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Amazing 2013 Real Estate Statistics
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Amazing 2013 Real Estate Statistics
“Amazing 2013 Real Estate 2013” takes us on a journey that starts in 1900, when 75% of urban Americans lived in rented apartments or flats. A century later, U.S. home ownership has gone from 25% to 68% of the population taking advantage of the fact that buying a home and living in it for four to seven years will allow them to save from 20% to 40% over renting!
Let’s now widen our scope to embrace the full positive financial impact of the real estate market. Let’s start with the amazing fact that around 9 million jobs are created or supported by American real estate companies, and that housing accounts for about 15% of gross domestic product (GDP) in a typical year. As far as companies are concerned, these are relevant figures: 165,000, is the number of companies operating in the residential brokerage and management field during the last year; and 25,000, is the number of companies operating in the commercial brokerage and management field. The first group generated $170 billion in revenue, and the second $30 billion.
In terms of percentage, brokerage services make 45% of the industry’s total revenue, leasing residential units 35% and property management makes up 15%. It’s interesting to note that the fifty largest companies make up less than 30% of the industry’s total revenue! But if you’re looking for a really staggering figure, keep this one in mind: $5,000,000,000,000 - that’s the approximate worth of US commercial real estate, spread out in the following categories: 13 billion square feet of industrial property, 4 billion square feet of office space, almost 9.5 billion square feet of shopping center space, 33 million square feet of rental apartment space, and 4.4 million hotel rooms.
A share of the industry’s profits go towards advertising, especially online advertising. In fact, during the last year, more than half of all real estate advertising, or $13 billion, was spent on online media. And at $13 billion, real estate is the highest category in online advertising! This new trend is both the result of and catalyst for a new set of home buying behavior - for instance, did you know that the average internet buyer spends only 2.2 weeks working with a realtor® to find their home, whereas the traditional buyer spends almost 6 weeks?
So what about the future? Well, the future seems bright due to the accelerated new household formation that may drive a residential housing recovery adding between 1.7% and 3.2% to GDP growth over the next five years. As far as 2013 is concerned, home sales are expected to increase by 9%. And because we are talking about homeownership and home sales, it’s interesting to know that, in California, during the last year, the most expensive confirmed purchase was an 8,930-square-foot home in Woodside, which sold for $117,500,000!
But… we all know that nothing is perfect… and of course, the real estate market has some concerns of its own. The fact that 11 % of all US homes are vacant right now is one of them, and the $380 billion market of distressed homes also adds to the list. But interestingly the number of distressed homeowners dropped to 4.7 million in April, the first time in five years that that figure has come down below 5 million!
Before we finish, did you know that there’s a company that’s spending a $100 million a week buying homes? The responsible company for this notable feat is the Blackstone Group. This company presents itself as “the largest real estate private equity firm in the world today with $60 billion of assets under management”.