Data & Research
The internet repeats that 87% of agents fail, but the useful question is why. This guide turns the claim into a sourced benchmark library covering income, transaction volume, new-agent ramp time, benefits gaps, affordability headwinds, and the demand signals that still make real estate worth pursuing.
Last updated: June 16, 2026 · 51 data points · 5 source families cited
Treat it as a popular industry rule of thumb, not a precise official survival rate. Tom Ferry's widely linked article uses the 87% framing, but public sources rarely define exactly which licensees count, what “fail” means, or the measurement window. The better conclusion from current NAR and BLS data is more specific: the business is brutally uneven for new agents, commission income is volatile, benefits are sparse, and affordability limits transaction volume — yet consumer demand for professional agents remains very strong.
Claim context: Tom Ferry, Why Real Estate Agents Fail & How to Beat the Odds
That distinction matters for linkable research. A vague “most agents fail” headline is memorable, but not very useful. A sourced benchmark lets agents, brokerages, coaches, and journalists identify the actual failure mechanisms: too few transactions in the first two years, business expenses eating gross commission income, lack of employer-style benefits, and a buyer pool squeezed by affordability.
1. The typical NAR member had 12 years of real estate experience in the 2025 Member Profile, up from 10 years in the prior profile.
2. Seventy-four percent of NAR members said they were very certain they would remain active in real estate for at least two more years.
3. The 2025 Member Profile was based on 4,947 NAR member survey responses collected in March 2025.
4. The typical REALTOR® reported 10 transactions in 2024, unchanged from 2023.
5. The typical REALTOR® reported $2.5 million in annual sales volume in 2024, unchanged from 2023.
6. Median gross income for REALTORS® rose to $58,100 in 2024 from $55,800 in 2023.
7. Median net income after taxes and business expenses was $36,600 in the 2025 Member Profile summary.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
8. Seventy-one percent of REALTORS® said real estate was their only occupation, down from 72% in 2023.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
1. REALTORS® with two or fewer years of experience handled a median of three transactions in 2024.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
2. REALTORS® with two or fewer years of experience posted median annual sales volume of $500,000.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
3. REALTORS® with three to five years of experience handled a median of eight transactions.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
4. REALTORS® with three to five years of experience posted median sales volume of $1.6 million.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
5. REALTORS® with six to 15 years of experience handled a median of 11 transactions.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
6. REALTORS® with six to 15 years of experience posted median sales volume of $3.2 million.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
7. REALTORS® with 16 or more years of experience handled a median of 10 transactions.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
8. REALTORS® with 16 or more years of experience earned median after-tax income of $51,900.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
1. The median REALTOR® worked 35 hours per week in the 2025 Member Profile summary.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
2. Eighty-seven percent of NAR members were independent contractors at their firms.
3. Fifty-five percent of NAR members were affiliated with an independent company.
4. Thirty-eight percent of REALTORS® worked with franchised companies.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
5. The median REALTOR® had been with their firm for six years.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
6. Twenty-eight percent of REALTORS® had been with their firm for 12 or more years.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
7. Only 4% of REALTORS® received health insurance through their firm in the 2025 Member Profile summary.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
8. Only 4% received paid vacation or sick days through their firm.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
9. Only 4% received a pension or 401(k) benefit through their firm.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
10. Only 3% received dental or vision insurance through their firm.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
11. Only 2% received life or disability insurance through their firm.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
12. The BLS reported $56,320 as the May 2024 median annual wage for real estate sales agents.
Source: U.S. Bureau of Labor Statistics Occupational Outlook Handbook
13. The BLS projected 3% employment growth for real estate brokers and sales agents from 2024 to 2034.
Source: U.S. Bureau of Labor Statistics Occupational Outlook Handbook
1. Twenty-five percent of NAR members cited housing affordability as the biggest hurdle for potential homebuyers.
2. First-time buyers fell to 21% of the market in the 2025 Profile of Home Buyers and Sellers, the lowest share since NAR began tracking in 1981.
3. Before 2008, first-time buyers consistently accounted for about 40% of home sales.
4. The median age of first-time buyers reached 40 in the 2025 Profile.
5. All-cash purchases reached 26% of home sales over the prior year.
6. The median down payment among all buyers reached 19% in 2025.
7. The median first-time-buyer down payment reached 10% in 2025.
8. The median repeat-buyer down payment reached 23% in 2025.
9. Fifty-nine percent of first-time buyers used personal savings for their down payment.
10. Twenty-six percent of first-time buyers tapped financial assets such as 401(k)s, IRAs, or stocks for down payment funds.
11. Twenty-two percent of first-time buyers received help from relatives or friends through a gift or loan.
1. Eighty-eight percent of buyers purchased their home through a real estate agent or broker.
2. Seventy-six percent of first-time buyers credited their agent with helping them understand the process.
3. Ninety-one percent of sellers used a real estate agent, matching the highest share on record.
4. Only 5% of homes sold as For Sale By Owner in the 2025 Profile, an all-time low.
5. FSBO homes sold for a median $360,000 compared with $425,000 for agent-assisted homes.
6. The typical seller had owned their home for a record 11 years before selling.
7. Homeowners gained an average of $140,900 in wealth over the previous five years, according to NAR research cited in the 2025 Profile summary.
1. The median REALTOR® age was 57, up from 55 in the prior profile year.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
2. Twenty-nine percent of REALTORS® were age 65 or older, up 7 percentage points year over year.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
3. Sixty-three percent of REALTORS® were women in the 2025 Member Profile summary.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
4. Eighty percent of NAR members were White, 9% were Hispanic or Latino, and 6% were Black or African American.
Source: Houston Agent Magazine summary of NAR 2025 Member Profile
Use the data above as a diagnostic. The danger zone is not one bad month; it is a stack of structural disadvantages.
| Risk signal | Why it matters | Data anchor |
|---|---|---|
| Under 4 transactions/year | Below even the median for agents with two or fewer years of experience. | 3 median transactions for agents with ≤2 years experience. Source: Houston Agent Magazine summary of NAR 2025 Member Profile. |
| No reserve for benefits | Most agents are independent contractors and receive few employer-style benefits. | 87% independent contractors and 4% health insurance benefit. Sources: NAR; Houston Agent. |
| Buyer-only pipeline in an affordability crunch | First-time buyer share is historically low and cash buyers are more competitive. | 21% first-time buyers and 26% all-cash purchases. Source: NAR 2025 Profile of Home Buyers and Sellers. |
| No referral/repeat engine | The agents who last tend to accumulate trust, tenure, and repeatable systems. | 12-year typical experience and 74% certain they will stay active. Source: NAR 2025 Member Profile news release. |
We chose this topic because backlink data showed strong demand for agent-survival, coaching, research, and agent-directory resources. This page is designed to be easier to cite than opinion-only coaching posts because every number is tied to a source.
Ahrefs pages-by-backlinks pull: 478 referring domains
Adds sourced data behind the famous 87% claim instead of repeating it without context.
Ahrefs pages-by-backlinks pull: 125 referring domains
Gives agents a data-backed way to decide what to fix: pipeline, expenses, benefits, or market positioning.
Ahrefs pages-by-backlinks pull: 108 referring domains
Turns script-focused survival advice into a broader research asset publishers can cite.
Ahrefs pages-by-backlinks pull: 3,044 referring domains
Curates the most relevant agent-survival numbers into a single readable page.
Ahrefs pages-by-backlinks pull: 29,585 referring domains
Connects consumer demand for agents with the business pressures agents face.
We prioritized primary or near-primary sources: NAR public research summaries, BLS occupational data, and a trade-publication summary that quotes additional NAR Member Profile details. Where the famous 87% claim appears, we cite it as claim context rather than treating it as an official government or NAR churn rate.
Suggested citation:
RealEstateAgentLeads.com. “Real Estate Agent Failure Statistics: Why Agents Quit in 2026.” Updated June 16, 2026. https://realestateagentleads.com/real-estate-agent-failure-statistics
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