Kevin Sears President | Official website
Real estate firms in the United States are facing ongoing challenges with housing affordability and increasing operational costs, according to the 2025 Profile of Real Estate Firms released by the National Association of Realtors (NAR) on November 19, 2025.
The report highlights that more than half of real estate firms (56%) identified housing affordability as their top concern. Rising industry costs were cited by 36% of respondents, an increase from 34% in 2023. Local economic conditions also remain a significant issue for 35% of firms, up slightly from the previous survey.
Despite these difficulties, there is some optimism within the industry. The percentage of firms expecting increased profitability in 2025 has risen to 38%, compared to 30% in 2023.
"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 NAR survey collected data from broker members across the country to better understand firm demographics and business practices from an executive perspective.
Key findings include that nearly half (46%) of sales volume comes from repeat business, while referrals from past clients account for another 44%. Recruitment efforts have slowed, with only 35% of firms actively seeking new agents—a decrease from previous years. Most real estate companies continue to operate with a single office location and have an average of two full-time licensed agents, down from three in 2023.
The report also notes that residential real estate firms have been operating for an average of 19 years—an increase since the last survey—while commercial firms have remained steady at an average tenure of 25 years. A majority encourage professional development: over seven out of ten promote certifications or designations for agents, and more than six out of ten recommend additional training classes.
The National Association of Realtors represents professionals involved in all aspects of residential and commercial real estate transactions nationwide. The organization emphasizes adherence to a strict Code of Ethics among its members and provides consumer resources about homebuying and selling at facts.realtor.
