How Big Is The Real Estate Industry?

How Big Is The Real Estate Industry?
by Tamara Rein - October 17, 2021

The housing market is a roller coaster. It’s been on a wild ride since its origin, and it doesn’t look like it will be slowing down anytime soon.

According to a report by Real Capital Analytics (RCA), the industry contributed more than $2.7 trillion to the U.S. economy in 2016 and employed 6 million people nationwide (3% of all workers). According to another report by Real Capital Analytics (RCA), the size of the professionally managed global real estate investment market increased from $9.6 trillion in 2019 to $10.5 trillion in 2020, according to a report by Real Capital Analytics (RCA). 

This represented an increase of 8% over 2018’s total and was driven by strong investor demand for core assets, particularly those located in gateway cities. In addition, investors are increasingly looking at secondary markets as opportunities arise due to supply constraints and limited development activity.

The National Housing Act, passed in 1934 to strengthen the residential real estate market, created the Federal Housing Administration (FHA). FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. It also allows for more people to purchase homes because it makes mortgages more affordable and accessible.

Soon after, the real estate industry managed to grow exponentially. The only dip it saw was in 2008. Home prices in Southern California fell 35% from their peak and have continued to fall since then. This was the largest drop in home values that the industry had ever seen. It was also the reason why many people quickly sold their homes because they feared foreclosure or bankruptcy.

COVID-19 crushed real estate in 2020, shuttering businesses. The industry is still recovering from the shock of this. But it’s recovering at a good pace and coming back to where it peaked. Reports emerged in recent months saying that we might see more hikes in the real estate market soon.

To learn more about the real estate market, visit Prudential Cal’s blog section.


  • Tamara has worked with multiple start-ups as well as e-commerce websites, focusing mainly on welcoming and helping nurture new businesses in the market.

What Does Contingent Mean In Real Estate?
What Does Contingent Mean In Real Estate?
Contingencies are a great option for buyers who want to go forward with their purchase but need some assurance that ...
What Is A Package Mortgage In Real Estate?
What Is A Package Mortgage In Real Estate?
Package mortgages can be a perfect solution for buyers who want to purchase a home and add their own personal ...
What Is Seller financing In Real Estate?
What Is Seller Financing In Real Estate?
Seller financing is a type of home loan in which the borrower does not need to go through an application ...
How Much Do Real Estate Agents Make A Year In California?
The average salary for a real estate agent in California is $82,611 as of November 1st 2021. This works out ...
What Is An Open Listing In Real Estate?
What Is An Open Listing In Real Estate?
In real estate, an open listing can refer to either of two things. The first meaning is that it's for ...
1 2 3 20
In Prudentialcal, we strive to make the most intricate financial issues and topics uncomplicated to grasp. We will be making sound analyses, intelligent finance recommendations, and honest communications in our features to assist you in building your finances and investments. 
Additional Information
Copyright © 2021 Prudential Cal. All Rights Reserved.
DMCA.com Protection Status
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram