A new report out from Redfin paints a complicated picture of the real estate industry, suggesting that many agents feel some discontent with their profession — and that dissatisfaction toward the National Association of Realtors (NAR) continues to grow.
The report, out Wednesday, is based on a recent survey of 500 non-Redfin agents who did at least one deal in the last year. Among the most significant findings was that just 21.2 percent of agents are likely to recommend their career to others. Alternatively, 49.8 percent are unlikely to recommend their job.
The report concludes that real estate as a profession in 2024 had a net promoter score — which is a measure of satisfaction — of -29. That’s the worst score since 2019, when Redfin began doing this particular survey.
Credit: Redfin
Of the things agents mentioned not liking about their profession, “unpredictability of income” took a plurality of responses, with 42.6 percent of agents citing it as a “major issue.” Other challenges agents reported not liking about real estate include “difficulty of finding customers,” dealing with unprofessional agents, and the absolute amount of income.
Credit: Redfin
The report identified a number of other sources of potential agent anxiety as well. For example, 64.2 percent of survey respondents cited affordability as a major challenge over the next five years.
Other major challenges agents pointed to include declining commissions, class action commission lawsuits, and the erosion of the multiple listing service marketplace.
And then there’s NAR.
In total, 51 percent of survey respondents reported having a negative impression of the trade organization, which is a significant jump from 19 percent in 2023. Meanwhile, the share of agents who have neutral and positive attitudes about NAR fell.
Credit: Redfin
A majority of agents also reported seeing at least some increase in commission negotiation in the wake of NAR’s landmark commission lawsuit settlement last year.
However, it wasn’t all bad news for agents and their industry. Regarding the NAR settlement, for example, a plurality of agents, or 47.8 percent, reported that commissions are basically holding steady. Nearly 4 percent said commissions have increased to some degree.
The survey also suggests pay is rising in some cases. In 2021, for example, 50 percent of respondents reported making less than $50,000. But in 2024, the share making that much money fell to 42 percent. At the same time, the share of agents in every higher income tier grew.
Credit: Redfin
The report additionally states that “agents were also more likely to close more deals, with 72.2 percent closing more than 5+
deals in 2024, up from 63 percent in 2023.” It goes on to argue that “even in a world with fewer sales, the best agents are doing well.”
Redfin’s survey echoes recent findings from Inman Intel, which reported an increase in negotiations and that top agents appear to be pulling ahead when it comes to pay. A number of brokerage leaders have also said that for successful agents, commissions are in some cases ticking up.
In the case of Redfin’s report, the numbers also suggest that despite various challenges, real estate professionals remain an optimistic bunch: A slight majority of agents, or 50.4 percent, believe home sales will rise in 2025. Only 8.2 percent believe sales will actually fall.
Credit: Redfin
In the report’s conclusion, Jason Aleem — Redfin’s chief of real estate services — ultimately said that agents “are facing a range of unprecedented challenges as we enter the 2025 homebuying season.”
“The fact that agents surveyed are increasingly less likely to recommend their career to others is at once concerning and encouraging,” Aleem continued. “We need to figure out how to make real estate a sustainable and fulfilling career and be honest about whether we as brokerage leaders are creating compelling reasons to stay. And at the same time, we should get comfortable with the fact that some agents just aren’t committed to the right things — and if that’s the case, it’s okay to leave.”
