Summary

A project management company deals directly with the tenants or prospects, saving the property owner's time, as they do not have to worry about marketing the rentals, negotiating with the tenants, handling maintenance and repair issues, collecting rent, responding to tenant complaints, and even pursuing evictions. A property management company brings experience in terms of handling property, and provides the owner with optimal solutions.

Since 2016, the US real estate market has been drawing plenty of investments. In the residential sector, the homeownership rates are declining due to various factors, ranging from growing prices to change in consumer attitudes toward buying a house. These have resulted in a favorable market for renters, which is also the major reason for declining vacancy rates during the period.

In the commercial sector, the economic recovery has fostered the commercial markets, leading to increased demand for office space. The growth of rental markets has led to a huge growth in the property management industry. Over the five years, from 2013 to 2018, the property management market registered a CAGR of 7.5%, it may continue growing. There are 800,000 property management service providers in the United States and the number is expected to reach 100,000 by 2024.

Key Market Trends

Declining Millennial Home Ownership

Millennial's attitude toward homeownership is the major factor fueling the declining homeownership rates in the United States. The homeownership rates of the US population aged 35 years decreased for the first time in 2017 and may continue to decrease till 2020. This has resulted in a decline in the overall homeownership in the United States, from 64.8% in 2017 to 64.2% in 2018.

The rising mortgage rates, shortage of starter homes, and high prices of homes have slowed down the residential housing market. The expensive real estate market has given millennials very limited options, leading them to, inadvertently, delay in purchasing homes. The majority of the Millenials pay EMI on their student loans, which have an average debt-per-graduation of USD 30,000, thus making homeownership increasingly difficult.

Growing Opportunity in Hotel Property Management Market

Hotel property management is one of the fastest-growing sectors in the property management market, as the demand-supply far outpaces the new supply, due to the stressful nature of owning and maintaining a hotel. An increasing number of hotel owners are willing to offload the stress and avail the services of an already mature property management market in the United States. Hotel owners are rapidly understanding the value of property management services and their access to direct labor, which include revenue management, HR, accounting, and marketing. All this can be accessed at a fraction of cost, as property management companies have multiple clients. The opportunity is huge in the market, enabling vendors to rapidly upgrade their services and increase their client base.

Competitive Landscape

The competitive landscape analysis provides detailed strategic analysis of the company’s business and performance, such as financial information, revenue breakup by segment and geography, risk analysis, key factors, company overview, business strategy, key service offerings, marketing and distribution strategies, new product development, and recent news.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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