Completing a 1031 exchange comes with a critical timeline: exchangers have 180 days to acquire their replacement property after selling their relinquished property. By the end of June 2025, the last of our exchange transactions from last year successfully wrapped up, marking the close of another remarkable year for 1031 CORP.
In 2024, we facilitated billions of dollars in exchanged properties, underscoring our position as a national leader in 1031 exchange services. Our clients exchanged properties in all 50 states and Washington, D.C., ranging from a $39,000 starter investment to a $94.5 million trophy property. This proves that we have the depth, breadth, and expertise to structure even the most complex and high-value exchanges. Whether our clients were trading single-family rentals, upgrading into commercial real estate, leveraging into multiple properties, or executing advanced reverse and improvement exchanges, we were there every step of the way, ensuring compliance, protecting timelines, and maximizing outcomes.
With our final 2024 transactions now complete, we can share a detailed look at the market trends, migration patterns, and investment strategies that shaped our clients’ exchange activity over the past year. This year’s numbers reveal how investors are adapting to a shifting real estate market, one marked by tight replacement property inventory, changing asset values, and increasing interest in alternative structures like Delaware Statutory Trusts (DSTs) and improvement exchanges.
2024 by the Numbers
- Asset Value Range: Sale prices ranged from just $39,000 to a high of $94,500,000, proving our expertise spans both entry-level and ultra-complex transactions.
- Average Timeline: 72 days from the sale of the first relinquished property to the purchase of the last replacement property.
- Relinquished Property Equity: $616,557 (75.2% equity), reflecting the strong equity positions of our clients at the time of sale.
- Replacement Property Average Contract Price: $861,235 with $496,884 in equity, slightly lower than relinquished property equity because 18% of exchangers diversified and leveraged their equity into multiple replacement properties.
- Delaware Statutory Trust (DST) Transactions: 19.9% of all exchanges, nearly double 2023’s share, highlighting growing investor interest in passive real estate ownership.
- Exchanges with Boot: 9.73%, up from 7.31% in 2021, driven by investors tapping increased equity and limited inventory.
- Average Taxpayer Age: 58, down from 60 in 2021, underscoring the trend toward younger, more strategic investors entering the 1031 exchange market.
- Reverse Exchanges: Demand rose sharply as investors sought to avoid the 45-day identification period. Our largest reverse exchange topped $37M.
- Improvement Exchanges: Increased in frequency as investors targeted “diamonds in the rough” to create strong rental assets combining purchase and construction costs.
- Multiple Replacement Properties: 18% of exchanges included multiple replacement properties.
- Exchange Failure Rate: 8.13%, significantly below national averages. The primary cause of failed exchanges in 2024 was inability to find suitable replacement property in a tight inventory market.
Market Insight: Why Average Relinquished Property Prices Fell in 2024
From 2021 to 2024, our average relinquished property sale price declined from $945,201 in 2021 to $837,291 in 2024. Averages in 2022 and 2023 were even higher. This 12.4% year-over-year drop is consistent with national real estate cooling trends and reflects strategic investor adaptation:
- Shift in Transaction Mix: Fewer premium commercial sales and more mid-market residential properties aligned with a national move toward affordable, high-yield assets.
- Migration to Lower-Cost Markets: Strong outbound flows from high-cost states to affordable, high-growth regions naturally reduced average sale values.
- National Price Stabilization: High interest rates slowed appreciation, and commercial property valuations adjusted as cap rates rose.
- Strategic Investor Behavior: Many investors pursued improvement exchanges to buy lower-cost properties and renovate, or reverse exchanges to secure opportunities without being tied to matching high-dollar relinquished sales.
This trend is less about “falling prices” and more about strategic repositioning, ensuring portfolios are resilient and optimized for the current market.
Average Transaction Values
Our clients continue to use the 1031 exchange as a strategic tool to scale their investments:
Who We Serve
We facilitate exchanges for a broad range of taxpayer types, each with unique goals, timelines, and investment strategies:
Property Types: Residential vs. Commercial
While single-family rentals were the most frequently sold property type in 2024, the replacement mix shows investors are diversifying.
Noteworthy 2024 Property Trends
- Single-Family Homes led in volume (average $499,630; equity $370,230). The 1031 exchange industry consistently sees single-family rentals as the most frequently exchanged property type.
- Condominiums and Townhouses ranked second and third in count but had significantly different price profiles, condos averaged $1.10M, while townhouses averaged $335K.
- Vacant Land averaged $938,720 with a remarkable 94.5% equity.
- High-value CRE asset classes like Multifamily, Industrial/Warehouse, and Hotel/Motel, though fewer in number, contributed disproportionately to total dollars exchanged.
- Leasehold Interests Triple Net Leases (NNN) had an average price at $5.40M.
Migration Trends: Following the Money & Opportunity
Our 2024 data reflects powerful migration patterns in real estate investing. While 39.7% of exchangers both sold and bought in their home state, most sought opportunities across state lines. Our migration corridors closely match national moving patterns tracked by U-Haul and Census Bureau data, confirming our investors are moving with the broader market.
Top 10 “Exodus” States & their New Destinations:
- PA → FL, NJ, SC
- OR → ID, TN, TX
- NJ → PA, FL, MD
- CA → OR, PA, MD
- FL → PA, NV, TX
- NY → PA, FL, SC
- MD → FL, CA, AZ
- TX → UT, PA, CA
- DE → PA, FL, TX
- AZ → OR, CA, SC
Our Core Values in Action
Restless Pursuit of Opportunities – We find creative ways to help clients maximize their 1031 exchange benefits, whether it’s through high-value investment upgrades, multi-property transactions, or seizing emerging market trends.
Modeling and Inspiring Stewardship – We set the standard for the 1031 exchange industry, from our leadership roles in the Federation of Exchange Accommodators (FEA) and local associations and groups to our rigorous compliance practices.
Providing an Exceptional Exchange Experience Made Easy – From the first consultation to the last closing statement, we prioritize clear communication, on-time execution, and seamless coordination by a dedicated team, even in the most complex exchanges.
Why 1031 CORP. is the Mighty QI
- Our clients exchanged properties in all 50 states and Washington, DC
- Expertise in reverse and improvement exchanges, two of the most complex strategies in the industry
- Managed multi-state, multi-property, and ultra-high-value transactions with ease
- Delivered 108 educational presentations nationwide in 2024
- Average of 29.75 internal and external continuing education hours per team member
- 38% of our exchange team serves in leadership roles or on committees for the FEA
- Afford our team members 16 hours of paid time off annually for their community volunteerism
- 33 years of excellence educating on Section 1031 and simplifying the exchange process
The Bottom Line for Investors
In 2024, 1031 CORP. proved that even in a cooling real estate market, smart, well-structured exchanges can outperform. Whether you’re executing a straightforward single-property exchange or a multi-state reverse exchange with construction improvements, our team has the depth, breadth, and industry knowledge to make it happen.
2024 by the Numbers Infographic
For a clear, visual summary of the key points from this article, view our companion infographic. It highlights the essential takeaways from this blog in a clear, visual breakdown of the key takeaways.
View 2024 by the Numbers Infographic
Thinking about a 1031 exchange in 2025?
Contact our experienced exchange team today and discover why investors across the country trust 1031 CORP. to protect their equity, defer their taxes, and grow their portfolios.
