US Real Estate Service Market Outlook to 2028

Market Overview

The US Real Estate Service market has been experiencing robust growth, driven by a convergence of factors. Historically low mortgage rates encourage more people to buy homes or invest in real estate, as it makes financing more affordable. Low interest rates can increase demand for property and drive market growth.

Population growth, especially in urban areas, increases the demand for housing, commercial spaces, and infrastructure. This drives the need for real estate services, such as property management, leasing, and brokerage. A strong economy and job creation lead to increased consumer confidence, higher disposable incomes, and improved credit availability. These factors positively impact the real estate market, leading to higher demand for real estate services.

Changing demographics, such as the rise of millennials entering the housing market and the increasing number of baby boomers looking to downsize, impact real estate service demands. Different age groups have diverse needs, influencing trends in buying, renting, and property management. Investments in infrastructure, such as transportation networks, schools, and amenities, can drive growth in certain regions. Improved infrastructure often leads to increased property values and greater demand for real estate services in those areas. Government Policies and Incentives: Government initiatives, such as tax incentives for homebuyers, affordable housing programs, and low-income housing tax credits, can influence the real estate market's growth trajectory.

US Real Estate Service Market Analysis

• The US real estate services market is projected to grow at a CAGR of approximately 7% during 2022-2027, despite concerns related to the COVID-19 pandemic.
• Market growth is driven by the increasing demand for tools and platforms that cater to changing real estate preferences, as well as the need for better consumer support and service.
• Property managers and real estate agents are leveraging property management software and adopting new technologies like artificial intelligence to enhance efficiency, expand their customer base, and keep property owners informed about property operations.

Key Trends by Market Segment:

By Property: On the basis of type, in 2022 the buildings segment dominated the real estate market, in terms of revenue, and is expected to witness growth at the highest CAGR during the forecast period. As per property, in 2022, the residential segment led the real estate market and is expected to exhibit highest CAGR in the near future. By business, the sales segment led the market in 2022, in terms of revenue and is anticipated to register highest CAGR during the forecast period. Region-wise, Asia-Pacific garnered the highest revenue in 2022; however, LAMEA is anticipated to register highest CAGR during the forecast period.

By Geography: North America leads in outsourced facility management. The industry is undergoing a digital transformation for integrated services. Technology adoption drives efficiency in facility management and real estate services. US market players invest in building construction and partnerships, utilizing outsourcing for a competitive advantage. The US real estate market benefits from tech adoption, enhancing service delivery.

Competitive Landscape:

The US real estate market is fragmented. The report covers the major players operating in the United States Real Estate Services. The US real estate services market has both international and local players. Some of the prominent players in the industry are Jones Lang Lasalle Inc., CBRE Group, Brookfield properties LLC, Home services of America Inc., and Cushman & Wakefield Holdings Inc. The growing real estate market, adoption of new technology by real estate services providers, and a few other factors will increase the growth of the market.

Recent Developments:

• CBRE Group acquired Buildings in January 2022 to meet growing demand for comprehensive occupancy management services. Building’s expertise in occupancy planning and technology will be integrated into CBRE's offerings, including space utilization data management and Computer-Aided Design (CAD) services.
• In January 2022, Long & Foster Real Estate expanded in Richmond by partnering with Dew Realty, a local franchise established in 1978. Led by Bob Flanagan, Trey Flanagan, Lou Flanagan, and Sharon Coleman, Dew Realty offers a range of real estate services in Central Virginia, including residential resale, new construction, land, relocation, and commercial sales.

Future Outlook:

The future of the US real estate market holds several exciting possibilities driven by emerging trends and advancements. Technology will play a transformative role, with increased adoption of artificial intelligence, virtual reality, and data analytics enhancing the efficiency of property transactions, marketing, and customer service.

Smart homes and sustainable building practices will gain prominence, catering to environmentally conscious buyers and investors. As urbanization continues, mixed-use developments with integrated amenities will become more popular, creating vibrant and walkable communities. The demand for flexible and remote work options will impact property preferences, leading to a shift in the types of spaces people seek.

Additionally, demographics will influence the market, with the millennial generation entering the prime homebuying age and baby boomers seeking downsizing options. While challenges like housing affordability and supply constraints remain, the US real estate market's future appears dynamic, adaptive, and poised for continued growth and innovation.