There has never been a crystal ball that allows you to accurately predict the future. This is especially true in the real estate industry. Booms and busts happen, and they are often difficult to anticipate—especially in the era of global pandemics.
There are some promising signs for the future, particularly for franchises of popular real estate companies. The market is growing, and real estate franchises are growing with it. Continue reading our guide to see what to expect from real estate franchises over the next 10 years.
Are Real Estate Franchises Growing?
Although it is impossible to predict the future, it can be helpful to look to the past when forecasting the future for the real estate franchise industry. The good news is that the best real estate franchises could be looking at continued growth and a larger share of the real estate industry over the next decade.
Realtor Magazine took a close look at the future of real estate franchises in the Fall of 2021. According to the report, the numbers regarding residential real estate franchises were positive. The study shows that since 2019, the percentage of real estate brokerages has shifted slightly away from independent firms and towards franchises. The study reflects that both independently owned franchise companies and subsidiaries of larger franchises have grown by one percent each since 2019.
Overall, the growth seems concentrated toward the larger real estate franchises when it comes to the industry. According to a 2020 report by Business Insider, the largest real estate companies increased their market share by nearly 7 percent over the past two years.
The takeaway: there is little reason to believe that real estate franchise opportunities are drying up. Large brands are making up an increasingly large part of the market, and operating a franchise could be a good way to rely on that marketing power to build our own business.
What Are The Future Benefits of Franchising?
There are already many benefits that come with operating a real estate franchise over starting your own brokerage from scratch. Chief among these benefits is the training, guidance, and support that typically comes with a franchise. Due to a large number of franchises, the bigger real estate companies have streamlined the training process. They often offer a variety of in-person and on-demand training to get a franchise off the ground and make it profitable in short order. In the next 10 years, the training techniques, technology, and on-demand libraries for large franchises will only continue to grow.
Another major benefit that comes with operating a real estate franchise is brand awareness. Most people have heard of the biggest names in the real estate market, and brand awareness has the potential to continue to grow over time. Within the next 10 years, many of the large players in real estate will have further solidified their position or even experienced further growth. While there are clear benefits from brand awareness now, these benefits will likely continue to grow in the future.
Finally, the projected ongoing success that comes with larger real estate companies could also continue to provide you with a winning business model. Something that will not change over the next 10 years is that you will be able to see firsthand how a franchise’s approach to real estate works. When these efforts are effective, you will have the ability to adopt that winning business model in the future.
How Does COVID Impact the Future of Real Estate Franchises?
There is little doubt that the COVID-19 pandemic has had an enormous impact on the real estate market as a whole. It should come as no surprise that this impact has also been felt at the real estate franchise level. It should be noted that the nationwide impact of the pandemic has shifted dramatically from the early days of the virus.
In early 2020, the world largely came to a halt. The real estate market throughout the country slowed dramatically, and many owners simply removed their homes from the market. Things have changed since then, and the growth in the real estate market has been notable.
There are several reasons for that, according to the Census Bureau. Many people have chosen to continue working from home even after the economy opened up again. Others have re-evaluated their work-life balance and the amount of time they spend commuting to the office. Finally, a backlog of stalled home sales is quickly clearing as the market heats up.
The Census Bureau also found that despite early fears of a mass exodus from metro areas due to the virus, the reality is most large markets continue to grow. In fact, there has been a substantial increase in the number of people living within cities and commuting to work in the suburbs. While there is no guarantee these trends will continue, all signs suggest the real estate market is on an upswing with room to grow. Real estate franchises are in a position to grow, as well.
Ready to Learn More About a Freeway Insurance Franchise?
The future looks bright for real estate franchises, and the same is true for many insurance franchises as well. Freeway Insurance offers a franchise program that offers a valuable opportunity that makes the most of Freeway’s reputation and marketing reach. We offer extensive training and are ready to help you get your franchise off the ground.
There are many reasons why a franchise could be right for you. If you are interested in learning more about this opportunity with Freeway Insurance, you can get started right away by calling us at (877) 822-3034 or contacting us online. We look forward to discussing the benefits of joining our team with you.