33 Property Management Industry Statistics To Know
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Hey there, property aficionados! Curious about what’s shaping up in the world of property management? Well, you’re in for a treat because we’ve dived deep into the data pool and fished out 33 juicy statistics that spill the beans on trends, challenges, and the sheer dynamism of the property management industry.
Whether you’re a real estate whiz, a tenant navigating the rental landscape, or just a curious soul, these stats are your backstage pass to understanding the ever-evolving realm of property management.
So, grab your coffee, settle in, and let’s unravel the numbers that paint the canvas of property management.
General Property Management Statistics
Dive into the heart of property management with these insightful stats. From the increasing reliance on property managers by 51% of owners to the unexpected spike in US lease renewal rates, this section unveils the pulse of the industry.
Seeking Professional Help: The Rise of Property Managers
Over half of property owners, a solid 51%, are recognizing the financial potential of their real estate investments. In response to this growing awareness, property owners are increasingly turning to property managers to handle the intricate details of the rental process.
A notable 24% are actively on the lookout for expert property management services, showcasing a significant shift in property ownership dynamics.
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Task Breakdown: The Workload in Property Management
Maintenance and repairs take the crown in property management tasks, claiming a substantial 80% of the workload. As essential as rent collection and leasing, these tasks make up the core responsibilities of property managers.
Leasing and advertising (77%), property inspection (74%), and evictions (68%) follow closely, forming a multifaceted landscape of property management duties.
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Online Ventures: Gen Z’s Willingness to Buy Homes Digitally
Gen Z is leading the charge in the digital age of home buying, with over one in three members comfortable purchasing a house online.
This forward-thinking approach aligns with Millennials, making online home transactions a growing trend. However, baby boomers (7%) and Gen X (19%) seem more hesitant to embrace this virtual revolution, indicating a generational divide in home-buying preferences.
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Record-Breaking Resilience: U.S. Lease Renewal Rates in 2020
In the face of the COVID-19 pandemic, U.S. lease renewal rates reached an all-time high in 2020, with an impressive 53.3% of tenants opting to extend their leases.
Despite economic uncertainties, this resilience in lease renewals highlights the enduring appeal of rental homes and the stability they provide.
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Coastal Contrasts: Retention Rates in Urban Centers
While the U.S. experienced a surge in lease renewals, specific cities faced challenges, with New York and San Francisco witnessing significant declines at 11.1% and 7.2%, respectively.
This regional disparity sheds light on the diverse impact of external factors on different housing markets. Conversely, mid-America showcased at least 3% positive renewal rates, indicating a more robust rental landscape in these areas.
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Aloha to Property Managers: Hawaii’s Unique Landscape
Hawaii stands out as a property management hotspot, boasting three times more property managers per capita than the national average.
This unique trend could be attributed to the unique challenges and opportunities the island state’s real estate market presents.
Following closely, Washington D.C. and the Virgin Islands claim twice the average, while Wisconsin trails behind with only 30% of the national average.
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Rental Continuity: Over 80% Opting to Rent in 2021
Despite a 3% increase in national rent rates in 2021, over 80% of renters chose to continue renting instead of transitioning to homeownership.
This resilience, observed among both Millennials and Gen Z, showcases the enduring appeal of renting, influenced by financial considerations and the evolving lifestyles of these demographic groups.
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Leasing Plans: Gen Z and Millennial Intentions
Delving into generational leasing plans, 24% of Gen Z renters express a desire to renew their current leases, highlighting a commitment to the rental lifestyle.
Meanwhile, 23% of Millennials are torn between renewing their leases and taking the plunge into homeownership, reflecting the dynamic choices faced by different age groups in the housing market.
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Portfolio Size Matters: The Scale of Property Management
The majority of property managers, a substantial 35%, handle portfolios ranging from 101 to 500 property units. This suggests a common practice of managing a significant number of properties, showcasing the scale at which property managers operate.
Additionally, 30% manage 26 to 100 units, while 20% oversee up to 25 properties, illustrating the diverse scale of property management operations.
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Custodians of Rentals: The Profile of Property Managers
A whopping 86% of property managers specialize in managing other people’s properties, showcasing a prevalent trend in the industry. Moreover, one in three managers is responsible for managing homeowner association (HOA) properties, contributing to the varied landscape of property management roles.
Three out of four property managers focus on single-family rentals, while two out of three handle multi-family rentals, emphasizing the range of properties under their care.
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Community Desires: Popular Amenities in Multi-Family Spaces
Within multi-family communities, fitness and wellness amenities take the lead at 19.5%. However, the specifics reveal that bike-storage rooms, mentioned in 60% of communities, are the unsung heroes of multi-family living.
Outdoor spaces and on-demand food services also gained traction, while amenities like art spaces, childcare services, and gaming saw lower demand.
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Tenant Applications: The Quest for the Ideal Renter
Landlords receive an average of two applications per rental property, emphasizing the importance of effective rental advertisements.
This data underlines the competitive nature of the rental market, encouraging property owners to cast a wide net to attract potential tenants. Successful advertising not only ensures a variety of options but also allows landlords to be discerning in choosing the right tenant for their property.
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Lease Preferences: The Majority Opts for a 12-Month Commitment
The majority of renters, 61%, prefer committing to a 12-month lease, providing a standard timeline for both landlords and tenants.
While shorter-term leases are an option, they remain less popular among property managers, indicating a preference for a more stable and predictable rental period.
Only a small fraction, 9%, opt for leases longer than 12 months, reflecting a minority choice in the rental landscape.
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Rent Payment Resilience: December 2021 Insights
In December 2021, a remarkable 92% of renters made either a full or partial rent payment, according to NMHC’s rent tracker.
This positive trend underscores the commitment of renters to fulfill their financial obligations, offering a reassuring glimpse into the stability of the rental market, even during challenging times.
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Managerial Tenure: The Landscape of Property Management Experience
The majority of property managers, 39%, have accumulated three to ten years of experience in the field. This mid-range tenure suggests a seasoned yet dynamic workforce within the property management industry.
Additionally, 24% boast 11 to 20 years of experience, while approximately 22% have navigated the property management landscape for over two decades, highlighting a significant presence of experienced professionals.
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Navigating the Industry: Property Managers and NARPM Membership
While the National Association of Residential Property Managers (NARPM) strives to foster industry relationships and knowledge exchange, only 34% of property managers claim membership.
This indicates that a substantial 66% of property managers operate independently of this association, relying on diverse avenues for professional development and industry insights.
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Property Management Industry Statistics
Discover the inner workings of the property management realm. With insights into the tasks that dominate property managers’ daily agendas and the varying preferences of generations like Gen Z and Millennials, this category paints a vivid picture of the industry’s multifaceted landscape.
Market Magnitude: US Property Management’s Soaring Value
In the fiscal realm, the US property management market flexed its financial muscle, reaching a substantial $101.3 billion in 2021.
This sector’s growth has been unwavering, steadily ascending year over year since 2009 when it stood at $61.32 billion. The market displayed resilience, maintaining a stable growth trajectory at $99.39 billion in 2019 and $99.53 billion in 2020.
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Industry Workforce: Unveiling the People Power
The property management landscape in the US boasts a formidable presence, with over 300,000 firms dedicated to property-related tasks. The industry employs over 367,000 workers, excluding self-employed managers.
Notably, nearly 60% of all property managers, around 220,000 individuals, are part of companies contributing to the robust workforce.
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Greystar’s Reign: Dominating the Property Management Realm
In the competitive world of property management, Greystar Real Estate emerged as the unrivaled champion in 2020, overseeing a staggering 730,000 property units—a remarkable 36% increase year over year.
Following closely, Lincoln Property Co. secured the second spot with approximately 210,000 units, while Cushman & Wakefield claimed the third position with a portfolio of 172,000 units.
Additionally, a league of 37 other companies collectively manages about 2.4 million units, experiencing a 25% growth between 2019 and 2020.
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Lucrative Livelihood: The Financial Landscape of Property Managers
For those navigating the property management terrain, financial satisfaction is a given. The average annual wage for property managers stands at a robust $73,210. Breaking it down further, the average hourly wage is $35.20, with a median pay of $26.68 per hour or $59,660 annually.
While entry-level property managers require only a high school diploma, the financial spectrum spans from a median salary of $31,330 for the lowest 10% to an impressive $134,570 for the top 10%.
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Financial Frontiers: Challenges in Revenue Generation
Despite the buoyant property management market, financial success is not universal. Only 13% of property management companies manage to surpass the coveted $1 million mark in annual revenue.
More than half, a significant 52%, operate on an annual revenue of approximately less than $250,000. This illuminates the diverse financial landscapes within the industry, showcasing the challenges faced by a substantial portion of property management enterprises.
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Property Management Market Trends Statistics
Navigate the ever-evolving trends shaping the property management market. From the impact of COVID-19 on evictions to the tech-driven preferences of Millennials, these statistics illuminate the dynamic forces steering the industry’s course in 2023.
Eviction Hurdles: The Lingering Effects of COVID-19 Measures
In response to the COVID-19 pandemic, 34 out of 50 states in the US implemented eviction prohibitions, casting a shadow on the property management industry.
These protective measures, extending into 2021, had a notable impact on property managers’ portfolio growth and revenues. The resulting strain led to increased costs for services, particularly in the realm of overall maintenance.
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Valuable Allies: Property Managers Shine Amidst the Pandemic
The pandemic served as a catalyst in reshaping perceptions, with three in five property managers believing that clients now recognize their increased value.
The dynamic nature of the market, coupled with evolving regulations, underscored the importance of property managers.
This recognition, reflected in property management industry statistics, positions property management services as a sought-after and essential resource.
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Virtual Ventures: Millennials Embrace Online Home Buying
In a surprising twist, 40% of Millennials express a willingness to purchase a house online, particularly after a virtual tour. The digital-savvy generation is setting new trends in the real estate market, with 59% expressing confidence in buying a home after a virtual tour.
A staggering 80% prefer 3D virtual tours, signaling a shift in demands and expectations, creating opportunities for innovation in the property management landscape.
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Data Dynamics: AI Revolutionizing Tenant Assessment
In a testament to technological advancements, one company leverages AI to analyze data from over 30 million lease agreements, predicting tenants’ financial reliability.
This innovative approach not only enhances efficiency but also results in significant cost savings of $31 per unit annually. Property management industry statistics highlight the transformative impact of AI on screening practices within the rental landscape.
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Sky-High Success: Cloud’s Commanding Presence in Property Management
The cloud took center stage in 2021, contributing to 58% of the property management market revenue. This dominance is attributed to widespread adoption across industry end-users, driven by scalability and cost-effectiveness.
The cloud’s role in data backup, preventing loss, further cements its significance. Property management market trends indicate a continued ascent in the cloud segment.
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Tech-Forward Trends: Millennials Ready to Invest in Smart Homes
A staggering 86% of Millennials express a willingness to pay more for a ‘smart’ apartment or home. This inclination toward technologically advanced living spaces presents an avenue for property management revenue growth.
The demand for smart features reflects the evolving preferences of today’s renters, emphasizing the need for tech integration in managed properties.
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Expanding Portfolios: Property Managers Eyeing New Opportunities
Despite shifts in the housing market, 46% of property managers are planning to acquire new properties in the coming years.
This intention to expand signifies a positive outlook on rental property investment, marking a significant growth trend not seen since 2017. Property management industry statistics suggest a continued appetite for growth and adaptation to market dynamics.
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Digital Dynamics: The Mobile Search Trend in Property Management
Nearly 80% of renters and property owners leverage mobile phones for online property searches. As a strategic imperative, property management companies must establish a robust online presence, ensuring mobile-friendly, user-responsive websites.
Adapting to varying screen orientations and sizes becomes crucial, setting the stage for effective engagement in the competitive online landscape.
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Property Management Software Statistics
Unlock the digital realm of property management with these software-centric stats. Delve into the global property management software market’s worth, the rise of SaaS solutions, and the geographical dominance of North America, offering a glimpse into the technological evolution steering the industry forward.
Global Growth: Property Management Software Market’s Valuable Worth
The global property management software market holds a substantial value of $3.04 billion. The software segment is poised for remarkable growth, with an anticipated Compound Annual Growth Rate (CAGR) of 45.6% between 2022 and 2030.
This surge is driven by escalating demand for property management software, particularly Software as a Service (SaaS) solutions, crucial for streamlining daily operations and fostering overall efficiency.
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Diverse Solutions: A Flourishing Ecosystem of Property Management Software Companies
In 2021, the property management software arena boasted 345 companies, a testament to the increasing adoption of software solutions for diverse property management needs.
These solutions cater to various functionalities such as community communication, rent collection, and maintenance automation.
The pricing spectrum reflects the diversity, with annual contracts ranging between $1,000 and $5,000, offering flexibility to cater to different business requirements.
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Residential Dominance: A Stronghold in Property Management Software
The residential segment holds sway within the property management software market, accounting for a robust 66% of the total market. This dominance is expected to persist, fueled by continuous growth.
The residential segment further diversifies into sub-areas, including multi-family housing and single-family housing, showcasing the versatility of property management software solutions in meeting various residential needs.
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Continental Command: North America’s Prowess in Property Management Software
North America asserts its dominance in the property management software market, claiming an impressive revenue share of 62.5%.
This stronghold can be attributed to the presence of key industry players, including AppFolio, Inc., MRI Software LLC, Entrata, and Yardi Systems Inc. Europe follows closely, securing the second-highest market share in revenue.
Meanwhile, Asia Pacific emerges as the fastest-growing region, driven by evolving infrastructure and an escalating demand for enhanced data administration.
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Conclusion
And there you have it, folks! Thirty-three stats that have given us a backstage pass to the intricate world of property management. From the impact of COVID-19 on evictions to the skyrocketing demand for smart homes, these numbers tell a compelling tale of an industry that’s not just surviving but thriving.
Whether you’re a property owner, a tenant, or just someone with a keen interest in the real estate game, these stats offer a snapshot of what’s happening in the dynamic world of property management in 2023.
So, as we sign off, keep those property dreams alive and stay tuned for the next chapter in this ever-evolving saga of bricks, mortar, and everything in between! Cheers to a property-packed 2023!
Frequently Asked Questions
1. What factors contribute to the continuous growth of the property management industry?
The surge in property management industry growth is fueled by the increasing recognition of real estate as a financial investment, with over half of surveyed property owners seeking professional property management services to navigate the rental process efficiently.
2. How has the COVID-19 pandemic impacted property management, particularly in terms of evictions?
The pandemic triggered eviction prohibitions in 34 out of 50 states, negatively affecting property managers’ portfolio growth and revenues. These measures, extending into 2021, resulted in rising costs for services, including overall maintenance.
3. What technological trends are shaping the property management landscape in 2023?
Property management is embracing technology, with the global property management software market valued at $3.04 billion. SaaS solutions, virtual property tours, and AI-driven tenant screening are gaining traction, streamlining operations and enhancing efficiency.
4. Why are Millennials willing to pay more for ‘smart’ apartments or homes?
A whopping 86% of Millennials express a willingness to pay extra for smart features, reflecting their tech-savvy preferences.
This trend not only aligns with their digital lifestyles but also influences the property management landscape, driving demand for technologically advanced living spaces.
5. What regions dominate the property management software market, and why?
North America leads the property management software market with a 62.5% revenue share, boasting key players like AppFolio and Yardi Systems.
Europe follows closely, while the Asia Pacific emerges as a rapidly growing region due to evolving infrastructure and an increased demand for advanced data administration tools.