After one of the best years in real estate history, several companies that capitalized on the tailwinds of 2021 have made their way to the 2022 Fortune 500.
The list, released on Monday, ranked companies by their revenue in their 2021 fiscal year, with a threshold of $6.4 billion, up 19% from a year earlier. It’s been a great year for tech-focused real estate companies like Zillow, Opendoor and Compass, which debuted on this year’s list.
“As the US domestic market exploded into the stratosphere in the wake of the pandemic, buyers and sellers flocked to these companies for real estate services,” says Fortune List editor Scott DeCarlo. “The hottest real estate market the country has ever seen has boosted annual incomes by more than 70% for each of Fortune 500 newcomers Zillow, Opendoor and Compass.”
Zillow ranked 424th following an increase in earnings from last year’s hot housing market. The tech giant raked in around $8.15 billion last year, marking a 144% increase from 2020.
“The real winners will be the companies that not only have thrived in the bizarre circumstances of COVID, but can thrive once the world opens up,” Fortune editor Alyson Shontell wrote in her foreword to the next June/July issue of the magazine announcing the list.
One of the drivers of Zillow’s revenue growth came from its iBuying operation. While the Seattle-based company rejected Zillow offers late last year, the now-defunct company brought in $5.9 billion for the company by the end of the year.
With the end of Zillow deals nearing completion, the company aims to develop a “super housing app” that will help reduce the friction of finding and buying a home.
“We are excited about the opportunities ahead of us as we work towards our vision of a super housing app, which will empower consumers to unlock the next chapter in life by providing a seamless real estate experience in an ecosystem for everyone. , whether they are buying, selling or renting,” a Zillow spokesperson wrote in a recent email statement to RISMedia.
IBuying powerhouse, Opendoor was not far behind Zillow, taking 425th place after raising $8.02 billion last year and beating analysts’ expectations, and capitalizing on the demise of Zillow Offers.
While Opendoor failed to achieve profitability in its first year as a public holding company, the San Francisco-based company managed to enter the market in the first three months of 2022.
According to Opendoor’s Chief Financial Officer, Carrie Wheeler, the company’s Fortune 500 debut marks another prestigious milestone for the iBuyer as it seeks to “modernize the real estate industry”.
“This recognition is a testament to the hard work and dedication of our team members over the years, and we thank them for always putting our customers first,” Wheeler said in a recent statement.
Compass is a newcomer to the list, marking a milestone in its first year as a public company. In an emailed statement, Compass Chairman, Founder and CEO Robert Reffkin paid tribute to the company’s agent pool.
“This honor confirms our belief that equipping the best agents in the country with the most advanced technology platform in the industry is the best way to provide an exceptional experience for every home buyer and seller. High-tech and high-touch,” he said.
The New York-based company ranked 495th for earning $6.4 billion last year. He also joined Realogy, now Anywhere Real Estate, as one of two dedicated residential real estate companies featured.
While Realogy has been on the Fortune 500 for eight consecutive years, this year marks its best showing since its resurgence in 2014. The company had also been on the list in 2008 and 2009 when it was called Realogy Corporation.
Its performance in 2021 helped it climb to 427th place on the list, up 18 places since 2020. The company earned $7.9 billion last year.
“Our annual inclusion on this list demonstrates Realogy’s strategic and financial execution, including profitable growth, increased market share, a strengthened balance sheet and robust free cash flow generation, all reflecting the powerful strength of our business. “, wrote a spokesperson for the company in an email. at RISMedia.
Other notable companies on this year’s Fortune 500 list include major lenders such as Rocket Companies, which ranked 282nd after totaling $13.1 billion in revenue last year.
Fannie Mae and Freddie Mac were also among the top 100 companies on the list, ranking 33rd and 56th. The two government-sponsored companies recorded significant revenues last year, with Fannie earning $101.5 billion while Freddie earned $65.8 billion.