Why We Listen to the Industry
Redfin has always strived to be the best employer in real estate, and in my nearly 15 years with the company I’ve found the best way to do that is simply to listen. That’s why we run a regular survey of non-Redfin agents to stay up to date on the state of the real estate industry. This survey helps us better understand what agents want, what buyers and sellers want, and how changes in the industry, government, and society are affecting agents.
While our industry is made of all kinds of professionals who help transactions run smoothly, our survey focuses on agents who completed deals in 2024. It’s also worth noting that agents who participated in our survey tended to be further along in their careers–the typical respondent had more than 10 years of experience, with 83.8% working full-time.
There are many important findings that stood out to me as being important for Redfin and the wider industry to consider, including:
- The frequency agents are changing brokerages
- Agents being increasingly less likely to recommend real estate as a career
- The impact of economic uncertainty and the affordability crisis on sales and morale
- Agents needing to be better educated about housing-related climate issues
- The future of the National Association of Realtors and its role as a positive force for agents
Our goal is to better understand the unique challenges facing agents trying to make it in this industry and in turn, be a better employer and a more informed force for good within the real estate community.
Agent Performance
In a slow market, agents are closing more deals and earning more money
Nearly three out of five (58%) agents earned more than $50,000 in 2024, up from 49% in 2023. The share of agents making higher incomes also increased, with nearly 30% earning more than $100,000, up from 22% in 2023.
Agents were also more likely to close more deals, with 72.2% closing more than 5+ deals in 2024, up from 63% in 2023.
Performance improvements are likely a reflection of fewer new agents entering the industry. Last year, 17% of agents had less than three years’ experience, compared to 28% in 2021.
Even in a world with fewer sales, the best agents are doing well. Those agents who’ve made it through the rollercoaster ride of the past few years are the type of agents who can overcome challenges and thrive.
But that’s not to say there aren’t still agents hustling to make it work. Despite the increased incomes overall, more than a third of agents supplemented their income by working a second job, a number that was unchanged from 2023.
Choosing a Brokerage
Agents are switching brokerages, looking for a better commission split and support
Nearly one in seven (15%) agents are planning to switch brokerages in the next 12 months, and almost that many (13.4%) did switch in the past 12 months. Highlighting the constant movement of agents, nearly one in five (19.4%) of those who did switch brokerages in 2024 are already planning on switching again in 2025.
When choosing a brokerage to work for, agents care about factors like brand recognition and support because they help them build their businesses. 55.2% of agents rated the brand and reputation of a brokerage as very important, while 54.6% rated training and support as such. But when it comes down to it, cash is king: The commission split is easily the most important factor, with 78.4% rating it as “very important.”
Commissions are so important that agents are willing to sacrifice other important factors to preserve their split. More agents (54.8%) would prefer their brokerage invest less in training, marketing and technology in order to make the commission split better, rather than invest more in those areas and make the commission split slightly worse (45.2%).
At Redfin, we believe you can have the best of both worlds. With up to 75% splits for agent-generated deals and zero out-of-pocket expenses, we’re competitive on compensation— and we shine when it comes to our support. I think of Redfin as providing a business in a box: an agent can plug right into our platform and focus on their customers, while we take care of the tech, marketing and team support. That’s why Redfin agents are the most productive in the industry, closing twice as many deals on average compared to non-Redfin agents.
Real Estate as a Career
Even as business improves, it’s clear the last few years have taken their toll as agents are less likely to recommend real estate as a career
Only 21.2% of agents are likely to recommend being a real estate agent, compared to 49.8% who are unlikely to recommend their career to others. The percentage gap between those numbers leads to a net promoter score of -28.6 in 2024, the lowest result in the four agent surveys Redfin has conducted.
Unpredictability of income (42.6% rate as a major issue), the difficulty of finding customers (37.8%) and dealing with rude or unprofessional agents (27.8%) are the top three dislikes that agents have about their profession.
It’s unsurprising that after two years of record low sales, agents are less likely to recommend real estate as a career. But it’s important to highlight why agents love their job—they want to be their own boss and they want to help people through major life transitions.
Entrepreneurial independence and being able to set their own schedule ranks as the top reason agents like their jobs, with 86.8% rating it as a major benefit. Helping people whose lives are in transition (76.4% rate as a major benefit) and relationships with customers (72.4%) are the next most important reasons.
Affordability is the number one challenge facing agents
Agents cite affordability for buyers as the number one challenge they face in the next five years, with 64.2% rating it as a major concern.
Redfin’s research highlights the affordability challenge. While buying a home became slightly more affordable in 2024, it was still the second least affordable homebuying year on record, surpassed only by 2023.
For many Americans, buying a home remains more out of reach than ever. Agents know all too well that elevated mortgage rates and high prices are not going away.
The ongoing lack of inventory (42.8% cite as a major concern) and declining commissions (42%) are rated as the second and third biggest challenges.
Housing Policies and the Economy
Agents support affordable housing policies, but are less likely to support increased housing density in the area where they live
More than three out of four (75.6%) agents agree with policies that are designed to keep homes affordable. Nearly as many (66.8%) agree with policies that promote building more housing.
But agents are less likely to support increased housing in their neighborhoods. More agents (40%) disagree, rather than agree (36.6%), with zoning policies that allow for more dense housing, such as apartment buildings and towhouses, to be built where they live.
It’s encouraging to see such strong agent support for government policies to build more homes, and to keep homes affordable. The next few years could see meaningful changes in building regulations, based on the stated goals of local, state and federal governments to build more homes.
Agents are confident that sales and prices will rise in 2025
Slightly more than half (50.4%) of agents believe sales in their area will rise this year, up slightly from 48.4% in 2023. Only 8.2% believe they will fall, down from 14.2% a year earlier.
Expectations of an improving market are in line with Redfin’s projections that existing home sales will rise nationally this year.
Agents are just as confident that home prices will keep ticking up, with 50% believing prices will rise in their area, up from 42.2% in last year’s survey.
Still, agents are less certain about the state of the economy. More than two in five (40.6%) agents feel positive about the U.S. economy, while roughly the same share (39.6%) do not.
Impact of Climate Change and Insurance Costs on Real Estate
Nearly 40% of agents believe climate change is impacting where people choose to live
Nearly two in five (39%) agents agree that climate change is impacting consumer choices about where to live and what home to buy. Almost as many (35.8%) disagree, while 25.2% were neutral.
Agents in Florida (55.4% agree) and California (51.1% agree) were more likely to believe climate change is impacting home buying choices.
Overall, there was a fairly even split between agents with customers who had more (18.4%) or less (17.8%) climate or weather concerns last year—with agents in California, Florida and Texas more likely to encounter issues.
Nearly half (45.2%) of all agents said they had encountered about the same number of climate-related concerns.
Even though customers are increasingly making choices based on climate factors, less than 10% of agents said they had been given training related to climate and weather risks.
With an increasing number of natural disasters impacting areas across the country, Redfin is constantly thinking about ways we can better inform customers during a property transaction. Since 2021, we’ve used our website to share information about climate risks so customers can factor them into their search the same way they assess insurance costs, interest rates, HOA fees, and property taxes. We’re also developing better education and resources for our agents who help customers navigate these decisions.
Agents are increasingly encountering home insurance issues during transactions
Nearly half (47%) of all agents encountered more issues with home insurance during a transaction last year, compared to the previous year. The share was much higher in California (72.7%) and Florida (72.6%).
Despite the increase, when asked to describe the percentage of their customers who had an issue with insurance during a sale last year, 37.6% of agents said “none”, while 25% said few (defined as between 1%-19% of their customers).
Agents in Florida , California and Texas were more likely to have clients with insurance issues.
Discrimination in the Industry
Share of agents experiencing discrimination rose in 2024
In addition to economic challenges, many agents are facing societal ones. More than one in five (22.4%) agents says they have experienced sexism in the industry, up from 18% in 2023. Women (34.5%) were much more likely to experience sexism than men (8.9%).
The same can be said about the way that agents from minority backgrounds are treated. Nearly two in five (38%) non-white agents say they have experienced racial discrimination in the industry, up from 32% in 2023. That includes more than 28% who say they have experienced it from other agents or industry professionals, up from 23% a year ago.
The prevalence of discrimination within our industry is troubling, especially after several instances of misconduct at NAR and high-profile brokerages were reported last year. In order for real estate to remain a thriving industry and a viable career path for people of all backgrounds, it’s paramount that we have each other’s backs and treat all agents and customers fairly.
Attitudes About NAR, the Settlement and Commissions
Attitudes towards NAR turn negative after year of industry upheaval
More than half of agents (51%) have an unfavorable attitude towards the National Association of Realtors (NAR), including 22.6% with a very unfavorable attitude.
That share has jumped significantly from 19% in 2023, after a year of major industry change stemming from the NAR settlement in March 2024 of a wide range of class-action lawsuits. That settlement rewrote the playbook on how agent fees are communicated and negotiated among consumers and agents.
Nearly two out of five agents (38%) say the NAR settlement changes have negatively impacted their business, compared to 5.2% who said their business had been impacted positively.
More than half (54.4%) of agents say they have observed an increase in commission negotiation efforts since the NAR settlement changes, compared to 6.2% who said there has been less.
The most efficient competitor always wants a price war. Settlement or not, other brokers are just beginning to compete on a front where Redfin has spent its whole life fighting. For our entire history, Redfin has advocated for lower fees, transparency and more choices for real estate consumers—saving clients over $1.8 billion in fees.
Redfin data shows that overall buyer commissions have barely budged since the new rules went into effect in August, and agents largely agree. Roughly half (47.8%) say the the average commission in their area has remained about the same, while 34.8% say they have declined modestly.
While commissions have remained fairly stable since the new changes went into effect, they have been trending down in recent years. Looking forward, 51.2% of agents believe commissions will continue that trend and decline over the next 12 months, compared to 4.6% who think they will increase.
Clear Cooperation
NAR announced it is retaining its Clear Cooperation policy, but introduced new rules on March 25 that will allow brokers—with a seller’s consent—to withhold listings from public view on real estate websites. The new rule requires that the listings be shared with other brokers, via local Multiple Listing Services. You can read our CEO Glenn Kelman’s thoughts on the policy here. Our agent survey was fielded prior to the announcement of the new policy.
Three out of four agents (74.8%) agree that withholding a listing from the MLS is rarely in the best interest of the seller.
Roughly two-thirds (66.2%) of agents completely agree that they personally recommend marketing all listings in the MLS, while 21.8% somewhat agree.
Only 11.2% of agents support eliminating the Clear Cooperation policy, while 38.4% support keeping it in place. More than half (50.4%) of agents have no opinion, or are unsure.
What It All Means
Real estate agents are facing a range of unprecedented challenges as we enter the 2025 homebuying season. The market is being met by economic headwinds that threaten to keep sales at historically low levels. At the same time, industry leaders are debating major structural changes that could completely change how homes are bought and sold in the future.
The fact that agents surveyed are increasingly less likely to recommend their career to others is at once concerning and encouraging. 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.
I see plenty of opportunities to improve the agent experience at Redfin—through better tools, better pay, and better opportunities for growth for agents of all backgrounds. There is always more work to be done, because a better agent experience in turn creates better outcomes for our customers.
But I’m also proud of the work we’ve already done to make it easier to be both an agent and a customer. We’ve invested millions into our website, which provides buyers and sellers with the information they need to make informed decisions and connect with an experienced agent to guide them. We’ve built technologies and systems to help deals run smoothly, and paired it all with competitive pay that incentivizes stellar service.
As a result, our agents are ready to tackle this year’s challenges head on, knowing we have provided them with industry-leading tools, training and support. And our customers know they can trust us to put them first, finding competitive advantages to save them money, while helping them navigate the challenges of buying or selling their home. That’s why even as the industry changes, our core mission stays the same.
Methodology
Who was surveyed?
500 real estate agents—from any brokerage (excluding Redfin)—across 46 states who, according to MLS records, completed at least one deal in the past 12 months.
How was the survey conducted?
The anonymous survey was fielded via email by Ipsos between December 2024-January 2025. Respondents were given a $25 incentive to participate.
Respondent demographics and experience
- The median age of an agent was over 50, with more than a third (36.4%) aged over 60.
- More than half (52.2%) of the agents surveyed were women, compared to 42.8% who were men, and 5% who preferred not to answer.
- The typical agent had more than 10 years of experience, with 83.8% working full-time and 16.2% working part-time.
- The demographic profile of respondents was largely in line with the National Association of Realtor’s member profile. See the Appendix for more detailed information about the respondents.
Note: Ipsos conducted the 2024-25 survey, while other market research companies conducted previous reports that are referenced.
