Real Estate Asset Management & Consulting

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments that are under common ownership or control.

FORECLOSURE
The legal process in which an owner's right to a property is terminated, usually because the owner defaulted on the property's mortgage.

FRANCHISE
A form of business that operates under a contract agreement and usually pays a business organization a fee to operate under the franchiser's trade name.

REAL ESTATE BROKER
An individual that runs a real estate office and manages agents.

WRITE-DOWN
The process of reducing the book value of an asset because it is overvalued compared with its current market value.

Over the five years to 2022, the industry experienced growth in line with the overall economy. Despite a combination of the economic disruptions caused by the COVID-19 (coronavirus) pandemic and widespread social-distancing measures, demand for homes increased in 2020, due to consumers moving out of cities and into suburbs amid work-from-home arrangements. In turn, industry revenue grew 3.5% in 2020. In 2021, industry revenue further increased 8.3% due to growth in the residential home market, despite further decline in the commercial market. In 2022, these trends are expected to continue moving in a positive directly and will likely contribute to the anticipated 4.7% growth in revenue during the year. Furthermore, over the past five years, industry revenue increased at an annualized rate of 4.9% to $226.8 billion in 2022.