How much do real estate professionals spend on marketing? I can tell you it goes a lot deeper than slapping a few photos on a Facebook ad or buying leads from an aggregator. Borrell reports that in the United States in 2015, sales of approximately 5.3 million existing properties and 490 thousand new homes had an aggregate transaction value of approximately $1.6 trillion, this according to data published in 2015 by the U.S. Census Bureau and in 2016 by the National Association of REALTORS®.
Spend money to make money
There are approximately 1.9 million licensed real estate professionals in the United States, according to data published in 2012, 2013 and 2014 by the Association of Real Estate License Law Officials. U.S. real estate agents and brokers spent an estimated $8.9 billion on residential advertising in 2015, according to the report.
That equates to each licensed agent spending in the vicinity of $4,684.00 per individual or about $400.00 a month. Not an insignificant sum.
In addition, U.S. real estate developers spent an estimated $1.7 billion on residential advertising in 2015 which translates to about another $1,000.00 per person.
Pocket change? Not hardly. According to data published by the U.S. Census Bureau in October 2015, in the third quarter of 2015, there were approximately 46.0 million rental housing units in the United States, with a national vacancy rate of 7.3%. It’s easy to see that realtors need to spend money to make money.
Do the math
U.S. rental property managers spent an estimated $3.5 billion on advertising (excluding concessions) in 2015 which equates to about $1800.00 per person. In the United States, there are 107.6 million people residing in rental housing units, according to data published by the U.S. Census Bureau in 2015. Approximately 71% of movers in 2015, or 25.9 million people, were renters, according to the U.S. Census Bureau migration data published in November 2015.
Additionally, according to a forecast from the Mortgage Bankers Association published in January 2016, “approximately $1.5 trillion in U.S. residential mortgage originations occurred in 2015.” Conversely, U.S. residential mortgage providers spent approximately $4.4 billion in 2015 marketing their services and loan products to mortgage borrowers, according to a recent Borrell forecast.