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America’s Real Estate Reckoning: Agents Take Teaching Jobs as Housing Downturn Pushes Thousands Into Survival Mode
📉 Real Estate No Longer Paying the Bills for Many Agents
For decades, selling property in the United States has been portrayed as a pathway to flexible hours, substantial commissions and financial freedom.
But for a growing number of American real estate professionals, that dream is fading fast.
Faced with historically weak sales volumes, falling commission income and sweeping changes to how agents are paid, many Realtors are now taking on secondary employment just to remain financially afloat.
Some are working in retail.
Others are driving for ride-share companies.
And an increasing number are stepping back into classrooms as substitute teachers.
🏫 From Open Homes to School Classrooms
The income squeeze has become so severe that teaching is emerging as one of the more common alternative occupations.
According to surveys of educators, almost half of teachers already supplement their income through additional work during school holidays.
Now the trend appears to be reversing.
Real estate agents are discovering that substitute teaching provides something commissions no longer can:
✔ Reliable income
✔ Flexible hours
✔ Transferable communication skills
✔ Predictable weekly cash flow
For agents generating fewer than twenty hours of real estate work each week, a steady wage has become essential.
Industry salary guides suggest nearly two-thirds of part-time agents earn less than US$25,000 annually, making additional employment a necessity rather than a lifestyle choice.
🏚️ Too Many Agents Chasing Too Few Sales
America still has approximately 1.4 million licensed Realtors, according to the National Association of Realtors (NAR).
That figure is down from a record peak of 1.6 million members in late 2022, representing a decline of roughly 200,000 agents.
Yet many analysts believe the real contraction has barely begun.
Data presented at the Inman Connect conference suggested that around 71% of agents registered on Multiple Listing Services (MLS) completed zero home sales during 2024.
While that figure includes referral-only agents and inactive licence holders, it highlights a stark imbalance within the profession.
Simply put:
There are too many agents competing for too few transactions.
Consumer advocates have warned for several years that the industry has suffered from relatively low barriers to entry and insufficient mentoring for new licence holders.
⚖️ The Commission Shake-Up That Changed Everything
Even before sales volumes slowed, the business model underpinning American real estate was already under pressure.
In March 2024, the National Association of Realtors agreed to pay US$418 million to settle the landmark Sitzer/Burnett antitrust lawsuit.
The settlement introduced major practice changes including:
- Written buyer agency agreements
- Greater transparency around commissions
- Restrictions on publishing buyer-agent compensation offers on MLS systems
For many agents, the impact has been immediate.
Industry surveys found:
📉 54% reported increased commission negotiations
📉 35% experienced declining commissions
📉 More than half expect commission rates to continue falling
Lower fees combined with fewer sales have left many practitioners questioning whether real estate can still support a full-time career.
🏦 Mortgage Rates Continue To Freeze Buyers Out
The wider housing market has also struggled.
Thirty-year mortgage rates in the United States remain significantly above pandemic-era lows.
Buyers face:
- Higher borrowing costs
- Record affordability challenges
- Elevated home prices
- Growing economic uncertainty
Foreclosure filings and mortgage repossession claims have also increased sharply in recent quarters.
Homes are spending longer on the market and buyers are regaining leverage in negotiations.
🔮 Could Half of All Agents Eventually Leave?
Some industry leaders believe the profession may undergo a dramatic reset.
Investment banker John Campbell previously predicted that as many as 50% of agents could eventually leave the industry if market conditions fail to improve.
While membership numbers have not yet fallen to that extent, brokerages are already seeing growing numbers of part-time practitioners quietly stepping away.
Re/Max Holdings Chief Executive Erik Carlson summarised the situation bluntly:
“Full-time agents probably have a better chance than part-time agents.”
For thousands of agents, however, waiting for the next housing boom is no longer an option.
The classroom, supermarket checkout, café counter or substitute teacher roster may simply become the new reality for an industry that expanded rapidly during one of the largest housing booms in modern history.
📌 Key Takeaways
✅ Approximately 71% of MLS-registered agents closed no sales in 2024.
✅ NAR membership has fallen from 1.6 million to 1.4 million since 2022.
✅ Many agents are supplementing their income through teaching, retail and casual employment.
✅ Commission rates are under pressure following the US$418 million Sitzer/Burnett settlement.
✅ Mortgage affordability challenges continue to suppress housing activity.
SOURCE: IBTIMES