National Association of REALTORS®
The National Association of REALTORS®
NAR strives to be the collective force influencing and shaping the real estate industry. It seeks to be the leading advocate of the right to own, use, and transfer real property; the acknowledged leader in developing standards for efficient, effective, and ethical real estate business practices; and valued by highly skilled real estate professionals and viewed by them as crucial to their success.
Working on behalf of America’s property owners, the NATIONAL ASSOCIATION OF REALTORS® provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system, and the right to own, use, and transfer real property.
National Association of REALTORS® 2019 Member Profile:
In 2019, the rise in new members the National Association of REALTORS® witnessed in the last several years has largely leveled out. While membership grew from 1.23 million in 2016 to 1.36 in 2018, as of April 2019 membership remained steady at 1.32 million. The median years of experience in real estate decreased to eight years from 10 in last year’s report. Tenure at the firm was a median of four years again this year.
The median age of REALTORS® was 54 in the 2019 survey, the same as last year. The median age held steady between 56 and 57 from 2011 to 2015, then dropped to 53 in 2016 and 2017. This year, 33 percent were over 60 years old and four percent were less than 30, slightly down from last year. Ten percent of members (down from 13 percent) who had two years or less experience were under 30 years of age.
Limited inventory continues to plague many housing markets in the United States. For the sixth year in a row, the difficulty finding the right property surpassed the difficulty in obtaining mortgage financing as the most cited reason limiting potential clients. Impacted by limited inventory, the typical number of transactions was 11 in 2018, the same as in the previous year. Despite rising home prices again in 2018, the median brokerage sales volume increased to $1.9 million in 2018 from $1.8 million in 2017.
The median gross income of REALTORS® was $41,800 in 2018, an increase from $39,800 in 2017. New members entering the field can be seen with the differences in income by experience, function, and hours worked per week. Fifty-four percent of members (down from 60 percent of members) who have two years or less experience made less than $10,000 in 2018 compared to 35 percent of members with more than 16 years of experience who made more than $100,000 in the same time period.
REALTORS® with 16 years or more experience had a median gross income of $71,000—down from $78,800 in 2017— compared to REALTORS® with two years or less experience that had a median gross income of $9,300—a slight increase from $8,330.
The typical member was an independent contractor affiliated with an independent company catering to local markets. REALTORS® frequently have had careers in other fields prior to real estate, the most common being in management, business, and financial professions, followed by sales and retail. Only four percent indicated that real estate was their first career. The majority of members were women homeowners with a college education.
Looking ahead, 80 percent of REALTORS® were very certain they would remain in the market for two more years.