The property management industry in the United States is a thriving sector that continues to grow year after year. With an annual revenue of $99.449 billion, this industry plays a significant role in the country's economic landscape. Let's explore some fascinating statistics and insights about the property management industry.
National Property Management Industry
Despite a slight decline of 1.91% in 2022, the property management industry has experienced an average annual growth rate of 5.0% since 2012. This steady growth indicates the industry's resilience and potential for the future. Property management wages account for 43.0% of the industry's revenue. With over 326,000 registered property management companies and over 911,500 employees, this industry provides ample job opportunities and contributes to the national gross domestic product (GDP), with real estate accounting for 16% of the total.
Property Management Industry Employment
The job market for property management is expected to grow by an estimated 3.0% per year in the 2020s, leading to the creation of approximately 29,100 new jobs annually. Currently, 220,000 property managers work for property management companies, representing almost 60% of all working property managers. The average wage for property managers is $35.20 per hour or $73,210 per year, with a median pay of $28.68 per hour or $59,660 per year. The industry offers a wide range of remuneration, with the top 10% of property managers earning $134,570 per year.
Residential vs. Commercial Property Management
Residential property management has seen more growth compared to nonresidential or commercial property management. Experts forecast a compound annual growth rate of 9.3% for the residential sector in the foreseeable future. The industry's producer price index (PPI) has increased by 33.3% since December 2003, indicating a steady growth rate of 1.903% annually. Additionally, 81% of property managers have experienced an increase in revenue in the past two years, with 88% expecting their revenues to rise in the next two years.
Property Management Priorities
Property managers prioritize various aspects of their work. According to a survey, 47.8% of property managers consider growth as a top priority, while 45.1% aim to improve efficiency. Profitability is the main concern for 31.0% of property managers, highlighting the need for strategies that maximize returns. Interestingly, fewer than 1-in-4 managers prioritize communication with property owners, suggesting a potential area for improvement. Additionally, maintenance is an area that receives comparatively less attention from property managers.
Rental Property Market
Over the past decade, the national rental vacancy rate has significantly decreased to its lowest point since the 1980s. With a current nationwide rental vacancy rate of 5.8%, market trends indicate that this rate may drop below 4% by 2025. To afford a two-bedroom apartment, the average American must earn an estimated hourly wage of $24. The average monthly rent for a two-bedroom apartment stands at $1,588. Furthermore, the number of renters has increased by 25% in the past decade, while the number of homeowners has slightly decreased by just over 1%.
State-Level Employment Statistics
Property managers' employment and income vary across states. For instance, New York and Colorado seem to offer the most lucrative opportunities for property managers. Hawaii, Washington D.C., and the Virgin Islands have a higher number of property managers per capita compared to the national average. On the other hand, Wisconsin and Washington have fewer property managers per capita. Average annual wages for property managers range from $40,570 in Idaho to $115,670 in New York.
Note: The provided statistics are based on available data and industry reports. For more comprehensive information on specific states, please refer to the sources mentioned below.
Analysis: Industry Predictions
Experts suggest that property managers and owners should invest in technology and consider consolidation to stay competitive. Utilizing cloud services, artificial intelligence, and integrated devices can facilitate better connectivity with tenants and vendors. Tenants, especially younger generations, increasingly expect high-tech amenities and connectivity options. Surprisingly, only 11.2% of surveyed property managers prioritize technology, indicating a growth opportunity for early adopters. Additionally, acquiring or consolidating existing property management companies can offer a competitive advantage and facilitate market expansion.
Sources
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Property, Real Estate, and Community Association Managers
- Commercial Property Executive, Industry Research Reports
- U.S. Department of Commerce Bureau of Economic Analysis, Personal Income by State
- National Association of Residential Property Managers, 5th Annual State of Property Management Industry Report
- Federal Reserve Bank of St. Louis Economic Data (FRED), Real Estate and Rental Leasing: Producer Price Indexes
- U.S. Census Bureau, American Housing Survey
- Mashvisor, Commercial vs Residential Property Management: Which Is Right for You?
- Fortune Business Insights, Property Management Market Size, Share & COVID-19 Impact Analysis, By Component (Software, Services), By Deployment (Cloud, On-Premises), By Application (Residential, Commercial), By End-User (Property Managers, Housing Associations, Real Estate Agents, and Others) and Regional Forecast, 2021-2028
- Pew Research Center, “More U.S. Households Are Renting Than at Any Point in 50 Years.”
- Statista, IBISWorld Survey: Size of Property Management Market in the United States from 2009 to 2022
- IBISWorld, Industry Statistics: Property Management in the US