FAR 261 We have that Stats Opening:

How good is that professional athlete? Well, let’s take a look at his or her stats. What’s the batting average? What’s the shooting percentage? From 3-point range? Free Throws? What’s the yards per carry average. What’s the yards after contact average? What is the average air-speed velocity of an unladen swallow? Be the first person to write in or call with that movie reference and I’ll send you a Starbucks gift card. What’s your miles per gallon? How long is your average daily commute? On average, how many hours do you spend watching TV every day? Statistics are all around us all the time. Today I’m going to BLOW YOUR MIND with a complete set of real estate statistics.

Yes I studied statistics in college AND in graduate school. At the graduate level my statistics course, FED 790, was one of my favorite courses. Not so much because of the content, but because the professor was one of the most delightful persons I have ever met. He managed to make a drudgery topic into a class I looked forward to each week. That’s no small feat, because when you are digging deeply into research summaries looking for statistical significance, errors in math, illogical assumptions, blah blah blah. I won’t make you go through any of that pain today. In fact, you don’t even have to do the research. BUT - if you get a copy of the show notes, you will have clickable links for every stat I’m about to throw at you.

 

First let’s do the news!

News:

• https://www.foxnews.com/real-estate/chip-joanna-gaines-invest-10-4-million-waco-magnolia-market-expansion
• https://therealdeal.com/national/2019/06/23/canadas-favorite-alternative-investment-real-estate/
• https://www.nydailynews.com/news/politics/ny-rikers-island-closure-real-estate-development-de-blasio-20190621-6uhjrlb2wjamvgui7moxfva6fq-story.html
• https://learn.g2.com/real-estate-blogs
• https://weartv.com/news/nation-world/florida-family-loses-77000-in-real-estate-scam
• https://globalnews.ca/news/5403597/wait-theres-more-money-laundering-bc/
• https://realtybiznews.com/ben-carson-targets-single-family-zoning-laws/98754712/

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Topic: Real Estate Statistics!

Between all of the different real estate terms, types of real estate, and people that make up each sector, the industry is pretty complicated. To keep things as simple as possible, we’ve divided up the following stats into relevant sections.

Residential real estate statistics

Residential is what most people think of when they hear the term real estate. It refers to the types of properties that people live on – those that are not intended to be used for anything business-related. This includes single and multi-family homes, as well as condos and townhouses.

• As of April 2019, there have been roughly 673,000 houses sold in the US this year, which is 12.4 percent more than last year (U.S. Census Bureau, 2019).
• 5.34 million existing homes were sold in 2018 (down from 5.51 million in 2017). (NAR, 2018)
• The Midwest has the highest rates of homeownership in the nation at 68.2%, followed by the South at 66.2 percent (U.S. Census Bureau, 2019).
• 64.8% of U.S. citizens were homeowners in the fourth quarter of 2018 (up from 64.2% in 2017). (United States Census Bureau, 2019)
• 35.4%of homeowners are under 35 years of age. The age bracket with the highest rate of home ownership (78.5%) is 65 years and over (U.S. Census Bureau, 2019).
• Madison, WI and Grand Rapids, MI are the two most popular cities for millennial movers (National Association of Realtors, 2019).
• Based on buyer activity and active inventory, the hottest real estate markets in the country are in Boston, MA and Lafayette, IN (Realtor.com, 2019).
• Nationwide, the average sale price of a luxury home fell 1.6% in 2019 (Redfin, 2019).
• Across the US, the median price of a home is $267,300 (National Association of Realtors, 2019).
• Fishers, IN and Carmel, IN top the list of best cities for families (Apartment List, 2019).
• 36% of homeowners listed unexpected maintenance or repairs as their biggest regret (Zillow, 2019).
• The least competitive housing markets in the country are Miami, Dallas, and Houston (Redfin, 2019).
• The real estate industry will account for 22% of total commercial drone use by 2020 (Federal Aviation Administration, 2016).

Homebuyer statistics

Buying a home is no small feat. Below, you’ll find a few statistics specific to homebuyers.

• The average homebuyer took 73 days to close on a property after the first initial visit to the home (Redfin, 2019).
• 50%of buyers found their homes through the internet, while 28 percent found them through their real estate agent (National Association of Realtors, 2018).
• On average, buyers are spending 3 fewer days searching for homes in 2019 than the previous year (Redfin, 2019).
• Virtual house tours are most important to buyers that fall within the 53-71 age range (National Association of Realtors, 2018).
• Finding the right home tops the list for most difficult steps in the home buying process (National Association of Realtors, 2017).
• 33% of home buyers in 2018 were first-time home buyers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 10 weeks was the average amount of time buyers spent searching for a home in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 14% of buyers purchased brand new homes, while 86% of buyers purchased previously lived-in homes. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Selling statistics

Selling a home can be just as big of a hurdle as buying one. From getting a property listed to setting up the open house, finding qualified buyers is a feat in and of itself.

• Thursday is the best day to list a home. Properties listed on Thursday sell for $3,015 more than on Mondays, which are the worst days to list a home (Redfin, 2019).
• On average, 98% of final sale prices matched the original asking price of a property in 2019 (Redfin, 2019).
• This year, the median number of days that a property was on the market before an offer was accepted is 40 (Redfin, 2019).
• 73%of sellers are more likely to list their home with an agent who leverages video to market their property (National Association of Realtors, 2018).
• Staged homes sell 25% faster than non-staged homes (Coldwell Banker, 2019).

Rental statistics

Not everyone can afford to buy a home – that’s where renting comes in. Many residential properties are offered as rental units to tenants for non-commercial purposes.

• Globally, the most expensive place to rent is San Francisco where the rent averages out at $3,690 (Zumper, 2019).
• In 2019, Henderson, NV and Phoenix, AZ saw the fastest rent growth in the country with an increase of 4.5 and 4.1 percent, respectively (Apartment List, 2019).
• Across the US, the cost of renting has gone up 66 percent (Realtor.com, 2019).
• Troy, MI is ranked as the most affordable renting city for families (Apartment List, 2019).
• Only 8 percent of homeowners regret purchasing a home instead of renting (Zillow, 2019).

Real estate demographic statistics

It may seem like millennials are abandoning home buying in favor of renting, but these stats prove that that may not be the case.

• 86% of younger millennials (aged 21–28) and 52% of older millennials (aged 29–38) were first-time home buyers. Meanwhile, Generation X (people between the ages of 39–53) consisted of 24% of 2018 home buyers. 18% of younger baby boomers (people between the ages of 54–63) and 14% of older baby boomers (people between the ages of 64–72) were home buyers in 2018. 7% of home buyers belonged in the silent generation (people between the ages of 73–93), the smallest segment of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 2020 is expected to be the peak year for millennial home buying. (Realtor.com National Housing Forecast, 2019)
• Millennials will account for 45% of mortgages in 2019. (Realtor.com National Housing Forecast, 2019)
• 25% of Generation X home buyers identified as a race other than white/Caucasian, making them the most racially and ethnically diverse population of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 25% of home sellers in 2018 belonged in Generation X, making them the largest segment of sellers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• In 2018, 63% of home buyers were married. Additionally, 18% were single females, 9% were single males, and 8% were unmarried couples. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• In 2018, 37% of home buyers had children under the age of 18 living at home. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Real estate financing statistics

As student loans continue to ensnare the population into a collective $1.7 trillion debt, real estate financing has been impacted.

Notably, home values are increasing while millions of Americans are spending more than 50% of their earnings on their home purchase.

• As of February 2019, the median home value in the United States is $226,300. (Zillow, 2019)
• United States home values have gone up 7.2% since 2018. (Zillow, 2019)
• The median rent price in the United States is $1,650. (Zillow, 2019)
• 88% of home buyers financed their home purchase. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• For 58% of buyers, their down payment came from their savings account. 39% of buyers financed their home using the proceeds gained from the equity of their previous residence. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 13% of all buyers cited that saving for a down payment was the most difficult step in the home buying process. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• Around 50% of renters are paying more than 30% of their income on rent. (PWC Emerging Trends in Real Estate, 2019)
• 12 million Americans spend more than 50% of their earnings on their home purchase. (PWC Emerging Trends in Real Estate, 2019)

Real estate marketing statistics

Real estate agents understand the benefits of a good marketing plan. The majority of agents are using their budget for marketing efforts in 2019 in the hopes of gaining better leads.

• On average, 31.5% of brokers and real estate agents plan on spending more than $400 a month on real estate marketing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 46.4% feel their top marketing challenge is generating enough high-quality leads. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 16.5% of real estate agents had success with purchased leads. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)
• 53.6% think adding more locally focused content to their real estate website will make it more appealing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 84.6% of brokers and real estate agents use Facebook for their social media marketing efforts. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 30% of brokers and real estate agents want to learn more about the specific housing interests (e.g., home types) of their audience. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 49.5% of brokers and real estate agents want video marketing to be a big part of their marketing strategy. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 43.8% of real estate agents would invest in referrals if they had extra budget for marketing. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)

Real estate agent statistics

A real estate agent or broker is a professional that is licensed to sell property in their state. The business of buying and selling properties can be incredibly lucrative but doesn’t come without its difficulties.

• 49% of agents report working 40 or more hours per week, while 22% report working less than 30 hours (Placester, 2019).
• The largest expense for working real estate agents is transportation at around $1,370 per year (National Association of Realtors, 2019).
• Agents earned 17%of their business from referrals, and only 13% from returning clients (National Association of Realtors, 2019).
• 62% of agents spend at least one hour a day on marketing (Placester, 2019).

TIP: Getting your titles mixed up? Learn the difference between a real estate broker vs agent.

Commercial real estate statistics

Commercial real estate refers to non-residential property that serves to generate income. This includes shopping malls, hotels, and office spaces.

• In 2019, the average commercial real estate sale was $1.2 million (National Association of Realtors, 2019).
• The total dollar volume of commercial sales in the US has decreased since 2018. In the large market (sales greater than $2.5M), sales decreased by 11%. In the small market (sales less than $2.5M), the decrease was closer to 8 percent (National Association of Realtors, 2019).
• Toledo, OH and Syracuse, NY have the highest rental vacancy rates in the country at 18.1% and 17.9%, respectively (National Association of Realtors, 2019).
• Based on annual rent, 5th Avenue in New York City has the most expensive retail rates in the world (Statista, 2019).
• With an average cost of $255.50 per square foot, Hong Kong is the most expensive city in the world for renting office space (Statista, 2019).

 

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