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“For Sale” sign is posted outside a single‑family home in Derry, N.H., on July 17, 2025. Charles Krupa/AP
A proposed $1.6 billion merger would merge Compass, the largest U.S. residential brokerage by sales volume, with Anywhere Real Estate, the Madison, N.J.‑based firm that owns Century 21 and Coldwell Banker. The combined entity would be worth about $10 billion, field 340,000 agents, and hold less than 20 % of the national market. The deal, announced last week, is still subject to shareholder and regulatory approval and is slated for completion in the second half of 2026.
Compass founder and CEO Robert Reffkin said the merger would preserve Anywhere’s flagship brands while creating a “place where real‑estate professionals can thrive for decades.” Anywhere’s CEO, Ryan Schneider, added that the union would harness the breadth of talent across both firms to deliver greater value to buyers and sellers. Neither company has yet responded to NPR’s request for comment.
Industry observers warn that the consolidation could squeeze small, independent brokerages. Columbia Business School professor Tomasz Piskorski notes that larger firms can wield monopoly power, reducing transparency and raising the risk of anti‑competitive practices, but also that scale can bring efficiencies—technology adoption, cost savings, and potentially lower fees—that benefit consumers. He cautions that the impact on buyers remains uncertain.
The U.S. brokerage landscape has been consolidating rapidly. In 2024, Compass, Anywhere, and eXp Realty together accounted for 17 % of total sales volume, while the top ten firms captured 42 %. Mergers have also driven the consolidation of Multiple Listing Services (MLSs), which enable brokerages to share property data.
Rocket Companies, the parent of Rocket Mortgage, recently announced the acquisition of Redfin and the buyout of Mr. Cooper, further tightening the market. Despite these moves, the new Compass/Anywhere entity would still face competition from eXp Realty, RE/MAX, Berkshire Hathaway HomeServices, and Redfin.
Cornell University professor Peter Liu argues that large brokerages offer sellers broader reach, stronger customer databases, advanced technology, and access to more buyers. He believes concerns about market power are overstated, noting that consumers and agents can switch firms readily, with options ranging from local brokerages to discount models and iBuyers that allow direct tech‑driven sales.
Real‑estate analyst Jack McCabe, CEO of McCabe Research and Consulting, warns that the wave of consolidation is making it harder for independent firms to compete. “Some will be pushed out; others will join the big firms because they have no choice,” he says. McCabe notes that while luxury buyers often choose agents with the strongest track record, lower‑end buyers tend to rely on personal connections.
McCabe compares the current consolidation to the Great Recession, when 200 banks were absorbed by five major investment banks, and highlights Compass’s rapid rise from a 2012 startup to a potential global leader in just 13 years. Piskorski points out that U.S. real‑estate commissions—typically 5 % to 6 % of the sale price—are roughly double the global average and that technological innovation, regulatory pressure, and market forces may eventually lower those fees.
Ultimately, Piskorski says customers prize convenience and speed, which has propelled Rocket Mortgage to become the largest U.S. lender despite slightly higher rates. The industry’s trajectory toward digital closing—where a buyer can reserve a house, view appraisal and title, receive loan offers, and close in days—poses a significant challenge for small, independent brokerages.
