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*Housing Alert: Watch for Rental Scams, Unsafe Properties, and Legal Pitfalls**

    Real‑estate firms say the toughest hurdles ahead are affordability and rising costs, a trend that will persist, according to the National Association of REALTORS® (NAR) 2025 Profile of Real‑Estate Firms.

    - **56 %** of firms list housing affordability as a major challenge for the next two years.

    - **36 %** cite increasing industry costs (up from 34 % in 2023).

    - **35 %** point to local or regional economic conditions (also up from 34 %).

    - **34 %** worry about keeping pace with technology.

    Jessica Lautz, NAR’s deputy chief economist, notes that firms are on the front lines, seeing how affordability and economic shifts affect clients while grappling with higher operating expenses. “Despite the tough market, most firms expect profitability to stay steady,” she says.

    The report also highlights generational concerns:

    - **66 %** worry about young adults’ ability to purchase homes.

    - **39 %** are uneasy about young adults’ attitudes toward homeownership.

    - **27 %** fear the impact of Baby Boomers retiring from the market.

    Even with these pressures, **38 %** of firms anticipate higher profits in 2025, up from **30 %** in 2023.

    NAR surveyed broker members nationwide to capture firm demographics, structure, and leadership views. Key findings include:

    - **46 %** of sales come from repeat business; **44 %** from referrals.

    - **35 %** of firms are actively recruiting, a 5‑point drop from 2023.

    - **81 %** operate a single office (unchanged from 2023).

    - The average firm employs **two** full‑time licensees, down from three in 2023.

    - Residential firms have been in business **19 years** on average (up from 16).

    - Commercial firms average **25 years** of operation (unchanged).

    - **71 %** encourage agents to earn certifications or designations.

    - **61 %** promote additional training courses.

    These insights paint a picture of firms navigating affordability, cost pressures, and generational shifts while maintaining steady profitability and investing in agent development.