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| The Residential Real Estate Brokerage Industry:
An Overview of Past Performance and Future Prospects Author: Leonard V. Zumpano, Harold W. Elder, and Randy I. Anderson Start Page: 189 Abstract: This study examines
the developments in the residential real estate brokerage market over the last decade. In
particular, the study focuses on how technological and structural changes in the market
have impacted firm revenues, costs and profitability. The analysis is conducted using four
national data sets provided by the National Association of Realtors. The results reveal
that brokerage performance begins suffering with the recession of 1990, which triggered a
period of consolidations and failures that show no sign of letting up. Further, the
results suggest that firm size is a significant factor in determining performance. Small
firms suffer due to their inability to take advantage of economies of scale, while large
firms incurred significant costs attempting to maintain and/or increase market share. |
