When financial analysts compared industries in the United States to see which was making the most money, residential real estate easily topped the list.
The bottom line for those of us in the business of investing in real estate: this is a good place to put your money — especially if it’s done right.
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Turns out that residential real estate services “have a staggering EBITDA margin (earnings before interest, taxes, depreciation and amortization) of 90.4 percent.” according to financial writer Matthew C Klein at FTAlphaville.ft.com.
Sure, residential real estate is a big business, but it turns out it is responsible for nearly a quarter of the EBITDA earnings of “the entire American private sector,” according to Klein.
One interesting result of the analysis is that residential real estate is NOT the best place for W-2 employees. The best paying sector for wage-paid workers is computer systems, nursing, and education services, in that order, with residential real estate at the very bottom.