35 Jaw-Dropping US Real Estate Statistics [2023]: How Many Realtors Are In The US

Real estate is a significant aspect of almost every American's life, whether you're buying, selling, or working as an agent. After the Housing Market Crash of 2008, real estate prices have not only recovered but have surged to new heights. In fact, the COVID-19 pandemic has further fueled the increase in prices in many locations across the U.S.

If you're curious about the number of real estate agents in the U.S. and other essential facts about the industry, you're in luck. We've conducted extensive research and gathered all the vital information you need to know. Here are the jaw-dropping US real estate statistics for 2023:

Caption: 97% of home buyers search for their homes online

General real estate industry statistics

Owning a home has always been a part of the "American Dream." However, housing prices have outpaced most Americans' incomes in recent years. So, where does real estate stand today? Let's delve into the insights uncovered by our research:

• There were 5.95 million homes sold in the U.S. in 2022, a steady increase from 4.57 million per year in 2011. Sales are expected to continue rising in 2023.
• San Francisco, California, boasts the highest median selling price for U.S. real estate at $1.36 million. The city also has the highest average 5% down payment of $68,000. This is due to it still being a neutral market instead of a buyer's market.
• Manhattan, New York, holds the title for the most expensive cost per square foot in the U.S., at $1,400. Interestingly, Manhattan is transitioning into a buyer's market, impacting prices. For instance, the median listing price in 2020 was $1.6 million, but the median selling price was only $950,000.

Most expensive cities by cost per square foot

• Houston, Texas, currently has one of the best and most popular real estate markets, with a healthy median listing price of $342,000. Unlike Austin, which has experienced massive price increases in recent years, Houston remains one of the most affordable real estate markets in the U.S.
• Washington State boasts the most competitive real estate market, with 44.74% of homes selling above their listing price. On average, 68 homes are sold per month here within two weeks of being listed. This growth can be attributed, in part, to large tech companies like Microsoft offering job opportunities.

Most competitive real estate markets by state

• The market size of the Real Estate Sales Brokerage industry in the U.S. is $222.3 billion in 2023. However, the industry's growth rate is relatively small at 0.4%, declining faster than the overall economy.
• There was a significant shortage of new home supply in 2020, with a cumulative shortage of over 5 million homes. While the number of homes being built has increased in 2021, there are still 5.24 million fewer housing starts than household formations.
• REITs (Real Estate Investment Trusts) own approximately $3.5 trillion in gross real estate assets. These entities play a substantial role in the U.S. economy, contributing millions of full-time jobs worth in 2019 alone.

Housing market statistics

The housing market in the U.S. is highly competitive, expensive, and currently experiencing significant shortages. However, these conditions are not uniform across the country. Here are the key facts:

• There are 143.8 million housing units in the U.S. as of 2022. While this might seem like a large number, the growth rate has remained stagnant at just over 7% since 2010. In contrast, there was a growth rate of 18% between 1980 and 1990. The total housing stock has increased by 3 million from 2020, when it amounted to 140.8 million housing units.
• The average down payment for a home in 2023 is $24,100, a small percentage of the average home cost of over $250,000. However, most banks typically require a 20% down payment to remove mortgage insurance.
• The median home price in the U.S. as of Q3 2022 was $392,000, an 8.9% increase compared to 2021. The median price has more than tripled since 1999 when it was only $111,000.
• The median cost of a new home in the U.S. as of May 2023 is $436,800, more than double the cost in 2000 ($207,000). However, prices for new homes slightly decreased between 2021 and 2022.
• It takes an average of 56 days to close a loan on a home purchase in the U.S. This process includes finding an agent, receiving mortgage pre-approval, making offers, inspections, final mortgage approval, appraisals, and more. Additionally, buyers typically spend around four and a half months searching for the right home.
• As of 2023, there are roughly 16 million vacant houses in the U.S., down from 17 million in 2019. This number is surprising considering the over 580,000 homeless population across the country.

Median home price by state

Real estate agent statistics

Real estate agents play a crucial role in the process of buying or selling a home. The vast majority of Americans rely on agents for their home buying or selling journey. Here's what our research shows:

• There are approximately 1.46 million real estate agents operating in the U.S., marking a 29% increase from 2012 when there were around 1 million agents. There are also currently 106,548 real estate brokerage firms in the U.S.
• Pennsylvania ranks as the #1 state for real estate agents. Although states like New York outmatch Pennsylvania in terms of average annual salary, Pennsylvania compensates with a lower cost of living and other factors. The average annual salary for a real estate agent in PA is a healthy $96,244. Moreover, there are currently 1,743 real estate jobs available in the state, surpassing any other state.
• The average commission for a real estate agent is 6% of a home's sales price. Consequently, if a house is sold for $250,000, a real estate agent could potentially earn $15,000 from the sale. It's worth noting that this figure applies to both the buyer's and seller's agents.
• 87% of real estate agents fail within the first five years. While the opportunity to earn significant income from a home sale might attract many, becoming a successful agent isn't easy. The intense competition among the 1.46 million real estate agents in the U.S. makes it challenging for many to find leads.
• 75% of home buyers choose to work with the first agent they contact, while another 15% go with their second choice. This highlights the importance of making a strong first impression during interviews. Additionally, 33% of buyers prefer working with a realtor they've worked with in the past.

Real estate industry trends and predictions

Real estate prices have been on the rise for a while, but will this trend continue? Surprisingly, the industry has continued to grow, even amidst the COVID-19 pandemic. Here's what our research reveals:

• From May 2020 to May 2021, overall home prices across the U.S. increased by 13.2%. Some popular destinations saw even more significant price increases, such as Austin, Texas (30.5%), Phoenix, Arizona (23.5%), and Salt Lake City, Utah (20.6%). For example, a home worth $300,000 in Austin in May 2020 would now be worth $574,000 in 2023.

• On average, homes appreciate by 3.5% to 3.8% per year, a stark contrast to the 13% appreciation experienced in the past year alone. During the Great Recession of 2008, homes actually depreciated by -12.7%.
• The growth of housing prices is projected to slow down to 4.4% in 2022, indicating a stabilization of the market. Experts believe that the real estate market is unlikely to crash.
• From 2016 to 2026, the U.S. real estate industry is expected to have a Compound Annual Growth Rate (CAGR) of 7%. This aligns with the overall global forecast of 8%, indicating growth in the real estate industry worldwide.

Home buyer statistics

With all the changes in the real estate market since 2020, many potential buyers are wondering how to navigate the current landscape. Here are some key insights on home buyers:

• Millennials (age 22-40) constitute the largest generation of home buyers, accounting for 37% of the market. Among millennials, those aged 31-40 make up the largest segment at 23%. However, Baby Boomers and Generation X still hold significant market shares at 18% and 24%, respectively. Thus, older generations continue to exert influence over the market.
• On average, home buyers visit ten homes before finding "the one." This search process typically takes several weeks, though the number of homes viewed may vary greatly.
• 81% of millennials aged 22-38 find a home using a mobile app. In contrast, only 54% of Boomers aged 73 and older rely on mobile apps. Interestingly, older generations report higher levels of satisfaction with internet home-buying services. 72% of those aged 73 and older expressed satisfaction, while at most, only 60% of those aged 38 or younger were satisfied.
• The average American spends 16.4% of their income on housing, a relatively high proportion for the decade but historically low. It's generally recommended not to spend more than 30% of income on housing expenses.
• As of 2021, 88% of buyers use real estate agents or brokers, representing a significant increase from 2001 when only 69% of buyers relied on agents. This showcases the continued importance of real estate professionals in the home buying process.
• The average income of first-time homebuyers is $67,342 per year. However, it's crucial to note that at least half of first-time homebuyers earn less than $60,000 annually.

Real estate industry FAQ

1. How many real estate agents are in the U.S. in 2023?

   • There are over 1.53 million real estate agents operating in the U.S. as of February 2023. These agents work independently or at one of the over 106,000 real estate brokerage firms across the United States. Real estate can be a lucrative job, with an average salary of over $90,000 per year. However, it's important to understand the market, network, and continually develop skills due to the high failure rate of 87% among real estate agents.

2. How much is the real estate industry worth?

   • The U.S. real estate industry is worth $222.3 billion. This figure encompasses real estate agents, brokers, and others involved in buying and selling homes. It's essential to differentiate this value from the worth of properties themselves. For instance, commercial properties in the U.S. are estimated to be worth $16 trillion, and the total housing stock is roughly valued at $43.4 trillion.

3. Is the real estate industry growing?

   • Yes, the real estate industry is growing, but the rate of growth is relatively stagnant. The industry's projected growth rate for 2023 is only 0.6%. However, the actual value of properties experienced a rapid increase of 14.8% from 2021 to 2022. On average, yearly price increases typically don't exceed 3.8%.

4. Is real estate a concentrated industry?

   • No, the real estate industry is not concentrated overall. It is diverse and specific to local areas, although certain markets may have higher concentrations. It's worth noting that REITs (Real Estate Investment Trusts) benefit from concentration in the real estate market but are often excluded from industry concentration studies. This can impact the perceived concentration levels in specific areas.

5. Is it hard to be successful in real estate?

   • Yes, it is challenging to be successful in real estate. As mentioned earlier, 87% of real estate agents fail within their first five years. It takes time, effort, and financial investment to establish oneself in the industry. Many people underestimate the level of work involved or are unprepared for downturns in the real estate market, leading them to quit. Effective marketing and strong interpersonal skills are also essential for success.

6. Why do most realtors fail?

   • Most realtors fail due to a combination of factors. Some are unable to put in the necessary work to achieve success, while others struggle with marketing their services effectively or lack strong interpersonal skills. Real estate is often seen as a lucrative side gig, but it requires a significant investment of time, energy, and money. Many realtors are unable to sustain themselves during slow periods or haven't developed effective marketing strategies to attract clients.

7. What is the highest-paying job in real estate?

   • The highest-paying job in real estate is that of a mortgage loan officer. These professionals assist homebuyers in finding and securing loans for their purchases. Mortgage loan officers typically work independently, exploring loan options on the buyer's behalf. To become a mortgage loan officer, you'll need various state and national licenses, but the average salary of $152,639 makes the effort worthwhile. Other high-paying real estate jobs include real estate attorneys, compliance specialists, real estate brokers, and property accountants.

In conclusion, despite a price hike of over 15% since 2021, the real estate market in the U.S. remains stable. Prices are expected to continue stabilizing, which is good news for millennials who now comprise 37% of the market. However, the COVID-19 pandemic has caused a shortage of new homes, exacerbating the housing crisis. Many traditionally competitive markets have shifted to a buyer's market, while other states are experiencing significant influxes of buyers. Future trends indicate continued growth in the industry, with prices expected to stabilize and the real estate market remaining resilient.