The nature of the real estate landscape is constantly evolving; it is hard to keep up with and even harder to predict. Agents have to stay on top of a range of different trends and factors, a challenge that is rarely simple.
To help make that process a little easier, we have compiled a list of 38 key statistics covering some of the most pressing topics real estate agents need to keep in mind: the changing digital trends of the practice, the generational differences among potential clients, and the impact of pandemic-related workplace changes, with some perspective on what they mean for agents.
Let's get to it.
Real Estate Industry Statistics in the Digital Age
Technology Use by Real Estate Agents
- 96% of real estate agents use a smartphone with wireless email and internet capabilities daily.
- 95% of real estate agents use email daily.
- 57% of real estate agents use social media apps daily.
- 69% of NAR members have a website.
- When communicating with clients, real estate agents prefer text messages (93%), followed by phone (90%) and email (89%).
- The top three technology tools that provide real estate agents with quality leads are social media (52%), CRMs (31%), and MLS sites (28%).
Source of statistics: NAR Real Estate in a Digital Age report. Technology Survey 2021.
So what does this tell us?
It seems the real estate sector is keeping pace with the growing digital transformation. New technologies have been woven into the fabric of most of real estate agents' day-to-day operations, with an ever-increasing emphasis on social media activity and a solid online presence for lead generation and brand awareness.
Social Media Use by Real Estate Agents
- 90% of surveyed real estate agents who use social media use Facebook.
- 52% of surveyed real estate agents who use social media use Instagram.
- 48% of surveyed real estate agents who use social media use LinkedIn.
- 24% of surveyed real estate agents who use social media use YouTube.
- 19% of surveyed real estate agents who use social media use Twitter.
- 8% of surveyed real estate agents who use social media use Pinterest.
- 5% of surveyed real estate agents who use social media use Tik Tok.
- 5% of surveyed real estate agents who use social media use Snapchat.
Source of statistics: NAR Real Estate in a Digital Age report. Technology Survey 2021.
What does this tell us?
Social media-savvy real estate agents seem to spend their time on more "mature" social media platforms that lend themselves to direct and potentially long-form communication for lead generation, namely Facebook and LinkedIn.
However, other, less conventional platforms that can add a visual element to real estate promotion are also emerging. Instagram is the second most popular social media forum among real estate agents, and more and more agents are turning to YouTube as a way to promote their brands and gain followers.
Real Estate Trends by Generation
First-Time Homebuyer Statistics by Age
- First-time buyers accounted for 31% of all homebuyers in 2020.
- 82% of buyers between 22 and 30 years old were first-time homebuyers in 2020.
- 48% of buyers between 31 and 40 years old were first-time homebuyers in 2020.
- 22% of buyers ages 40 to 54 were first-time homebuyers in 2020.
Source of statistics: NAR 2021 Home Buyers and Sellers Generational Trends Report
What does this tell us?
These statistics are more or less in line with what you would expect when it comes to who buys homes for the first time: younger buyers are less likely than older ones to have already owned a home.
However, keep in mind that roughly half of older millennials (buyers between 31 and 40 years old) are buying their first home. If you want to tailor your efforts to first-time buyers, try to better understand millennials' typical interests, priorities, and financial circumstances.
Millennial Real Estate Statistics
- Buyers ages 22 to 30 (Younger Millennials) and buyers ages 31 to 40 (Older Millennials) make up the largest share of homebuyers at 37%.
- Older Millennial homebuyers have the highest share of married couples at 69%.
- 28% of Younger Millennials used a gift or a loan from a friend or relative to buy their home.
- 43% of Younger Millennials reported having student loan debt, with an average loan balance of $25,000.
- 37% of Older Millennials reported having student loan debt, with an average loan balance of $33,000.
Source of statistics: NAR 2021 Home Buyers and Sellers Generational Trends Report
What does this tell us?
Millennials are the future of homebuying. That 37% figure is almost inevitably going to rise as millennials get older, grow their savings, and presumably pay off their student loan debt.
As a real estate agent, it will serve you well to prepare for that shift. Again, do what you can to understand what millennials are looking for in the real estate market.
Generation X Real Estate Statistics
- Buyers ages 41 to 55 made up 24% of recent homebuyers.
- Generation X is the highest-earning generation of homebuyers, with a median income of $113,300 in 2019.
- Buyers ages 40 to 54 bought the second most expensive homes, with an average home price of $305,000.
- Generation X buyers were the generation most likely to have children under 18, at 61%.
- Generation X buyers were the most likely to buy a multigenerational home, at 18%.
Source of statistics: NAR 2021 Home Buyers and Sellers Generational Trends Report
What does this tell us?
It may go without saying, but Generation X's higher average income and its inclination to buy more expensive homes make it one of the most profitable generations for real estate agents.
Baby Boomer Real Estate Statistics
- Baby Boomers make up the largest share of sellers at 43%.
- Younger Baby Boomers (ages 57 to 66) typically own their home for 14 years before selling it.
- Older Boomers (ages 67 to 75) had owned their home for 16 years before selling it.
- Older Boomers were the most likely to buy a newly built home, at 19%.
- Baby Boomers expect to own their homes for the longest period of time, 20 years.
- Buyers ages 66 to 74 typically move the farthest to their new homes, an average of 56 kilometers.
- Buyers ages 56 to 65 moved an average of 35 kilometers to a new home.
Source of statistics: NAR 2021 Home Buyers and Sellers Generational Trends Report
What does this tell us?
Right now, Boomers are more likely to sell homes than other generations, so if you are interested in working with sellers rather than buyers, you would do best to deal with them.
But when they do buy homes, many Boomers lean toward buying newly built homes, potentially more expensive than those of their counterparts from younger generations. So don't rush to write them off and focus on younger markets: Boomers still present plenty of sales opportunities for agents.
The Impact of Pandemic-Related Office Changes on Commercial Real Estate
Impact of Work Preferences on Commercial Real Estate
- 65% of commercial real estate professionals report that in 2022 more companies will lease or move to offices with less square footage.
- 70% of commercial real estate professionals reported that more companies are adopting work-from-home or staggered work schedules.
- 54% of commercial real estate professionals reported that companies are paying employees' expenses so they can work efficiently from home.
Source of statistics: NAR Commercial Market Insights Report
What does this tell us?
The pandemic's impact on work preferences is reflected in companies' shift toward smaller offices or fully remote operations, which is shaping a new landscape for commercial real estate agents who sell office space. If you work in that sector, you are probably already aware of that shift. If not, it is something to keep in mind.
The pandemic (hopefully) won't last forever, so the pendulum could swing back toward companies occupying larger office spaces as those kinds of environments become safer and more common.
Real estate is never static, and if you want to stay current, you have to keep up with emerging trends both in the overall landscape of the practice and in your niche within it. It is a fast-moving industry, so constantly researching the changes taking place is in your best interest if you want to be the best agent you can be.
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