According to an annual survey by the National Association of Realtors, white realtors had nearly three times more incomes than their black counterparts in 2020.
According to NAR’s “Real Estate Career Choices: Through the Lens of Gender, Race, and Sexual Orientation,” the average gross income of white real estate agents for the past year among members of the trading group who worked exclusively in residential real estate was $ 49,400 during the past year The median for Black Realtors was $ 16,700. It was $ 27,400 among Asian / Pacific Islanders and $ 26,600 among Hispanic / Latin American members.
By sexual orientation and gender, the difference in median income was less pronounced: $ 38,800 for LGBTQ + members and $ 34,100 for heterosexual / heterosexual members, and $ 35,700 for men and $ 33,500 for women.
“Understanding the income and transactional differences between races, sexes and sexual orientation is the first step, but the next step is figuring out why there are differences,” said Jessica Lautz, NAR vice president of demographics and behavioral literacy, in a statement .
“For some, income may be lower because the typical home price is lower in a neighborhood, for others, they may only work part-time, and others may be new to the job and not own the company.”
NAR, with more than 1.4 million members, sent the survey to 208,000 members in February, of which 18,209 responded. The trade group warned that it overrated its color members and therefore “the overall proportions of members are not representative of NAR membership as a whole”.
“However, the experiences, business practices and business experiences of each individual group are representative of that group.” The confidence interval of the survey at a confidence level of 95 percent is +/- 0.72 percent.
Racial income differences cannot be explained by home prices: the median home sale price for white members was $ 333,300, Asian members was $ 542,800, black members were $ 282,400, and Latino members were $ 330,800.
According to the report, white realtors were the most likely (76 percent) to say that real estate is their only career and the least likely to say they have another source of income (24 percent). In contrast, black real estate agents were most likely to report having another job outside of real estate (50 percent) and least likely to report real estate as the only source of income (51 percent).
White brokers had an average ten-year tenure, at least twice as long as Asian members (five years), black members (four), and Latino members (four). White Realtors closed more than twice as many residential property transactions (seven) as their counterparts in Latino (three), Black (two) or Asian (two) in 2020.
White Realtors reported an average residential real estate sales volume in 2020 that was more than four times that of Black Realtors: $ 1,998,000 versus $ 474,500. The median volume for Asian brokers was $ 1,017,000 and that for Latinos was $ 766,500.
Latino and White Realtors were most likely to work in the suburbs at 56 percent and 55 percent, respectively. Black members were most likely to work in urban areas, at 37 percent. The largest proportion of members who work in small towns (18 percent) and rural areas (8 percent) were Asian or Pacific islanders, the report said.
Part of the income gap between LGBTQ + members and heterosexual members can be explained by higher house prices: the median home sales price for LGBTQ + members working was $ 347,000, compared to $ 324,700 for heterosexual members. LGBTQ + members were more likely to work in an urban area (42 percent) than heterosexual / heterosexual members (27 percent) and less often in suburbs (39 percent versus 50 percent) or small towns (9 percent versus 14 percent).
However, LGBTQ + members have also typically completed one more transaction than heterosexual members: a median of five with sales volume of $ 1,622,200 versus four transactions and $ 1,303,300 for heterosexual members.
Black real estate agents were most likely to report having a different job challenging in their first year of their residential real estate careers compared to all members of residential real estate (41 percent versus 30 percent), while Asian members were most likely to say finding clients (77 percent compared to 73 percent) and adequate training and further education (27 percent compared to 23 percent) were challenges in their first year.
Black real estate agents were the most likely (54 percent) to say real estate was their second career. Almost a quarter of Latino brokers (24 percent) and a fifth of Asian brokers started their careers in real estate, the report said.
Men in residential properties stated that they worked an average of 30 hours a week and women an average of 35 hours. White members reported working an average of 35 hours per week in residential properties, compared to 25 hours each for Asian and Black members and 30 hours for Latino members. Straight members reported working an average of 30 hours compared to 35 hours for LGBTQ + members.
Only a quarter of white members (25 percent) owned a real estate company, compared with 36 percent of Asian members, 26 percent of black members, and 28 percent of Hispanic members.
Most real estate agents (62 percent) chose real estate careers on their own, and a majority said self-motivation and good people and problem-solving skills are the most important traits for success, according to the report.
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