NAICS 531390 – Real Estate Related Activities Explained

• Dec 16, 2025
• Admin

Navigating the complex world of real estate involves understanding not just properties and transactions but also business classifications. One key component of identifying real estate businesses is the NAICS code—short for North American Industry Classification System. If you're involved in real estate or looking to register your business, securing the correct NAICS code is essential.

In this guide, we will explore the NAICS code for real estate, its significance, various subcategories, and how to select the right one for your real estate business. Whether you’re a broker, investor, property manager, or developer, this comprehensive post will help you understand how NAICS codes apply to your field.

What Is a NAICS Code?

The NAICS (North American Industry Classification System) is a standardized system used by the governments of the United States, Canada, and Mexico to classify business establishments according to the type of economic activity they engage in. Managed by the U.S. Census Bureau, NAICS codes are used for statistical analysis, taxation, contracting, and identifying industry trends.

Each NAICS code is a six-digit number. The first two digits represent the economic sector, the next digit is the sub-sector, followed by the industry group, the industry, and finally the national industry. This layered classification ensures high specificity.

Why NAICS Codes Matter in Real Estate

1. Business Registration & Licensing

When registering a real estate business, you'll often be asked to provide your NAICS code. This helps regulatory bodies identify the nature of your business operations.

2. Tax Classification

Certain tax benefits or obligations depend on your NAICS classification. Choosing the correct code ensures compliance with IRS guidelines.

3. Government Contracts

If you want to bid for government contracts, particularly for construction or housing development, the proper NAICS code is a must.

4. Market Research & Benchmarking

Real estate firms can use NAICS data to benchmark their performance against industry standards and analyze competitors.

NAICS Code for Real Estate (Primary Category)

The primary NAICS code for real estate is:

531000 – Real Estate

This broad category is further broken down into more specific codes based on the type of real estate activity. The three major segments are:

• 531110 – Lessors of Residential Buildings and Dwellings
• 531120 – Lessors of Nonresidential Buildings (except Miniwarehouses)
• 531130 – Lessors of Miniwarehouses and Self-Storage Units
• 531190 – Lessors of Other Real Estate Property
• 531210 – Offices of Real Estate Agents and Brokers
• 531311 – Residential Property Managers
• 531312 – Nonresidential Property Managers
• 531320 – Offices of Real Estate Appraisers
• 531390 – Other Activities Related to Real Estate

Each of these has its own classification and should be selected based on your business's core activity.

NAICS Code Segments Explained

Let’s break down some of the key real estate NAICS codes in more detail to help you understand what they mean and when to use them.

1. 531110 – Lessors of Residential Buildings and Dwellings

This category includes establishments that own and lease residential properties, such as:

• Apartment buildings
• Single-family homes
• Duplexes and multi-family dwellings

It applies whether or not you’re actively involved in managing the property.

2. 531120 – Lessors of Nonresidential Buildings (Except Miniwarehouses)

This code is for businesses that own and lease commercial real estate such as:

• Office buildings
• Retail spaces
• Industrial facilities

This is suitable for real estate investors focusing on commercial leasing.

3. 531130 – Lessors of Miniwarehouses and Self-Storage Units

If your business operates storage facilities rented to individuals or companies, this is your go-to NAICS code.

4. 531210 – Offices of Real Estate Agents and Brokers

This code represents traditional real estate brokerages and agent offices involved in:

• Buying and selling real estate
   
• Facilitating lease transactions
   
• Property negotiations
   

It’s one of the most commonly used codes in the real estate sector.

5. 531311 – Residential Property Managers

If your company manages residential properties on behalf of owners—such as rent collection, repairs, and tenant services—this is the correct classification.

6. 531320 – Offices of Real Estate Appraisers

This category is specific to licensed appraisers who evaluate property value for loans, purchases, or legal proceedings.

7. 531390 – Other Activities Related to Real Estate

This code is a catch-all for other services not directly covered above, including:

• Real estate listing services
• Escrow services
• Real estate consultants

How to Choose the Right NAICS Code

Choosing the right NAICS code for your real estate business depends on your primary business activity. Here’s a quick checklist:

• Are you leasing or managing property? Go with a 5311XX or 5313XX series.
• Are you brokering deals? Choose 531210.
• Are you a property appraiser or consultant? Look at 531320 or 531390.
• Do you manage properties you don’t own? Use property management codes like 531311 or 531312.

If your business does multiple things, select the code that represents your main source of revenue.

Real Estate NAICS Codes for Related Businesses

Real estate doesn’t operate in isolation. Here are some related industries and their codes:

• Construction of Buildings (2361XX) – For developers building residential/commercial projects.
• Architectural, Engineering, and Related Services (5413XX) – For firms designing real estate projects.
• Building Inspection Services (541350) – For pre-purchase or safety inspections.

How NAICS Codes Affect Loan and Insurance Applications

When applying for a business loan or insurance, financial institutions often look at your NAICS code to assess risk. Some codes are considered higher risk due to market volatility. Having the correct code ensures:

• Fair evaluation of your application
• Accurate risk rating for insurance
• Eligibility for specific business grants or incentives

NAICS and SBA (Small Business Administration)

The SBA uses NAICS codes to determine if your business qualifies as a small business, which can be important for:

• Federal contracts
• Disaster relief programs
• Low-interest loans

For example, under NAICS code 531210, a business with less than $11 million in annual revenue is considered a small business.

NAICS Code Search Tools

To find or confirm your NAICS code, you can use:

• NAICS Association
• U.S. Census Bureau NAICS Lookup

Simply enter your business description, and the tool will recommend appropriate codes.

Common Mistakes in Selecting Real Estate NAICS Codes

Here are some pitfalls to avoid:

1. Picking Too Broad a Category

Don't just choose "Real Estate" (531000) without narrowing down. It’s important to be precise.

2. Misclassifying Mixed Activities

If you lease property and manage it, make sure you pick the primary revenue stream.

3. Forgetting to Update NAICS Codes

If your business focus shifts (e.g., from residential to commercial), update your code accordingly.

How NAICS Codes Influence Market Analytics

Government bodies use NAICS data to:

• Measure industry growth
• Analyze employment trends
• Track economic shifts

Businesses can use these insights to decide:

• Where to open new branches
• Which markets are over/under-served
• What type of property is in demand

If you're planning expansion, look at industry reports by NAICS classification to guide your decision.

NAICS Updates and Revisions

The NAICS system is reviewed and updated every five years to reflect changes in the economy. The most recent version is NAICS 2022, which replaced the 2017 version. It introduced minor changes to real estate categories but mostly retained existing codes.

Always ensure your code is up to date, especially if applying for federal opportunities.

Real Estate Investors: Which NAICS Code Applies?

If you’re an individual investor buying properties to rent or flip, and not incorporated as a business, you generally don’t need a NAICS code unless registering a formal business entity. However, if you run a real estate LLC or corporation, you'll need to pick a code:

• For long-term rentals: 531110
• For short-term rentals (Airbnb-type): May fall under 721310 or a tourism-related code
• For fix-and-flip: Usually 236118 (Residential Remodelers) if you're handling the renovation process

Real-Life Example

Let’s say you run a company called CityNest Realty, which buys old buildings, renovates them, and sells them for profit.

• If your primary income comes from property resale, and you own and manage the properties during the process, your code may be 236118.
• But if you act as a broker for other people's properties, your code should be 531210.

The distinction between ownership, management, and service-based roles is key to choosing the right code.

FAQs: NAICS Code for Real Estate

Q1. What is the most common NAICS code for real estate agents?

The most commonly used NAICS code for real estate agents is 531210 – Offices of Real Estate Agents and Brokers.

Q2. Can a real estate investor use multiple NAICS codes?

Yes. If your business has diverse activities (e.g., leasing and property management), you may register multiple NAICS codes. However, for most purposes, choose the code representing your primary revenue-generating activity.

Q3. Is a NAICS code required for a sole proprietorship in real estate?

While not mandatory for all sole proprietorships, it's highly recommended if you plan to register your business, apply for loans, or work with government contracts.

Q4. How do I find my NAICS code if I’m unsure?

Use the official NAICS lookup tool or consult your accountant. You can also check business registration documents or tax filings if your business is already registered.

Q5. Can I change my NAICS code later?

Yes. If your business evolves, you can update your NAICS code during annual tax filings or by amending your business license with the appropriate government agency.

Final Thoughts

The NAICS code for real estate is not just a bureaucratic number—it plays a pivotal role in everything from tax filing to market analysis. Whether you are a property manager, investor, broker, or developer, choosing the correct NAICS classification can unlock opportunities, ensure compliance, and provide clarity in your business operations.

Make sure to evaluate your main business activity, stay current with updates, and use official resources when in doubt. Getting it right the first time will save you time and hassle in the long run.