HousingWireHousingWire
As the real estate industry faces unprecedented transformation, Century 21 Real Estate has stayed active through aggressive franchise growth, market consolidation and engagement with evolving homebuyer demographics.
In an in-depth conversation with HousingWire, Century 21 CEO Mike Miedler opened up about the company’s strategy, its foundational franchise model and preparation for the future of homeownership.
Q: Century 21 seems to be growing through mergers, affiliations and new franchises. What’s driving this level of expansion and how does it fit into where the industry is heading?
Miedler: If you look at the industry as a whole, there is this consolidation play that’s happening. It’s literally in the statistics. Go back to 2017 — the top 1,000 companies across the country held like 45% or 46% of the overall sales volume. Fast forward to 2023, and it’s something like 60%.
Century 21’s franchise-based model allows local autonomy while benefiting from global branding and support. We announced numerous recent moves in markets including California, Florida, Oregon, Georgia, Colorado and Nevada.
Our model, even though I joke around and say we were one of the first disruptors — certainly one of the first franchise models — offers what I believe is the best of both worlds. We are a franchise-based model where decisions aren’t made at some Wall Street private equity company. They’re made at the local level. Our offices are independently owned and operated. Their kids go to school in the market, they shop in the local market and they serve the community.
Q: Beyond affiliations and M&As, what other growth areas are you prioritizing?
Mike Miedler: A big one we work on frequently is growth in diverse marketplaces. We’ve been founding partners of NAHREP — the National Association of Hispanic Real Estate Professionals. By 2050, 70% of net new homebuyers will be Latino or of Hispanic descent.
The past president of NAHREP is a Century 21 team leader out of Las Vegas, Nora Aguirre. The current president is a Century 21 broker out of Chicago, Oralia Herrera. And the immediate past chair is Edwin Acevedo out of Southern California. We’re super proud of that connection.
Q: Let’s talk affordability and inventory. What can realistically be done to address the housing crisis?
Miedler: From an affordability perspective, we’re probably a bunch of years off from actually getting to a spot where inventory levels meet demand. Even if we dropped mortgage rates tomorrow, you’d just drive in more demand and have more people competing for the same supply.
There are ways national or local governments could dust off regulations to get more affordable housing out there — like allowing more [accessory dwelling units] or converting commercial properties in major [commercial business districts] into condominiums or townhomes. It starts with getting that supply in the market.
Q: How are first-time homebuyers adapting?
Miedler: We’re seeing more multigenerational households, more people using family members and the silver tsunami of wealth to create down payments. First-time buyers are getting more creative, and I think it’s a great play. As we all know, real estate and homeownership create wealth for families.
Q: How is Century 21 keeping the franchise model relevant amid all the technological disruption?
Miedler: When I first took this job seven years ago, people were asking how Century 21 was going to keep up with iBuyers. Now we know where iBuyers are. Then it was Purplebricks offering discounted services from Europe. Now, it’s AI and blockchain. But I think what people have to recognize about this business is that, because of the fragmentation, every market is a little bit different in the way that people close deals, and in the way that they search for deals.
Q. Despite the latest trends, do you think the core of real estate remains unchanged?
Miedler: Because of fragmentation, this business is hyper relationship- and personality-driven. The basics still matter — recruiting and retaining great talent, coaching them to win business and grow value. That hasn’t changed.
Q: Are there particular regions where you’re seeing more growth through conversions or acquisitions?
Miedler: From a conversion perspective, we like to look at mom-and-pop brands that match the vision and mission of Century 21 — taking care of the consumer at a high level. We’re converting 30 to 50 new offices a year. And we’re strategic about the markets with some of the things that we want to do from a Latino standpoint, based on where those markets are underserved. That is a real big mission for us, to make sure that we’re getting the right companies to uphold our brand standards. On the M&A front, we’re doing about 60 per year with our current network.
Q: What is Century 21’s stance on NAR’s Clear Cooperation Policy and off-market listings?
Miedler: In my mind, it’s almost embarrassing that the real estate industry is actually talking about this. At the end of the day, we should be doing what is in the best interest of the customer. You [learn] that and understand that from talking to the customer and seeing what their wants and needs are. A majority of the time, most [sellers] want the highest price and the quickest sale. As the statistics bear out, that happens when you put a listing out in the public domain, meaning in the MLS, where more consumers can see it.
There’s the off chance someone wants the first offer — maybe they’re doctors who don’t want showings. Will we be able to serve those folks, those consumers, if the need arises? Absolutely. We’ve already put out technology that will allow us to carry private listings inside of Century 21 and inside of Anywhere if need be.
Q: Final thoughts on where the brand is headed and how it’s maintaining momentum?
Miedler: We’re seeing an uptick in people looking for solutions — from a conversion perspective, we’re up 200% in Q1 over last year. We’re bringing in about 1,000 new agents a month. So, we are seeing an uptick in people who are looking for solutions from an entrepreneurial perspective and a brokerage perspective, from an M & A perspective.
We don’t stray too far from the basics. We help brokers grow, coach their people, and bring in relevant tools. But at the end of the day, this is still a people-first business. We’re just making it easier for agents to be there for their clients, where it matters most.
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