According to the National Association of Realtors, the median age and years of experience of Realtors has decreased as new and younger professionals enter the industry.
The survey results represent the nation’s nearly 1.2 million Realtors, who are members of NAR and about half of all active real estate licensees in the U.S. The typical member reported a median of 10 years of experience in real estate, down from 12 years in last year’s report. Realtors median age also decreased from 57 in 2004 to 53 in 2015 – the lowest it’s been since 2008 when the median age was 52. The median age is younger than in the past because more people entered the real estate profession this year than in past years, with 20 percent of members reporting one year or less of experience.
Age : In last year’s report, 41 percent of members were more than 60 years old; only 2 percent were under age 30. This year, the percent of Realtors over 60 dropped to 30 percent, and the number of those younger than 30 years rose to 5 percent. Thirteen percent of members with two years or less experience are under 30 years of age.
Diversity : New members also tend to be more diverse than experienced members; 89 percent of Realtors with 16 or more years of experience are white, compared to 78 percent of those with two years or less experience.
Income : The median gross income of Realtors fell last year from $45,800 in 2014 to $39,200 in 2015, with higher incomes tied to more years experience. Realtors with 16 years or more experience reported a median gross income of $73,400, up from $68,800 in 2014; members with two years or less of experience had a median gross income of $8,500, a decrease from $9,100 last year.
Challenges : For the third year in a row, Realtors cited difficultly finding the right property as the most persistent challenge limiting potential buyers, beating out obtaining mortgage financing.
Work details : The typical Realtor worked 40 hours per week in 2015, in line with previous years. Sixty-seven percent of members specialize in residential brokerage, down from 82 percent. The most popular secondary specialization is relocation, 17 percent, and residential property management, 16 percent. Twenty-six percent of all Realtors made more than $100,000 last year, while 26 percent made less than $10,000.
Drones : This year marks the first time members were asked about the use of drones in their business. While a majority of Realtors don’t currently use drones, 18 percent indicated that they plan to in the future. Twelve percent reported that someone in their office uses drones, and 11 percent said that they hire a professional for their drone use.
Technology : When it comes to tech, 93 percent said that their firm has a web presence. When communicating with clients, members said that email, telephone and text messages are used most frequently. Seventy percent of members reported using social media, an increase from 65 percent last year. Other technology that members report regularly using includes electronic contract and forms software, contact management software and e-document preparation programs.
Compensation and insurance : Thirty-eight percent of Realtors reported receiving errors and omissions insurance for their firm, making it the most commonly received benefit. Seventy percent of members were compensated under a percentage split-commission. Fifteen percent were compensated by a 100 percent commission, though that is more likely to apply to brokers than agents.
History : Many Realtors had careers in other fields before entering real estate. The most common first careers reported are in management, business or finance; or sales and retail, both at 16 percent. Only four percent of members indicated that real estate was their first career.
Marriage : The martial status of Realtors remained mostly consistent with last year’s survey – 70 percent of members are married, 15 percent are divorced, and 10 percent are single or never married.
Sex : Also in line with last year’s survey, 62 percent of all Realtors are female. Among broker licensees, 56 percent are female compared with sales agent licensees where 66 percent are female.
Homeownership : More than 8 out of 10 Realtors own their primary home. However, that number increases with age – The homeownership rate for Realtors 60 or older is more than 90 percent. Thirty-one percent of Realtors own residential property for investment, and 9 percent own at least one commercial property.
Education : Ninety-three percent of Realtors have some post-secondary education, with 30 percent completing a bachelor’s degree and 12 percent completing a graduate degree.
Politics : Realtors are also active in the political process – 94 percent are registered to vote, 89 percent voted in the last national election and 77 percent voted in their local elections.
