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.”
The report analyzes firm demographics, structure, and business characteristics — drawing from NAR broker-member responses to assess current trends and expectations across the real estate landscape.
Additional highlights from the 2025 report include:
- Repeat clients account for 46% of home sales volume; past-client referrals account for 44%.
- Thirty-five percent of firms are actively recruiting, down 5 percentage points from 2023.
- Eighty-one percent operate a single office, unchanged from 2023, with an average of two full-time licensees (down from three).
- Residential firms have operated for an average of 19 years, up from 16 in 2023.
- Commercial firms have operated for an average of 25 years, consistent with 2023.
- Seventy-one percent of firms encourage agents to pursue certifications and designations.
- Sixty-one percent encourage additional training classes.