Market cycles come and go, and for many, a sign of success can be how well you lead your brand and company through uncertain times. The past three years certainly provided its share of uncertainty, but several brokerages managed to thrive despite the rollercoaster ride.
That was evident in this year’s Inc. 5000 list, which ranked the fastest-growing companies in the nation. More than two dozen privately owned firms and agent teams made the list, which ranked U.S.-based firms on percentage revenue growth from 2019 to 2022.
While less real estate firms were included on this year’s list—60 firms made it in 2022—the timeframe offers an interesting look at how real estate firms weathered a handful of uncanny challenges, including the pandemic, macroeconomic uncertainty and the geopolitical event that helped stir things up a year ago.
Against the backdrop of a market that is still going through its fair share of changes, several leaders at the helm of the firms that made this year’s list offered insight into how they’ve continued to grow despite market conditions.
“It has never been more critical to run brokerage operations in an efficient and effective manner,” said Rick Haase, president of United Real Estate, which ranked No. 711 on the list.
United Real Estate posted an 826% three-year growth, marking its third consecutive and seventh total appearance on the list—a recognition that the company celebrated, while also acknowledging the hurdles that current market conditions have presented.
“Our growth rests on four complementary growth pillars that our team has executed on in an exemplary way,” said United Real Estate Group CEO Dan Duffy in a statement. “While our market has significantly contracted in the last 12 months, we continue to grow by quickly adapting and reallocating resources to the growth pillars that are best aligned to market conditions.”
That has worked well for the company, as executives pointed out that the brokerage has continued to grow marketshare and agent count in the first half of 2023 amid market headwinds.
“The economics of the business and operational model need to be in sync in order to flow agent compensation correctly,” Haase said. “Our being listed for seven years and rising through the rankings speaks to the correctness of our vision and the relentless execution excellence of our people.”
While the pandemic-induced housing market frenzy proved to be a boon for housing market activity—particularly in 2021 and 2022—that wasn’t necessarily a given in the beginning, as much of the nation—and the world—struggled with the effects of quarantines and the ripples of the initial slowdown of the economy.
That said, keeping an ear to the ground and both eyes on trends during that time was imperative to the success of companies like HomeSmart, which appeared on the list at No. 4,939.
HomeSmart Founder and CEO Matt Widdows tells RISMedia that his company’s attention to market shifts—admittedly with its platform’s help—was critical in the brokerage’s quick operational decisions.
“Although the pandemic definitely hindered the real estate market, having that information was invaluable for rightsizing the organization as the conditions changed throughout that period,” Widdows says.
“Initially, our priorities were watching conditions and restrictions in our markets nationwide and creatively accommodating whatever those were,” he continues. “As COVID began to wane, we were ready for the surge of pent-up demand once consumers could fully reenter the market.”
HomeSmart tallied a 76% three-year growth on the list. Though it fell several hundred spots from the previous year, the company has had a consistent presence on the Inc. 5000.
Having been featured on the list 11 times, this year marked HomeSmart’s eighth consecutive appearance since 2016.
According to Rogers Healy, founder and CEO of Rogers Healy and Associates (RHA) Real Estate, having the right pieces on your team can make all the difference in any market cycle.
The Dallas-based brokerage ranked 3,307 on the list and posted a 153% three-year growth that Healy primarily attributed to a reassessment and pivot in the company’s focus during the pandemic.
“COVID was a nightmare, but it forced us to prioritize differently,” he says, focusing on fixing holes in his business while adding critical cogs to his leadership team.
“It was painful at first, but eventually, we were lucky to have many things that started to happen for us at a different pace,” Healy continues. “I kind of just started hiring myself out of a job.”
After surrounding himself with the right pieces on his team, Healy claims that RHA was able to thrive and adapt to the shifting market.
“I really do have a great team that cares about the things you’re supposed to care about, and that’s maintaining success versus just finding success,” he says. “Many people get obsessed with just growth that you can’t manage.”
Recruiting was also a significant factor contributing to Massachusetts-based Lamacchia Realty making it back on the list this year for the twelfth year in a row. Broker/Owner/CEO Anthony Lamacchia tells RISMedia that the “organic recruiting machine” took form as the pandemic began.
That included his patented Crushing It in Real Estate page, which Lamacchia claims expanded his social media presence to agents industry-wide.
“I would do updates, and tons of REALTORS® were watching, which had a significant impact on my reputation and the company’s reputation, and it fed right into all the recruiting that we do,” he says.
“I just talked about what was going on and how REALTORS® should best deal with it,” Lamacchia continues. “We put out a lot of educational content and things to help agents get through that difficult time when we were all in lockdown. I think that had a big impact on recruiting in the years after.”
The foundation of that machine was built on Lamacchia’s focus on cranking out educational content about the market and how real estate professionals could get an edge on their competition.
That worked well for Lamacchia and the company, which ranked No. 3,393 on the list—posting a 148% growth between 2019 and 2022.
The focus on growth has continued for Lamacchia in the slower housing market, but he tells RISMedia that he also prioritized acquisitions this year.
