Why the Midwest is best for agents right now 

Sometimes it seems like the entire real estate world is in a funk. High interest rates have suppressed new listings and sales, the rising cost of living has effectively priced out many would-be homebuyers, real estate professionals are facing uncertainty as the industry shifts — the list goes on.

But in some pockets of the country — particularly in the Midwest — agents are faring well.

"We've seen so many people moving to all those Sunbelt cities in Texas, Florida and Arizona over the last several years, but for that exact reason, they're not amazing for real estate agents," Nick Pisano, a data writer for real estate data firm Clever, told Real Estate News in an interview.

"Now, it's these smaller, mid-sized markets where agents can really make their place without having to fight with a million different other agents," he continued.

Detroit comes out on top

The best city for real estate agents in 2024 is Detroit, Michigan, according to Clever's analysis. To determine the rankings, Clever weighted metrics like affordability, typical agent salaries, home values and transactions.

Pisano said Detroit was a standout because there are relatively few real estate agents working in the city. For instance, Clever found there are roughly 15.6 agents per 100,000 residents in Detroit — the lowest share among all metros analyzed, and far below the national average of 63.5 agents per 100,000 residents. That means agents in Detroit often face less competition for listings compared to their peers in other cities on the list.

Real estate agents in Detroit also pull in a median annual income of nearly $64,000 compared to the national average of $50,345, Clever found. That's because full-time agents in Detroit claim more transactions per agent than those in any other city — 89 over a 12-month period vs. an average of 18 nationally — and receive higher-than-average commissions on both the listing and buy-side.

Midwest metros dominate best markets for agents

Regionally, about half of the top 15 best metros for real estate agents are in the Midwest, according to Clever's data. They include:

• Kansas City, Missouri

• Columbus, Ohio

• Chicago, Illinois

• St. Louis, Missouri

• Cleveland, Ohio

• Indianapolis, Indiana

"Midwestern cities were strong in terms of having very reasonable prices of homes, but also pretty strong salaries that are above average for typical real estate agents," Pisano said.

Agents have a harder time in California, Sunbelt states

Just as California is a tough state for buyers, with some of the highest levels of unaffordability in the country, agents face challenges of their own.

Of the 50 cities ranked, four of the bottom 10 were in California. Riverside, ranked No. 41 for agents, had the lowest average salary of all metros at just $33,510. San Francisco took last place due to its high number of agents, low salaries for the region and below-average commissions.

Los Angeles and San Jose also received low marks, and agents in all four of the bottom-10 California cities would have to save for between 17-25 years to afford a home based on median agent salaries, compared to an average of 7.7 years nationally.

Agents in southwestern boomtowns like Phoenix, Las Vegas, Dallas and Austin — all in the bottom 10 of the rankings — earn below-average salaries and face significant competition. Phoenix, which ranked No. 43 on the list, has one of the largest gluts of agents, with nearly 126 per 100,000 residents, second only to Miami at 176 agents.

Milwaukee was the only Midwestern city to land toward the bottom of the rankings due to below-average salaries and commissions coupled with high competition for clients.