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The real estate sector comprises establishments primarily engaged in managing real estate for others, selling, renting and/or buying real estate for others, and appraising real estate. 
The finance and insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. In addition, monetary authorities charged with monetary control are included in this sector. 

Three principal types of activities are identified:

  1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities.
  2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments.
  3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs.
Real estate, finance, and insurance industries typically offer competitive wages across a wide variety of occupations, education levels, and skills. Both entry-level and middle-skill occupations are less common in this industry cluster. Twenty industry sectors make up the real estate, finance, and insurance cluster in Richmond. See Table 2.3 (left) for the full list of industry sectors. The real estate, finance, and insurance cluster accounted for almost 700 jobs in 2017, and is 3.5 times more concentrated in Richmond than would be expected based on national employment averages. 
As a whole, the cluster experienced strong job growth over the last five years as financial and real estate activity picked up following the recession. The industry is expected to continue to have better than average growth (see Table 2) of 12.0% in total over the next five years.
Labor Market Gap Analysis
These top 15 occupations account for 75% of all cluster employment. For these 15 occupations, the cluster employs 18% of the people in these occupations in the region. The other 82% are employed by industry sectors outside of the real estate, finance, and insurance sector. The occupations with the most jobs in the real estate, finance, and insurance cluster are real estate agents, insurance agents, and property managers.
These occupations comprise 35% of the cluster’s total jobs. Janitors and counter clerks make-lowest hourly wages at about $10 /hour, and as shown in Table 2.5 on the next page, have no formal educational requirement. At more than $35 per hour, personal financial advisors are paid the most.

Supply Chain Analysis
Table 2.6, right, provides a picture about the total demand in Richmond by all Richmond residents and businesses for products made by companies in the real estate, finance, and insurance industry cluster—worth nearly $628 million in the region. In Table 2.6, we see that the companies in these sectors meet only 21% of Richmond demand for their services, while Richmond imports the other 79% of its needs for these services. This would seem to indicate potential markets for local suppliers.


Other industry sectors that could tap into the Richmond market include the following:

  • Lessors of Nonresidential Buildings (except Mini-warehouses)Other Activities Related to Real Estate
  • Offices of Real Estate Agents and Brokers
  • Nonresidential Property Managers
  • Insurance Agencies and Brokerages
  • All Other Non-depository Credit Intermediation
    Miscellaneous Intermediation
Summary
The real estate, finance, and insurance industry is rapidly growing industry cluster in the Richmond economy. Further, this cluster is highly concentrated and specialized in Richmond – meaning that this Richmond industry is highly competitive. There are significant opportunities for other Richmond businesses (outside of real estate, finance, and insurance) to tap into the real estate, finance, and insurance industry supply chain. 
Real estate, Finance, and Insurance Industry PDF
Download the PDF to reat the entire report on the Real Estate, Finance, and Insurance Industry.

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