U.S. real estate firms confident in industry’s future

by Ryan Smith10 Aug 2015
U.S. real estate firms are confident about the industry’s growth and their own future profitability, according to new data from the National Association of Realtors.

“A majority of firms have a positive view of the future, with 95% of all firms expecting their net income to either increase or stay the same in the next year,” said NAR President Chris Polychron. “The improving economy continues to fuel job growth, and while some markets are still recovering, the demand for real property is back, and prospects are looking good for the real estate industry.”

An NAR survey of real estate firms found that commercial firms were the most optimistic, with 75% saying they expected an increase in net income in the next year and 22% anticipating income to remain steady. Just 3% of commercial firms were expecting a decrease in net income in the next year. Meanwhile, 69% of residential firms reported that they projected an increase in net income, 25% expecting income to stay the same, and 6% projecting a decrease.

The average U.S. residential real  estate firm saw sales volume of $5.6 million in 2014, while the average commercial firm’s volume was $4.4 million, according to the NAR. The average residential firm has been operating for a median of 13 years, while the average commercial firm has been in business for 20 years. Most firms – 79% – had one office and two full-time real estate licenses.

According to the NAR survey, 82% of U.S. real estate firms specialize in residential brokerage. Seven percent specialize in residential property management, while 4% specialize in commercial brokerage. 


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