US Real Estate Realtors/Brokerage Industry

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US Real Estate Realtors/Brokerage Industry

Key Takeaways

  • As per The Close, there are over 107,000 real estate brokerages in the United States. However, according to the most recent data from the US Census Bureau, there are 309,393 firms in the US Real Estate and Rental and Leasing industry.
  • The top five states with the most number of realtors are Florida, California, Texas, New York, and New Jersey.
  • According to data from the Association of Real Estate License Law Officials (ARELLO), there are over 3 million real estate licensees in the US. However, according to the National Association of Realtors' Monthly Membership Report, there are 1,522,801 realtors in the US as of February 28, 2022.
  • As per Realtor.com, the average home stayed for 47 days on the market before being sold in February 2022.

Introduction

We have provided information on the real estate realtors/brokerage industry in the United States which includes the number of realtors by state, the number of real estate rental and leasing firms by state, the leading real estate online indexes in the US, and the most common communication platforms used by agents.

Number of real estate agencies in the US by state

  • As per The Close, there are over 107,000 real estate brokerages in the United States. However, according to the most recent data from the US Census Bureau, there are 309,393 firms in the US Real Estate and Rental and Leasing industry.
  • Below is a breakdown of the number of firms by select state. This breakdown for all the states is available in this attached spreadsheet.
  • Alabama: 3,158
  • Alaska: 8,55
  • Arizona: 7,865
  • Arkansas: 2,398
  • California: 44,235
  • Colorado: 10,320
  • Connecticut: 2,484
  • Delaware: 1,029
  • Top 5 states with the highest number of real estate agents

Number of real estate agents by state

  • According to data from the Association of Real Estate License Law Officials (ARELLO), there are over 3 million real estate licensees in the US.
  • According to the National Association of Realtors' Monthly Membership Report, there are 1,522,801 realtors in the US as of February 28, 2022. Below is the breakdown by state. We have provided this breakdown in the attached spreadsheet.
    • Florida: 209,118.
    • California: 196,514.
    • Texas: 146,388.
    • New York: 62,350.
    • New Jersey: 59,028.
    • North Carolina: 53,472.
    • Arizona: 52,683.
    • Illinois: 50,892.
    • Georgia: 45,571.
    • Pennsylvania: 37,563.

Number of Properties Handled by Agencies

  • While there is no information in the public domain about the number of properties handled by agencies, 53% of realtors are affiliated with an independent company, and 88% of NAR members are independent contractors at their firms.

Number of Properties Handled by Agents

  • According to the National Association of Realtors, the median number of transaction sides in 2020 was as follows:
    • All realtors: 10.
    • Specialist broker/broker associates only: 13.
    • Residential specialists only: 9
    • Residential sides for commercial specialists only: 5.
    • Commercial sides for commercial specialists only: 4.
  • According to The Close, the median number of transactions for a licensed real estate agent is ten every year. On the other hand, real estate brokers and associate brokers "close a median of 13 annual transactions."

Number of Prospects Agents Speak to

  • According to NAR's Home Buyer and Seller Profile for 2020, almost three-quarters of buyers interviewed only one agent during the process of searching for a home.

Time Taken to Close a Real Estate Deal

  • While there is no information in the public domain on how long it takes a real estate agent to close a deal, market data from the Redfin Data Center shows that the average home sat on the market for 25 days in February 2022. However, according to US News, and factoring in the average time to close on a home purchase of 49 days, the average time from listing to closing can stretch to 71 days.
  • As per Realtor.com, the average home stayed for 47 days on the market before being sold in February 2022.
  • According to The National Association of Realtors' Profile of Home Buyers and Sellers, home buyers searched for a home for eight weeks on average and viewed a median of eight homes, with three of these homes being viewed online.

Leading Real Estate Online Indexes

  • According to a leading ETF database, below is a list of some of the leading real estate indexes: Some of the best real estate funds in the US are:
    • Cohen & Steers Global Realty Majors Index.
    • DJ Global Select Real Estate Securities Index (RESI).
    • Dow Jones Global ex-U.S. Real Estate Securities Index.
    • Dow Jones Global ex-U.S. Select Real Estate Securities Total Return Net Index (USD) Hedged.
    • Dow Jones Global Select Real Estate Securities Index.
    • FTSE EPRA/NAREIT Developed Index.
    • FTSE EPRA/NAREIT Developed Real Estate ex-North America Index.
    • FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index.
    • FTSE EPRA/NAREIT Developed Rental ex-U.S. Index.
    • FTSE EPRA/NAREIT Global Real Estate Index.
    • iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index.
    • Dow Jones U.S. Real Estate Index.
    • MSCI Real Estate Indexes.
    • FTSE EPRA NAREIT Americas Index.

Common Communication Platforms Used by Agents

  • As per the NAR Member Profile:
  • 69% of realtors have a business website.
  • Realtors are most active on Facebook, LinkedIn, and Instagram compared to other professional networking websites.
  • Realtors prefer to communicate with clients via text messaging (93%), telephone (90%), and email (89%).
  • 70% of broker/broker associates and 69% of sales agents have a business website.
  • 81% of realtors list homes on their website, 69% publish information about buying and selling, and 66% link back to their firm's website.
  • 74% of realtors use Facebook and 56% use LinkedIn for professional purposes.
  • A fifth of NAR members get 1-5% of their business from social media, and 10% get 6-10%.
  • Of the realtors using drones for their real estate business, 36% hire a professional, 14% have a staff member in their office that uses drones, and 6% personally use drones. One-fifth of realtors do not use drones.

Any valuable and relevant information about communication between agents and prospects

  • According to The Close, a provider of real estate advice and consultancy, realtors making $100,000 or more in commission are more likely to use technology tools such as CRM, compared to realtors who make less.
  • According to a survey conducted by The Close on 135 real estate agents in July 2021, 69% of real estate agents consider social media to be more important for their business than having a website.

Research Strategy

We have used reputable sources such as the National Association of Realtors, Investopedia, ARELLO, the United States Census Bureau, among others, to provide the requested information. During the course of our research, we established that the terms real estate agent, broker, and realtor are used interchangeably, but they are distinct terms. According to Investopedia, these terms are defined as:

"Real estate agents have a professional license to help people buy, sell, and rent real estate. They must work for a sponsoring broker or brokerage firm."

"Brokers are real estate agents who have completed additional training and licensing requirements. They can work independently and hire other real estate agents to work for them."

"A Realtor is a licensed real estate agent or broker (or other real estate professional) who is a member of the National Association of Realtors (NAR). Members must comply with NAR's strict Code of Ethics."

While we found national figures for real estate agents, we could not find state-level information. We have therefore provided the state-level information for realtors.

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