2023 was tough for agents, but they aren’t giving up
The typical agent had fewer transactions and less income last year, NAR found, but that’s not stopping newcomers from joining — and old pros are doing well.
Key points:
- NAR’s 2024 Member Profile found that agents, like many consumers, struggled last year, with median gross incomes falling from $56,400 in 2022 to $55,800 in 2023.
- The most experienced real estate professionals, however, fared much better, grossing nearly $12,000 more in 2023.
- Despite the rough year, NAR reported that 73% of agents surveyed said they were “very certain” they would keep working in real estate for the next two years.
The numbers are in: The typical agent didn't fare as well in 2023 as they did the previous year. Agents faced a battle on multiple fronts — while the Fed fought to contain inflation, real estate agents saw their transactions slide and overall income drop.
But despite the tough year, the majority of agents said they planned to stick it out for at least another couple of years, according to the NAR's newly released 2024 member profile.
Agents were impacted by tough market conditions
Sluggish sales, inventory woes and high interest rates were persistent foils to the housing market in 2023, and agents felt the effects. According to the NAR member profile, the typical agent reported closing 10 transaction sides and $2.5 million in sales volume last year, a decline from 12 deals and $3.4 million in sales in 2022.
"The volume of existing-home sales was the lowest level since 1995," NAR researchers wrote. "Given the challenging market conditions, it is not surprising to see Realtors cited the lack of inventory (26%), housing affordability (26%), and difficulty finding the right property (9%) top factors holding back clients."
Incomes fell — but not for everyone
High home prices, and the corresponding boost in commissions, helped soften the blow for agents, but annual incomes still dipped slightly. The median gross income for all agents fell from $56,400 in 2022 to $55,800 in 2023.
The most experienced agents, however, not only proved their ability to weather the storm, but came out ahead in 2023. Those with 16 years or more of real estate experience earned a median income of $92,500, up significantly from $80,700 the year prior.
On the other end of the spectrum, the newest agents struggled the most, bringing in just $8,100 in 2023 versus $9,600 in 2022.
Most agents plan to stick with real estate
Despite the tough year, NAR reported that the majority of agents — or 73% of those surveyed — said they were "very certain" they would continue to work in real estate for at least the next two years.
And that could be due to optimism around the opportunities ahead. While the market has become notoriously difficult to predict, there may finally be relief ahead for consumers and agents alike, say some experts, including NAR Chief Economist Lawrence Yun.
"In the second half of 2024, look for moderately lower mortgage rates, higher home sales and stabilizing home prices," Yun said in the latest housing forecast. "Significant unmet demand exists, and we expect mortgage rates to moderate in the coming months, which will bring more buyers into the market."
Additionally, inventory has noticeably improved over the last year, and consumers are feeling more positive about the housing market than they have in two years.
Uptick in new agents, but they might be testing the waters
Even as total NAR membership fell in 2023, new agents continued to enter the profession. The newest cohort — those with two years or less of experience — grew slightly from 17% in 2022 to 18% in 2023. And while 75% of them expect to continue in the industry, only 55% indicated that real estate was their only profession. They may be taking a "wait and see" approach or simply supplementing their income, which nets out at just $7,400, with other work.
Not surprisingly, these new agents are relatively young compared to the median age of 55. Agents under 40 made up just 18% of NAR members overall but accounted for 43% of agents with less than two years of experience.
That least-experienced segment of real estate professionals reported a median household income of just over $94,000, and only 27% said real estate was their primary source of household income.