The National Association of Realtors (NAR) will it survive?
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The National Association of Realtors (NAR) will it survive?
NAR issues first Annual Report
NAR’s 2026-2028 Strategic Plan.
The National Association of REALTORS® released its first Annual Report, which details progress the organization says it’s made in accomplishing the 24 goals of its 2026-2028 Strategic Plan, with a particular focus on transparency, broker engagement, financial discipline and legal risks.
The 80-page document also explains NAR’s next steps toward fulfilling the initiatives it laid out last year after gathering feedback from members through meetings, surveys and focus groups.
“While we have a long way to go in realizing our full vision for NAR, I hope you can appreciate the work we have done to build the foundation for NAR to better serve our members and the industry,” said NAR Immediate Past President Kevin Sears. “We have passed consecutive balanced budgets without raising dues, made our initial payment in compliance with the Sitzer-Burnett settlement terms and identified millions of dollars in savings through a strategic reexamination of our budgets, including our consumer ad campaign strategy and event planning processes. These are just the first steps in setting us up for long-term financial wellness.”
Among the most significant changes made so far was dropping the requirement that real estate agents join Realtor associations to access their local MLS. Instead, NAR has left that decision up to local MLSs.
The move follows the Sitzer-Burnett antitrust case, which NAR settled or $418 million in 2024. A Missouri jury determined NAR rules forced sellers to pay buyer agent commission in violation of antitrust law. NAR also agreed to bar offers of broker compensation on MLSs and require buyer agents to sign written buyer agreements before touring a home.
The report spends a good deal of time laying out NAR’s value proposition to members, noting the new Metro Market Statistics Dashboard, which provides localized market data, and the integration of AI into the Realtors Property Resource. NAR said it provided $1.35 million in free tools and education through its Member Value Plus program and $1 million of free and discounted products through its Right Tools, Right Now program.
NAR also took steps to protect the Realtor brand, the report states. These include creating the association’s first dedicated team of in-house trademark attorneys, implementing a seven-stage brand-protection strategy and “proactively educating media outlets about the difference between a REALTOR® and a real estate licensee” through the daily monitoring of news stories for incorrect usage of the Realtor term.
The report also outlines steps the association took to get its financial house in order, such as appointing a new CFO, hiring a new audit firm and conducting a top-to-bottom review of its finances “in a post-settlement era.” The report notes that NAR cut its budget expenses by $50 million and reduced its staff headcount by 14%.
The report highlights steps NAR has taken to advocate for its legislative priorities, including the promotion of housing affordability, tax incentives and the modernization of capital gains tax law.
“This Annual Report represents NAR’s most transparent and comprehensive update on our progress and priorities,” NAR CEO Nykia Wright said. “We’ve sought to provide a deep look at each initiative in the Strategic Plan, including how we made progress towards our commitments in 2025 and how we will seek to implement each initiative in 2026.”
The National Association of Realtors (NAR) will it survive?
While some were predicting a 50% decline in agent count, NAR membership is down just 100,000 members from January 2024.
The National Association of Realtors (NAR) will it survive?
The National Association of Realtors (NAR) will it survive?
Nykia Wright, the CEO of the National Association of Realtors, said this week that she expects a $32 million drop in revenue next year.
The NAR agent fee is $156 per year, so she must expect 205,128 realtors to retire/quit by 2026 – which would be about 15% of the agent population.
A couple more years like this and it’s going to get serious.
The National Association of Realtors (NAR) will it survive?
The National Association of Realtors (NAR) will it survive?
This is an insight behind the pending collapse of the NAR
Let’s start from the beginning
NAR is a colossal institution. Since its inception in the 1970s, it has experienced a membership growth of more than three times, now comprising 54 states and territory associations (including Washington, D.C., Guam, Puerto Rico, and the Virgin Islands) along with over 1,000 local chapters.
According to the group’s latest tax filing for 2022, it has generated revenue exceeding $300 million, with assets surpassing $1 billion. Additionally, its lobbying division managed to raise $44 million in the previous year.
By receiving millions of dollars in funding, the political action committee of the organization solidified its standing as the second-largest lobbying spender in the previous year, following the U.S. Chamber of Commerce.
The group’s dominant position in the industry was strengthened for over a century through the implementation of exclusive listing databases and mandatory membership. A significant portion of NAR’s dominance within the industry can be attributed to its authority over Multiple Listing Services (MLS). However, in response to demands for dissociating access from NAR membership, the organization has delegated the decision-making power to local associations regarding whether they should grant nonmembers access to their databases. In Massachusetts you don’t have to be a member of National Association of Realtors to join MLS.
“Niagara falls, Viagra rises.”
The National Association of Realtors is facing numerous antitrust lawsuits and sexual harassment allegations,
In August, NAR experienced a significant setback in its national reputation following the release of an investigative report by the New York Times. The article shed light on a “culture of fear” within the organization, allegedly instigated by Kenny Parcell, the former president, and a pattern of disregarded complaints regarding inappropriate conduct.
“Throughout my time as an employee, I constantly found myself expressing disapproval, stating, ‘This behavior is highly inappropriate,'” Stephanie Quinn, a former staff member, disclosed to the Times. Amy Swida, another employee, admitted to experiencing daily fear when arriving at work.”
Merely sixty days later, a jury in Kansas City, Missouri delivered a verdict against the trade organization in a groundbreaking antitrust lawsuit regarding broker commissions. The final decision is currently pending the judge’s authorization, but it has the potential to hold the organization accountable for a sum of $1.8 billion in compensatory payments.
Following the decision, the group exhibited a rebellious attitude, asserting that the case is far from concluded as they plan to challenge the jury’s verdict through an appeal process.
Real Estate Brokers Leaving NAR
The allegations led to a negative response from certain prominent members of the group. In October, the CEO of Redfin, Glenn Kelman, urged agents within his company to terminate their memberships in markets where such action would not hinder their ability to use listing services.
NAR Reports the First Annual Decline in Membership Since 2012. Membership for the National Association of Realtors (NAR) In one month, November to December 2023 membership fell by more than 17,000 by the year with a loss of over 26,000 members
The ruling rendered by the jury in the Sitzer/Burnett case initiated a surge of imitative legal actions. Given the ongoing appeal process of the initial lawsuit and the subsequent influx of new litigations, NAR is anticipated to be entangled in court proceedings for many years to come.
The big question for 2024
The National Association of Realtors (NAR) will it survive?
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