A new survey from the National Association of Realtors finds that the median white residential Realtor makes about three times what the median Black residential Realtor does.

NAR’s Career Choices in Real Estate: Through the Lens of Gender, Race and Sexual Orientation report examined why members entered real estate, the skills most important for success, the typical number of transactions, sales volume and income. The report analyzed differences by gender, race, sexual orientation and real estate specialty – residential, commercial or both.

“Realtors from all walks of life share the common purpose of making a positive difference in communities across the country and delivering excellent service to their clients,” NAR President and Prominent Properties Sotheby’s International Realty CEO Charlie Oppler said in a statement. “As trusted advocates for consumers, our members bring valuable insight and expertise to all aspects of residential and commercial real estate transactions.”

NAR sent the survey to 208,000 members in February. A sample of 18,209 members responded and oversamples for each demographic group covered by the survey were collected.

Income

Members working exclusively in commercial real estate are more likely (26 percent) than residential members (16 percent) to have had a professional connection that helped them enter the industry. Residential members (26 percent), however, were twice as likely as commercial members (13 percent) to have been referred by a friend. Commercial members are more attracted to real estate because it’s an entrepreneurial field when compared to residential members (52 percent vs. 47 percent). Three in four (76 percent) residential members are attracted by the flexible work hours and three in five (59 percent) are attracted by working with people.

Among members working exclusively in residential real estate, the median gross personal income was $35,700 for men and $33,500 for women. By race and ethnic group, white members had the highest median gross personal income of $49,400, followed by Asian-American/Pacific Islander ($27,400), Hispanic or Latino ($26,600) and Black or African American members ($16,700).

White members were both the most likely (76 percent) to say that real estate is their only career and the least likely to say that they have another source of income (24 percent). Conversely, Black or African American members made up the largest share of Realtors who had another job outside of real estate (50 percent) and the smallest share of Realtors who listed real estate as their only source of income (51 percent).

“Understanding income and transaction differences among races, genders, and sexual orientation is step one, but the next step is learning why there are differences,” Jessica Lautz, NAR vice president of demographics and behavioral insights, said in a statement. “For some, income may be lower as the typical home price in a neighborhood is lower, for others they may work only part-time and others may be new to the profession and have no ownership in the firm.”

Commercial specialists had a median gross personal income from real estate of $150,300, compared to $34,100 for residential specialists and $73,000 for dual specialists. The median income, however, does not capture the income distribution. As a testament to the highly entrepreneurial and competitive nature of the business, 66 percent of commercial Realtors and 21 percent of residential Realtors® earned more than $100,000 in gross personal income in 2020.

Race and Ethnicity

At 10 years, the median tenure in residential real estate for white members was at least twice that of Asian-American/Pacific Islander (five years), Black or African American (four years) and Hispanic or Latino members (four years).

The median number of residential transactions in 2020 for white members was seven, more than double the median number of residential transactions for Hispanic or Latino (three), Black or African American (two) and Asian/Pacific Islander (two) members.

White/Caucasian members reported the highest median residential sales volume in 2020 at $1,998,000, followed by Asian-American/Pacific Islander ($1,017,000), Hispanic/Latino ($766,500) and Black or African American members ($474,500).

Hispanic or Latino and white members – 56 percent and 55 percent, respectively – are more likely to work in the suburbs. The largest shares of members who work in small towns (18 percent) and rural areas (8 percent) are Asian-American/Pacific Islander. Black/African American members – 37 percent – are the most likely to work in urban areas or cities.

Regarding difficulties in the first year of a residential real estate career, Black/African American members were the most likely – 41 percent – to report having to work another job as a challenge. Asian-American/Pacific Islander Islander members were the most likely to cite finding clients (77 percent) and getting the proper training and education (27 percent) as obstacles within their first year.

Nearly a quarter of Hispanic or Latino members (24 percent) and one in five Asian-American/Pacific Islander members (20 percent) started their careers in real estate. Black or African American members were the most likely to report real estate as a second career path (54 percent).

Sexual Orientation

LGBTQ+ members were more likely to work in an urban area or city (42 percent) compared to straight/heterosexual members (27 percent), but less likely to work in the suburbs (39 percent vs. 50 percent) and small towns (9 percent vs. 14 percent). LGBTQ+ members were also more likely to be attracted to real estate because of interest in the field (69 percent vs. 63 percent) and the love of homes and homeownership (59 percent vs. 52 percent). Larger shares of LGBTQ+ members than straight/heterosexual members said that  problem-solving skills (81 percent vs. 75 percent), superior communication capabilities (76 percent vs. 66 percent), and sales and marketing acumen (54 percent vs. 47 percent) are needed to succeed in residential real estate.

The median number of residential transactions and sales volumes in 2020 was five and $1,622,200, respectively, for LGBTQ+ members and four and $1,303,300 for straight/heterosexual members.

Among members working exclusively in residential real estate, the median gross personal income was $38,800 for LGBTQ+ members and $34,100 for straight/heterosexual members.