Last Updated: February 25, 2021
Whether you’re an individual homebuyer, seller, or professional realtor, when it comes to buying and selling homes (or any property), you need to be aware of and keep an eye on the latest real estate market trends in order to position your property better and secure a good deal.
To help make things a little easier for you, we’ve gathered some of the major real estate statistics from the U.S. market.
Fascinating Real Estate Facts
- 67.9% of Americans own a home in 2020.
- In 2019, buyers spend three days fewer in house hunting than a year ago.
- In 2019, the median home price in the US is $267,300.
- 50% of buyers find their new home online.
- In 2018, there were 5,500 properties sold in San Francisco.
- 2020 is expected to be the year with peak immobile property purchases by millennials.
- By 2020, millennials will account for 45% of the mortgages on the market.
It doesn’t matter whether you are a buyer or a realtor, or you wish to invest in real estate, or you just love browsing for private property. On our journey through NAR statistics today, we will make a few stops that will show us what has been happening in the world of real estate in the past five years.
As we’ll talk about sellers and buyers, we need to establish something in advance. Nowadays, there’s a lot of differentiation between the generations. Do you know what the term “silent generation” designates? Exactly. We want to give you the full picture of real estate statistics, and we’ll start by clearing up the generation thing early on:
Did you find yourself somewhere on this list? Good. Now that we have the road cleaned up ahead of us, we can move onto the hottest real estate statistics.
Real Estate Industry Statistics 2020
Real estate is a huge industry. Listing all the real estate trends of 2020 is beyond the scope of this article. Therefore, we will share some of the major real estate statistics from different sectors of the industry to give you an overview.
Housing Market Statistics
Let’s start with a one-on-one comparison of the US housing market in 2019 and 2020.
1. The US housing market is worth $33.6 trillion.
(Source: World Property Journal)
The U.S. housing market has been struggling to regain its lost position for a decade. However, it has reached new heights of growth in early 2020. According to the latest research, the US real estate market experienced a growth of $11.3 trillion (more than 50%) and now stands at $33.6 trillion, which is equal to the combined GDP of the U.S. and China, the two largest economies of the world.
2. 67.9% of Americans own a home.
(Source: United States Census Bureau)
According to the latest quarterly residential vacancies and homeownership report issued by the United States Census Bureau, the homeownership rate in the United States increased to 67.9% in the second quarter of 2020. This is 2.6% higher than that of the first quarter of 2020 and 3.8% higher than the homeownership rate in the second quarter of 2019.
3. 50% of buyers find their new home online.
- 28% of buyers found their home through a real estate agent.
- 48% of real estate agents consider keeping up with technology one of the greatest challenges of the field.
- 51% of shoppers use YouTube as their number one destination for research.
The Internet plays a huge role in the world of real estate nowadays. Almost every buyer starts their research online. It’s the world we live in! And both buyers and realtors need to adjust.
If you think about it – real estate is everywhere. Since the beginning of humanity, people have strived to perfect the inside of their homes. In the beginning, it was just caves – but even in the caves there used to be a campfire (at some point) and a couple of designated areas for sleep.
It can be said that our environment is so based on real estate that it is almost invisible.
Realtor statistics will help us “read” what is happening in the world of real estate these days. For the purposes of our research today, we selected statistics from the period 2016-2019. So, what happened in real estate in the last three years?
We are here to find out. Let’s see:
4. Staged homes sell 25% faster than non-staged ones.
- The value of US homes has increased by 7.2% since 2018.
- In 2019, the cost of rent in the US has increased by 66%.
- The largest percentage of homebuyers in 2019 – 26% – are older millennials.
In 2019, things look like this:
(Image: US Realty Records)
Now, if you are interested in buying:
Before you start house hunting, which will hopefully lead you to the steps of your new home with a key in one hand and a champagne glass in the other, make sure you research the market well. To get you going, we have made a list for you of some of the best real estate websites:
And there are so many others you can visit! The thing is – start online before you contact a broker. There are also the for-sale-by-owner websites you can check out.
5. 36% of new homeowners say their biggest regrets are unexpected maintenance and repairs.
- In 2018, around 33% of new homeowners were first-time home buyers.
- In 2018, 65% of real estate buyers under 37 were first-time home buyers.
- Home maintenance work costs reach $1.105 per consumer in the U.S. in 2018.
- Renewal of home warranty service contracts in 2016 accounted for 65% of the industry revenue in the U.S.
- The smallest percentage of homebuyers in 2019, 7%, are representatives of the Silent Generation.
According to real estate sales statistics:
6. By 2020, millennials will account for 45% of mortgages on the market.
(Source: Dave Ramsey)
- In 2018, 37% of residential buyers were millennials.
- 25% of real estate sellers in 2019 are from Generation X.
- In 2019, 75% of property sellers in the US sell their homes with the first realtor they contact.
Investing in real estate is what some people do for a living. In fact, there are many millionaires that have made fortunes that way. In order to invest, you need a strategy. And in 2019, people are turning their heads towards millennials.
That’s right. The majority of home buyers nowadays are millennials. Pleasing this crowd is not a piece of cake, though. They are all mobile and great with research. Bottom line: use as much technology as you can master if you want millennials as your clients.
Did you know: 90% of the world’s billionaires have become rich through real estate investments.
Not everyone who invests in real estate becomes a billionaire, of course. The point is that real estate offers a great way to develop significant wealth. There are a lot of forms of investments in real estate. If you wish to do so, make sure you consult with experts before you start.
Moving on now:
7. 20% of realtors have obtained their license a year ago or less.
(Source: The Close)
- In 2016, 73% of homeowners were more likely to list with a real estate agent who uses video marketing.
- In 2019, 92% of US homes are sold using a broker or a realtor.
- 69% of married couples of older Millennials are potential home buyers.
Real estate agent statistics are amazing, aren’t they? Stay where you are, there’s more to come.
Real Estate Market Statistics
How long do homebuyers search? Where do they get insights from? Virtual tours? Find all the answers below.
8. 84% of new homebuyers say the information they found online was crucial for their research.
- Typical home buyers search for 10 weeks and visit 10 properties before they purchase a home.
- 79% of buyers found detailed information about properties online.
- 78.5% – the highest rate of homeownership, consists of representatives of the Silent Generation.
Let’s see some stats from the US housing market in 2018. The average US home sold in 2018 reached the record price of $385,000.
According to real estate statistics 2018, the younger generations prefer renting instead of buying. In 2016, most US citizens owned their property, but we’ll get to that in a minute.
9. 69% of real estate sellers claim they would make a review of their real estate agent if requested.
(Source: The Close)
- 71% of real estate agents have made residential real estate their specialty.
- In 2016, 40% of buyers found virtual property tours very useful.
- 45% of buyers from the silent generation and baby boomers found virtual tours of property useful in 2016.
Investing in real estate is not what it used to be 100 years ago…
Real Estate Statistics by Town
Now is the time to check out what’s happening at the top of the real estate market in the US. Home buying statistics will lead the way.
For the sake of our research, we’ll narrow things down to three of the most popular real estate destinations in the US. Can you guess which ones they are?
Here is contestant number one:
There is a good reason why California is our number one stop. (Spoiler alert: San Francisco is currently the most expensive place to rent in the US!) The California housing market will give us some hot real estate stats today.
Here we go:
10. In 2018, there were 5,500 properties sold in San Francisco.
- In 2017, two-thirds of San Francisco properties were estimated to be worth $1 million or more.
- Almost one in five realtors in the US lives in California.
- In 2018, there were two million real estate agents in the US.
Did you know: According to Los Angeles real estate statistics, the number of homes sold in LA in 2018 reached 74,500. (Compared to 5,500 in San Francisco – that’s quite the number!)
11. San Francisco is the most expensive place to rent a one-bedroom flat in the US – in September 2019, the average rent amounts to $3,540 per month.
- A two-bedroom rent in California is worth $4,790 a month is 2019.
- Homes in San Jose take an average of 36 days to sell.
- The fastest-growing rents in the US are in California – rents have gone up by 29% since 2014 in the city of Stockton, 23% in Anaheim, and 22% in Long Beach, CA.
Awesome, I know! Now, we move to another real estate giant:
Here are some 2018 real estate statistics for New York. Let’s bring ourselves up to speed, shall we:
12. In 2016, 65.1% of New York residents were renting.
- In 2018, New York was the eighth most expensive residential property marketing in the world – $526 per square foot.
- The average price of ultra-prime residential real estate in New York fell to $38 million in 2018.
- In 2018, the construction costs for individual detached prestige houses reached $4,055 per square meter.
Now, when it comes to renting in the US:
In 2016, the percentage of homeowners in the US was a lot higher than that of renters. Nevertheless, that does not apply to New York. Obviously! The rent for a single-person apartment in Downtown Manhattan is around $9,666/mo. Ouch!
Moving south on the east coast now:
The overall value of the real estate in the state of Florida rose by 4,7% in 2019. The housing market is increasing, and homes are selling in less than three months.
13. Orlando, FL is the number one US location for real estate investments in 2019.
- The median home value in Florida is $235,500.
- 12% of the new inhabitants of Miami, FL, come from Washington, DC.
- In 2018, foreign buyers purchased real estate for the amount of $22.9 billion in Florida.
- The median rent price in Florida is $1,800.
Real Estate Trends
The 2018 real estate trends confirm that the prices of real estate are on the rise. Also, the number of sold brand new homes is increasing, and women are getting more involved in real estate.
Let’s have a closer look:
Keeping up with national trends is crucial when it comes to real estate. It’s not enough to know the market. You also need to know the buyers, the sellers, the financial state of the country, and to follow the hottest real estate news and trends. Yes, it sounds like a lot of work.
How many homes are sold in the US each year?
14. 5.34 million homes were sold in the US in 2018. That’s 0.17 million fewer than in 2017.
- In 2018, 667,000 new homes were sold in the US.
- In 2019, buyers spend 3 days less for house hunting than a year ago.
- In 2019, the average sales price for luxury properties fell down by 1.6%.
- In 2019, the median home price in the US is $267,300.
How about some real estate demographics? They are going to surprise you!
Real Estate Market Report
15. Existing home sales will fall by 15% in 2020, according to the real estate market report.
Even though the real estate industry saw a boom at the beginning of 2020, Relator.com’s 2020 Housing Market Forecast, issued in May 2020, predicts that the overall average home sales would go down by 15% during 2020 when compared with 2019.
16. In 2019, around 63% of real estate agents are female.
(Source: The Close)
- The majority of realtors in 2019 are white females in their mid-50s.
- In 2018, around 18% of home buyers were single women.
17. By 2020, the real estate industry will be responsible for 22% of the total commercial drone usage.
- Only 2% of sold homes in 2018 could be directly linked to newspaper advertising.
- In 2019, only 43% of US realtors have completed a bachelor’s degree or higher.
- In 2019, the building of new houses has increased by 6%.
Young millennials are soon going to reach an age when they will consider purchasing a home. Keeping that in mind, the increase in home building in 2019 is easily explained.
And last but not least:
Real Estate Sales Statistics
18. Median list prices of properties have increased by 8% compared to last year.
According to the July 2020 market summary report issued by realtor.com, the current median list price of houses in the United States is $349,000, which is 8% higher than what it was around this time last year.
19. 2020 is expected to be the year with peak immobile property purchases by millennials.
- 14% of buyers purchased a brand new home in 2019.
- In 2019, 86% of new homeowners purchased a previously lived-in home.
- In 2020, it is estimated that around 5.46 million existing homes are going to be sold.
Housing Market Forecast
What are the market projections? Suburbs or rural areas? Let’s look at the numbers.
20. According to the forecast, millennials will make up about 50% of all homebuyers in 2020.
(Source: Churchill Mortgage)
- The percentage of millennial homebuyers will increase by 13% during 2020.
- 47% of the millennial homebuyers prefer to buy homes in the suburbs rather than in big cities and rural areas.
- Home buying statistics also report that an increasing number of millennials are skipping starter homes and directly opting for big and more luxurious homes.
An increasing number of millennials are now choosing to buy homes. Since their requirements and preferences are different from those of the Baby Boomers, they are playing a major role in reshaping the real estate market trends. In addition to preferring bigger homes in suburban areas, many millennials also keep their pets’ needs at the top of their priority list when making a home buying decision.
In a Nutshell
Acquiring the assets with the biggest potential is what we all want. NAR statistics showed us the facts and trends that every buyer and realtor need in 2019. And now, it’s time to summarize:
Key takeaways for buyers:
- Before you contact a real estate agent – research the market online!
- The value of properties is on the rise because the number of existing homes is not enough for all the buyers.
- Use a mortgage calculator – the idea is to know your budget amount before you make a decision.
- Whether you are selling or buying, you need a professional real estate agent. It’s worth it!
- Do you struggle with bad credit? Don’t worry, there are always solutions even for first-time homebuyers with bad credit.
Key takeaways for realtors:
- Make sure you pay extra attention to millennials!
- Post on YouTube – that’s where people start their research.
- Using video marketing will gain you more clients.
- List your property on Tuesday (and never on a Monday).
- Be aware of your competition – staged homes sell better!
- Acquire more leads with the help of the best real estate lead generation companies
That’s all for now, guys. Our selection of real estate statistics was an eye-opener, wasn’t it?
Good job, guys.
You deserve a coffee break.
See you around.