WASHINGTON — Realtor median net income increased 5 percent from 2017 to 2018, and 67 percent of all realtors were female, an increase from 63 percent last year, according to key findings in the 2019 National Association of Realtors Member Profile.
While overall membership grew from 1.23 million in 2016 to 1.36 in 2018, membership remained steady at 1.32 million as of April 2019, according to the report. The median tenure in real estate decreased from 10 to eight years and the median time spent at a real estate firm was recorded at four years, the same as 2018.
“As the real estate industry continues to feel the impact of limited inventory, the typical number of transactions realtors make in a year remained at 11 in 2018, the same as in the previous report. In addition, because of rising home prices across the country, the median brokerage sales volume increased to $1.9 million in 2018 from $1.8 million in 2017,” Lawrence Yun, NAR chief economist, stated.
The survey's results are representative of the nation's 1.3 million realtors. Members of NAR account for about half of all active real estate licensees in the U.S. Realtors go beyond state licensing requirements by subscribing to NAR's Code of Ethics and standards of practice while committing to continuing education
The report identified the typical realtor as a 54-year-old white female who attended college and was a homeowner. Sixteen percent of realtors had a previous career in management, business, or finance, and 15 percent worked in sales or retail. Realtors continue to see an overall growth in diversity of membership while a growing number of women are entering the profession. Since 2001, there has been a 20 percent increase in females and a 120 percent increase in minorities.
“Limited inventory continues to cause headaches in markets across the country and is preventing potential home-buyers from finding a home. For the sixth year in a row, realtors cited the difficulty in finding the right property surpassed the difficulty of obtaining a mortgage. However, rental business has been strong with more members involved in property management,” said Yun.
The typical property manager supervised 47 properties in 2018, up from 35 properties in 2017. The typical realtor earned 13 percent of their business from repeat clients and customers and 17 percent through referrals from past clients and customers.
The median gross income of realtors was $41,800 in 2018, an increase from $39,800 in 2017. Realtors with 16 years or more experience had a median gross income of $71,000 — down from $78,800 in 2017. In comparison, realtors with two years or less experience had a median gross income of $9,300, a slight increase from $8,330. Median business expenses were reported at $4,600 in 2018, similar to the $4,580 recorded last year. In 2018, 36 percent of realtors were compensated under a fixed commission split (under 100 percent), followed by 23 percent with a graduated commission split (increases with productivity).
This article was contributed by The National Association of Realtors.