After ending 2023 with the first annual membership decline since 2012; National Association of Realtors is still struggling to grow its membership.
NAR membership fell 2.5% in January from the previous month to 1,515,837, according to the industry group's monthly report released Monday. This was a 2.1% decrease compared to the previous year.
NAR membership declined for the third straight month in January, with the number of real estate agents in the same month hitting its lowest level since May 2021.
Since reaching a peak of 1.6 million members in October 2022, NAR membership has declined by 5.3%. However, the number of agents lost between October 2022 and January 2024 was 85,049, still significantly lower than the 400,000 agent decline recorded between 2008 and 2012.
While this is positive news, NAR Chief Economist Lawrence Yun suggested further losses are expected through 2025.
“Given the decline in business opportunities over the past two years, further membership decline is expected,” Yun said in the report.
Yun wrote that despite the decline, membership is performing better than expected based on the decline in home sales in 2021 and beyond.
“So far, membership numbers have fared much better than market trends indicate,” Yun wrote. “Sales of existing homes have fallen to the lowest level in nearly 30 years since 1995. Inventories of listed products are at historic lows.''
However, Yun pointed out that some real estate agents are slow to surrender their memberships, resulting in a delay of 18 to 24 months.
“Most state and local associations should expect further membership declines over the next 24 months given the effects of past housing cycle delays,” Yun said.
In addition to allowing real estate agents to lapse their memberships due to difficult market conditions, four brokerages no longer require real estate agents to be members of trade associations. RE/MAX, anywhere and keller williams said it will no longer require its agents to be NAR members in its email and settlement agreements with plaintiffs in the Sitzer/Barnett Commission case. red fin is the fourth company that does not require NAR membership. The company, led by Glenn Kelman, announced a policy change in October, telling agents not to renew memberships if geographically possible.
Although the number of agents nationwide decreased month-on-month, the number of members increased in four states: Nebraska, Rhode Island, Utah, and Mississippi from December to January, with Rhode Island having 5,263 agents. Stores recorded the largest increase of 1.02%. The number of real estate agents in Puerto Rico remained flat, while all other states recorded declines. Washington DC recorded the largest monthly decline of 8.95% with his 2,584 agents.
On a year-over-year basis, membership increased in Florida, Ohio, Tennessee, Missouri, South Carolina, Indiana, Alabama, Arkansas, Mississippi, Montana, Maine, West Virginia, Puerto Rico, and the Virgin Islands. Puerto Rico recorded the largest annual increase at 20.1% to 1,237 agents, while Washington, D.C. again recorded the largest decrease at 17.02%.
