III. Industry Analysis
The Property Management industry is structurally resistant to economic downturns, primarily as a result of countercyclical demand trends. When the national economy struggles, the homeownership rate tends to decline as consumers and lenders remain cautious, creating demand for rental markets, and therefore, property management. During periods of economic prosperity, the residential market segment tends to weaken as homeownership becomes a more attainable goal and the need for management services slows. During economic upswings however, the expansion of commercial properties becomes more important to the industry.
Over the next five years, the US homeownership rate is projected to decline increasing the need for residential property management services. Nonresidential property management is expected to drive most of the demand for industry operators. An increasing number of US businesses, coupled with expanding existing businesses, is expected to lead to continued commercial demand for industry services and contribute to greater industry revenue. Companies are also expected to expand services offered to increase demand from consumers and businesses, which will likely help guarantee a continuous stream of new revenue.
