2022 Mega 1000 reveals ongoing industry consolidation and change
T3 Sixty, a real estate management consulting and analytics firm, has released its 2022 Mega 1000, an annual ranking of the nation’s 1,000 largest brokerages by sales volume, transaction sides and agent count. The report reveals that this cohort of brokerages accounted for nearly 60 percent of the nation’s residential sales volume in 2021.
The 59.2 percent of the nation’s total sales volume that the U.S.’s 1,000 largest brokerages accounted for in 2021 represents a growth of 13.4 percent in market share from the year previous (market share is determined using Mega 1000 data and existing home sales data as reported by NAR). That’s approximately double the next highest year-over-year growth in Mega 1000 market share since the report debuted in 2018, when the Mega 1000 market share stood at 44.9 percent.
Companies such as Compass, which moved from No. 3 in 2021 to No. 1 in this report, and eXp Realty, which grew sales volume by 116.2 percent from 2020 to 2021 and No. 4, achieved some of the largest growth over this period. Heavyweights Realogy Brokerage Group and HomeServices of America, No. 2 and No. 3, respectively, also anchored the nation’s largest brokerages. With eXp Realty’s leap, 2021 saw four brokerages top the $100 billion sales volume threshold.
More on Market Share
The sales volume market share of the nation’s 10 largest brokerages at 23.6 percent in 2021 jumped from 18.8 percent in 2020. The growth in market share represents an increasing concentration of sales volume at the nation’s largest brokerages.
The 2021 sales volume market share of the nation’s 100 largest brokerages, at 36.9 percent, grew from 31 percent in 2020. Overall, the market share of the Mega 1000 rose from 52.2 percent in 2020 to 59.2 percent in 2021 reflecting growth in sales volume from $2 trillion to 2.7 trillion in one year.
The market share of transaction sides followed a similar pattern. In 2021, the top 10 brokerages accounted for 14.9 percent of transaction sides, up from 12.1 in 2020. The largest 1000 brokerages accounted for 44.2 percent of transactions in 2021, an increase from 41.2 percent in 2020.
Since 2018, two brokerages have accounted for a significant share of the overall gain in market share among the top 10. Compass, founded in 2012, saw as increase in sales volume of $208.7 billion over the period while eXp, founded in 2009, logged an increase of $136.3 billion. Together, these two brokerages accounted for nearly 60 percent of the $577.2 billion increase in sales volume of the top 10 brokerages.
To access the full 2022 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 the leading management consultancy in the residential real estate industry with business units in brokerage, technology, mergers and acquisitions, and organized real estate. The group also provides software and data, extensive research and reports, executive search and event management services. For more information, visit t360.com.