New York City’s housing slowdown has left brokers competing for a smaller pool of business.
While deal volume has fallen sharply from the post-pandemic highs of 2021 and 2022, the city’s broker workforce remained relatively stable for years, intensifying competition for listings and commissions. Only recently have agent ranks begun to contract.
In 2021 and 2022, Manhattan deal volumes were at record highs following a post-pandemic bounce back. The borough recorded $33 and $34 billion in sales, respectively. But as mortgage rates rose and dealmaking slowed, transaction volume fell much faster than the number of licensed agents, leaving more brokers chasing fewer opportunities.
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“You have a situation with a little less deal flow, so it makes it hypercompetitive,” said Compass broker Jason Haber. “Agents have to know their value and their value proposition to clients more so than ever.”
While NAR membership surged during the pandemic boom before retreating, New York City’s agent population remained largely flat through much of the cycle.
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RELNY Real Estate licensing instructor Kristen Bacorn attributed NYC’s divergence from the rest of the nation to the significant migration, causing a “unique strain” on Manhattan real estate and new agents looking to break into the industry.
“We had no idea what would happen in the real estate market or if residents would return,” said Bacron. “People didn’t want to jump into an uncertain market.”
But uncertainty led to resiliency in the city. Though agents headcounts never saw a boom, they also never saw a significant drop off. Ease in maintaining a license played a part, according to Bacorn.
“If you want to keep your license, all you have to do is take a few classes online and pay a fee,” said Bacorn. “It’s more convenient to hold on to it than to let it go and come back a decade later.”
Between 2024 and 2025, the number of licensed agents in the city fell from 22,706 to 21,987, the second largest annual decline in the period analyzed by TRD Data.
The drop suggests some brokers are finally leaving an industry that remained unusually crowded throughout much of the downturn.
“Affordability is a driver of a lot of decision making,” said Haber. “You may have agents who just aren’t able to earn enough based on what they’re making now, and what would have cut it a few years ago.”