Real Estate Franchise Industry in 2014 at a Glance
The real estate industry has been under scrutiny in recent years with the mortgage crisis and other current events, but it is still a large field which generates billions or dollars in revenue. There were 165,000 companies operating in the residential brokerage and management field last year, which generated $170 billion in revenue, and there were 25,000 companies operating in the commercial brokerage and management field, generating an annual revenue of $30 billion.
Real Estate Industry Background
Real estate tends to be a particularly cyclical industry, going up and down based on trends in the economy at large such as the fluctuation in interest rates. The story of real estate often mirrors the general story of the American economy. Real estate soared in the post-World War II 1950s, sank in the 1970s, rose again in the early 1980s until the depression at the end of that decade, and was prosperous again at the end of the 1990s. Because of low interest rates in the mid-2000s, residential real estate was booming even when the economy was slow until the mortgage crisis hit and the bubble collapsed. After that point it sank and as of 2011 has yet to truly recover. Brokerage firms have taken on property management divisions in order to diversify their revenue streams and combat poor economic climates.
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Source: Franchise Help (www.franchisehelp.com)
