“The Real Estate Almanac gives the industry unprecedented insight into who is who, which companies are achieving business success and how new business models are exploding,” said T3 Sixty CEO Stefan Swanepoel.
SAN JUAN CAPISTRANO, Calif. (PRWEB) April 09, 2020
T3 Sixty, the residential real estate brokerage industry’s leading management consulting and research firm, has released its 2020 ranking of the U.S.’s largest enterprise real estate companies, which include holding companies and franchisors, by 2019 sales volume, transaction sides and agent counts.
The report, the fourth section of T3 Sixty’s comprehensive annual Real Estate Almanac, reveals that the nation’s 20 largest real estate holding companies, which represent both the company-owned brokerage and franchise divisions of a real estate company, handled 52.79 percent of existing home sales volume in 2019, up from 51.75 percent in 2018 and 49.42 percent in 2017. Transaction side market share for the 20 largest companies jumped similarly over those periods to 46.88 percent in 2019. Total market was based on total home sales counts and average home sale price as reported by NAR.
With a 2019 sales volume of $504.21 billion, Realogy Holdings Corp. again ranks as the nation’s largest residential real estate holding company despite seeing a 1.44 percent annual sales volume drop over the last year.
The following holding companies round out the top five by 2019 sales volume:
- Keller Williams Realty, $336.59 billion (up 4.51 percent from 2018)
- RE/MAX, $269.93 billion (up 2.78 percent from 2018)
- HomeServices of America, $206.08 billion (down 0.91 percent from 2018)
- Compass, $91.27 billion (up 100.40 percent from 2018, thanks to big acquisitions)
The biggest year-over-year growth among holding companies came from Compass (up 100.40% due to large acquisitions folded in), eXp World Holdings (up 82.63% due largely to organic growth) and Hanna Holdings (up 35.79% due to the Allen Tate merger that officially only closed in 2019).
Among the nation’s 20 largest franchise brands by 2019, Keller Williams Realty, with a sales volume of $336.59 billion stands out as the nation’s largest franchise brand for the second consecutive year. Under the franchisor section Realogy is broken up into the separate franchises, Coldwell Banker, Sotheby’s, Century 21, ERA Real Estate, Better Homes and Gardens and Corcoran.
The following franchise brands filled out the top five by 2019 sales volume:
- RE/MAX, $269.93 billion (up 2.78 percent from 2018)
- Coldwell Banker Real Estate, $240.12 billion (down 2.47 percent from 2018)
- Berkshire Hathaway HomeServices, $115.43 billion (up 2.69 percent from 2018)
- Sotheby’s International Realty, $102.29 billion (up 2.24 percent from 2018)
Franchise numbers include production from all franchisees, affiliates as well as company-owned stores operating under the same brand. For example franchising newcomer Corcoran Group who only started franchising in 2019 already ranks No. 15 because it had existing company-owned stores operating under the franchise brand. Realty One Group’s strong 22.25 percent sales volume growth was however largely as a result of actual significant new franchise sales.
Only two mega franchisors reached the coveted 1 million annual transaction count: Keller Williams Realty with 1,071,208 and RE/MAX with 1,004,318. Five other franchisors reached the impressive 100,000 transaction milestone in 2019.
“The Real Estate Almanac gives the industry unprecedented insight into who is who, which companies are achieving business success and how new business models are exploding,” said T3 Sixty CEO Stefan Swanepoel. “Referencing any other rankings that use less comprehensive and all-inclusive data creates a false perception of reality,” he said.
“Agent count is the third barometer after sales volume and transaction count and unmistakably underscores the size differences,” said Michele Conn, T3 Sixty senior vice president and lead researcher.
The largest real estate holding company by agent count, Realogy, ended 2019 just short of 190,000 real estate agents. In comparison, 10,000+ agents will place a company at number 10 and approximately 3,300+ will bring you in at number 20. Most companies support agents who do between four and eight transaction sides per year. Among the large companies only a handful are able to empower their agents to average double-digit sides, per agent, each year.
Leaders among the nation’s 20 largest holding companies are:
- 1. Redfin – 34.3 transaction sides per agent
- 2. RE/MAX – 15.9 transaction sides per agent
- 3. Windermere – 12.1 transaction sides per agent
- 4. Hanna Holdings – 11.7 transaction sides per agent
- 5. John L Scott – 11.6 transaction sides per agent
Please visit the new Enterprise section on the 2020 Real Estate Almanac website where users can sort enterprise company data by sales volume, transaction sides and agent count.
About T3 Sixty
Exclusively serving the residential real estate brokerage industry, T3 Sixty provides management consulting and counseling to real estate C-level executives, organized real estate leaders, broker-owners and leaders of high-performance teams to help them grow their businesses. T3 Sixty also offers in-depth research, information and best practices with its hallmark Swanepoel Trends Report, an annual analysis of the biggest trends impacting the industry, and the Real Estate Almanac, a comprehensive examination of the U.S.’s largest brokerages, franchises, networks, associations, MLSs and technology providers. More at t360.com.
About the Real Estate Almanac
The Real Estate Almanac is a comprehensive compendium of information of the residential real estate brokerage industry’s most powerful and influential people, largest companies and organizations and its most important technologies. The publication, which debuts in June 2020, includes five components: the SP200, a ranking of the nation’s most powerful leaders (released each January); a ranking of the nation’s largest MLSs and Realtor associations (released each February); the Tech 500, the nation’s leading technology vendors (released each March); a ranking of the nation’s largest franchisors, holding companies and enterprises (released each April); and the Mega 1000, a ranking of the nation’s 1,000 largest brokerages (released each May). Together, these comprise the Real Estate Almanac. More information realestatealmanac.com.