Looking at the property management statistics over the last decade, it is clear that the recent Covid-19 global pandemic had a significant impact on the growth of the industry.
Property owners all over the world have been feeling the pinch caused by the safety measures imposed by government bodies of nearly every country on the planet. Suddenly, the importance of property management software and hiring a reliable property management company has become clear.
One of the benefits of relying on property management companies is that, as property owners and landlords, you can keep up-to-date with what is going on in the industry. Simply analyzing property management market trends can help you make better business decisions when the time comes.
From keeping abreast of what is happening in the property management software market, to knowing the latest trends in rent and fee collections on residential properties, these statistics can be an invaluable tool in the property management business.
If you are looking for a helpful property management industry analysis, this article will provide the answers that you need. Continue reading to find out which are the most important property management industry trends you need to know in 2023.
Why Are Statistics Important in the Property Management Industry?
When used correctly, property management statistics can help property owners, landlords, and property managers to anticipate any potential changes in the property market that may affect the productivity of their property investments.
Knowing things like the average annual wage and fees in the property industry, the number of residential properties being run by property managers, how many property managers are available in particular states, and various property management efficiency statistics can be vital in such a competitive industry.
Looking at the 2020 Covid-19 pandemic as an example, property owners who were clients of reputable property management companies probably had a good idea of what such a pandemic would mean for their investments and how best to handle the situation.
Knowing how to make use of cutting-edge property management software to conduct a comprehensive analysis of the property management industry is a great advantage in the real estate sector.
Best Source of Information for Property Managers
Property managers looking for the best source of information and valuable property management statistics need to look no further than the internet.
With reliable property management software, it is easy to obtain vital property management statistics that can help improve decision-making.
However, there are many different options to choose from in the property management software market. You need to choose the most reliable software if you are to stay ahead of the pack.
One of the best sources of templates, forms, and property management software is DoorLoop. Whether you are a property management company, property owner, landlord, or manager, visit doorloop.com today and take a look at the awesome property management software and other resources that are available.
Key Property Management Industry Statistics for 2023
When it comes to property management statistics, there is a lot more data available in the property management software market than you can ever handle.
It is best to narrow down your search to the key factors and property management statistics that have a direct impact on your property investments.
Consider the following 20 key property management statistics that can help you in 2023:
- Worldwide Property Management Market Size Will Reach $23.63 Billion by 2026
Knowing the property management market size and its growth potential is a key factor when deciding how much to invest in real estate in the coming years.
In that regard, most property management software platforms agree that the outlook is looking good for investors. With a projected market size of $23.63 billion by 2026, the property management industry is one of the areas you should be looking at for long-term investments.
- The property Management Market Size in the US Reached $101.3 Billion in 2021
Considering that as recently as 2009 the property management industry was valued at just over $61.32 million, reaching $101.3 billion by 2021 is something property managers will be quick to point out as a valid reason to buy as much property as you can in 2023.
With such positive numbers, you do not need sophisticated property management software to help you see the potential for huge returns in the next five years for those that own properties in the US.
- 877,995 US Employees in the Property Management Industry in 2022
As the property management industry grows, so too does the number of real estate agents that are employed in the sector. The rapid increase in the number of property management companies means that in the next five years, the number of employees relying on the property management industry for a living is likely to be in the millions.
- 80% Of Property Managers Handle a Wide Scope of Activities
Three of the most vital tasks in the property management industry, conducting property inspections, leasing, and advertising are done by 70% of property managers. However, 80% of property managers handle a wide range of other property management tasks as well, such as:
- Rent payments
- Tenant management
- Maintenance requests
- Vetting prospective tenants
Each property manager has their priorities, such as industry growth, efficiency, and profitability.
- 2.4 Million Units Owned by the Top 40 Multifamily Property Management Companies
The period between 2019 and 2020 saw the largest growth in the property management industry when large property management companies recorded 25% growth figures.
According to property management industry statistics, most of this growth was enjoyed by just 40 of the top property management companies, which now manage over 2.4 million units in the US.
- In 2020, the Property Management Software Market Was Valued at $2.9 Billion
Property managers are relying more and more on property management software. Having access to vital property management industry statistics is one of the biggest concerns of property managers worldwide and the billion-dollar property management software market is set to grow by a further 4.8% from 2021 to 2028!
- Less Than 50% Of Property Owners Manage Their Properties
More and more people are turning to property management companies to manage their properties, as indicated by property management statistics claiming that less than 50% of property owners manage their own properties.
Of these, 11% of the landlords simply manage properties that they do not own, with 45% managing their own properties and 44% preferring to hire property managers.
- 39% Of Property Managers Are 10-Year Industry Experts
Experience is a key attribute of reliable property managers and the statistics for property management companies show that at least 39% of residential property managers have more than 10 years of experience in the industry.
Impressively, over 22% of property managers have been in property management for over 20 years, with only 14% having worked for less than two years.
- 42% Of Renters in the US Reside in Single-family Units
The number of renters of residential properties rose by 25%, with a related 1% drop in property ownership. This points towards a preference for renting over owning properties, which has resulted in 42% of tenants living in single-family homes.
However, a worrying statistic is that between 20% and 43% of renters can neither afford to buy a property nor make rent payments on the property they are residing in.
- New York and Colorado Top of the Pile for Property Management Markets
If you are wondering which state has a property management industry worth the most amount of money, the choice is between New York and Colorado.
The lucrative and fast-growing property management market trends in these states mean that either one would be a great place to start a property management firm.
- Minimum Property Management Income Set at $38,956
With just an Associate degree, a real estate agent can expect a starting salary of about $38,956 in the property management industry. There is a significant rise in starting income for those with a Bachelor’s degree ($44,173) or a Master’s degree ($49,012).
Property managers working for the largest property management company in the industry can easily make $119,679 as their average annual salary. The income is related to the years of experience in the industry and the property management services they provide.
- The Property Management Industry Has 59.5% Women and 36.5% Men
Looking closely at the property management statistics, we see that the demographics indicate a much higher number of women (59.5%) than men (36.5%) working in the industry, which suggests that property management is a popular career choice among females.
9% of property managers identify as LGBT and most live in New York or Chicago where they work for mostly private rather than public companies. In general, women in these industries earn 93% less than their male counterparts.
In terms of race, the following are the property management statistics and demographics:
- 66.9% Caucasian
- 17.3% Hispanic or Latino
- 8.4% Black/African American
- One-Third of Gen Z Members Are Comfortable Buying a House Online
The trend of buying property online is growing rapidly but not all generations are equally willing to adopt it. Baby boomers, in particular, are showing the most resistance to buying a house online, with only 7% of this group willing to do so.
In sharp contrast, 36% of zoomers are comfortable with this practice. Gen X members are somewhere in the middle, with only 19% saying they would be comfortable buying online property.
- US Lease Renewal Rates Reached All-time High in 2020, at 53.3%
Even in the middle of the Covid-19 pandemic, the leasing industry broke new records, reaching an all-time high of 53.3% in 2020. This is a clear indication that residential properties have been leased rather than sold in recent years.
The lockdown measures may have forced a lot of people to retain their lease agreement as seen by the record high of 58.5% retention rate reported in April 2020.
- Retention Rates Dropped in New York and San Francisco by 11.1% And 7.2%, respectively in 2020
High retention rates were witnessed on a national level in 2020 but the situation was quite different when looking at some individual states. New York reported a drop in lease retention of 11.1% while San Francisco saw its retention drop by 7.2%.
Mid-American cities, such as Cleveland, Phoenix, Kansas City, and St. Louis saw a 3% increase in retention rates during the same period.
These figures may be attributed to the higher rentals in larger cities, such as New York, compared to those found in mid-America.
- Hawaii Is One of the States With the Highest Number of Property Managers
Surprisingly, Hawaii is one of the states with the most property managers in America! This is probably because of the booming tourism industry on the islands, which means that a lot of property owners in the area are seeing the added potential of providing vacation rental units.
While Hawaii has three times as many property managers as other states, Washington DC and the Virgin Islands are close behind, each with more than double the national average number of residential property managers.
- 80% Of Renters Preferred to Rent Than Own Properties in 2021
There was a definite shift towards rental properties rather than outright ownership in 2021, with 80% of renters deciding that it was better to rent than buy a house.
Whether these are simply the effects of Covid-19 or are a sign of a permanent change in consumer behavior will be seen in the next few years, but for now, property managers are handling a lot more lease agreements than house purchases.
- 24% Of Gen Z Members Intend To Continue Their Lease Agreements
Even after the Covid-19 restrictions have been lifted, a lot of people have no intention of buying a house any time soon.
Property management industry statistics indicate that at least 24% of Gen Z members have indicated that they will continue with their current lease agreements.
19% of them are worried about the current state of the economy, which has a huge impact on their decision to continue renting.
- 35% Of Managers Handle Between 101 and 500 Units
The number of units each property manager can handle varies greatly depending on location, level of experience, and the size of the property management company.
However, a property manager can handle a portfolio of well over 100 units at a time. 35% of property managers have between 101 and 500 homes in their portfolio.
- 61% Of Renters Prefer to Sign an Annual Lease Agreement
Most property managers prefer to handle 12-month leases rather than any other duration, which is why 61% of renters tend to have an annual lease agreement.
Anything less than 12 months is not considered a great option in the property management industry. However, a few renters (9%) sometimes prefer signing leases of more than one year but this is not common.
Get Ahead on the Property Management Market With These Key Statistics!
A property manager armed with the right property management statistics can be the key difference between a profitable real estate investment and a disastrous one.
However, there is so much more to property management than simply looking at statistics. Visit DoorLoop today and download all the forms, documents, resources, and templates that you need to give you an edge in the property management industry!