"Real estate brokerage firms are preparing for another year of pressure from worsening housing affordability and increasing operational costs, according to the National Association of Realtors' (NAR) newly released 2025 Profile of Real Estate Firms. More than half (56%) of firms cited housing affordability as its biggest challenge entering 2026, with rising costs (36%) and local economic conditions (35%) also garnering large response shares. Despite these ongoing headwinds, firms are cautiously optimistic."
"Thirty-eight percent expect profitability to increase in 2025, compared with 30% in 2023 the last time the survey was conducted. Real estate firms are on the frontlines of the industry and are seeing firsthand how housing affordability and local economic conditions are impacting their clients, said Jessica Lautz, NAR deputy chief economist. Firms are also experiencing the rising cost of running their businesses. While the current real estate market is challenging, the majority of firms expect profitability to at least remain stable."
More than half (56%) of firms cited housing affordability as their biggest challenge entering 2026. Rising operational costs (36%) and local economic conditions (35%) were also major concerns. Thirty-eight percent expect profitability to increase in 2025, up from 30% in 2023. Repeat clients account for 46% of home sales volume and past-client referrals for 44%. Thirty-five percent of firms are actively recruiting, down five percentage points since 2023. Eighty-one percent operate a single office, with an average of two full-time licensees, down from three. Firms emphasize training, designations, and long-established operations while relying heavily on repeat and referral business amid rising costs.
Read at www.housingwire.com
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