CLEVELAND, Dec. 10, 2020 /PRNewswire/ -- US real estate revenues are forecast to advance 3.6% annually in nominal dollars through 2024, according to Real Estate: United States, a report recently released by Freedonia Focus Reports. Industry revenues are projected to increase less than 1.0% in 2020, a slower growth rate than was expected in the absence of the COVID-19 pandemic. Declines are projected for commercial building rental and leasing and commercial agents and brokers due to the substantial negative impact of the COVID-19 pandemic on many small- and medium-sized businesses, leading to closures, suspension of rent payments, and a halt on new business creation. On the other hand, the necessity of shelter and the desire of many urban renters to move to suburban homes with greater distance from neighbors will support revenues in the residential segments. In addition, the low interest rates stemming from the economic crisis are enticing those with stable finances to purchase homes.
Through 2024, real estate firms are expected to benefit from increases in the number of households and growing disposable personal incomes. An increase in household formation will support apartment renting and home buying and will benefit rental and leasing firms, agents and brokers, and property managers. Growing consumer spending and expanding business activity will boost the market for commercial real estate (e.g., shopping malls and offices) and associated services. Faster gains will remain constrained by the desire of residential and commercial tenants to minimize rental, leasing, and property management costs, particularly in challenging economic times. In addition, commercial properties such as shopping malls face competition from e-commerce rivals while office space demand is tempered by a widespread shift to work-from-home. In addition, the growth of online listing services provides competition to the traditional business model of agents and brokers.
These and other key insights are featured in Real Estate: United States. This report forecasts to 2024 US real estate revenues in nominal US dollars. Total revenues are segmented by service in terms of:
commercial building rental and leasing
residential building rental and leasing
other rental and leasing, such as manufactured home sites, vacant lots, and grazing land
residential agents and brokers
commercial agents and brokers
residential property management
commercial property management
appraisal and consulting services
other real estate services, such as escrow agencies, listing services, and fiduciaries' offices
To illustrate historical trends, total revenues and the various segments are provided in annual series from 2009 to 2019.
The activities of equity real estate investment trusts (REITs) are included in the scope of this report. Facility management services, where the tenant select a third-party service firm to clean and maintain the commercial building they are renting or leasing, are excluded from the scope of this report.
About Freedonia Focus Reports Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services & Industries reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
• total historical market size and industry output
• segmentation by products and markets
• identification of market drivers, constraints, and key indicators
• segment-by-segment outlook in five-year forecasts