Real Estate Firms Stay Resilient, Despite Market Challenges
By Mellissa Dittmann Tracey
The real estate market in 2025 may have differed greatly from the record-breaking activity of 2022, but the majority of real estate firms are adapting and remaining optimistic about the year ahead, according to the 2025 Profile of Real Estate Firms, a survey by the National Association of REALTORS® of more than 4,500 real estate executives.
“Real estate firms are on the frontlines of the industry and are seeing firsthand how housing affordability and local economic conditions are impacting their clients,” says Jessica Lautz, NAR’s deputy chief economist. “While the current market is challenging, the majority of firms expect profitability to at least remain stable.” Even more so, 38% of firm leaders expect profitability to increase by year’s end, signaling greater optimism heading into 2026.
The Top Challenges, Identified by Real Estate Firms
The following are the top challenges identified by real estate firms over the next two years.
How Firms Are Adapting
While sales have remained mostly stagnant this year, real estate execs say they’re focused on several areas of growth for the year ahead, including:
- Focusing on repeat and referral business—it’s continuing to drive a significant portion of transactions.
- Investing in agent tools and training—to stay competitive in a tech-driven market. For example, 75% of real estate execs said they urged their agents to pursue real estate certifications and designations to keep ahead of market trends. Also, firms report the most common tech tools they’re providing agents are electronic contracts and forms, comparative market analysis, e-signature capabilities and MLS access.
- Expanding services—to meet evolving client needs and create new revenue streams. The most common ancillary services offered including business brokerage and commercial consulting, relocation services and home staging. These offerings not only help clients but also create new opportunities for firms to grow in slower markets.
