With mortgage rates higher than they had been in the recent past, plus high home prices and tightening available inventory, America’s real estate market has put prospective homebuyers in a difficult spot.
Despite all this, housing markets across the country have remained very active. And, as a result, real estate agents and brokers have remained busy. With home prices, on average, considerably higher than in pre-pandemic days, one wonders how much real estate agents and brokers are making these days. How much money real estate agents make per year depends on several factors, including not just the price of the home, but also the number of real estate transactions and commission fees.
Using occupational data from the Bureau of Labor Statistics (BLS), we’ve analyzed and compiled a round-up of the average real estate agent salary in each U.S. state for 2023.
Read on for a full breakdown of where real estate agents make the most money, and where they’re making the least.
10 States Where Real Estate Agents Earn the Most Money
The national average annual wage of a real estate sales agent is $65,850, according to the BLS. That makes the average real estate agent salary slightly higher than the average annual wage for All Occupations, $61,900. Here’s a breakdown of the top 10 states in which real estate agents earn the most:
1. New Hampshire
Real estate agent average salary: $94,810
2. New York
Real estate agent average salary: $93,950
3. New Jersey
Real estate agent average salary: $82,090
4. Colorado
Real estate agent average salary: $79,610
5. Massachusetts
Real estate agent average salary: $79,060
6. California
Real estate agent average salary: $77,430
7. Texas
Real estate agent average salary: $77,320
8. Wyoming
Real estate agent average salary: $74,820
9. Nevada
Real estate agent average salary: $73,990
10. Mississippi
Real estate agent average salary: $72,900
The states that pay real estate agents the most on average are geographically located in the Northeast, West, and South, with four states, four states, and two states in each Census-designated region, respectively. What’s really interesting is that Mississippi ranks among the top 10 states where the average real estate agent salary per year is the highest, despite the state having the lowest median household income of all 50 U.S. states.
10 States Where Real Estate Agents Earn the Least Money
Now we move to the other end of the spectrum. Here’s a breakdown of the 10 states in which real estate agents earn the least:
1. Illinois
Real estate agent average salary: $44,510
2. Ohio
Real estate agent average salary: $45,570
3. Louisiana
Real estate agent average salary: $46,690
4. Missouri
Real estate agent average salary: $47,670
5. Idaho
Real estate agent average salary: $49,830
6. New Mexico
Real estate agent average salary: $50,920
7. Kansas
Real estate agent average salary: $52,970
8. Nebraska
Real estate agent average salary: $53,090
9. Delaware
Real estate agent average salary: $53,690
10. Kentucky
Real estate agent average salary: $55,050
This list is dominated by states of the South and Midwest, with two states representing the West — Idaho and New Mexico. The average real estate agent salary in Illinois is over $20,000 less than the national average: $44,510 versus $65,850.
How Much Real Estate Agents Make In Each State
In just one year, seven states experienced income increases that were greater than 20% for real estate sales agents:
- New Hampshire annual real estate agent salary growth: 95.5%
- Rhode Island annual real estate agent salary growth: 41%
- Arkansas annual real estate agent salary growth: 30.8%
- Texas annual real estate agent salary growth: 30.5%
- Indiana annual real estate agent salary growth: 24.7%
- Arizona annual real estate agent salary growth: 21.8%
- South Carolina annual real estate agent salary growth: 20.8%
Below are all 50 states and their respective average real estate salaries per year. The states are listed in alphabetical order, but their ranking from 1 to 50 (1 being the best, 50 the worst) in terms of pay is included:
Read the full article here