Why decoupling Boston condo commissions failed to lower condo cost
Boston Real Estate for Sale
Why decoupling Boston condo commissions failed to lower condo cost
Decoupling commissions has largely failed to lower housing costs because the underlying market dynamics—low supply and high demand—remain unchanged. While the 2024 NAR settlement was intended to foster price competition, studies in early 2026 show that buyer-agent fees have actually held steady or even risen in some markets.
The failure of decoupling to lower costs is driven by several key factors:
- Supply and Demand Imbalance: In a market with critically low inventory, sellers have little incentive to lower their home price even if their commission costs decrease.
- Steering and Seller Fears: Sellers often still offer traditional rates to avoid the risk of buyer agent
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- Consumer Behavior: Many buyers lack the knowledge or motivation to aggressively negotiate commissions, often prioritizing the house purchase over service fees.
- Structural Hurdles:
- Regulations still largely prevent buyers from financing commissions into their mortgages.
- Decoupling can turn commissions into an upfront, out-of-pocket expense for buyers, potentially making homes less affordable for first-time buyers.
- Agent Incentives: The industry remains highly motivated to maintain 5–6% rates, and traditional commission structures are deeply embedded after decades of practice.
