How much do real estate agents make

Real estate agents in the United States earn a median annual wage of $56,320, according to May 2024 data from the U.S. Bureau of Labor Statistics (BLS)^[1]. Real estate brokers earn a higher median of $72,280. Among members of the National Association of REALTORS® (NAR), median gross income reached $59,200 in 2025, per the 2026 NAR Member Profile^[2]. How much real estate agents make depends on commission rate, the split with their brokerage, sales volume, experience, geographic market, and specialty.

How much do real estate agents make on average

The median annual wage for real estate sales agents was $56,320 in May 2024, while brokers earned a median of $72,280, according to the BLS Occupational Outlook Handbook^[1]. The combined median for all real estate brokers and sales agents was $58,960 per year, or $28.35 per hour. These BLS figures cover wage-and-salary workers.

The earnings range is wide. The lowest 10% of sales agents earned less than $31,940, while the highest 10% earned more than $125,140. For brokers, the range runs from less than $36,920 at the 10th percentile to more than $166,730 at the 90th percentile. This spread reflects the commission-based structure of real estate income, where high-volume agents earn multiples of the median.

NAR data, which surveys active REALTORS® who have completed at least one transaction, shows a similar pattern of wide variation. The 2026 NAR Member Profile^[2] reports a median gross income of $59,200 for REALTORS® in 2025, up from $58,100 in 2024. The NAR figure tends to run higher than the BLS median because NAR surveys only active REALTORS®, while BLS includes all licensed agents, including those who are inactive or work part-time.

Per-transaction earnings for real estate agents

A real estate agent's earnings on each sale depend on three factors: the home price, the commission rate, and the split with the brokerage. Most agents do not receive a base salary. Their income comes entirely from commissions on completed transactions.

The BLS Occupational Outlook Handbook^[1] states that "brokers and sales agents earn most of their income from commissions on sales" and that "commissions often are divided among the buying agent, selling agent, brokers, and firms." The total commission on a home sale has historically been about 6% of the sale price, though rates have trended downward. The Federal Reserve's FEDS Notes^[3] noted that "the industry norm of the 6 percent total commission paid to buyer and seller agents persists to some extent." The total is split between the listing and buyer's agents, and each side then splits its portion between the agent and the brokerage.

As an illustrative example, on a home priced at $400,000 with a 3% per-side commission, each side collects $12,000. At a 70/30 agent-broker split, the agent keeps $8,400. At a 2.5% per-side rate, the per-side commission drops to $10,000, with the agent keeping $7,000 at the same split.

How many houses does an agent need to sell to make $100,000

An agent earning $7,000 per sale would need to close approximately 14 transactions to reach $100,000 in gross commission income. At $8,400 per sale, the number drops to about 12. These are gross figures before business expenses.

The typical REALTOR® completed 9 transaction sides in 2025, with a median sales volume of $2.7 million for brokerage specialists, according to the 2026 NAR Member Profile^[2].

How real estate commissions work after the NAR settlement

The NAR settlement that took effect in August 2024 changed how buyer's agent commissions are displayed and negotiated, but commission rates have remained close to pre-settlement levels. The Federal Reserve's FEDS Notes^[3] reported that the average buyer's agent commission rate fell from about 3% in the late 1990s to about 2.7% as of 2023, based on CoreLogic MLS data.

The settlement banned advertising buyer's agent commission rates on MLS listings and required explicit buyer representation agreements before a buyer tours a home. Sellers are no longer required to compensate the buyer's agent, and which party pays which commission is now negotiated upfront. The Federal Reserve noted that "since settlement changes went into effect in August 2024, outside estimates suggest buyer agent commissions may have declined some but remained at relatively high levels."

Total U.S. real estate commissions and related costs reached approximately $170 billion in 2024, or 0.6% of GDP, according to Bureau of Economic Analysis estimates cited in the Federal Reserve report. The same report found that commission rates are lower in the Northeast and in California and the Pacific Northwest, areas with the highest house prices. In the New York metropolitan area, the median buyer's agent commission rate is 2%, with about half of transactions at that level. Rising house prices explain more than half of the aggregate decline in commission rates since the mid-1990s, as the same percentage produces larger dollar amounts on more expensive homes.

How experience affects real estate agent earnings

Experience is one of the strongest predictors of real estate agent earnings. REALTORS® with 16 or more years of experience earned a median gross income of $88,500 in 2025, up from $78,900 in 2024, according to the 2026 NAR Member Profile^[2]. New agents with two years or less of experience earned $8,100 annually, based on NAR's Agent Income data^[4].

The gap between new and experienced agents is wide. Sixty-two percent of members with two years or less experience made less than $10,000 in 2023, while 40% of members with more than 16 years of experience made more than $100,000, according to NAR. The BLS Occupational Outlook Handbook^[1] confirms this pattern, stating that "income usually increases as agents become more experienced at sales" and that "earnings may be irregular, especially for beginners, and agents sometimes go weeks or months without a sale."

New agents typically start on a 50/50 commission split with their brokerage, meaning half of each commission goes to the broker. As agents gain experience and increase their sales volume, splits commonly improve to 70/30, 80/20, or 90/10 in favor of the agent. Some brokerages let agents retain the full commission in exchange for a monthly desk fee, shifting overhead costs to the agent. The majority of REALTORS® work on a broker-agent commission split, according to the NAR Agent Income page^[4].

How much do real estate brokers make compared to agents

Real estate brokers held about 111,300 jobs in 2024, compared with 420,900 for sales agents, according to the BLS Occupational Outlook Handbook^[1]. Brokers earn more than sales agents because their additional licensing allows them to work independently, hire agents, and collect a share of every commission their agents generate.

Brokers who own firms earn income from multiple sources beyond their own sales, including commission overrides from agents in their office, desk fees, transaction fees, and training programs. A broker working independently retains the full commission on their own transactions, minus business expenses.

Which states pay real estate agents the most

The highest-paying states for real estate agents tend to be those with high home prices and active housing markets. According to BLS data from May 2023^[5], the top-paying states for real estate sales agents were New York ($112,080), Vermont ($100,750), Connecticut ($84,810), New Jersey ($82,490), and Alaska ($81,720).

For brokers, the top-paying states^[6] were Rhode Island ($197,760), New York ($153,070), Massachusetts ($127,810), New Jersey ($112,390), and Connecticut ($103,620).

These figures come from the BLS Occupational Employment and Wage Statistics (OES) survey, which excludes self-employed workers. Since 54% of real estate brokers and sales agents were self-employed in 2024, per the BLS Occupational Outlook Handbook^[1], the OES state figures may understate actual earnings in markets where independent agents dominate. The data also reflects May 2023, one year before the most recent OOH national wage figures.

The Federal Reserve's analysis^[3] found that commission rates are lower in the Northeast and on the West Coast, where home prices are highest. Agents in these markets earn more per transaction because the dollar value of even a slightly lower percentage commission is larger on expensive homes.

States with the highest employment of real estate sales agents include Florida (28,970), Texas (23,810), and California (20,400), reflecting the size of their housing markets rather than above-average wages.

Real estate agent business expenses that reduce net income

Real estate agents pay significant business expenses that reduce their net earnings. The 2026 NAR Member Profile^[2] reports median business expenses of $9,530 in 2025, up from $8,010 in 2024. Vehicle costs were the largest expense category, with the typical agent spending $1,580 on vehicles.

Common expense categories include brokerage start-up fees, monthly desk fees, errors and omissions insurance, MLS access, Board of REALTORS® dues, website hosting, online advertising, photography, signage, and continuing education. Since most agents work as independent contractors, they also pay their own self-employment taxes, health insurance, and retirement contributions. The NAR reports that 86% of REALTORS® are independent contractors at their firms.

How real estate specialty affects agent income

A real estate agent's specialty affects earnings because different property types have different transaction values and client bases. The BLS Occupational Outlook Handbook^[1] reports that sales agents working in construction earned a median of $61,810 in May 2024, compared with $52,050 for agents in real estate and rental and leasing.

Agents who specialize in commercial real estate or luxury residential properties tend to earn more than those in general residential sales, because transaction values are higher and the specialized knowledge required limits competition. Twenty-one percent of REALTORS® worked as part of a team in 2025, with teams averaging 4 members, according to the 2026 NAR Member Profile^[2]. Team-based brokerage specialists reported a median of 32 transaction sides and $17.5 million in sales volume, far exceeding individual-agent production.

Real estate agent job outlook

The BLS projects 3% employment growth for real estate brokers and sales agents from 2024 to 2034, about as fast as the average for all occupations. About 46,300 openings are projected each year on average over the decade, driven by workers who retire or leave the occupation.

The BLS Occupational Outlook Handbook^[1] notes that "an agent's income often depends on economic conditions, the agent's individual motivation, and the types of property available." Employment tracks the housing market: when interest rates rise or affordability declines, transaction volumes fall and agent earnings follow. The NAR identified housing affordability as the most important factor limiting potential clients from purchasing, cited by 27% of members.

Next steps

Understanding how much real estate agents make is the first question for anyone considering the profession. The next step is understanding the licensing requirements in your state, which determine the education hours, exam, and fees you need to begin.