Revenue, recruiting and retention—three of the biggest challenges every real estate leader faces and as we step into 2025, these challenges can feel heavier than ever.
The real estate industry is grappling with a perfect storm of issues. Agent retention is suffering, not because leaders aren’t top-notch or trying, but because the environment agents are navigating has never been more complex. Here’s just some of what we’re up against:
- Financial Struggles Among Agents
Many agents are struggling to make ends meet. Fewer deals and lower transaction volumes are putting pressure on their bottom lines. The income uncertainty is causing some to question their future in the industry entirely.
- Deal Volume is Down
Across many markets, transaction volumes are dropping. Whether it’s due to high interest rates, economic uncertainty, or limited inventory, fewer deals mean fewer opportunities for agents to earn and grow.
- Industry-Wide Agent Churn
We’re seeing agents leave the industry altogether, and even those staying are often moving between brokerages, firms, or even states. This churn creates instability, not just for individual organizations but for the industry as a whole, which is highly volume dependent.
- Economic and Market Turmoil
Lawsuits, economic uncertainty, and market changes are creating an unpredictable environment. And a massive new workload for those supporting agents. Agents are losing confidence in their ability to succeed, and that fear spreads to organizations relying on their production.
- Unskilled Agents in a Saturated Market
The surge in agent numbers during the housing boom and COVID years has led to many entering the industry without proper training or preparation. As the market tightens, these agents struggle to compete, further exacerbating churn.
- Inadequate Supply of Listings
In many regions, the inventory shortage continues to stifle activity. Agents feel they can’t succeed if there’s nothing to sell.
- The High Cost of Real Estate
Rising home prices have made transactions more difficult in certain markets, deterring buyers and limiting opportunities for agents.
Why do these issues hurt retention?
When agents feel unsupported or unable to succeed, they leave—either for another firm, another career, or another location. And sometimes just in hopes of a shinier option – and often it even helps – for a short while. This churn doesn’t just hurt individual brokerage – it’s a ripple effect that impacts every organization tied to the real estate ecosystem.
Organizations Lose Revenue: Less agent production equals less revenue for brokers, associations, and industry vendors.
Morale Declines: The fear and uncertainty among agents trickle up to leadership, creating a difficult environment for everyone.
Recruiting Becomes Harder: When retention falters, recruiting efforts stall as potential candidates question their future in the industry. Or if they are successfully recruited to a shinier option that light can fade quickly if not well supported.
What do you see as the most common reason agents are struggling in today’s real estate market?
Please take a moment to weigh in on this poll.
Let’s see if your insights match ours.
And your insights will help us all better understand how together we can address these challenges and support our agents to succeed in 2025.
The Solution?
Seems simple but the answer is supporting agents long enough to succeed.
Retention doesn’t improve by accident — it’s the result of intentional, strategic action. Based on 20+ years of experience and over 1 million agent training courses delivered, across many market changes, ups and downs, I’ve seen what works and learned a thing or two. Here’s what can start turning the tide in 2025:
- Analytics: The Foundation for Smart Decision-Making
Use data to understand where agents are struggling — whether it’s lead generation, closing deals, or managing client expectations. Analytics give leaders a roadmap to target support where it’s needed most, turning pain points into progress.
- Training: Building Real Skills for Real Results
Effective training isn’t just a one-time event; it’s an ongoing process tailored to each agent’s needs. Equip agents with practical tools to address today’s challenges to support them at their level.
- Coaching and Community: Confidence and Connection
A coaching and community environment gives agents the home they need to overcome individual challenges, build confidence and execute without fear of failing. Further this community fosters collaboration, creating a culture where agents feel supported by their peers and leadership.
- Accountability: Helping Agents Stay on Track
Never have we all been so distracted so often and in need of a system of accountability more than now. A good system simply provides another tool to support agents to success. Accountability systems ensure agents see tangible progress, building confidence in their abilities.
- Time: Patience and Consistency Build Success
Success doesn’t happen overnight, but it can be expedited. Agents need a consistent environment to develop their skills, build relationships, and see results. Leaders who provide consistent support over time create an environment where agents can thrive.
Building the Future Together
As leaders, we can’t control the market, the lawsuits, or the economy — but we can control how we support our agents. By addressing their challenges head-on and providing systems that foster growth, we can all but solve revenue, retention and recruiting for good. Bold claim but if we have willing and able participants, we can turn 2025 into a year of growth, not loss or fear.
About Me
With over two decades of experience in real estate education and more than 1 million training courses delivered, I’ve worked with organizations across North America to solve their toughest challenges. My mission is simple: to help you build a thriving organization by supporting your agents every step of the way.
Discover how organizations like yours are thriving — contact us today.
Article 1 from series entitled: Unlocking Agent Potential: The Secrets to Building a Thriving Real Estate Organization.