What is the market size for the residential property management market in the US?

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What is the market size for the residential property management market in the US?

Hello! Thank you for using Wonder to ask about the market size for the residential property management market in the United States. The short answer is that the residential property management market in the United States has a revenue of $77 billion. In a recent survey, about 38% of all property managers have an issue with finding reliable contractors and the average property manager owns up to five units. You will find a detailed report and my methodology below!

METHODOLOGY
After searching through trusted media sites, industry reports, and corporate websites, I've determined that we have found a significant amount of information to answer your question. First, we looked through credible industry websites to gather all the valuable statistics we could. Next, we looked into any detailed information in our sources for detailed information that would further elaborate on the facts we initially found. Finally, we attempted to find any data featuring the future of the residential property management market. You will find a deep dive of my findings below!

FINDINGS

current market figures and insight

IBIS World states that the current residential property management market makes an estimated revenue of $77 billion in the United States. The projected growth of the market from 2012 to 2017 was 4.4%. Since this report is hidden behind a paywall, this is all the relevant information that was available to us.

Door Grow has an article titled, "2016 Property Management Industry Trends in the United States with Steve Murray of REALTrends". This article stated that in 2015, the estimated revenue for residential property management was around $39 billion and there are about 34,000 residential property management firms in the United States. Out of those 34,000 firms, the average revenue is an estimated $1.2 million. The 20 largest residential management firms make less than 5% of the total industry revenue. A growing trend of residential brokerage firms entering the market are accounting for more than 10% of the total industry revenue. This industry is showing increasing costs for marketing, technology, overhead, and compliance costs. This event was hosted by NARPM (National Association of Residential Property Managers) in Chesapeake, VA.

According to REAL Trends, Steve Murray is the president and owner of REAL Trends and he has been a prominent member of the residential real estate industry since 1977. He has collaborated on four books about residential real estate brokerage firms, co-wrote "Game Plan", a book about the past and future of residential brokerage, and also co-wrote "Game Changers: The Unfounded Fears and Future Prosperity of the Residential Real Estate Business" in 2014. His website told me that he has expertise in business valuations, witness requests, trends in the industry, and mergers and acquisitions.

On Buildium's website, they have a video summarizes a free downloadable report. In the video, it states that about 88% of property managers used software. An estimated 8% use desktop solutions, 4% of property managers do not use software but are interested in starting it, and about 90% of property managers state they make a profit. Business Wire had an article that provided further detail on this report. This article stated that the biggest challenges for this industry are keeping reliable contractors and vendors (38% of property managers surveyed), generating new leads (37%), attracting reliable tenants (23%), and managing their time and employees efficiently (29%). About 35% of all property managers surveyed state that organizational skills have the greatest influence on business success with a combination of the right employees (32%) and using technology and innovations (30%).

Business Wire had another article that summarized the industry. According to "The Iceberg Report", the majority of property owners own up to five units. As of 2017, there are an estimated 10.8 million small investors that own five units that make up about 98% of all rental property owners. This article states that 50%, or 5.4 million investors, are the property managers, 22% use outside help, and 28% of investors use professional managers at their properties.

future forecasts

Forbes states that rentals are in high demand. In larger cities, about 60% of the population rents their homes. In the past 10 years, about 9 million households have decided to rent a home instead of owning one. This is the largest growth in history. Currently, 45 million homes are tenant-rented. This article also states that AI software applications are gaining popularity because of how much easier it makes to maintain their properties. Zenplace is an example of this AI technology. Zenplace sends notifications when maintenance is needed and uses a chat service that is compatible with Google Home and Amazon's Alexa.

Manage Vegas states that the majority of property managers will go paperless in the future because it will cut down on costs of ink and paper. Advances in technology help the majority of property managers work remotely or on the road if they have a smart phone application.

CONCLUSION
To wrap it up, after searching though trusted media sites, industry reports, and corporate websites we have found out that the current residential property management market makes an estimated revenue of $77 billion in the United States. In 2017, there are 10.8 million small investors that own up to five units each and half of those investors (5.4 million) manage their own properties. The demand for rental properties is increasing and an estimated 45 million homes are being rented in the United States.

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