The Massachusetts Association of REALTORS
The median gross income of a Realtor jumped almost 25% in 2021, as a shortage of housing inventory was the biggest obstacle to homebuyers seeking to purchase homes, according to the 2022 National Association of REALTORS®
NAR membership rose from 1.48 million at the end of 2020 to 1.56 million at the end of 2021 as people sought to take advantage of the hot housing market. Amid the increase in membership, the typical Realtor saw their business increase, with transaction sides increasing to 12 from 10 in 2020 and sales volume increasing to $2.6 million from $2.1 million.
“In the last year, Realtors continued to navigate a challenging housing market and cited the biggest factor holding back the housing market was tight inventory,” said Jessica Lautz, NAR vice president of demographics and behavioral insights. “As buyers relocated throughout the pandemic, housing affordability and lack of supply became a hurdle that agents and brokers found ways to overcome.”
Median income for Realtors jumped to $54,330 from $43,330 in 2020. However, the amount earned varied widely by experience, as 57% of Realtors with two years or less experience earned less than $10,000, compared to 45% of members with 16 or more years of experience, who made more than $100,000.
The median experience was eight years, while 39% of respondents had 16 years or more in the business, and 25% had two years or less.
Fifty-seven percent of respondents cited limited inventory as the main impediment to clients closing on home purchases, followed by 16% citing housing affordability and 12% citing difficulty finding the right property.
Fifty-four percent of those surveyed were affiliated with an independent firm, and 87% were independent contractors at their firms. Thirty-six percent were compensated under a fixed commission split, 20% were compensated with a graduated split increasing with productivity, and 18% with a capped commission split.
By demographics, 66% of respondents were female, up from 65% in 2020, while the median age was 56, 77% were white, 11% were Hispanic and 8% were Black. Ninety-three percent had some post-secondary education, and 31% completed their bachelor’s degrees.
NAR conducted the 97-question survey in March, emailing it to a random sample of 176,494 Realtors and receiving a total of 9,220 responses.
Updated: Boston Real Estate Blog 2022
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ring the past couple of weeks, several people have been surprised when I mentioned that there are more female REALTORS than male REALTORS. Female real estate brokers and agents are on average older than the rest of the workforce too.
When the National Associaton of REALTORS advertises its services they tend to use pictures or videos of young men and young women but that doesn’t represent who most the real estate workforce.
NAR believes that they need to actively advertise to younger people. Even if younger members join they will one day become older members and there is never a shortage of REALTORS, in fact, there are more than are needed.
Traditionally younger people are not attracted to jobs as independent contractors working on a 100% commission basis with no benefits. Most REALTORS are independent contractors who work on a 100% commission basis and only get paid after a successful closing.
REALTOR isn’t an occupation. A REALTOR is someone who belongs to the National Association of Realtors. Realtors are misunderstood but I don’t think anyone has time to read the thousands of words I could write on that topic. Here are some statistics:
65% percent of REALTORS® are licensed as sales agents, 21% hold broker licenses, and 15% hold broker associate licenses.
The typical REALTOR® was a 54-year-old white female who attended college and was a homeowner.
67% of all REALTORS® were female, up from 63% last year.
33% of REALTORS are over 60.
The majority of REALTORS®—84%—owned their primary residence and 38% owned a secondary property.
54% of REALTORS® were affiliated with an independent company. (Like Boardman Realty)
Nearly 9 in 10 members were independent contractors at their firms.
9% of REALTORS® worked for a firm that was bought or merged in the past two years.
REALTORS® with 16 years or more experience had a median gross income of $71,000 compared to REALTORS® with 2 years or less experience that had a median gross income of $9,300.