R
eal estate brokerages are showing signs of stabilization after a tumultuous market shift in 2022, driven by interest rate hikes. According to data from AccountTECH, a provider of real estate brokerage accounting software and services, the May 2025 EBITDA Margin Index stood at 3.4962%. This reflects "continued resilience and cautious growth" in a market with high interest rates and decreased transaction sides.

    The index benchmarks the profitability of over 150 brokerages across the country, tracking EBITDA earnings as a percentage of revenue for U.S. brokerages that demonstrate consistent GAAP-compliant financial reporting. Year-over-year, the index was up 6% from May 2024, but is less than two-thirds the value of the May 2022 index number.

    Mark Blagden, CEO of AccountTECH, notes that real estate brokerages are proving adaptable, with signs of stabilization and cautious optimism after challenging market conditions. The data tracks with other firms, including RealTrends Consulting, which shows similar trendlines.

    When broken down between profitable and unprofitable firms, the EBITDA index value for positive EBITDA firms is 5.9121%, while the average EBITDA margin for unprofitable brokerages was -5.0003%. The firms that are thriving have invested in automation, restructured their compensation models, and improved their backend operations.

    The May 2025 EBITDA margin of 3.4962% is considered "ok, but not great" by AccountTECH, as it's below the seven-year average for May. However, it's the highest EBITDA margin recorded in the past 12 months, and has risen roughly six percentage points from -3.442% in January to its current value.