NAR Braces For Membership Drop Amid Industry Overhaul

The National Association of Realtors is warning of some cuts coming to the industry’s top group.

Membership in the trade group is expected to fall to 1.2 million next year, according to comments by chief executive officer Nykia Wright at an annual legislative meeting reported by Crain’s. NAR ceased publishing membership figures last year as the group dealt with legal blows and internal turbulence.

It’s a sharp fall for the reigning industry authority. Three years ago, NAR counted more than 1.6 million among its ranks, a peak for the industry group. By early last year, however, membership had fallen below 1.5 million. Shortly thereafter, NAR locked its membership numbers in the vault.

The Chicago-based group’s 2025 budget, however, was based on a 1.4 million membership figure. Membership is projected to fall by 25 percent over a four-year period should it bottom out to Wright’s prognostication next year.

The commission structure that took hold after the group lost the Sitzer/Burnett lawsuit last summer was forecast to be a damper on broker headcounts, eating into profits and dampening relationships with buyers. NAR itself has been beset with scandal and controversy, including allegations of sexual harassment that brought down the group’s president, only for his replacement to abruptly resign under threat of blackmail.

In addition to concerns from the legal issues surrounding the group and broker commission guidelines, the tight housing market in recent years has alienated agents from the industry across markets.

For NAR, losing members doesn’t only mean losing influence and prestige in the industry — it also means making tough monetary decisions. Wright noted the membership drop could contribute to a $32 million shortfall in next year’s budget, which the CEO said wouldn’t be covered by raising member dues.

In March, NAR eliminated 61 positions.

— Holden Walter-Warner