:
1. People are moving to suburbs from cities (source)
People have started migrating from big cities to suburban areas due to COVID-19. The shift is going to remain through 2025. People from the biggest metro areas like San Francisco, Washington, and New York are relocating.
2. The increasing demand for single-family housing is leading to shortages (source)
Single-family homes, especially located in suburban areas, are highly in demand because of the trend of migration from cities to suburbs.
The growing demand for single-family homes is due to:
- Low-interest rates on loans
- The importance of purchasing a house after the pandemic
- Strong housing trends pre-pandemic
- Millennials entering their homeownership age
In 2020, searches for single-family homes reached their highest rate in four years.
3. The price of houses is continuously rising (source)
Due to the increased demand for single-family houses, the prices of the same will increase. The prices shot up in 2020 and it is going to remain high in 2024 and beyond.
4. It is more expensive to rent now than ever as the price rose by more than 3% this January (source)
Rent prices have risen by 29.4% since before the pandemic. In January, rents were 3.4% higher than the previous year, down from an average growth of 4.1% in 2018 and 2019.
Home Buyer Statistics
The below real estate stats provide valuable insight into pending home sales, new construction projects the rental vacancy rates. Let’s dive to learn further about home buyers:
1. The homeowner vacancy rate declined gradually from 3% (source)
The homeowner vacancy rate indicates the empty houses available for sale. So, this rate reached its lowest in 2023 and reached its highest level in 2008 with nearly 3% of vacant homes.
2. Rental vacancy rate according to the areas (source)
The vacancy rate for rental homes in the southern United States was 7.8% in the second quarter of 2023. The Midwest had the second-highest vacancy rate, followed by the Northeast and the West.
3. After reaching the age of 65, 80% of people are homeowners (source)
The homeownership rate for Americans under 35 increased to 39% in 2022. On the contrary, around 80% of people aged 65 or above were homeowners.
4. The median mortgage down payment has more than doubled since 2012 (source)
Since 2012, the median down payment for purchasing a home has more than doubled. Last year itself, recent buyers who took outside finance had to save up to $28,000 for a down payment.
Home Selling Statistics
Home selling stats tell us how long homes typically take to sell and the average prices they sell for. These stats are useful for homeowners and agents because they help them decide on prices and how to market homes effectively.
1. Availability of new homes vs. existing homes (source)
Since 2013, the count of existing home sales in the United States has dropped, while the number of new houses is rising. In January 2023, there were 980,000 existing homes and 439,000 newly built homes up for sale.
2. The number of home sales declined last year (source)
In 2022, the number of home sales in the United States fell after a surge the previous year, which marked the highest level since 2006. The total number of transactions dropped to five million, from 6.12 million in 2021.
The market’s cooling trend persisted in the first five months of 2023, with annual single-family and condo transactions reaching 4.3 million by May 2023.
3. The median sales price of existing homes stood at $392,000 (source)
The median sale price during the third quarter of 2022 stood at $392,000. However, it was forecasted to drop to $380,000 by the end of 2023.
4. The median price for new homes is $458,000 (source)
From 1965 to 2022, the selling price of new homes has been on a consistent hike. In 2022, the median sales price of a new home reached around $458,000, marking a rise of nearly $61,000 compared to the previous year.
5. It probably takes 30-90 days to sell your house (source)
The average time to sell a home is typically between 30 to 90 days. However, this can vary based on factors such as your local market conditions and the type of home you’re selling.
Residential Real Estate Market Statistics USA
In this section, let us see which states witnessed the highest price rise, the number of housing units, the cost of constructing a house, and much more.
1. Post-pandemic slowdown due to price hike (source)
With low mortgage interest rates during the pandemic, many people grabbed the opportunity to buy or upgrade their homes. This trend resulted in price hikes, with nearly 60% of homes selling above the asking price in 2021.
2. These states witnessed the highest price rise (source)
Even with inflation and higher interest rates, prices of houses still kept climbing in many states like Arizona, Maine, Connecticut, and New Hampshire in the second quarter of 2023.
3. The number of housing units is increasing, making a growth of 1.1% (source)
The number of housing units in the United States has steadily increased each year. By 2022, the total reached around 144 million homes, making a growth of around 1.1% compared to the previous year. This is the largest annual increase observed in the whole decade.
4. The cost of constructing single-family homes is around $392,000 (source)
The average construction cost for a single-family home in 2022 in the United States was around $392,000, which is $100,000 higher compared to 2019.
5. Home prices for single-family and multi-families by city (source)
During the second quarter of 2023, homes were expensive in cities like San Fransisco, New York, and Honolulu. On the other side, building houses in Phoenix was affordable for multifamily. And cities like Las Vegas and Portland had lower costs for single-family homes.
6. Leading residential builders of the USA (source)
D.R. Horton bagged the title of the biggest home builder in 2022. Right on its heels was Lennar Corporation, and its main cash cow was homebuilding the same year.
7. Mortgage interest rates by mortgage type (source)
In the U.S., mortgage rates began rising in 2021 because the Federal Reserve raised the federal funds rate to control inflation. By the second quarter of 2023, the 30-year fixed rate hit 6.49%, up from 5.24% in the same quarter of 2022.
Commercial Real Estate Statistics
The commercial real estate sector in the United States is witnessing a surge in demand for flexible office spaces following the pandemic, because of the increasing remote work options. Let us see some other statistics:
1. The market size of commercial real estate is to reach more than $130 trillion by 2028 worldwide (source)
Experts predicted that the commercial market worldwide would reach new levels of $118.80 trillion in 2024. Experts expect the market to reach $133.50 trillion by 2028.
2. The United States is expected to lead the market in 2024 (source)
Compared to other nations, experts project that the United States will lead in the real estate sector, reaching an estimated value of $25,370 billion in 2024. This indicated a considerable CAGR (annual growth rate) of 2.66%, leading to around $28.18 trillion by 2028.
3. The growth of commercial real estate has been stable since 2010 in the USA (source)
Commercial real estate transactions in the United States have been growing steadily since 2010. In 2022, the value of commercial construction reached $115 billion.
In the same year, the value of new construction projects for warehouses was over $27 billion, and for the office buildings, it was $20 billion.
4. The overall vacancy levels in the real estate industry remain higher after the pandemic too (source)
Despite the positive responses, hotel and office vacancy rates in the US are higher than pre-pandemic. It is because of the work-from-home schedule all over the world.
In Q2 2021, the US hotel occupancy rate was down 17% compared to Q2 2019. Office vacancies also rose, reaching 16.5%. Now, we can expect a full recovery.
5. The market size of commercial remodeling reached $51 billion (source)
The value of commercial property remodeling in the United States reached $51 billion in 2022. This market has been growing since 2012, reaching its peak in 2020 but declining in the following two years.
6. Manhattan, NY is the market where rent per square foot for an office is the highest (source)
Manhattan, NY, had the highest office rental rates, around $81 per square foot in the US in 2023. San Francisco is another market that could come in comparison with it.
In Washington D.C., the market with the second-largest inventory of class A downtown offices, the annual rent was around $59 per square foot.
Real Estate Brokerage & Income Statistics
Real estate brokerage and income statistics provide valuable insights into the earnings and trends within the industry. Let us see how much a broker earns:
1. The revenue in the real estate industry has increased by 2.2% (source)
The real estate industry’s revenue has increased at a CAGR of 2.2% over the last five years, reaching an estimated $236.4 billion in 2024.
2. The median income of real estate agents is more than $45,000 (source)
The hourly median and mean earnings of an agent are $23.05 & $28.86, respectively. And the annual median and mean earnings are $47,950 & $60,030, respectively.
3. Annually, the mean earnings of real estate brokers go beyond $90,000 (source)
The hourly median and mean earnings of a broker are $29.13 & $43.81, respectively. And the annual median and mean earnings are $60,590 & $91,120, respectively.
Real Estate Investment Statistics
Real estate is always going to appreciate and be an asset for everyone. So, it is worth investing in for a long time. Whether you are a seasoned investor or a first-time buyer, these stats will help you.
1. The investment in commercial property bounced back in 2021 (source)
The investment activity in the commercial property bounced back in 2021 and 2022. The multifamily, industrial, and office sectors performed well with transaction activity reaching $279 billion, $142 billion, and $109 billion, respectively.
2. The most favored locations for investors include Miami (source)
The hottest industrial real estate markets for investors will be Northern New Jersey, Miami, and New York-Brooklyn. Whereas for the office sector, investors will be more interested in Miami, Raleigh/Durham, and West Palm Beach.
3. In 2024, 36% of respondents suggest buying office properties in San Francisco (source)
In 2024, real estate professionals are recommending buying properties in San Francisco, with 36% of respondents suggesting it as a good investment. Austin is seen as the most promising market for holding office investments.
On the other hand, over half of the experts suggest selling offices in the Washington DC-MD suburbs, Portland, Indianapolis, and Chicago.
4. In 2024, 75% of respondents suggest buying industrial properties in Westchester (source)
In 2024, 75% of experts recommend buying industrial property in Westchester, NY/Fairfield. 55% recommend holding onto industrial property in Northern New Jersey.
According to one-fourth of respondents, the highest recommendations to sell industrial property were in Albuquerque.
5. 44% of respondents suggest purchasing retail property in West Palm Beach (source)
In 2024, 44% of experts suggest buying retail property in West Palm Beach. 77% of them recommend holding retail properties in Salt Lake City. And 40% of respondents recommend selling retail properties in Indianapolis and Madison.
6. Once again, West Palm Beach is the one recommended by 53% of respondents to buy a hotel property (source)
In 2024, 53% of real estate business experts suggest buying hotel properties in West Palm Beach. In Fort Lauderdale, 86% recommend holding onto hotel property. 33% of recommendations to sell hotel property were in New York and other boroughs.
7. Prologis Inc. is included in the top REITs with the largest market cap (source)
As of March 2023, the largest real estate investment trusts (REITs) worldwide by market cap were Prologis Inc., American Tower Corp, and Equinix INC, all headquartered in the United States.
Only four out of the 40 largest REITs had headquarters outside the United States: Goodman Group from Australia, Link Real Estate Investment Trust from Hong Kong, Segro Plc from the UK, and Scentre Group from Australia.
Technology Use & Outlook Statistics
Technology is playing its part everywhere, and the real estate industry is no new to it. People are searching for the homes they are looking for online, and almost every seller has their own website. Some of the other stats are:
1. The global IT sector in the real estate industry is expected to reach $15+ billion by 2029 (source)
The IT market in the industry is going to expand from $10.54 billion in 2024 to $17.22 billion by 2029, representing a CAGR of 10.32%.
2. 96% of home buyers search for their dream home online (source)
About 47% of home buyers start their house hunt online, and nearly all buyers use the Internet at some point in their home-buying journey. Not just Google search, but the 3D visual tour is also happening online.
3. 90% of real estate businesses have websites (source)
Almost all real estate businesses have a website online, typically 5 years old. The most common features included in the website are staff profiles, property listings, and customer reviews.
4. Realtors get 52% of leads from social media (source)
The top three tech tools that help professionals generate quality leads are social media (52%), Customer Relationship Management (31%), and MLS sites (28%).
5. Monthly visits to the top three real estate websites (source)
In 2022, Zillow was the top real estate services website in the United States with around 60 million visits. The second one was bagged by Realtor.com followed by Trulia with 40 million and 21 million visits, respectively.
Real Estate Employment Outlook Statistics
These statistics offer valuable information about job growth and job prospects for various real estate-related professions. It helps you understand the current landscape of employment.
1. As of 2022, there were 45000+ real estate brokers (source)
There were 48,060 brokers in 2022 in the United States itself. The number might increase as of 2024 and beyond.
2. More than 50% of real estate sales agents are women in the United States (source)
There are currently 168,016 sales agents in the United States, out of which women make up 56.6% of all agents, with men accounting for 43.4%.
3. The average age of a real estate agent in the United States is 49 (source)
The average age of real estate agents is 49 years old. The most prevalent ethnicity among employees is White (70.3%), followed by Hispanic or Latino (13.0%), Asian (6.8%), and Black or African American (5.2%).
4. Most demand for real estate agents is in San Diego, CA (source)
Real estate agents are highest in demand in San Diego, and there are a lot more job openings currently over there. Also, the highest-paying sector in the real estate industry is the financing one.
Bottom Line
In the final words, the real estate industry is booming at a steady pace, and you can take advantage of it by investing for the long term. And the stats above provide clear evidence for the same.
So, if you are going to jump into the industry or going to expand the existing business, we hope that this helped you make an informed decision!
