Unlocking Prosperity: Property Management Market Growth (2024)

Property management is a fast-growing industry, and this market growth shows no signs of slowing down. According to market research firm Beyond Market Insights (BMI) and Straits Research (SR), the US property management market is poised for exciting developments by 2032. In this article, we’ll uncover new property management market trends, growth factors, and the overall forecast.

Property Management: A Forecast for Market Growth

Property managers in Washington, DC are among the management professionals poised to enjoy increased market growth in the upcoming years. Beyond Market Insights and Straits Research, each found promising results for the property management industry’s future. These results encompassed the industry’s:

• Market size and share
• Property management industry trends
• Market growth analysis
• Constraints
• Segmental analysis

Market Size and Share

The housing market has been tough over the last few years, driving many would be homebuyers into the rental market. Analysts at Beyond Market Insights predict that the property management market growth rate will exponentially increase throughout the forecast period. They expect that the demand for property management services will skyrocket and create overall “favorable” conditions for the market to grow.

Property Management Industry Trends

As the industry expands, certain trends are sure to emerge. To help investors and industry professionals make sense of the changing landscape, BMI has analyzed the developing property management market growth. Let’s take a look at 5 key trends in this area.

5 Trends in the Property Management Industry

1. Integration of Technology: Artificial intelligence, machine learning, and the Internet of Things are set to transform the trajectory of property management. Smart property management systems are growing in ubiquity, which will increase efficiency and cost control.
2. Sustainable Practices: The property management market is beginning to prioritize environmental conservation solutions. Customers increasingly expect companies to help sustain the environment. Green initiatives and energy-saving solutions are growing in popularity amongst modern renters and their landlords.
3. Remote Management: Since the pandemic, many companies have come to rely on remote work, which in turn has driven a demand for remote property management services. Many property managers are starting to use virtual tours, online rent payment systems, and cloud-based platforms. Straits Research also expanded on this, revealing that companies would turn to technology to streamline asset management.
4. Software as a Service (Saas): Straits Research discovered that SaaS has joined cloud-based services’ ranks as a top-used service delivery method. Many property managers appreciate SaaS for its ability to automate work processes without requiring humans to waste their time on these menial details. Furthermore, SaaS enables companies to make on-premises operations less expensive. Additionally, Straits Research reported that SaaS was necessary to smoothen multi-vendor device compatibility with older systems. This is because SaaS allows employees to refer to data offline, unlike traditional networks. When companies must make data-driven decisions, the ability to constantly access this data is critical. Even better, property managers can use SaaS to create payment systems for tenants.
5. Data-Informed Strategy: More and more property management companies are using real-time data analysis to streamline operations, predict maintenance needs, and keep up to date with tenant demands.

Market Growth Analysis

As BMI has found, there will be several growth factors at play that allow the property management market to flourish.

4 Growth Factors in the Property Management Industry

1. Urbanization and Population Growth: As the population and urbanization both grow, homed people will need property management services more than ever to distribute community resources efficiently.
2. Real Estate Investments: Property management services will continue to be necessary as real estate investment stays strong. Property management firms will be instrumental in helping investors oversee assets.
3. Lifestyle Shifts: Property management companies are matching the pace of new tenant needs, as shown with the integration of smart home features and other amenities.
4. Fulfilling Legal Obligations: As laws continually change, property managers are needed as guides to compliance with these requirements.

Constraints

Straits Research observed that as globalization grows, the real estate industry could face country, city, political, and benefit-related challenges. They were concerned that some local developers would operate slowly or fraudulently, which would throw a wrench in overall market growth.

Segmental Analysis

Straits Research narrowed down the most popular segments of the property management market.

Most Popular Segments of the Property Manager Market

• Market Share: Between residential and commercial property management, residential property management takes the cake for the biggest market share, according to Straits Research. It is forecasted that residential property management will likely maintain its stronghold regarding market growth. Meanwhile, commercial properties will also trend towards growth in the next few years.
• Cloud Deployment: Cloud deployment will remain the most popular deployment segment throughout the forecast period. It’s noted that cloud technology’s user-friendliness, cost-effectiveness, versatility, and tenant satisfaction rates would drive businesses of all sizes to utilize cloud-based property management packages. Furthermore, cloud PMS software has a convenient data backup feature that allows for consistent data integration and recovery. In other words, cloud-based software plays a huge role in moving property management towards the future. It simplifies the industry’s operations to be more efficient and effective.

In addition, researchers divided property management industry end users into four groups: housing associations, property managers and agents, property investors, and others. Property managers led the pack as the biggest money-earners and were specifically noted to “maintain their dominance over the forecast period while growing at the highest CAGR (compound annual growth rate).” Straits Research explained that increased real estate developments and commercial properties as the cause of these advancements.

Looking for a Professional Property Manager?

Overall, the future looks bright for property management companies. The residential and commercial property management industries are projected to have glowing market growth outlooks by 2030. The industry’s market size and share will grow. Property managers will financially come on top above other end-users of property management. Remote work, sustainable operations, data-driven decisions, and advanced technologies are dominating the industry right now. Urban growth, population growth, real estate investments, lifestyle shifts, and law compliance will allow the industry to keep flourishing.

If you want to use an industry-leading property management company, Bay Property Management Group in Washington, D.C. is always on call. BMG professionals have decades of experience in implementing industry best practices. We constantly stay on top of the latest industry trends to make sure that customers get the most seamless experience possible. Contact us today to take your property into the future!