NAICS 53

Real Estate and Rental and Leasing in California: 2026 Market Risk Report

Entry risk 47.1 (Elevated), ranked #39 of 51 states. 65,966 establishments, 307,065 jobs.

Entry Risk Assessment

Entry Risk Score 47.1
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Elevated

ⓘ Lower is better. Relative to national real estate and rental and leasing average.

The real estate and rental and leasing sector in California shows signs of market maturation: momentum index at 36.7 (top half) combined with below-average firm retention (bottom 15). Net establishment formation is likely flat or negative.

5-Year Firm Retention
23.5%
Percentile within industry
Rank #40 of 51 states
Growth Momentum
36.7
Scale of 0-100
Rank #20 of 51 states
Establishment Density
47.1
vs. national average
Rank #39 of 51 states
Market Volatility
13.5
Lower is more stable
Wage Pressure Index
37.8
Labor cost pressure

65,966 Establishments in California

65,966
Establishments
-0.4% YoY
307,065
Total Employment
+1.0% YoY
$87,699
Average Annual Wage
+3.0% YoY

California vs National Real Estate and Rental and Leasing Average

How California's real estate and rental and leasing market compares to the national average across all 51 states.

Metric CA National Difference
Entry Risk Score 47.1 40.5 +6.6
5-Year Retention 23.5% 51.0% -27.5
Growth Momentum 36.7 39.4 -2.7
Market Volatility 13.5 22.1 -8.6
Establishment Density 47.1 34.1 +13.0
Wage Pressure 37.8 45.1 -7.3

Green = favorable vs national average. Red = less favorable. Metrics are relative within real estate and rental and leasing only.

California Ranks #39 of 51 for Real Estate and Rental and Leasing

California ranks #39 out of 51 states for real estate and rental and leasing market entry conditions.

Real Estate and Rental and Leasing Entry Risk by State

Rank State Risk Score Classification
#1 Pennsylvania 24.5 low
#2 Wisconsin 26.0 low
#3 Nebraska 26.3 low
#4 South Dakota 26.4 low
#5 Massachusetts 27.7 low
#39 California You 47.1 elevated
Entry Risk by State Alaska — 34.9 · #15 Alabama — 31.9 · #13 Arkansas — 30.5 · #12 Arizona — 52.4 · #46 California — 47.1 · #39 Colorado — 52.1 · #44 Connecticut — 45.9 · #37 District of Columbia — 38.5 · #24 Delaware — 53.2 · #47 Florida — 54.7 · #49 Georgia — 51.6 · #43 Hawaii — 60.3 · #50 Iowa — 35.6 · #16 Idaho — 43.4 · #32 Illinois — 44.3 · #33 Indiana — 30.2 · #10 Kansas — 41.4 · #29 Kentucky — 30.3 · #11 Louisiana — 44.5 · #34 Massachusetts — 27.7 · #5 Maryland — 50.4 · #42 Maine — 28.3 · #6 Michigan — 39.3 · #26 Minnesota — 42.1 · #31 Missouri — 39.2 · #25 Mississippi — 30.0 · #8 Montana — 37.5 · #20 North Carolina — 38.1 · #23 North Dakota — 54.3 · #48 Nebraska — 26.3 · #3 New Hampshire — 29.6 · #7 New Jersey — 37.3 · #19 New Mexico — 52.3 · #45 Nevada — 61.9 · #51 New York — 37.6 · #21 Ohio — 33.2 · #14 Oklahoma — 42.0 · #30 Oregon — 44.8 · #35 Pennsylvania — 24.5 · #1 Rhode Island — 37.8 · #22 South Carolina — 44.9 · #36 South Dakota — 26.4 · #4 Tennessee — 37.2 · #18 Texas — 41.4 · #28 Utah — 46.6 · #38 Virginia — 35.6 · #17 Vermont — 30.1 · #9 Washington — 48.0 · #40 Wisconsin — 26.0 · #2 West Virginia — 40.6 · #27 Wyoming — 49.6 · #41
Low Moderate Elevated High

Tap a state to view details

About Entry Risk Score: A weighted composite of firm retention, growth momentum, market volatility, establishment density, and wage pressure. Lower scores indicate more favorable conditions. Read full methodology →

Data Sources

Data period: 2024. Last updated: February 2026. Next refresh expected: Q2 2026 (BLS QCEW update).

Compare to Another State

How does California stack up against other states for real estate and rental and leasing?

Select a state above to see the comparison

Real Estate and Rental and Leasing in Neighboring States

How California's real estate and rental and leasing market compares to bordering states.

Oregon 44.8 #35/51 Arizona 52.4 #46/51 Nevada 61.9 #51/51

Other Industries in California

Construction → Healthcare and Social Assistance → Retail Trade → Accommodation and Food Services → Professional, Scientific, and Technical Services → Finance and Insurance → Administrative and Support Services → Information → Other Services →