Agent Recruitment Crisis Threatening Brokerage Growth

Definition

Recruiting new agents has become the #1 business challenge for real estate brokers, with 65% of brokerage leaders (130+ representing 2/3 of all US residential transactions) citing it as their top problem in 2024—up from 63% in 2023. The NAR membership declined 2% year-over-year despite industry optimism. This creates a cascading problem: brokers cannot scale transaction volume without agents, yet agents are leaving the industry due to reduced income opportunities from commission structure changes and market volatility. Small and mid-sized brokers (lacking brand recognition and resources of mega-brokers) are particularly vulnerable. The cost to recruit, train, and onboard a single productive agent ranges from $5,000-$15,000 in training and support, and the failure rate for new agents is high (50%+ don't survive year one). When recruitment fails, brokers lose revenue, have fewer transaction sides, and face higher operating costs per transaction.

Why This Matters

Agent recruitment/retention software, training platforms, commission structure consulting, marketplace platforms for agent placement, CRM systems optimizing agent productivity and retention

Affected Stakeholders

Broker-Owner, Managing Broker

Related Business Risks