As I reflect on my career in real estate, I often find myself thinking about the origins of this profession—a journey that started centuries ago and has evolved dramatically over time. Understanding where we came from can offer us insight into how far we’ve come and inspire us to shape the future of this incredible industry. Real estate agents today are more than just intermediaries; we are architects of opportunity, stewards of communities, and custodians of the dreams that define homeownership. But where did it all begin? How did we arrive at this point where real estate is a cornerstone of modern economies and lifestyles?
To truly appreciate the role of real estate agents, we need to look back at the roots of the profession, tracing its evolution from humble beginnings to the multifaceted and dynamic career path it is today. Along the way, we’ll explore fascinating historical insights, compare life then and now, and uncover lessons that continue to shape our work in 2025. So, whether you’re a seasoned professional or just starting out, join me on this journey through the history of real estate agents.
What Does It Mean to Be a Real Estate Agent?
Today, being a real estate agent means wearing many hats. We are negotiators, marketers, advisors, and problem-solvers. We guide people through some of the most significant financial decisions of their lives. It’s an exhilarating and rewarding profession, but it’s also one that requires immense skill and dedication. While the tools of our trade—smartphones, apps, and data analytics—have transformed how we work, the essence of the profession remains unchanged: it’s about people and relationships.
Think about the trust our clients place in us. They rely on us to navigate complex transactions, anticipate potential pitfalls, and ultimately secure their dream homes. This requires a deep understanding of local markets, a knack for negotiation, and the ability to empathize with our clients’ unique circumstances. In 2025, we also have to be tech-savvy, as the industry has embraced virtual tours, AI-driven market analyses, and online platforms that make buying and selling more efficient than ever.
But the core of our work—helping people achieve their real estate goals—hasn’t changed since the profession’s inception. It’s a reminder that while technology can enhance what we do, it’s the human connection that truly makes a difference.
When Did the First Real Estate Agent Come Into Existence?
The concept of real estate agents, as we know it today, began to take shape in the late 19th century. One of the earliest modern real estate practitioners was Colbert Coldwell, who founded a brokerage in 1906 that would eventually become Coldwell Banker. His work marked a turning point in formalizing the profession, but the roots of real estate transactions go back even further.
In the United States, the late 1800s saw a growing need for professionals to manage land sales and urban property transactions as cities expanded. The industrial revolution brought a wave of urbanization, and with it, a burgeoning middle class that aspired to homeownership. This demand led to the establishment of the National Association of Realtors (NAR) in 1908, which provided structure and ethical standards to the profession. Before this, property sales were often handled informally by lawyers or landowners themselves.
Interestingly, this period also saw the rise of advertising in newspapers, which became a crucial tool for early real estate agents. Imagine flipping through the classifieds in 1890 and seeing listings for properties that agents painstakingly scouted and matched to buyers. It was a labor-intensive process, but one that laid the groundwork for the systems we use today.
What Country Started the Idea of Real Estate Agents?
While the formalized real estate profession blossomed in the United States, its origins can be traced back to England. During the 18th and 19th centuries, England’s landowning aristocracy and the legal profession laid the groundwork for property transactions. Estate agents, as they were called in England, managed properties and facilitated land sales on behalf of wealthy landowners.
The idea of specialized intermediaries for property sales spread to the United States, where it became more structured and commercialized. The American emphasis on homeownership and individual property rights—concepts deeply rooted in the nation’s ethos—helped elevate the role of real estate agents in society. By the early 20th century, the profession had become a cornerstone of the American Dream.
Comparing then to now, it’s fascinating to see how the profession has transformed. In 18th-century England, estate agents often worked exclusively for the elite, managing vast estates and securing tenants. Today, real estate agents cater to a diverse clientele, from first-time homebuyers to seasoned investors, reflecting the democratization of property ownership.
How Much Were Homes Selling For When Real Estate Agents First Appeared?
To understand how far we’ve come, let’s take a look at home prices when real estate agents first appeared on the scene. In the late 19th century and early 20th century, the average home price in the United States ranged between $2,000 and $3,000. Adjusted for inflation, that’s roughly $70,000 to $100,000 in today’s dollars. Compare that to 2025, when the median home price in the United States is over $400,000—a staggering increase.
Of course, homes then were much simpler in design and construction. They lacked modern amenities like indoor plumbing, electricity, and central heating, which are now standard. It’s fascinating to think about how expectations for what constitutes a “home” have evolved alongside advances in technology and societal standards.
Consider this: in the late 19th century, a home was primarily a shelter and a place for family gatherings. Today, homes are also offices, gyms, entertainment hubs, and more. This evolution in lifestyle has driven the demand for larger, more feature-rich homes, contributing to the rise in property values.
Annual Wages and the Affordability of Homes
In the late 1800s, the average annual wage for a worker in the United States was around $500 to $1,000. With homes priced at $2,000 to $3,000, the average worker would need to save several years’ worth of income to afford a home. By contrast, in 2025, the median household income in the U.S. is approximately $75,000. While wages have increased, so have home prices, making affordability a persistent challenge.
Back then, mortgages were far less common, and home purchases were often made outright or with limited financing options. The introduction of long-term, fixed-rate mortgages in the mid-20th century revolutionized homeownership, making it more accessible to the average American.
Today, affordability remains a critical issue. Rising home prices, combined with stagnant wage growth in some areas, have made it harder for first-time buyers to enter the market. As real estate agents, we play a vital role in helping clients navigate these challenges, whether it’s by identifying emerging markets or leveraging creative financing solutions.
Where Did People Live, and What Were Their Professions?
In the late 19th and early 20th centuries, most Americans lived in rural areas or small towns. The industrial revolution was just beginning to draw people into cities, creating a growing demand for urban housing. The primary professions of the time were agriculture, manufacturing, and small-scale trade. Homeownership was often tied to one’s livelihood—farmers owned the land they cultivated, and artisans lived above their workshops.
Fast forward to 2025, and the picture is vastly different. The majority of Americans now live in urban or suburban areas, and the economy is driven by service industries, technology, and professional services. Homeownership remains a key aspiration for many, but the nature of work and living arrangements has shifted dramatically.
For real estate agents, understanding these shifts is crucial. Today’s clients prioritize proximity to amenities, school districts, and workplace flexibility. By staying attuned to these trends, we can better serve our clients and help them find homes that align with their evolving needs.
The Evolution of the Real Estate Profession
The real estate profession has evolved alongside these societal changes. In its early days, being a real estate agent involved a lot of legwork—literally. Agents would physically walk neighborhoods, knock on doors, and use rudimentary methods to connect buyers and sellers. The introduction of Multiple Listing Services (MLS) in the late 19th century was a game-changer, allowing agents to share property listings and collaborate more effectively.
Today, technology has transformed every aspect of the profession. Agents use advanced tools like virtual tours, data analytics, and artificial intelligence to market properties and identify potential buyers. Social media and digital marketing have replaced door-to-door canvassing, but the essence of the profession—building relationships and earning trust—remains unchanged.
Lessons for Modern Real Estate Agents
As we look back at the origins of our profession, there are valuable lessons to be learned. The resilience and adaptability of early real estate agents remind us that success requires innovation and a willingness to embrace change. They operated in a time when resources were scarce, yet they found ways to connect people with their dream homes.
For modern agents, the challenge is to balance the personal touch with the efficiencies offered by technology. History shows us that adaptability is key—by embracing new tools while maintaining a focus on building trust, we can thrive in a rapidly changing market. Here are several actionable lessons modern agents can take from this history:
- Understand Your Market Deeply: Early agents knew their communities inside and out, from property values to neighborhood dynamics. Today, leveraging historical trends and modern data analytics can give you a competitive edge in understanding market movements and client needs.
- Embrace Continuous Learning: The profession has continually evolved, from classified ads to AI-driven platforms. Staying ahead means committing to lifelong learning, whether it’s mastering a new marketing tool or staying updated on local zoning laws.
- Build Relationships That Last: Despite technological advancements, the human connection remains crucial. Prioritize client relationships by understanding their long-term goals, offering genuine support, and staying in touch even after transactions are complete.
- Be a Community Advocate: Like early agents who were pillars of their neighborhoods, today’s agents can benefit from being involved in local events, charities, and community boards. This not only builds your reputation but also keeps you informed about local developments.
- Innovate with Purpose: History shows that successful agents are those who innovate. Adopt new technologies and strategies not for their novelty, but because they add real value to your clients and streamline your work.
- Learn from the Past to Predict the Future: Understanding historical trends in real estate can help you anticipate shifts in the market. For example, recognizing patterns in urbanization or housing demand can guide investment strategies and client advice.
By applying these lessons, modern agents can build a resilient and adaptive practice that honors the legacy of the profession while meeting the demands of today’s market.
Understanding the history of real estate agents isn’t just an academic exercise; it’s a way to connect with the roots of our profession and appreciate the journey we’ve undertaken. From its humble beginnings in 19th-century England to its formalization in the United States, the real estate profession has played a pivotal role in shaping communities and enabling homeownership.
In 2025, as we navigate the complexities of a competitive market, let’s remember the pioneers who laid the foundation for our work and use their example as inspiration. The challenges they faced—and overcame—remind us that real estate is more than a job; it’s a calling to help others achieve their dreams. We are part of a profession that has empowered generations, fostered community growth, and transformed countless lives. This legacy carries with it a profound responsibility to uphold the values of integrity, service, and innovation that have defined our role throughout history.
As we honor the past, we must also look to the future. The world of real estate will continue to evolve, shaped by advances in technology, shifts in societal values, and the ever-changing needs of the communities we serve. It is our duty as agents to adapt, to embrace change, and to lead with vision and purpose. By doing so, we not only secure the trust and loyalty of our clients but also ensure the continued relevance and vibrancy of our profession.
Let us take pride in being part of this remarkable journey. Together, we can build on the foundations laid by those who came before us, creating a future where the dream of homeownership remains within reach for all who aspire to it. This is our story, our legacy, and our mission—to guide, to inspire, and to make a difference in the lives of those we serve.
John G. Stevens is publisher of Weekly Real Estate News
