Real estate firms have overwhelmingly cited housing affordability as their greatest challenge, according to the 2025 Profile of Real Estate Firms published by the National Association of Realtors (NAR).
The new report found 56% of real estate firms identifying housing affordability as the biggest concern for their operations, compared to industry costs (36%) and local economic conditions (35%). But despite these challenges, 38% of the firms polled by NAR expected their profitability to increase in 2025, up from 30% in 2023 when the survey was last conducted.
The report also found 46% of sales volume was generated from repeat business and 44% from past client referrals, while 35% of firms are actively recruiting, down 5% from 2023. The majority of firms (81%) have a single office, with two full-time real estate licensees on average.
“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.”
