Question: What are the best markets for today’s real estate agents? A new study has come up with some surprising answers.
Clever Real Estate focused on the nation’s 50 most populous metro areas and number-crunched a series of metrics that included affordability, salary, the number of agents, annual home sales, home values and commission rates.
The result of the analysis: Detroit was named the best city for real estate agents, thanks to having nearly five times as many sales per agent as the median market, not to mention the lowest competition from fellow agents and some of the highest commission rates in the country.
Rounding out the top 10 best cities for real estate agents were Buffalo, New York; Kansas City; Tampa; Richmond, Virginia; Columbus, Ohio; Jacksonville, Florida; Atlanta; Pittsburgh; and Hartford.
While no cities in the West made the top 10, six of the 10 worst-performing cities were found in the Pacific Time Zone. Clever claimed the bottom 10 cities for real estate agents were San Francisco; Austin; San Jose; Dallas; Milwaukee; New Orleans; Las Vegas; Phoenix; Los Angeles; and Riverside, California.
The survey also found real estate agents in New York City earned the highest median salary at $103,960 per year, making it the only metro with a six-figure median income. Conversely, agents in Riverside, California, earned the lowest median income at $33,510 annually.
Listing agent commission rates were highest in Boston at 3.1%, followed by three Ohio cities — Columbus Cleveland and Cincinnati — each at 3.08%. But San Jose listing agents earned the highest dollar value per commission, averaging $43,930 per property sold – that Bay Area metro was also the highest-earning city for buyer’s agents, who pocket an average of $39,358 per deal.
Buyer’s agent commission rates were highest in Louisville, Kentucky, averaging 3%, followed by Detroit at an average rate of 2.96%.
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This is interesting. I just want to add that the last “Clever” study I read was about sales prices and commissions and made little to no sense. Their numbers contradicted each other in the same article and was repetitive in other areas. It was basically just good for a good laugh. Doesn’t seem like trustworthy info.
Sorry they used the word salaries in reporting commission income as an independent agent.