Self-motivation, problem-solving and people skills cited as keys to success

WASHINGTON — Three in five residential (62 percent) and commercial (59 percent) Realtors selected a real estate career path on their own, and a majority of them say selfmotivation and good people and problem-solving skills are the most important traits for success, according to a new survey from the National Association of Realtors.

NAR’s Career Choices in Real Estate: Through the Lens of Gender, Race and Sexual Orientation report examined why members entered real estate, the skills most important for success, the typical number of transactions, sales volume and income. The report analyzed differences by gender, race, sexual orientation and real estate specialty — residential, commercial or both.

“Realtors from all walks of life share the common purpose of making a positive difference in communities across the country and delivering excellent service to their clients,” said NAR President Charlie Oppler, a Realtor from Franklin Lakes, New Jersey, and the CEO of Prominent Properties Sotheby’s International Realty. “As trusted advocates for consumers, our members bring valuable insight and expertise to all aspects of residential and commercial real estate transactions.”

Members working exclusively in commercial real estate are more likely (26 percent) than residential members (16 percent) to have had a professional connection that helped them enter the industry. Residential members (26 percent), however, were twice as likely as commercial members (13 percent) to have been referred by a friend. Commercial members are more attracted to real estate because it is an entrepreneurial field, when compared to residential members (52 percent versus 47 percent). Three in four (76 percent) residential members are attracted by the flexible work hours, and three in five (59 percent) are attracted by working with people.

Among members working exclusively in residential real estate, the median gross personal income was $35,700 for men and $33,500 for women. By race and ethnic group, white members had the highest median gross personal income of $49,400, followed by Asian/Pacific Islander ($27,400), Hispanic/ Latino ($26,600) and AfricanAmerican members ($16,700).

White members were both the most likely (76 percent) to say that real estate is their only career and the least likely to say that they have another source of income (24 percent). Conversely, African-American members made up the largest share of Realtors who had another job outside of real estate (50 percent) and the smallest share of Realtors who listed real estate as their only source of income (51 percent).

“Understanding income and transaction differences among races, genders and sexual orientation is step 1, but the next step is learning why there are differences,” said Jessica Lautz, NAR vice president of demographics and behavioral insights. “For some, income may be lower as the typical home price in a neighborhood is lower. For others, they may work only part time, and others may be new to the profession and have no ownership in the firm.”

Commercial specialists had a median gross personal income from real estate of $150,300, compared to $34,100 for residential specialists and $73,000 for dual specialists. The median income, however, does not capture the income distribution. As a testament to the entrepreneurial and competitive nature of the business, 66 percent of commercial Realtors and 21 percent of residential Realtors earned more than $100,000 in gross personal income in 2020.

At 10 years, the median tenure in residential real estate for white members was at least twice that of Asian/ Pacific Islander (five years), African-American (four years) and Hispanic/Latino members (four years).

The median number of residential transactions in 2020 for white members was seven, more than double the median number of residential transactions for Hispanic/Latino (three), African-American (two) and Asian/Pacific Islander (two) members.

White members reported the highest median residential sales volume in 2020 at $1,998,000, followed by Asian/ Pacific Islander ($1,017,000), Hispanic/Latino ($766,500) and African-American members ($474,500).

Hispanic/Latino and white members — 56 percent and 55 percent, respectively — are more likely to work in the suburbs. The largest shares of members who work in small towns (18 percent) and rural areas (8 percent) are Asian/ Pacific Islanders. AfricanAmerican members — 37 percent — are the most likely to work in urban areas or cities.

Regarding difficulties in the first year of a residential real estate career, AfricanAmerican members were the most likely — 41 percent — to report having to work another job as a challenge. Asian/ Pacific Islander members were the most likely to cite finding clients (77 percent) and getting the proper training and education (27 percent) as obstacles within their first year.

Nearly a quarter of Hispanic/Latino members (24 percent) and one in five Asian/Pacific Islander members (20 percent) started their careers in real estate. African-American members were the most likely to report real estate as a second career path (54 percent).