As supply dwindled, the nation’s largest brokerages gained market share

The largest real estate brokers and franchise networks made big market share gains in 2021, a new report reveals.

As the supply of homes for sale hit new highs last year, top real estate brokerage firms and franchise networks have tightened their grip on remaining inventory, according to a new report.

The share of home sales accounted for by the top 20 real estate companies soared to 61% in 2021, from 55% the previous year, according to the latest company report from Q3 Sixty.

The market share gains of the largest brokerage players represent an additional concentration of sales volume in an already heavy industry.

“The residential real estate sector has been consolidating at an accelerated pace over the past few years and this data shows just how important it is,” T3 Sixty vice president of research Paul Bishop said in a statement. a statement.

In 2018, the top 20 real estate companies accounted for just over half of existing home sales reported by the National Association of Realtors. This means that the market share gains of these large companies in 2021 alone eclipsed those of the previous three years combined.

The biggest player in the market was Realogy Holdings Corp., the company behind a number of the largest brokerage and franchise networks, including Realogy Brokerage Group, Coldwell Banker, Sotheby’s International Realty, Century 21, Corcoran Group and others.

Realogy’s various companies and brands accounted for nearly $738 billion in sales volume in 2021.

The second largest real estate company was KWx, the holding company behind the franchise brokerage brand Keller Williams. KWx accounted for $500 billion in home sales.

RE/MAX Holdings came third with $341 billion, followed by HomeServices of America with $292 billion and Compass with $254 billion.

This “Big 5” alone accounted for almost half of the national market share of existing home sales, at 47%.

Among the top 5 companies by market share in 2021, Compass experienced the fastest growth in 2021. The company’s sales volume increased by 67% from 2020 to 2021, actually exceeding the total sales volume of Realogy Brokerage Group, the largest subsidiary of Realogy Holdings Corp. .

Realty Executives and Douglas Elliman Real Estate – both on the Top 20 list – saw year-over-year sales growth similar to that of Compass.

But two big companies have actually seen their sales volume double from 2020 to 2021: eXp World Holdings; and Brown Harris Stevens’ parent company, Terra Holdings. These two companies led the top 20 companies in terms of sales growth rate over the previous year.

Of the franchised brands, Keller Williams remained the biggest player. But some competitors have achieved strong sales volume growth.

This charge has been led by the Corcoran Group, which has nearly doubled its sales volume over the past year. Realty Executives ranked second in growth rate among major franchise brands, with almost 70% more sales last year than in 2020.

Email Daniel Houston

Lance B. Holton