SAN JUAN CAPISTRANO, Calif., April 2, 2019 /PRNewswire/ -- T3 Sixty, the residential real estate brokerage industry's leading consulting and research firm, has released its second annual Mega 1000, the real estate industry's definitive ranking of brokerages, franchisors and holding companies.
The $1.3 trillion-per-year home resale industry is the last of the U.S.'s large industries to be restructured by technology and venture capital. These changes are impacting over 2 million licensed real estate agents and disrupting over 86,000 brokerages firms.
The 2019 Mega 1000 reveals that 7-year-old Compass, thanks to a series of blockbuster acquisitions fueled by $1.2 billion in funding, has become the nation's third-largest residential real estate brokerage by annual sales volume in a shockingly short time.
The second annual Mega 1000 report, which reports sales volume, transaction sides and agent counts for the nation's largest residential real estate brokerages, franchisors and holding companies, clearly shows how the residential real estate brokerage industry's recent massive influx of over $4.2 billion of venture capital in 2017 and 2018 is reshaping one of the U.S.'s most important industries.
Three relatively new brokerage companies are now among the nation's six largest brokerages (Compass at No. 3, Redfin at No. 5 and eXp Realty at No. 6). None of these companies existed before 2002. Many of the country's largest real estate companies and franchisors have been in business for decades, some like Coldwell Banker (founded in 1906) and Douglas Elliman (founded in 1911) are over a century old.
Despite these fast-rising newcomers, the nation's two largest brokerages, NRT LLC, a subsidiary of massive real estate holding company Realogy and the brokerage that owns many of the nation's Coldwell Banker-branded offices, and HomeServices of America (HSA), the Berkshire Hathaway subsidiary who owns more than a dozen large, regional brokerages, including Long and Foster Real Estate (in the Mid-Atlantic region), Edina Realty (in Minnesota) and Ebby Halliday Realtors (in Texas), remain solidly at the top.
NRT and HSA closed $176 billion and $136 billion, respectively, in sales in 2018. Although it has an impressive rise, Compass remains a distant third with 2018 annual sales of $46 billion.
"The residential real estate brokerage industry is in a massive period of flux," said T3 Sixty CEO and Mega 1000 editor-in-chief Stefan Swanepoel. "The Mega 1000, the industry's most accurate, comprehensive and thorough annual ranking of real estate companies, clearly illustrates the change and allows existing brokerage companies to plan accordingly."
"The incumbents are still going strong, but newcomers, fueled by eye-popping amounts of investor capital, are changing the entire traditional real estate paradigm," he added. "It's is as exciting as it is head-spinning. We will continue to track and analyze this evolution closely."
Access the Mega 1000 online here. Readers can also download PDF copies of the list from the website. A 220-page full-color report with additional insights and charts will be available in April.
About T3 Sixty
Exclusively serving the residential real estate brokerage industry, T3 Sixty provides real estate CEOs, business leaders, association and MLS executives, brokers and high-performance teams the knowledge, best practices and support to grow their businesses. The company does this through management consulting, training and in-depth research and quality publications, such as its hallmark Swanepoel Trends Report, an annual analysis of the top trends shaping the industry for the next 18 to 24 months. The firm's consulting divisions include brokerage, technology, mergers and acquisitions, and associations and MLSs. Find out more here.
About the Mega 1000
T3 Sixty established its Mega 1000 study with deep research and analysis, encompassing over 400 hours of research every year, phone calls with company executives, and verification of 10-K statements and verification with state real estate departments, MLSs and more. No other industry rankings encompass this breadth or completeness.
Contact: [email protected]
SOURCE T3 Sixty