Here's how lacking housing supply is affecting regional businesses (Top of the List)

The housing market witnessed a harsh spike in demand over the last few years with supply left trailing behind to fill the gap. As a result, companies across the market witnessed an increased need for services, however, data from local firms shows the affect lacking supply is having on business.

The Dayton Business Journal recently released its annual Residential Real Estate Firms List. Companies on the list offer a variety of residential and commercial real estate services to residents and businesses in the region.

Local firms mainly witnessed employment losses across the board. Combined, the seven companies represented employ a total of 704 regional workers.

Residential Real Estate on the list reported almost $1 billion in revenue from 2021. However, individually, firms saw varying degrees of revenue hikes and losses.

Kunal Patel Group witnessed the largest jump in revenue at 10.7% – raising its 2021 revenue ($51 million) to $56.4 million in 2022. Comparatively, RE/MAX Victory + Associates saw the heaviest loss at 24.6% – dropping from $28.5 million to $21.5 million in the last year.

“Despite the challenges posed by the Covid-19 pandemic, the housing market has remained remarkably robust. Despite higher interest rates than pre-pandemic levels, demand remains high while supply remains low,” said Kunal Patel, Kunal Patel Group Leader. “This has resulted in a strong sellers’ market, with properties often selling quickly and at higher-than-expected prices. Experts predict that this trend will continue for the next year, though some adjustments may occur closer to the election. Overall, the housing market remains a strong investment opportunity for those looking to buy or sell properties.”

Kunal Patel

Kunal Patel is a realtor with Kunal Patel Group.

Carrs & Co Photography

Similarly to revenue, companywide net home sales volumes on a companywide and local level (totaling $3.5 billion) both saw drops over the last year.

Kunal Patel was the only firm on the list that witnessed gains at 10.7%. Meanwhile, RE/MAX Victory + Affiliates once again witnessed the biggest loss at 21.4%.

The drop in sales is a likely result of a decline in local closed real estate transactions due to lacking supply. Firms reported almost 13,600 local real estate transactions in 2022 – a 20% decline from 2021’s 17,000 closed transactions.

“We’re seeing a significant gap between demand and supply. With inventory still low, properties are selling with multiple offers and for over the asking price. Economists predict this will continue through the end of the year,” said Samantha Gibbs, executive assistant at Irongate Inc. Realtors.

Average home costs in the region have risen 26.4% in the last year. This is based on the average taken from average prices of local homes sold between 2021 ($212,000) and 2022 (270,000). 

The most expensive local home sold in 2022 was $2.4 million reported by Coldwell Banker Heritage. The sale was 11% higher than their most expensive 2021 sale at $2.1 million.

Trends in residential real estate – according to local firm executives – are movie-in-ready homes, large and functional backyards, proximity to loved ones, large kitchen space and remote work offices. Additionally, residential real estate agents continue to take advantage of immersive 3D tours of homes and utilizing sites like Zillow to showcase homes on a national level.

“I’ve recently aligned with Unlistedhomes.com, a Dayton start-up, to help buyers and sellers connect directly for their off-market dream home,” Patel said. “I’m excited about these developments because it demonstrates my commitment to staying ahead of the curve and leveraging technology to provide the best possible experience for my clients.”

The List

Rank Prior Rank Firm name

1

1

Coldwell Banker Heritage

2

2

Irongate Inc., Realtors

3

3

RE/MAX Victory + Affiliates

View this list

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