United States Property Management Market Size, Share & Covid-19 Impact Analysis, By Component (Software and Services), By Deployment (Cloud and On-premises), By Application (Residential and Commercial), By End-User (Property Managers, Housing Associations, Real Estate Agents and Others), and Country Forecast, 2021-2028

The United States property management market size was USD 3.40 billion in 2020. The market is projected to grow from USD 3.62 billion in 2021 to USD 6.16 billion in 2028 at a CAGR of 7.9% in the 2021-2028 period. The impact of COVID-19 has been unprecedented and staggering, with property management witnessing a negative impact on demand across country amid the pandemic. Based on our analysis, the U.S. market exhibited a significant growth of 6.2% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Property management solution monitors and manages the property operations of the commercial and residential buildings. The solutions enable property managers to seamlessly carry out tasks such as vacancy alerts, automate customer interaction, marketing, payment related processes, revenue management, lease management and more. Furthermore, the integration of advanced technologies such as virtual reality, artificial intelligence, internet of things, machine learning and more is likely to boost market growth. For instance, in June 2019, AppFolio, Inc. launched an artificial intelligence powered utility management and leasing assistant solutions under its value+ services segment.

COVID-19 Impact

Outbreak of COVID-19 Crises is likely to Surge Adoption of Innovative Technologies in Real Estate Industry

The COVID-19 crisis has brought substantial changes in property management processes. Before the pandemic, the aim of property managers and agencies was to get potential buyers or tenants into the building (be it residential, office, or shed) to tour the property and convince them to rent or buy. However, the emergence of the pandemic suddenly changed the real estate scenario, forcing property managers to utilize technology as it was the only way to continue day-to-day business to sustain in this crisis.

In the US, the pandemic has accelerated the speed in which real estate agencies, property managers and house associations have adopted digital technologies. In 2020, market players offered cloud-based software to the landlords to optimize rent collection, meet regulation standards, maintain profit performance, keep tenants leased and manage those tenants well. For instance,

• In March 2021, RealPage, real estate analytics and software company, launched a new virtual tour solution for apartments that encompasses on-demand tours with a live agent. This solution allows potential renters to explore interactive content related to the property such as aerial views, floorplans, 3D walk-throughs, interactive site maps, amenities, and other points of interests. Thus, the outbreak of coronavirus is expected to fuel the adoption of technologies for handling the property operation.

LATEST TRENDS

IoT-based Smart Property Management Software to Boost Market Growth

The internet of things (IoT) is about the connection between devices, sensors, appliances, beacons, Wifi, among others. Implementation of IoT technology and smart devices can be a game-changer in various verticals. The demand for IoT is rapidly gaining traction in the real estate sector to enhance the software.

The software vendors have started integrating the technology with the software to built-up communication between the property and its managers, owners, investors, and more. For instance, Texas-based developer, Capstone Partners, collaborated with IOTAS, an IoT solution provider, to set up the connected smart home environment for the renters. Thus, the rapidly growing shift towards smart homes is expected to boost the software demand in the future.  The vast set of data generated through all the connected devices, platforms, and appliances can be utilized in boosting the software functions. Also, with data analysis, the adoption of IoT is expected to help the property owners in identifying connected devices performance, and can accordingly take call-to-action to provide better services to the tenants. As per the building efficiency panel of Johnson Controls survey, 70% of the responders believe that implementation of IoT for predicting and diagnosing patterns is expected to drive its demand for the software.

DRIVING FACTORS

Increasing Demand for Rental Property to Surge Market Growth

The real estate industry is witnessing rapid growth in the rental property of both commercial and residential. As per America’s Housing Vacancy Survey, the rental market witnessed a rise in the number of renters by 350,000 during the first three quarters of 2019. The availability of accessible, affordable, and quality properties in major city locations is driving the growth of the renter in the country.

Further, the employment opportunities, immigration & domestic migration, increasing international students, rising residential home prices, shift towards urbanization or lifestyle changes and more are likely to surge the demand for rental properties. According to the Americas Rental Housing 2020 report, in 2018 one-third of the U.S. rental units were single-family homes, 17% were small apartments, and 23% of commercial buildings with 20 or more units. Thus, the country is witnessing a significantly growing demand for rental properties. Managing all the task burdens the property managers with a lot of paperwork. Thus, to seamlessly conduct all the task, property managers are adopting the software.

Similarly, in the commercial sector, the software helps businesses and complex owners in managing regular payments through its revenue management solutions. Thus, the increasing number of renters are expected to boost the United States property management market growth.

RESTRAINING FACTORS

Increasing Security and Data Breaches to Obstruct the Market Growth

The software collects crucial and personal information of both clients and owners. The data such as payment mode, transaction PIN, social security number, customers' personal data such as an address, email address, mobile number, legal documents among others are stored on the software. Similarly, the clients' behavior, historical data, preferences are also traced and saved on the software. Data breach can be targeted through any digital connection if the software is not properly secured.

The real estate industry and the agency are at high risk for security threats as more personal and confidential data is handled and stored through the software. As per the One Step Secure IT, 2018 survey, one-third of real estate firms experienced a cybersecurity attack. Thus, the less awareness on security solutions and increasing risk of a data breach is likely to hamper the United States property management software market share.

SEGMENTATION

By Component Analysis

Rising Demand for Multi-Purpose Solution in Real Estate to Surge Market Growth

Based on components, the market is bifurcated into software and services. The services are further segmented into consulting, and support and maintenance.

The software to dominate the segment revenue share during the forecast period. Some of the software listed from the key players offering are sap residential & commercial real estate management software, software license, erp and financial services among others.  Its capabilities of managing multiple property operational tasks is driving its demand in the market. Revenue management, accounting, leasing, community association management, document and maintenance management are some of the functions performed by the software.

The growing demand for the management software is expected to demand for services. Adoption of cloud-based solutions is likely to fuel support and maintenance demand.

By Deployment Analysis

Rapid Shift Towards Cloud-based Models to Boost Market Share

Based on deployment, the market is categorized into cloud and on-premises.

The cloud-based software to dominate segment share along with gaining rapid growth during the forecast period. The advanced security and cost effective solution is likely to boost cloud-based software demand for controlling property activities.

The majority of organizations are now shifting towards cloud platforms from on-premises deployment. However, some organizations are also investing in an on-premises model as it reduces the risk of data breaches and internet security threats.

By Application Analysis

Rapidly Increasing Residential Renters to Fuel Market Growth

Based on the application, the market has been segregated into commercial and residential. Residential holds the largest market share. Some of the residential application solutions for residential management are multifamily suite, risk management & monitoring, senior living suite and more. This growth of the market is primarily owing to the requirement for the software to manage residential properties such as single and multi-story apartments, houses. The key players are continuously focused on offering innovative residential solutions. For instance, in July 2021, Entrata Inc. announced its plan to launch ResidentPortal 4.0 in October 2021 along with upgraded features such as account verification, renewals, document uploads, resident services, transfers, community announcements among others.

The commercial segment is anticipated to perceive steady growth over the forecast period. Its segment is further divided into retail, government, commercial buildings, and others. In the commercial segment the demand for the software is increasing to keep the vacant space leased, manage and process efficient workflows, organization of information in one place, and to make informed decisions based on real-time insights. 

By End-User Analysis

Real-Time Assistance Capabilities of the Software to Boost its Adoption within Property Managers

Based on end-user, the global market has been segmented into property managers, housing associations, real estate agents, and others.

The property managers hold maximum shares and are expected to continue its dominance during the forecast period. The offerings such as CoreLogic Underwriting, AppFolio Property Manager, MRI Lease Management, and more helps property managers in offering quality services to the renters. The software helps the managers in showcasing virtual property, automate housing work, analyze tenant historical data and behavior, gain real-time insights and support in maintaining property premises, tools and other hardware among others. Also, it helps the property managers in managing tasks such as assisting clients, understanding customers' preferences, answering clients’ queries, arranging virtual shows among others.

Similarly, real estate agents can use the software in tracking buyers, for its marketing and publicity, offering virtual sessions for clients to view property areas and more. For instance, in July 2020, Chicago-based AMLI Residential collaborated with Entrata Inc. to implement management services for its front-end accounting, leasing, payments, and communications operations. This is expected to drive the software market growth.

KEY INDUSTRY PLAYERS

Strategic Acquisition to Boost Key Players Market Expansion

The key players in the United States property management market are focused on acquiring a variety of expertise such as revenue management, payment services, communication solution, facility management, and lease management areas to enhance its software capabilities and product application. This strategy is helping the companies in expanding business presence in the U.S. Along with acquisition, strong focus on partnership and collaboration is helping the key players in offering innovative products and experience. Further, enhancement and expansion of the existing product portfolio is also helping in uplifting the position of vendors in this market.

January 2021 – MRI Software LLC acquired the North Carolina-based AMTdirect to increase its presence in the U.S. This acquisition helped the company in increasing the depth of solution offerings along with new addition of AMTdirect client base.

August 2020 – Realpage, Inc. acquired a smart apartment systems and devices provider, STRATIS IoT, to enhance residential experience. The company integrated the smart home devices and system, to offer unified applications for the residents. This application is helping the owners and managers in generating more revenue by offering advanced facilities and amenities.

List of the Key Companies Profiled:

• RealPage, Inc. (Texas, U.S.)


• Yardi Systems, Inc. (California, U.S.)


• ResMan, LLC (Texas, U.S.)


• MRI Software, LLC (Ohio, U.S.)


• AppFolio Inc. (California, U.S.)


• CoreLogic, Inc. (California, U.S.)


• Infor, Inc. (New York, U.S.)


• Entrata Inc. (Utah, U.S.)


• ApartmentData.com (Texas, U.S.)


• Buildium, LLC (Massachusetts, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2021 – Entrata Inc. announced its new service in Amazon’s Alexa in residential. Through this integration, the property managers can offer an innovative and customers voice-enabled experiences along with other management services for its properties.


• July 2021 – Yardi Systems, Inc. announced the launch of new product suit, Yardi Corom for commercial tenants. The new product offers unified platform for lease management, and for flexible workplaces it manages occupancy tracking and desk hoteling. The Yardi Corom also offers support in managing transactions, facility maintenance, and capital projects.

REPORT COVERAGE

The U.S. property management market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, it provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the U.S. level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION