Introduction to the Property Management Industry
The property management industry entails overseeing, operating, and maintaining various types of real estate properties, including residential, commercial, retail, and industrial facilities. It is an essential service that ensures properties run efficiently and effectively. The property management industry has been experiencing growth in the US in the past few years due to the booming real estate market, increased demand for housing, and rapid urbanization. The industry comprises various players, including property managers, real estate agents, landlords, tenants, contractors, and vendors.Understanding the Current Market Size of the Property Management Industry
According to research, the size of the US property management industry is projected to be $114.9bn in 2023. The industry’s significant players are property management firms and real estate agents who provide management services for residential rental properties. The industry has been growing due to various factors, including the increase in the number of rental properties, changes in tenant demographics, and the rise in technology and automation. The main categories of property management services include:- Rental management
- Property maintenance
- Tenant relations
- Accounting and financial management
- Legal and regulatory compliance
Analyzing the Expected Growth Rate of the Property Management Industry
Despite the current growth trend, the property management market is expected to shrink slightly by -0.4 percent in 2023. The decline will result from several changes, including the entry of new players in the market and the shift in the housing market to more affordable housing options. However, there will still be opportunities for growth in niche markets and property sectors, such as senior housing and student housing sectors, which are expected to increase. Factors influencing the expected growth rate include:- Fluctuations in the economy and the job market
- Regulatory changes impacting the industry
- Emerging technology and automation options
- Evolution in tenant demographics and preferences
- Competition from other players such as Airbnb and other short-term rental services