San Juan Capistrano, Calif, May 11, 2021 – T3 Sixty, a real estate management consulting and analytics firm, has released its Mega 1000, an annual ranking of the nation’s 1,000 largest brokerages by sales volume. The report reveals the U.S.’s 10 largest brokerages accounted for nearly a fifth of the nation’s sales volume market share in 2020, led by Realogy Brokerage Group, HomeServices of America and Compass, who each recorded over $100 billion in sales. The report also ranks the nation’s largest firms by transaction sides and agent count.
To access the full 2021 Mega 1000 data, including rankings by sales volume, transaction sides and agent count, visit realestatealmanac.com.
The market share of the nation’s 10 largest brokerages, at 18.8 percent in 2020, is up from 14.0 percent in 2017. The 34.2 percent share growth over that period represents an accelerated concentration of market share at the nation’s largest brokerages (market share is determined using Mega 1000 data and existing home sales data as reported by NAR). The nation’s 100 and 1000 largest brokerages also increased sales volume market share over that time period, but at lower rates with 22.5 percent and 16.2 percent market share jumps, respectively.
Compass, founded in 2012, entered the brokerage stratosphere in 2020, becoming only the third brokerage to cross the $100 billion annual sales threshold with $151.7 billion, behind the nation’s largest brokerage, Realogy Brokerage Group, and second largest brokerage, HomeServices of America. It achieved this with a 66.2 percent jump in sales from 2019. EXp Realty (founded 2009) at No. 4 on the 2021 Mega 1000 list, saw huge year-over-year sales volume growth of 99.3 percent to $72.2 billion, and is knocking on the $100 billion door, given its staggering growth rate in recent years.
The nation’s 10 largest brokerages have more market share by sales volume than they do by transaction sides, but saw market share growth in sides similar to their volume share growth between 2017 and 2020. Top 10 brokerage transaction side market share grew from 9.2 percent in 2017 to 12.2 percent in 2020, an increase of 32.5 percent.
In addition, the Mega 1000 reveals that the market share of the nation’s 20 largest brokerages employing a model different than the traditional brokerage model increased from 9.4 percent in 2017 to 17.8 percent in 2020. In 2020, a quarter of the nation’s 20 largest brokerages employed a model other than a traditional one. The traditional brokerage model is defined as a brokerage that uses independent contractor agents on commission splits with physical offices.
The sustained growth of Redfin, which uses an employee-agent model, and the recent explosive growth of eXp Realty, which uses a virtual, cloud-based model, have contributed to the increase.
The growth of brokerages employing an agent flat-fee model have also pushed the percentage higher, including No. 10 HomeSmart, No. 16 Realty One Group and No. 18 United Real Estate. In 2017, the nation’s 20 largest brokerages included only three brokerages with nontraditional models (Redfin, HomeSmart and Realty One Group); in 2020, there were five with the addition of eXp Realty and United Real Estate.
To access the full 2021 Mega 1000 visit realestatealmanac.com
About the Mega 1000
The Mega 1000, which analyzes the residential real estate industry’s largest brokerage companies, is the fifth section of the Real Estate Almanac, a comprehensive annual compendium on the residential real estate industry. The Almanac includes a ranking of real estate’s most powerful leaders (SP 200), a list of its largest MLSs and Realtor associations (ORE 200), a list of the largest technology companies (Tech 500), a list of the nation’s largest holding companies, franchise brands and public companies (Enterprise 20), and a list of the nation’s 1,000 largest brokerages (Mega 1000). For more, visit realestatealmanac.com.
About T3 Sixty
T3 Sixty is a trusted advisor and management consultancy in the residential real estate brokerage industry. T3 Sixty also provides extensive data services and research to affect intelligent change and growth. For more, visit t360.com.