Real Estate can be a boring business…or maybe not. If you start looking into the statistics of Real Estate you will soon discover several interesting facts worth mentioning in conversations with friends or for learning something new.
In this article we have collected 30 interesting facts and statistics about Real Estate, both for US market and for the rest of the world as well.
Let’s get started.
1) How many homes are sold in the US each year
In the first month of January 2021, more than 923,000 new houses were sold in the US. This is an increase of 4% compared to previous month and an increase of 19.3% compared to one year before.
In 2020, according to Census, there were approximately 9.821.000 (9.82 million) family homes sold in the USA.
This statistic refers to single family homes in the US.
2) Some important real estate marketing statistics:
- Average sales price of single-family homes in USA (2020): $334,500
- Highest average sales price of single-family homes is USA by region: West with $448,700
- Existing single family home sales in USA (2020): 9+ Million (approximate, according to Census.gov)
- Average square feet of floor area of homes in 2020: 2,473
- Total of 765,000 single family units were Built for Sale in 2020.
- There are 877,000 Detached and 113,000 Attached single-family units built in 2020.
- Value of Construction put in place (total dollar value of construction work) in USA:
- Total dollar value in Public Construction (in 2020): 352.8 Billion USD
- Total dollar value in Private Construction (in 2020): 1137 Billion USD
- Total dollar value in Health Care Public Construction (in 2020): 9.6 Billion USD
- Total dollar value in Educational Public Construction (in 2020): 90.2 Billion USD
3) For sale by owner vs realtor statistics
- About 36% of sellers try to sell their home themselves. They find this to be more challenging than they expected, and so they will eventually hire an agent.
- About 10% of people will eventually sell their homes themselves.
- Homes that are sold by the owner typically get lower and fewer bids.
- People who attempt to sell their home themselves are younger, minorities and live in urban areas.
- Better quality photos, especially aerial images, help people to sell their homes, especially when they are marketed online.
- Realtors typically have access to resources that makes selling a home easier and know the tools they need to do so. However, people who are selling their own home may be more motivated to sell it for top dollar.
- Many feel confident in their ability to sell their home. Listings completed with the help of an agent are growing in popularity, reaching an all-time high.
4) What percentage of buyers look for homes online
More than 50% of buyers will look for a home online. The majority will start their search online.
5) Most visited real estate websites
Real estate websites have opened doors for many potential buyers and sellers. They make finding homes easier and are a big tool used for anyone who is looking to relocate or invest.
- The most popular real estate website overall is Zillow. It was founded in 2006. It has the largest database of properties. More than 110 million listings are on the website. Zillow averages 36 million monthly views on average.
- Trulia is the second most popular real estate website. It caters exclusively to home buyers and renters.
- Realtor.com is a popular real estate website that is for both buyers and sellers.
- Many popular real estate websites also have apps that help buyers and sellers work wherever they are to find the right property investment opportunities for them.
6) How many real estate investors are in the US
Real estate investing is growing in popularity. It has become a lot easier with technology for people to find the right opportunities and fund them.
There are also numerous ways to profit off of real estate investment that might diverge from traditional methods of buying-and-selling.
It is estimated there are more than 7 million real estate investors in the United States. On average, they make $75,000 a year.
Low interest rate mortgages are one of the reasons why real estate investing has become more accessible and popular in the past few years.
Many real estate investors focus on properties within 20 miles of where they live, and the markets open up to more resource once they expand their networks.
7) Property management statistics
While some homeowners select to manage their properties themselves, others will employ an individual or property management company to help keep things in order.
The property management industry is growing in correlation to the real estate industry. It is projected to increase 2.7% over the coming years.
The whole market size of property management business market is $88 billion. There are a total of approximately 291,978 property management businesses in the USA.
About 846,318 people are working in the property management industry. They work with both residential and commercial properties.
8) Is real estate a good career?
It depends on the aptitude and general ability of the person. There are many facets of a career in real estate, and choosing the right location and niche can be key in having a fulfilling career.
It’s an easy career to get started in. The necessary training, certifications, and licenses can be earned in a matter of weeks or months. For this reason, many view it at as desirable career as there is a minimum barrier to entry.
Many real estate agents are independent contractors, and they enjoy being able to set their own hours and work when they feel like it.
They essentially own their own businesses and there are many perks that come with that including more time for hobbies and vacations and being able to set their own hours.
The potential to grow the income of a real estate agent is big. There is no set hourly range, and they can use their skills and connections to grow their income every year.
It also is a rewarding career for many people as they help individuals and families with their goals. They work face to face with people to help them to achieve their dreams.
9) Average Real Estate Agent Salary
The average salary of a real estate agent varies greatly. Some use their real estate career as their main source of income, and they do so full time.
Others are part-time real estate agents, and do it in combination with other sources of income or as a hobby.
As real estate agents are paid on a commission base, they earn as much money as they work for. An estimate is a $48,608 base salary. The range of the base salary is between $23,000 and $106,000. There may be additional bonuses between $997 and $25,000.
This equates to about $25 an hour. The real estate field is slowly growing, with an anticipated increase of 2%.
10) How many homes are there in the US?
- In the United States, there were an estimate 139,684,244 housing units in 2019.
- 64% of those are occupied by the home owner. The median value of a home in the United States is $217,5000.
- The median mortgage cost is $1,595. There were a total of 120,756,048 households in the United States in 2019.
- The average number of persons per household was 2.62.
11) Millennial home buying statistics
Millennials make up approximately 38% of home buyers. Compared to previous generations, they are renting for longer periods of time and buying later.
Their home buying preferences means that they are willing to buy smaller homes, and also choose places that have longer commutes. Many of them say that 1,700 square feet is enough space.
For all buyers, real estate agents and brokers are their top resource for finding a home to purchase. Most Millennials are interested in purchasing a home. Many choose to buy a home in suburban areas as the cities often price them out.
12) Most expensive house in USA or world
The world’s most expensive buildings can cost hundreds of millions of dollars. In LA, a huge mansion been in the process of being built for more than ten years. It is known as “The One”.
Located in the neighborhood of Bel Air, it has 105,00 square feet of space to live, and when it is sold, will cost approximately $350 million dollars.
The most expensive house ever sold is a $300 million chateau in France.
In Mumbai, the Antilia is a private residence. It measures 27 stories tall.
13) Cheapest houses in the world and in US
While homes normally range in the six figure range, there are places that they are significantly lower.
Indiana offers a program that offers homes for a dollar each. About 1 in 3 houses in Gary are empty or vacant. After a decline in the steel industry in 1960, about half of its population fled.
If a buyer earns at least $35,250 a year, and renovated it to habitable standards within a year, then the city sold it to them and ceded full ownership after 5 years.
The average home price in Gary is $46,000.
Detroit also has famously low house prices, with fixer-uppers priced as low as $500 USD with the promise to renovate it.
European properties can be sold free and clear for as little as 1000 euro. Most of the houses that cost less than 5000 euro are in Bulgaria. Houses for less than 10,000 euro can be found in Europe, Portugal, Spain and Italy
14) How many real estate agents are there in the US and globally?
In total, the United States has more than 2 million real estates agents. Around the world, the number varies between 4 to 6 million.
The countries with the biggest markets (largest number of real estate agents) are the United States with 2 million, China with 500,000, Brazil with 300,000, Europe with 250,000, Canada with 100,000 and Australia with 65,000.
In European countries, it’s distributed with Spain having 136,000, France with 100,000, Portugal with 55,000 and UK with 21,000
Around 1.4 million of these US agents belong to the National Association of Realtors.
15) Average number of homes sold by a real estate agent per year
The number of sales closed by a real estate agent normally increase with how much experience they have.
As their network grows and as they improve their selling skills, they will have more opportunities to sell houses.
On average, it can be between 15 to 20 a year. Top agents may close on more than 50 houses!
Teams of real estate agents tend to outperform individuals, with higher sales volume.
16) What does MSA stand for in real estate
MSA is an abbreviation that means “metropolitan statistical area.” It gives an insight into the community.
According to the US Office of Management and Budget, this definition is identified by an area having at least one urbanized area that has a minimum population of 50,000.
This describes a region that is made up of a city and the communities that surround it, connected with economic and social factors.
These groups of cities and counties are used in population measurements and other relevant statistical data.
The layout of these areas is a core city that has a large population, and then the smaller towns that surround it. This may consist of other towns.
In the United States, there are 392 areas that meet this definition.
384 are located in the United States, and eight are in Puerto Rico.
The largest MSA in the country is New York, Newark and Jersey City which spans three states.
Real estate investors use these areas to have insight on housing trends as well as the way a population grows.
17) What percentage of FSBO (For Sale By Owner) list with an agent
Seven percent of all home sales are for sale by owner. Half of these are a transaction between people who already know each other. This type of listing is declining in popularity as they do not receive as high of a price.
While more than 40% of people think that by not using a real estate agent they will save money on commission, the reality is that many home owners get a higher price when they work with a professional. They also save time and energy as the real estate agent has access to the right networks.
18) Average age of real estate agent
The average age of a realtor is 55 years old. On average, the real estate agent has 9 years of experience.
19) How many real estate agents in California?
In May of 2020, California had more than 93,000 active real estate brokers. Its peak numbers were 109,500 in January of 2010 and every year the number of agents has been declining.
Regarding active real estate agents, there were 206,308 in May 2020.
20) How many real estate agents in Florida?
There are more licensed real estate agents in Florida than anywhere else in the country. More than 180,000 realtors are licensed in Florida.
Many choose to start a new career as a real estate agent. Less than half of those who take the licensing exam for the first time pass the test.
21) How much is real estate agent commission?
Real estate agents help clients and buyers save time and find great sources. In exchange, they are given a portion of the sale as a commission.
The amount varies depending on the experience of the realtor, the amount of the sale, and how many people worked on the sale.
A typical range is between 5% and 6% of the sale price of the home. The buyer’s agent will get half of that, and the seller’s agent will get the other half.
The cost of commission includes setting the price, marketing the house, presenting it to buyers, negotiating details of the transaction and being present when it is inspected.
22) How big is the real estate industry in US?
In 2021, the real estate market measures $164.8 billion dollars. It is growing from the previous year, with 0.7% more real estate sales and brokerages than in the previous year. Since 2014, there has been strong upward growth in the real estate markets.
23) Condominium statistics
Condos offer flexibility and convenience for renters and owners. Condo sales were down approximately 579,000 last year.
The highest volume was 619,000 in 2017. The total number of condominiums in the US is 4,847,921.
Florida has the most condos, with more than 944,000. South Dakota has the least, measuring 2114.
24) How many people rent vs own a house in the US?
While traditionally home-ownership is considered part and parcel of the American dream, renting is popular with many people.
- In general, most homes in the United States are owned and inhabited by the owner. Younger generations especially rent homes because they see it as a more affordable option. They also do not want the commitment of a mortgage, and embrace their freedom to move around.
- On average, 67% of the homes in the United States are owned. They are in the majority, with more than 85 million homes in the United States occupied by their owner. This is a rate of 2:1 compared to renters.
- There is a total of 122 million households in the US. The stats say that 34% of homes are rentals, which equals more than 44 million homes.
- About 6% of rentals are vacant, and 0.9% of owned homes are vacant.
- The number of homeowners in the US is growing proportionally, with a 7.7% increase in the past year, and conversely, rentals declined by 5.5%.
- Different areas have varying rates of home ownership. The midwest has the highest rates of 71.2%, and the northeast is the lowest at 62%.
25) How many houses does the average person look at before buying
- Buyers like to shop around when it comes to finding their home. Research conducted shows on average they view between 4 and 8 homes before selecting which one to purchase.
- In the UK, buyers average around eight, meaning they take more time before making such a significant purchase.
- Of course, some buyers choose immediately, and are happy with the first home they see.
- In general, 31% of buyers see up to three properties before they buy one.
- Almost a quarter– 24%– see between 10 and 14 homes before they buy one.
- 10% of buyers will see 16 or more homes before they pick one to buy.
- First time buyers are more likely to pick the first one that they view.
26) Where do buyers find their homes
There are many resources available for buyers searching for homes. From driving around and seeing “for sale signs” to real estate websites and word of mouth, buyers have many houses competing for their attention.
Millions of homes are purchased every year.
More than half of buyers find their home on the internet.
Real estate listing sites and realtor websites provide databases and pictures that make home buying easier than it’s ever been.
34% of buyers found their new abode with the help of a real estate agent.
Yard signs and open house signs attract about 8% of buyers, and 4% of homes were purchased with word of mouth.
Two percent of homes were purchased by marketing directing from the home building.
Finally, one percent of home buyers know the seller directly.
27) Which USA state has the most expensive rent?
The most expensive state to rent, California, more than doubles the cost of living in the least expensive state.
On average, rent in California costs $1,900.
Hawaii is second on the list. Rent in Hawaii averages $1,734.
The District of Columbia has the highest rent prices overall. The cost of living there is $2,324 a month for a one bedroom.
The northwest part of the country costs about $1,408 to rent and the west costs about 1,393, which is higher than the other parts of the country. Average rent in the south is $1,206 and $1,042.
28) Which USA state has the least expensive rent?
The cost of living varies significantly in the United States. The cost of living was the lowest in West Virgina, with a one-bedroom apartment costing 725.
As far as the least expensive cities, Toledo, Ohio has the lowest rent prices, averaging $550.
Most of the inexpensive places to live are in the Midwest.
Education level correlates with rent prices, with those who earned an associate’s degree or lower paying the least. Indiana’s average was the second lowest, averaging $862.
29) What percent of realtors are women?
The majority of realtors are women. More than half of those who work in the field are female! Women are more inclined to work in the home industry.
The National Association of Realtors says that 63% of realtors are women.
They form their own board called Women’s Council of Realtors with more than 12,000 members. It was formed in 1983 after members were shut out from other real estate board.
On average, a female realtor earns more than $134,000 a year according to the Women’s Council.
30) Which state has the most realtors?
The National Association of Realtors calculates there are more than 1,440,000 realtors in the United States. Between 2020 and 2021, the total amount increased by five percent.
Florida tops the list as the state with the most realtors. There are more than 195,000 realtors in the “Sunshine State.”
California, Texas, New York, and New Jersey round out the top five.
1) Census 2) NAR, Census 3) Listwithclever , Zillow 4) Marclyman 5) Investopedia , Statista 6) Mashvisor 7) Ibisworld 9) Payscale , BLS Gov 10) Census 11) NAR , Businessinsider 12) People 13) Listproperty , businessinsider 14) foreignbuyerswatch 15) theclose 16) investopedia 17) Listwithclever , NAR 18) NAR 19) Firsttuesday 20) Tampabay 21) Redfin 22) Ibisworld 23) Statista 24) Statista , ipropertymanagement 25) Realtor , Tepilo 26) Marclyman 27) worldpopulationreview 28) Earnest , worldpopulationreview 29) NAR , atxwoman 30) NAR
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