T
he 2025 NAR Profile of Real Estate Firms shows executives navigating a slower market while remaining cautiously optimistic.

    Fewer transactions, lower sales volumes, and rising operating costs have hit both residential and commercial segments, a sharp contrast to the record activity of 2022.

    Despite affordability pressures and economic headwinds, firms are proving resilient. They lean on repeat business and referrals, invest in training and technology, and are adding ancillary services. A survey of more than 4,500 executives highlights these trends.

    “Real‑estate firms are on the frontlines and see how housing affordability and local economic conditions affect clients,” says NAR deputy chief economist Jessica Lautz. “They’re also facing higher operating costs. While the market is tough, most firms expect profitability to stay stable.”

    **Key Challenges (next two years)**

    1. Housing affordability – the biggest hurdle.

    2. Rising costs.

    3. Local or regional economic conditions.

    4. Keeping pace with technology.

    Despite these concerns, 38 % of leaders anticipate a profitability increase by year‑end, signaling hope for a rebound.

    **Market Performance by Firm Size**

    Both residential and commercial sales have dipped, with about half of transactions coming from repeat clients or referrals.

    - One‑office firms: median brokerage sales volume $4.6 million (2024).

    - Four‑plus office firms: median sales $169.2 million.

    **Service Expansion**

    Many firms now offer in‑house add‑ons such as business brokerage, commercial consulting, relocation services, and home staging to broaden client reach.

    **Agent Support**

    To help agents thrive, firms prioritize errors‑and‑omissions/liability insurance. Common tools include electronic contracts, comparative market analysis, e‑signature, and multiple listing services. Nearly 75 % encourage agents to pursue additional certifications and designations.

    These insights from the 2025 NAR Profile illustrate how real‑estate firms are adapting to a challenging environment while positioning themselves for future growth.