We hope you had a wonderful and safe Thanksgiving weekend.

As we’re in the Christmas season, we thought we’d take another slight detour in this Newsletter to bring you some interesting and fun facts about our real estate industry.

---

This article is brought to you by Tea Turkalj Ilijasic and originally published here.

“Home sweet home” is far more than a well-known saying. It has become one of the core values of human existence. While the term “real estate” sounds far removed from this cinnamon-scented idiom, the two are inseparably linked. And that makes real estate one of those essential and unavoidable elements in the 21st-century lifestyle. 

This topic stirs a lot of emotion, be it positive or negative, but knowing some of the key real estate statistics and fun facts might help you as you search for your dream home. Or perhaps you want to use your impressive DIY skills to turn an old and rundown property you just bought into the house you’ve so clearly envisioned.

So let’s plow through this medley of information on the United States real estate market and perhaps learn some interesting property tidbits from all around the globe.

Surprisingly, the photo in our headline is real. It is Hotel Montaña Mágica, located in Chile. You may see it here.

The Top 10 Key Real Estate Facts and Statistics

• 90% of the world’s millionaires became rich thanks to real estate. 
• The most expensive residence in the world is Buckingham Palace, England. 
• There are no restrictions on foreign property ownership in Japan. 
• 79% of Americans consider owning a home one of the greatest goals to achieve. 
• The average American is likely to move 12 times in their lifetime.
• In 2019, the average age of all homebuyers in the US was 47 years old, according to real estate statistics.
•  With an average rent of $695 for a single-family residence, Springfield, Montana, is the cheapest among the US’s most populous cities.
• 94027 is the most expensive zip code in America.
• Zillow is the most popular real estate and rental marketplace in the US.
• Unsurprisingly, “staged homes” sell 87% faster than non-staged ones.

Real Estate Fun Facts From Around the World

Want to find out what’s the most expensive property or where are the biggest homes in the world? Read on!

1. 90% of the world’s millionaires became rich thanks to real estate.

(The College Investor)

Real estate investing is an excellent way to start growing your wealth. Buying a home as a primary residence and then later renting to reliable tenants helped create a considerable percentage of millionaires around the world. 

2. The most expensive residence in the world is Buckingham Palace, England.

(Investopedia)

Estimated to be worth around $1.55 billion, the residence of Queen Elizabeth II is not likely to ever be listed for sale. Still, this remarkable place is not only the most expensive “house” in the world but also the most famous one. 

3. According to US property facts, Macedonia, Bosnia, Croatia, Serbia, and Slovenia are co-owners of a Manhattan mansion worth $50 million. 

(Inman) 

To deem this a tough sale is putting it lightly since all five countries need to sign the deal, as well as agree on every aspect of it, if this real estate is ever to be sold. Given the complicated relationships among former Yugoslav countries, this is set to be an interesting and challenging task.

4. When they pay off their mortgage, Scots paint their front door red. 

(Homes MSP)

Other fun facts about real estate note that in the early days of America, a red-painted front door told passing travelers this was a safe place to stay the night.

5. There are no restrictions on foreign property ownership in Japan. 

(Real Estate Tokio)

This makes Japan a very desirable location for eager real estate investors from all over the world.

6. The average English home is 774 square feet (71.9 square meters). 

(Independent) 

This means that England has the smallest average home in Europe, real estate stats show. 

7. Australia has the biggest homes in the world. 

(Realtor Magazine)

With an average home size of 2,032 square feet, Australians are certainly enjoying large living accommodations. Americans come second since their homes average 1,901 square feet. 

8. Hong Kong is the capital of the most expensive property in the world. 

(CBRE, National Real Estate Investor)

Real estate facts show that Singapore, Shanghai, New York, Vancouver, London, Los Angeles, and Paris are also among the most expensive places in the world to rent or buy a property. Furthermore, Hong Kong has the most expensive office market in the world. You’re likely to pay $306.57 per square foot for office space in central Hong Kong or $235.01 in London’s West End.   

Interesting US Real Estate Stats and Facts

Here, we‘ll be looking at some captivating facts and stats about real estate in the United States specifically.

9. 79% of Americans consider owning a home one of the greatest goals to achieve. 

(Bankrate)

Owning a home is more important to Americans than having a successful career, having a car, or retiring. However, 51% of Americans say insufficient income prevents them from owning a home. Additional hurdles preventing home ownership in the US include high closing costs, insufficient funds for the down payment, and high home prices. Of course, once a person owns a home, that comes with additional costs like home insurance. 

10. The average American is likely to move 12 times in their lifetime. 

(Steinway)

Be it due to getting married, retiring, wanting a change of scenery, downsizing, or upsizing, not to mention job relocations, Americans will probably move some 12 times, these fun real estate facts show. 

11. In 2019, the average age of all homebuyers in the US was 47 years old.

(Bloomberg, NAR)

Interestingly, 12% of homebuyers opted for a multi-generational house so they could care for their aging parents (44%). Another 34% of them did it to accommodate adult children living in the same household.   

12. The average age of home sellers in 2019 in the US was 57 years old. 

(NAR)

16% of sellers sold their house to be closer to family and friends, and they usually managed to sell their property for approximately $60,000 more than the price they bought it for (this is the median value).

13. In California, real estate statistics show that this state has the largest number of registered realtors in the US. 

(NAR)

California is followed by Florida, Texas, New York, and New Jersey. Meanwhile, Vermont, Puerto Rico, Guam, and the Virgin Islands have the fewest registered realtors. 

14. There are more single female homeowners in the US than single male homeowners.

(Forbes)

With 16.4% of homeowners in Tampa, Florida, being single women, this is the leading city in America in this respect. However, women also tend to pay 2% more when buying homes, and their homes sell for 2% less than those owned by single men.

15. Real estate market statistics indicate that a penthouse in Manhattan is the most expensive home ever sold in the US. 

(Business Insider)

At nearly $240 million, the penthouse at 220 Central Park South stands out in the history of real estate as the most expensive living accommodations ever sold. 

16. Jeff Bezos, CEO of Amazon, spent $165 million for a Beverly Hills mansion.

(Business Insider)

The 13,000-square-foot mansion in Beverly Hills—featuring a golf course, a swimming pool, a tennis court, and two guest houses—was bought by Bezos in February 2020. It’s the second most expensive house sold in America.

Real Estate Statistics by Zip Code

In this section, we’ll be exploring stats on real estate from different areas in the United States. 

17. The city of Stockton, California, has the fastest-growing rents in the US.

(Apartment List)

Rents in Stockton, CA, grew by 28.5% over the last five years. The city is followed by Colorado Springs, Mesa, Arlington, and Tampa. However, the national average grew by only 11.1%, real estate statistics by city point out.

18. With an average rent of $695 for a single-family residence, Springfield, Montana, is the cheapest among the US’s most populous cities.

(GOBankingRates)

Those looking to rent a one-bedroom apartment will pay an average of $525. Springfield is followed by Evansville, Indiana; Toledo, Ohio; Fort Wayne, Indiana; and Akron, Ohio.

19. West Virginia is the cheapest US state for buying a house.

(Business Insider)

The median price of a home there is as little as $169,000. With an average property tax rate of 0.57% of the home value and an average price of $98.38 per square foot, becoming a proud homeowner in West Virginia is more than possible, real estate statistics by state show.

20. Surprisingly, Massachusetts is the priciest US state to buy a home in.

(MarketWatch)

Shooting past hotspots like California, New York, and Hawaii, Massachusetts came out on top as the most expensive state for buying a home. These calculations are based on metrics such as the average price per square foot, effective property tax rate, and average closing costs.

21. Austin, Texas, is the top commercial real estate market in the US.  

(CXRE)

Real estate statistics for 2020 state that Charlotte (North Carolina), Boston, Dallas–Fort Worth, and Atlanta lead the way in terms of the most lucrative commercial real estate locations.

22. 94027 is the most expensive zip code in America.

(Mental Floss)

With a median real estate sale price of slightly over $7 million, Atherton in California’s Bay Area is the most expensive place in the US.

Helpful Real Estate Agent Facts and Tips

If you’re looking to buy or sell your property, these facts and tips about real estate might help you. 

23. 52% of buyers in the US found their desired property online.

(NAR)

The second most common source of finding a property is either via an agent or realtor. Other sources include neighbors and relatives, friends, home builders, and yard signs.

24. 91% of sellers used a real estate agent to sell their home. 

(NAR)

The sellers usually managed to get their property sold for 99% of the asking price, with only 23% needing to reduce the price for it to sell. Furthermore, 69% of sellers have no doubt they would use a real estate agent again, real estate statistics indicate.

25. Realtors and real estate agents are not one and the same.

(HomeLight)

While many use the terms interchangeably, realtors must obtain a real estate license, pay an annual fee of $150, keep to the NAR Code of Ethics & Standards of Practice, and be registered with the National Associations of realtors.

26. 67% of realtors in the US are female. 

(The Business Journals, HomeLight, NAR)

Typically, realtors tend to be white, college-educated females in their fifties. There are more than 2 million real estate agents in the US, according to real estate agent stats. However, realtors make up the majority of real estate agents in the US (1.37 million).

27. 48% of real estate firms found keeping up with technology challenging.

(NAR)

As more than 50% of buyers now find homes online, staying on top of technology is seen as a huge challenge by many real estate firms for the future.

28. As of 2020, the typical US real estate agent salary falls between $41,208 and $53,656.

(The Balance)

Yet, top real estate agents earn around $64,000. However, real estate facts point out that there are also real estate “rockstar” agents who earn from $112,610 to millions of dollars annually if they work in elite real estate locations like Los Angeles. Success is both sales- and location-dependent. For example, if they have great real estate agent sales data, they’ll likely earn a higher salary.

29. Zillow is the most popular real estate and rental marketplace in the US.

(The Most Expensive Homes)

The combination of relevant data, knowledge, and savvy use of technology has elevated Zillow to the very top of real estate websites. If you’re looking to become a homeowner, Zillow is a great place to start. 

30. According to Zillow, 13% of Americans feel they have the wrong mortgage.

(Zillow)

Not doing enough research on the types of available mortgages or failing to get a mortgage pre-approval are among the most common mistakes homebuyers make, real estate agent statistics show.

31. Agent-assisted sales went for a median price of $280,000. 

(NAR)

For-sale-by-owner home sales, i.e., those done without an agent or real estate broker, sold at a median price of $200,000. Furthermore, 90% of buyers reported they were very happy with their real estate agent and would use them again. 

32. Unsurprisingly, “staged homes” sell 87% faster than non-staged ones.

(Forbes, The Apopka Voice)

Staged homes sell for 17% more, on average, and 95% of them are likely to be sold within 11 days, real estate agent stats show. However, looking past the staged perfection is a must as 36% of new homeowners note that repairs and unforeseen maintenance are their biggest regrets.

33. A fresh coat of paint, improving curb appeal, and adding usable space can all boost a house’s price. 

(Bankrate, CNBC)

While these changes won’t break the bank, they can add coveted dollars to the final price when the time comes to sell, real estate agents advise. Also, adding solar panels to a house can help raise the price of the property considerably. Plus, there are many DIY projects that you can do to increase the resale value of your home.

Conclusion 

For most of us, owning a home, a place that is ours and ours alone, a safe harbor to which we return at the end of a hard day, is a dream.

For some, that dream becomes a reality sooner rather than later. Others may be in the midst of planning, plotting, and coming up with ways to turn a profit from real estate. These real estate statistics leading up to 2021 might just be a starting point or a handy thing to keep in mind for when the right time comes to make a well-informed move.

FAQ

How big of an industry is real estate? 

Available data shows that the real estate industry makes up around 13% of the US’s GDP. In 2018 alone, its contribution to the US economy was over $2.7 trillion. Additionally, corporate profits went over $10 billion, and more than 2 million people found employment in the real estate industry.

(Realtyna)

What age group buys the most houses?

If current statistics are anything to go by, millennials are set to buy the most homes in 2020, which will take them past Generation X, as well as the baby boomers. In fact, 2019 saw a notable shift in this respect—37% of millennials became home buyers, surpassing Generation X at 24% and baby boomers at 32%.

(CNBC, NAR)

What is the projected housing market for 2020?

The end of 2019 saw the median home price going all the way up to a record-breaking $316,000. Yet, due to the current COVID-19 global pandemic, the situation has changed considerably. In fact, it might even be deemed a Sisyphean task to make any sage predictions at the moment. However, some real estate market speculations indicate that sales could drop by 35%, meaning only 4 million sales are expected for 2020. This pandemic will likely affect not just this year but also 2021, when the overall home sales in the US are expected to be around 6.1 million.

(Dave Ramsey, CNBC) 

What is the average age to buy your first house?

The combination of lingering student debts and higher real estate prices has pushed the median age of first-time homebuyers to 33. The average age of all buyers also increased and is now 47, a substantial change from 31 years of age in 1981. 

(Bloomberg)

How many houses were sold in 2019?

According to Statista, some 5.34 million homes were sold across the US in 2019. Some predictions expect that 5.52 million and 5.57 million will be sold in 2020 and 2021, respectively, but the current world situation may impact these numbers. These are the kinds of real estate statistics we will likely be seeing in the future. 

(Statista)

Sources: 

• Apartment List
• Bankrate
• Bankrate
• Bloomberg
• Business Insider
• Business Insider
• CBRE
• CNBC
• CNBC
• CNBC
• CXRE
• Dave Ramsey
• Forbes
• Forbes
• GOBankingRates
• HomeLight
• Homes MSP
• Independent
• Inman
• Investopedia
• Market Watch
• Mental Floss
• NAR
• NAR
• NAR
• NAR
• National Real Estate Investor
• Real Estate Tokio
• Realtor Magazine
• Realtyna
• Statista
• Steinway
• The Balance
• The Business Journal
• The College Investor
• The Most Expensive Homes
• Zillow
• The Apopka Voice