The Impact of a Struggling Housing Market on Real Estate Agents: Challenges and Changes Ahead

The real estate industry is facing challenging times as a struggling housing market, high prices, and elevated borrowing costs have led to a significant reduction in the number of real estate agents across America. According to data from the Federal Reserve Economic Data, there are tens of thousands fewer real estate brokers and sales agents compared to before the pandemic.

In 2023, the number of real estate agents stood at 440,000, down from 549,000 in 2019. The combination of high mortgage rates and record-high home prices has deterred potential buyers from entering the market, leading to a slowdown in business for real estate agents.

With fewer buyers entering the market and sellers hesitant to list their properties, the business for both buyers’ and sellers’ agents has been severely impacted. Florida-based real estate agent April Strickland highlighted the tough market conditions, stating that there are more realtors than homes being sold in her area, leading to financial struggles for many agents.

Saad Munir, a Boston-based vice president at Torii Homes, echoed these sentiments, emphasizing the challenges faced by agents in the current market. He mentioned a forthcoming rule change that will affect how realtors charge commissions, further complicating the future of the industry.

Despite the hardships faced by real estate agents, Munir suggested that the expected exodus from the industry could ultimately benefit those who remain. As agents adapt to the changing landscape and find ways to differentiate themselves, the industry may see a positive shift in the long run.

The real estate industry is at a crossroads, with agents grappling with a combination of economic challenges and regulatory changes. As the market continues to evolve, real estate professionals will need to innovate and adapt to ensure their survival in this competitive landscape.