Real Estate Developers

The outlook for real estate developers is subject to the fluctuations of the general economy. In the early-to-mid 2000s, economic conditions were excellent for real estate developers. Record-low interest rates roused many formerly depressed areas of the country to renewed economic vigor. But housing prices declined in 2006 and 2007, which, along with other factors, caused the housing market to crash in late 2008. Many attribute the Great Recession in the United States to the real estate bubble, which occurred when housing and real estate values increased at a rate that outpaced income levels. Real estate prices were then drastically reduced. But economic conditions are never fixed or stable. In addition, the real estate market can be quite strong in some parts of the country and weak in others. In early 2020, the coronavirus (COVID-19) pandemic disrupted the global economy, causing widespread unemployment and affecting residential and commercial construction. The U.S. Department of Labor does not provide information about real estate developers specifically, but does predict faster than average employment growth for property, real estate, and community association managers. Because of the growing population, more people are living in developments managed by third-party property management companies. Opportunities are expected to be the best in the development of apartment buildings, condominiums, homeowner associations, and senior housing.