2025 Property Management Market Report — Executive Summary

• The U.S. property management industry remained resilient in 2025, with industry revenue and demand supported by continued renting rates, institutional investment in build-to-rent and single-family rentals, and healthy adoption of property-tech (proptech) tools. Industry revenue is estimated in the low-hundreds of billions for 2025. IBISWorld
• Major themes for 2025: rising automation & AI in operations, mixed regional rent performance, higher vacancies in some markets due to extra supply, and fast growth in property-management software (double-digit CAGR outlooks). AppFolio+2Freddie Mac Multifamily+2

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Key market metrics

• Industry revenue (US): Industry revenue climbed modestly through 2025 (IBISWorld shows mid-single-digit growth to roughly $134B for the property-management sector in 2025). IBISWorld
• Vacancy / turn times: Average vacancy days and unit turn metrics improved slightly in 2025 in many datasets (example: DoorLoop reports average vacancy days around ~20 days in 2025). DoorLoop
• Multifamily outlook: Freddie Mac’s 2025 multifamily outlook expects positive but below-average rent growth for 2025 with somewhat elevated vacancies compared with long-run averages. Freddie Mac Multifamily
• Proptech/software market: Property-management software continues rapid growth — market reports show 2025 valuations in the tens of billions and projected CAGRs around 9–10% through the late 2020s. Expect more investment in AI, predictive maintenance, tenant portals, and dynamic pricing. Coherent Market Insights+1

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Market drivers (what’s pushing the market)

1. Technology / automation & AI — Manager platforms and software are automating leasing, accounting, maintenance triage, and renter self-service, improving productivity and scaling portfolios. AppFolio/Buildium benchmarking shows accelerated AI adoption in 2025. AppFolio+1
2. Supply dynamics & regional variation — New construction added large volumes in some MSAs in 2024–2025; national vacancy rose in places while core tech hubs (San Francisco, some Sunbelt metros) saw tightening due to job-driven demand. Expect local market divergence. Apartments.com+1
3. Operating cost pressure — Higher maintenance, insurance, and labor costs pushed many owners to increase rents or revise fee structures; managers are balancing renter retention with revenue needs. Baselane
4. Institutional capital & build-to-rent — Continued institutional interest in stable rental income supports outsourcing to professional property managers. Mordor Intelligence

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Operational trends property managers should track (recommended KPIs)

• Vacancy days (target: reduce toward 15–20 days) — measure time between move-outs and new move-ins. DoorLoop
• Applications per lease — demand signal; DoorLoop and market sites reported slight increases in 2025. DoorLoop
• Renewal rate (benchmark ~65–75% depending on market) — higher renewals reduce turnover costs. DoorLoop
• Cost per unit turnover — include cleaning, minor repairs, and marketing.
• Net effective rent and concessions — track to compare gross vs. actual realized rents. Freddie Mac Multifamily

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Technology & product strategy (what’s working in 2025)

• AI-assisted leasing & pricing — dynamic pricing engines and AI triage for maintenance requests drive faster leasing and lower labor overhead. AppFolio
• Tenant self-service portals + payments — reduce administrative load and improve on-time payments.
• Predictive maintenance / IoT — reduce downtime and capex surprises for portfolio owners (growing especially where smart-building investments exist). Future Market Insights

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Regional highlights (short)

• San Francisco / tech clusters — rebounding rent growth in 2025 driven by return-to-office and tech hiring in pockets; still highly ZIP-code dependent. San Francisco Chronicle
• Sunbelt & Miami/Florida — continued renter demand in many Sunbelt metros, but some oversupply in newly built multifamily in 2024–25 weighs locally. RentCafe+1
• Midwest — pockets of strong rental competitiveness as affordability attracts renters from higher-cost metros. RentCafe

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Risks & headwinds

• Localized oversupply — new construction delivered many units in certain markets, pressuring rents and increasing marketing time. Apartments.com
• Regulatory risk — renter-friendly legislation in some states can change revenue models for managers/owners.
• Interest-rate & macro sensitivity — mortgage rate moves affect owner participation and supply; long-term capital flows into rentals may moderate if macro conditions shift.

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Opportunities for property managers (practical moves for 2025)

1. Invest in AI-enabled workflows for screening, pricing, and maintenance triage to reduce headcount costs and accelerate leasing. AppFolio
2. Productize services (pet-fees, premium maintenance packages, parking, EV charging) to diversify revenue streams.
3. Focus on retention (flexible renewal incentives, lease add-ons) to reduce costly unit turns. DoorLoop
4. Offer ESG / energy-efficiency upgrades as differentiators — tenants increasingly value lower utility costs and greener buildings. Future Market Insights

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Sample one-page action plan for a mid-size manager (6–24 months)

1. Implement dynamic-pricing tool + A/B test for 90 days. (Measure net effective rent change.) AppFolio
2. Reduce average vacancy days by 15%: audit marketing funnels, add virtual tours, standardize turn checklist. DoorLoop
3. Pilot tenant portal + autopay on a 200-unit cohort to reduce receivables and admin time.
4. Track monthly KPI dashboard: vacancy days, renewal rate, average days to lease, cost per turn, net effective rent.

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Data sources & further reading (selected)

• IBISWorld — Property Management in the US (industry revenue, 2025). IBISWorld
• DoorLoop — 2025 industry statistics & operational KPIs (vacancy days, turn time). DoorLoop
• AppFolio / Buildium benchmark & 2025 reports — AI adoption and manager benchmarking. AppFolio+1
• Future Market Insights / Coherent Market Insights — property-management software market sizing and forecasts. Future Market Insights+1
• Freddie Mac Multifamily Outlook 2025 (pdf) — macro multifamily rent & vacancy outlook.