Last year proved to be a difficult one for REALTORS®, a direct result of a recovering, post-COVID market that lacked inventory and housing affordability—causing existing-home sales to fall to the lowest figure since 1995. According to the annual National Association of REALTORS®’ 2024 Member Profile, 26% of REALTORS® named these the most pressing factors limiting potential clients from purchasing a home. The report, issued last week, analyzes members’ business activity and demographics from the prior year.
“Regardless of market conditions, agents who are REALTORS® sought a career where they could be their own boss as an independent contractor, specialize in residential or commercial brokerage and embrace new technologies to make transactions happen,” said Jessica Lautz, deputy chief economist and vice president of research for the National Association of REALTORS® (NAR), in the report.
Delving deeper into this year’s data, brokerage specialists had a lower sales volume compared to 2022 ($2.5 million vs. $3.4 million), and the typical agent had fewer transactions (10 vs. 12) in 2023, according to NAR’s 2024 Member Profile.
The median gross income for typical REALTORS® in 2023 was $55,800, down from $56,400 in 2022, although REALTORS® with 16 years of experience or more experienced a profitable jump from 2022—$92,500, up from $80,700, the report stated.
“2023 was a difficult year for REALTORS® due to high mortgage rates and low housing inventory, which significantly impacted home sales volume,” explained Lautz. “REALTORS® faced competition at all angles—not only to represent clients, but also to ensure their buyers’ offers were accepted amid tough real estate market conditions.”
More key data
Almost two-thirds (65%) of REALTORS® in 2023 held sales agent licenses, 22% broker licenses and 17% broker associate licenses. Additionally, 74% of NAR members were reported to have specialized in residential brokerage, the report showed. Similarly to 2022, relocation, residential property management and commercial brokerage were REALTORS®’ most frequent secondary real estate avenues.
In 2023, members had an average of 10 years of industry experience compared to 11 in 2022, and 73% of REALTORS® indicated that they intend to remain in real estate for at least two more years.
And, as agents in the industry all understand, it is imperative to build a strong relationship with clients on an initial meetup or open house. As such, the report showed that the typical REALTOR® earned 20% of their business from previous clients, still down 27% from 2022, respectively. REALTORS® with 16 years of experience or more “reported a greater share of repeat business from clients or referrals (a median of 42% in 2023),” as stated in NAR’s 2024 Member Profile.
Over half of REALTORS® (53%) worked with an independent company, and 88% as independent contractors at their respective firms, essentially the same numbers as 2022. The typical REALTOR® had a median tenure of five years with their firm, down from six years in 2022, and 8% of members shared that they were working for a firm that was bought or merged within the past two years—down a drastic 26% from 2022, as stated in the report.
“REALTORS® are hardworking people who advocate for homeownership and property rights in the communities they serve,” said NAR President Kevin Sears, broker-partner of Sears Real Estate/Lamacchia Realty in Springfield, Massachusetts. “Regardless of how you find a property, expert agents who are REALTORS® help take the stress out of the home-buying process and navigate the most intricate and significant transaction many will ever complete.”
For the full report, click here.
