In 2023, the real estate market faced significant challenges, marking the lowest volume of existing-home sales since 1995. According to the National Association of REALTORS®' (NAR) 2024 Member Profile, 26% of REALTORS® identified inventory shortages and housing affordability as the main barriers preventing clients from purchasing homes.
Market Conditions and REALTOR® Challenges The past year proved difficult for REALTORS® due to high mortgage rates and low housing inventory, significantly impacting sales volume. Jessica Lautz, NAR deputy chief economist and vice president of research, highlighted the intense competition REALTORS® faced to secure client representation and accepted offers in a tough market.
Member Demographics and Business Activity
- Licenses and Specializations: Most REALTORS® hold sales agent licenses (65%), followed by broker (22%) and broker associate licenses (17%). A majority (74%) specialize in residential brokerage, with relocation, residential property management, and commercial brokerage as common secondary specialties.
- Experience: The typical REALTOR® has 10 years of experience, slightly down from 11 years in 2022. Despite market challenges, 73% of members are confident they will remain in the industry for at least two more years.
Sales and Earnings
- Volume and Transactions: Brokerage specialists saw a decrease in sales volume ($2.5 million vs. $3.4 million in 2022), and the typical agent completed fewer transactions (10 vs. 12 in 2022).
- Income: The median gross income for REALTORS® dropped slightly to $55,800 from $56,400 in 2022. However, those with 16 or more years of experience saw an increase to $92,500, up from $80,700.
- Expenses: REALTORS®’ total expenses rose to $8,450 from $8,210 in the previous year.
Client Relationships and Referrals
- Repeat business from previous clients decreased to 20% from 27%. Experienced members (16+ years) reported higher repeat business (42%) compared to newcomers (2 years or less) with no repeat business.
- Referrals accounted for a median of 21% of business, down from 24% in 2022, with more experienced members seeing a higher percentage of referrals.
Work Environment and Technology
- Most REALTORS® worked 35 hours per week, slightly less than in 2022.
- The majority worked with independent companies (53%) and as independent contractors (88%).
- The use of technology remains high, with daily reliance on smartphones (96%) and computers (91%). Social media, GPS, and multiple listings software are integral to daily operations.
Diversity and Education
- Women comprised 65% of REALTORS®, up from 62%. The median age dropped to 55 from 60. The profession also saw increased diversity, especially among new members.
- REALTORS® are well-educated, with 92% having some post-secondary education. Many members are active volunteers in their communities.
NAR President Kevin Sears praised REALTORS® for their dedication and expertise, emphasizing their role in facilitating stress-free homebuying processes and advocating for property rights.
For more detailed insights from NAR’s 2024 Member Profile, visit NAR’s official report.
