Lack of diversity among real estate professionals reduces fees

Source: firsttuesday Journal — 

Diverse representation among real estate professionals is coming up short — and it’s a missed opportunity for financial growth.

In a study of more than 1,000 U.S. companies, those companies which prioritized an ethnically and gender diverse workforce outperformed their less diverse counterparts by a staggering 36% in profitability, according to McKinsey.

This paints a stark picture on the lack of gender diversity in the industry, where roughly 36% of commercial real estate professionals are women, and only 9% of C-level positions at CRE firms are held by women. Comparatively, brokers and agents from minority groups include:

• 85% white individuals, compared to 35% of California’s population;
• 12% Latino individuals, compared to 39% of California’s population;
• 8% Black individuals, compared to 5% of California’s population; and
• 4% Asian American individuals, compared to 15% of California’s population, according to BLS Beta Labs.

By placing greater emphasis on developing a diverse workforce, professionals will better position themselves for success by building a system to support more people in the community.