Growing Household Formation, Consumer Spending, & Business Activity to Drive US Real Estate Service Revenues

Cleveland OH, January 17, 2024 — US real estate revenues are forecast to advance 4.8% yearly in nominal dollars through 2027, according to Real Estate: United States, a report recently released by Freedonia Focus Reports. 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. Growing consumer spending and expanding business activity will boost the market for commercial real estate and associated services.

Elevated interest rates and inflation will hinder growth in home buying and business investment in real estate. In addition, faster gains will be prevented by the efforts of residential and commercial tenants to limit rental, leasing, and property management costs. Commercial properties such as shopping malls face competition from e-commerce rivals while office space demand is tempered by the capacity of many organizations to allow some employees to work from home. The growth of internet listing services provides competition to the traditional business model of agents and brokers. Advancements in artificial intelligence (AI) capabilities are expected to further enhance the competitive advantage of technology-focused real estate firms.

These and other key insights are featured in Real Estate: United States. This report forecasts annually to 2027 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 2012 to 2022.

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. Real estate settlement, title abstract, and title search services are also excluded from the scope of this report.

This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Online Consumer Survey has a sample size of approximately 1,500, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.

More information about the report is available at:

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 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
• a survey of the supply base
• suggested resources for further study