Agent Income Collapse and Profession Attractiveness

Definition

Real estate agent incomes have collapsed due to (1) reduced transaction volume from high mortgage rates and low affordability; (2) NAR commission structure changes reducing buyer agent compensation; (3) market saturation in some regions. This creates a feedback loop: lower agent income → agents leave the profession or take alternative employment → brokers face severe recruiting challenges → brokers lose transaction capacity → remaining agents have even lower income. Video evidence from coaching content notes agents are 'broke' and struggling to pay bills, despite marketing/content suggesting high earnings. The profession is increasingly seen as risky and low-income for new entrants. This threatens the entire broker ecosystem: without agents, brokers have no assets. The income collapse is structural (not temporary) due to market rate environment and commission structure changes, making it a long-term profitability threat for brokerages dependent on agent-based transaction models.

Why This Matters

Broker compensation model redesign, hybrid salary/commission structures, team-based economics, expanded service offerings, alternative broker revenue models

Affected Stakeholders

Broker-Owner, Managing Broker

Related Business Risks