ZipRealty - Competitors

ZipRealty Competition

Now Viewing ZipRealty's competition in: Real Estate Brokerage and Management (primary)

Recent Developments

New Home Sales Decline - New US home sales, a driver of real estate brokerage and management services, fell 30.7 percent in the first two months of 2008 compared to the same period in 2007. Sales fell 48.8 percent in the Midwest; 31.1 percent in the South; 22.4 percent in the West; and 10.2 percent in the Northeast. Many experts say that US home sales will remain low through 2008 due to continuing economic weakness.

Office Vacancy Rate Stable in 2008 - The US office vacancy rate, an indicator of office rental demand, will be virtually flat in 2008 compared to 2007, according to Grubb & Ellis. Weak economic conditions will keep US job growth low or flat during 2008. Office space construction will rise 22 percent in 2008 compared to 2007, and that new supply of office space will about equal demand.

Residential Rental Vacancy Rate Declines - The US residential rental vacancy rate, an indicator of apartment rental demand, fell 2.1 percent in fourth quarter 2007 compared to the same period in 2006. Rising defaults on home mortgages in 2008 may drive the residential rental vacancy rate even lower as former home owners seek temporary residence while looking for new homes. Higher credit standards may also prevent renters who would like to buy homes from obtaining mortgages.

Competitive Landscape

The profitability of real estate management companies (which mainly have fixed costs) depends on demand for the properties they're associated with or the volume of transactions they handle, both of which are usually higher during periods of strong economic growth and can be negatively affected by a recession or by too much new construction. Large companies have only modest economies of scale and benefit mainly from better name recognition than smaller competitors.

Full Industry Overview For Real Estate Brokerage and Management

Real Estate Brokerage and Management Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US real estate businesses, which includes real estate management services, is forecast to increase at an annual compounded rate of 4.7 percent between 2007 and 2012.

Real Estate Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.