After a slip in business in 2015, the National Association of Realtors Member Profilefound that the income and sales volume of Realtor members increased in 2016. The median gross income of Realtors increased 8% in 2016 as the typical member had the highest number of transactions in recent years.
Despite Realtors continuing to cite inventory shortages, transactions grew to 12 per agent, the highest since 2014 when the typical agent had 11. The median sales volume for Realtors also grew from $1.8 million in 2015 to $1.9 million in 2016. Median income increased too, from $39,200 in 2015 to $42,500 in 2016; the median gross income of Realtor households also increased from $98,300 in 2015 to $111,400 last year.
The Member Profile is representative of the nation’s 1.2 million Realtors; members of NAR account for more than half of the approximately 2.2 million 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 and committing to continuing education.
Lawrence Yun, NAR chief economist, says business activity for Realtors grew last year because of higher demand, even amid a rise in membership. “The return of pre-recession market levels and rising home sales and prices have led to increased business activity among Realtors and an increase in Realtor membership. It is a highly entrepreneurial business, with some members earning six-figure incomes while others were barely scratching out less than $10,000,” Yun said.
The latest survey revealed that 24% of members make under $10,000, and 24% make above $100,000. It is not surprising that median gross income and the number of transactions generally increase with experience; last year, Realtors in business for more than 16 years earned a median income of $78,850 (up from $73,400 in 2015) and had 15 transactions, the same number as 2015. Realtors with 2 years or less experience had a median gross income of $8,930, an increase from $7,400 in 2015, and had 4 transactions.
Income also varied by license type, as members licensed as brokers earned $69,640 in 2016, while the median earnings for sales agents was $31,670.
In the past year, there was a continued rise in new members, from 1.16 million Realtors® in March 2016 to 1.22 million in March 2017. The typical member has 10 years of real estate experience (unchanged from a year ago).
Younger members continue to enter the industry, as this year’s survey found that 28% have less than two years of experience, an increase from 17% in 2015. Members with less than one year of experience made up 20% of membership, an almost 10-percentage point increase from 2015. Broker-owners, managers, and appraisers had the most experience, while sales agents were typically the newest to the field with six years of experience.
Despite more younger members joining the association last year, the median age of Realtors remained at 53 again last year; the lowest median age was in 2008 at 52 years. “The leveling in age may be attributed both to older members retiring and to more new, younger entrants to the business,” Brown said.
This year, only 30% of members are over 60 years old, and 4% are less than 30 years old, which is consistent with last year. 12% of members who have two years or less of experience are under 30 years of age.
The typical Realtor is a 53-year-old female who attended college and is a homeowner; women represent 63% of Realtors, accounting for 58% of brokers and 67% of sales agents.
65% of members are licensed as sales agents; 22% are brokers, and 15% are broker associates (some hold more than one license). 13% of members have one personal assistant, while 3% have two or more personal assistants.
