Real Estate Developer Salary - The Full Guide for 2022

A real estate developer is a professional in the real estate field who can develop new construction or renovate the old ones and then promote and sell them. To be precise, a real estate developer first buys land, makes it ready for development, manages the construction process, and finally sells them to buyers or tenants. Real estate development is a complex process that demands vast knowledge of construction techniques, zoning laws, financing options, and more. However, these real estate developments can either be residential or commercial. 

When talking about qualifications, a real estate developer should have a degree in a related field and over five years of experience. Although certification is not necessarily required, a real estate developer must be able to read and understand the blueprints from the very first day of his work.

For the job of a real estate developer, there is more than meets the eye. For example, a commercial real estate developer salary is about $95,253 annually! The good news is between 2018 and 2028, the expected career growth is 7%, and across the United States, there will be 26,500 jobs produced in the real estate developer field.

Some real estate developers are self-employed, while others work with real estate firms. Also, they may work on their own or as part of a larger team. But in either case, they are expected to have the ability to notice every minute detail and have a deep understanding of making a project profitable. Real estate developers may have to work with architects, contractors, real estate agents, landscapers, and many other professionals.

• Researching the market to spot the areas where new development projects can begin or the existing architecture can be renovated with good profit margins; also to deal with the property owners.
• Analyzing the project to an extent where it can be determined whether it is financially feasible or not. Also, to identify the problems that are likely to occur in the design or engineering phase.
• Hiring is also part of the job, be it hiring architects, engineers, constructors, or any other professionals needed to complete the project.
• Negotiating contracts with vendors, contractors, subcontractors, and suppliers to make all the services and products available at the best market price.
• Settling the financials with banks to make the purchase and development process a seamless one.
• Ensuring design meets local codes and regulations and discussing the same with architects and engineers during the construction.
• Meeting the deadlines and budgets by managing the construction process of the projects.
• Finalizing lease agreements with tenants who want to rent spaces in the developed properties.

Salaries of a real estate developer vary depending upon factors like their educational level, years of experience, size and type of the development project they are working on, and the industries they are in. According to various sources, as of March 2022, the average salary of a real estate developer in the US goes from $73,875 to $98,496.

One can expect real estate developer employment to grow at an average rate over the next decade.

Thanks to the declining cost of computing power and Geographic Information System software, real estate developers can now comfortably analyze a large amount of data before making decisions about the projects, resulting in more profits for them.

Also, expect the demand for housing to grow in the coming time, increasing the need for real estate developers further since these individuals are responsible for planning, managing, and controlling the construction of residential and commercial properties.

Going through the calculations of real estate developer salaries, on an average, they make $78,100 in the United States, where their average hourly pay is $37.55. For an entry-level real estate developer, the average salary is $48,000. For a clear picture, it is crucial to understand that the bottom 10% of real estate developers roughly make $48,000 a year while the top 10% makes $125,000. And the highest-paid 25% made $100,000 whereas the lowest-paid 25% made $60,000. 2022 has shown a growth of 1.5% in the average salary of real estate developers compared to the last year.

The field of real estate development has a lot of money, but several factors impact how much they earn. These factors include the location and size of the project, the type of the development, their job experience, and market conditions. Not only this, in fact, the industry in which they work also has their say in their salaries.

Years of experience

Generally, salary increment is directly proportional to your experience. So, practically, the more years you spend working as a real estate developer, the more you can expect to make. According to the Bureau of Labor Statistics and the National Compensation Survey, the experience can impact the salary of a real estate developer to a large extent; here's how: an entry-level developer, having less than one year of experience, can earn an average salary of $42,325, whereas the real estate developer in his early career with experience from 1-4 years can have salary up to $54,247. When the experience of a developer is in the range of 5-9 years, the salary jumps to $73,518. And, for a significantly experienced real estate developer, having 10-19 years of experience, the offer on the table can be as high as $100,221. Now, talking about the most experienced real estate developer in the field, with more than 20 years of experience, earnings can shoot up to $156,242.

Location

The places where you live and work can also influence the amount you make as a real estate developer. Typically, working in large metropolitan areas link to a higher salary, but it also comes with a higher cost of living.

As per the Bureau of Labor Statistics, where the average of a real estate developer salary in New York City is $132,127, it is $120,911 in Denver. This pattern is expected in every other city- for example, the average salary in Seattle is $116,801, while the real estate developer in Portland can only make an average of $70,278. Similarly, different states are accountable for different average salaries of real estate developers.

Industry

Similar to the scenarios with location and years of experience, the industry with which a real estate developer is working can also dictate the variations in average salary. While working for Finance companies, real estate developers make a whopping average salary of $97,036. Meanwhile, developers working at Real Estate companies make $82,331 and $75,249 at Transportation companies. However, incidentally, the Media industry, so far, offers the lowest average salary of $63,572. So, every property developer should be overly selective while choosing the industries they want to work in and build their careers.

Now that you know how much you can expect from the market being a real estate developer, let's find out some ways through which you can ramp up your salary:

1. Amplify your skills

It is always better to keep improving your skill sets while working, which may help you stand as the strongest candidate for the promotion and higher-paying positions. Some of the skills that every real estate developer should hold tightly to are:

• Financing: Understanding how to study and analyze any statement or document or even a situation related to finance.
• Market Analysis: Researching and exploring local real estate markets to identify prospects
• Real Estate Acquisition: Dealing with contracts and property purchases
• Project Management: Controlling the construction process from start to finish, including dealing with architects and builders
• Marketing and Sales: Convincing the clients to invest and/or buy their project over others’

1. Know Your Value

To get paid what you are worth, you need to know what value you hold for potential employers. So, always research the average salary for the position in your area beforehand. During an interview, discuss your skills and experience and demonstrate that your worth is more than the other candidates. It will keep you in a better position to negotiate for a higher salary.

1. Talk to Recruiters

Chatting with some recruiters will give you an insight of what other companies are offering for similar positions or if they have any better opportunity for you than your current job. So, there is no harm in talking to some HRs and evaluating your chances.

1. Take a course

It is always wise to learn from professionals about the industry and take their guidance for your upcoming projects. And in today's world, this is very easy through various online courses available. This way, you will not only learn about your business, but these mentors will also save you from all the future pitfalls. 

The construction manager can have an average salary of $80,134, while on average, the real estate agent earns $82,898, and the project manager earns $78,087. And similarly, the real estate development manager salary is $95,000 annually. However, Real Estate attorneys and Real Estate brokers make massive salaries of $100,182 and $100,514 respectively.

So, here's your complete guide to the real estate developer salary for 2022. Always learn, evaluate and act accordingly to thrive in your career!