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Best Places to Be a Real Estate Agent Nationally

Adam McCann, Financial Writer

“Location, location, location” might be the catch phrase of the real estate profession, but it applies just as much to realtors as it does to their clients. After all, success in the industry hinges on both an agent’s work ethic and area of operation.

The current real estate market is very healthy. January to February 2019 showed the biggest month-to-month rise in sales since 2015. But even as the market adjusts as a whole, certain cities remain hotspots. In the coming year, real estate agents may want to relocate to places with the highest demand for housing, and that pay the best for their expert guidance.

To determine the best markets for this particular profession, WalletHub compared more than 170 U.S. cities across 19 key indicators of a healthy real estate environment. Our data set ranges from sales per agent to annual median wage for real estate agents to housing market health index.

 

Best Cities for Real-Estate Agents

Overall Rank (1=Best) City Total Score 'Job Opportunity & Competition' Rank 'Real Estate Market Health' Rank
1 Seattle, WA 64.28 1 12
2 Salem, OR 63.74 3 8
3 San Francisco, CA 62.07 4 18
4 Oakland, CA 58.30 9 13
5 San Jose, CA 58.08 16 7
6 Denver, CO 57.64 25 2
7 Fremont, CA 57.49 27 3
8 Boston, MA 57.13 5 53
9 Washington, DC 56.96 6 38
10 Pheonix, AZ 55.99 28 16
11 Santa Rosa, CA 55.64 12 35
12 Vancouver, WA 55.60 14 33
13 Fargo, ND 55.52 15 25
14 Sious Falls, SD 55.19 43 1
15 Tempe, AZ 54.81 53 5
16 Gilbert, AZ 54.62 51 9
17 Portland, OR 54.36 8 55
18 Irvine, CA 54.21 55 11
19 Tacoma, CA 54.07 38 22
20 Mesa, AZ 53.98 68 6
21 Chandler, AZ 53.71 56 17
22 Atlanta, GA 53.35 36 29
23 Peoria, AZ 53.30 63 15
24 Nashville, TN 53.23 75 10
25 Durham, NC 52.97 85 14
26 Tampa, FL 52.96 54 23
27 Cape Coral, FL 52.63 19 57
28 Portland, ME 52.42 35 30
29 Oxnard, CA 52.32 17 72
30 Los Angeles, CA 52.31 22 64
31 Pearl City, HI 52.24 24 52
32 Ontario, CA 52.19 61 26
33 New York, NY 52.06 2 151
34 Charlotte, NC 51.45 41 37
35 Richmond, VA 51.42 45 40
36 Reno, NV 51.40 62 31
37 San Diego, CA 51.36 34 54
38 Scottsdale, AZ 51.22 32 63
39 Nashua, NH 51.10 11 106
40 Glendale, AZ 50.94 73 32
41 Missoula, MT 50.88 112 4
42 Austin, TX 50.58 109 20
43 Fort Worth, TX 50.57 80 34
44 Jersey City, NJ 50.53 26 85
45 Rancho Cucamonga, CA 50.40 37 61
46 Sacremnento, CA 50.20 67 41
47 Aurora, CO 50.11 104 27
48 Fresno, CA 49.98 65 46
49 Grand Rapids, MI 49.74 82 39
50 Charleston, SC 49.32 66 51
51 Manchester, NH 49.27 20 109
52 Dollas, TX 49.27 49 71
53 Riverdale, CA 48.93 64 62
54 St. Petersberg, FL 48.93 90 47
55 Winston-Salem, NC 48.84 57 75
56 Henderson, NV 48.76 154 19
57 Knoxville, TN 48.56 33 103
58 Jacksonville, FL 48.55 72 65
59 Colorado Springs, CO 48.15 143 21
60 Buffalo, NY 48.14 39 98
61 Poer St. Lucie, FL 47.99 47 91
62 Fontana, CA 47.51 87 70
63 Chula Vista, CA 47.50 118 48
64 Glendale, CA 47.48 100 50
65 Oceanside, CA 47.32 117 49
66 Bakersfield, CA 47.29 44 104
67 Spokane, WA 47.25 110 60
68 Orlando, FL 47.17 79 83
69 Honolulu, HI 47.11 13 140
70 Bismarck, ND 47.09 31 131
71 Philadelphia, PA 47.02 30 124
72 Garland, TX 47.01 138 44
73 Yonkers, NY 46.97 18 132
74 Plano, TX 46.94 93 74
75 Huntington Beach, CA 46.93 77 86
76 Moreno Valley, CA 46.87 103 67
77 Nampa, ID 46.63 149 36
78 Bridgeport, CT 46.59 7 159
79 Santa Clarita, CA 46.57 145 42
80 Las Vegas, NV 46.53 132 58
81 Salt Lake City, UT 46.47 95 81
82 Grand Prairie, TX 46.32 130 56
83 Anaheim, CA 46.24 111 73
84 Modesto, CA 46.22 160 28
85 Chicago, IL 46.04 10 155
86 Omeha, NE 45.98 115 78
87 Overland Park, KS 45.93 113 77
88 South Burlingon, VT 45.90 21 149
89 Minneapolis, MN 45.98 96 88
90 San Bernardino, CA 45.85 102 84
91 Boise City, ID 45.71 137 59
92 Pembroke Pines, FL 45.71 131 69
93 Louisville, KY 45.65 94 92
94 Virginia Beach, VA 45.65 42 117
95 Long Beach, CA 45.59 133 68
96 Milwaukee, WI 45.45 29 137
97 Irving, TX 45.37 129 76
98 Santa Ana, CA 45.33 125 80
99 West Valley City, UT 45.23 127 79
100 North Las Vegas, NV 45.11 167 43
101 Cheaspeake, VA 45.09 50 121
102 Chattanooga, TN 45.08 98 95
103 Garden Grove, CA 45.04 116 87
104 Arlington, TX 45.04 108 93
105 Billings, MT 44.93 157 24
106 Huntsville, AL 44.92 122 96
107 Madison, WI 44.85 107 101
108 Fort Wayne, IN 44.57 121 82
109 Miami, FL 44.51 52 127
110 Newark, NJ 44.51 71 116
111 Fort Lauderdale, FL 44.31 92 112
112 Norfolk, VA 44.30 69 119
113 St. Louis, MO 44.22 106 108
114 Warwick, RI 44.11 46 133
115 Lexington-Fayette, KY 43.99 150 66
116 Stockton, CA 43.89 126 100
117 Des Moines, IA 43.89 170 45
118 Kansas City, MO 43.79 124 99
119 Columbia, MD 43.75 140 90
120 Baltimore, MD 43.52 81 122
121 Newport News, VA 43.43 58 135
122 Raleigh, NC 43.38 120 111
123 Columbus, OH 43.27 114 114
124 Wichita, KS 43.15 48 150
125 Worchester, MA 43.15 70 129
126 Lincoln, NE 42.99 88 125
127 Hialeah, FL 42.95 147 94
128 Pittsburgh, PA 42.88 78 128
129 Columbus, GA 42.69 76 134
130 Greensboro, NC 42.57 144 107
131 Providence, RI 42.42 60 142
132 Burlington, VT 42.40 23 172
133 Augusta, GA 42.30 40 156
134 Memphis, TN 41.57 151 97
135 Springfield, MO 41.55 84 146
136 Houston, TX 41.40 97 139
137 San Antonio, TX 41.39 155 102
138 Tucson, AZ 41.32 136 120
139 Birmingham, AL 41.28 74 157
140 St. Paul, MN 41.14 142 118
141 Cedar Rapids, IA 41.13 86 147
142 Indianapolis, IN 41.07 89 144
143 Tallahassee, FL 41.02 161 105
144 Mobile, AL 40.95 99 141
145 Anchorage, AK 40.75 59 166
146 Aurora, IL 40.67 123 136
147 Dover, DE 39.94 91 158
148 Columbia, SC 39.79 134 138
149 Rochester, NY 39.40 83 161
150 Cincinatti, OH 39.18 153 126
151 Rapid City, SD 39.07 164 113
152 New Orleans, LA 38.92 162 123
153 Amarillo, TX 38.81 128 152
154 New Haven, CT 38.54 101 163
155 Baton Rouge, LA 38.53 135 153
156 Charleston, WV 38.18 146 145
157 Little Rock, AR 37.92 163 130
158 Tulsa, OK 37.80 119 162
159 Akron, OH 37.63 172 115
160 Laredo, TX 37.59 174 110
161 Lubbock, TX 37.30 177 89
162 Lewiston, ME 37.08 158 143
163 Montgomery, AL 36.89 105 169
164 Wilmington, DE 36.44 139 168
165 Cleveland, OH 36.30 165 148
166 Oklahoma City, OK 35.18 165 160
167 Las Cruces, NM 35.17 152 170
168 Toledo, OH 34.65 156 164
169 Huntington, WV 33.81 169 167
170 Albuquerque, NM 33.42 159 171
171 Jackson, MS 31.59 171 174
172 Fort Smith, AR 32.96 176 154
173 Gulfport, MS 31.59 171 174
174 Fayetteville, NC 31.15 148 178
175 Corpus Christi, TX 31.15 173 173
176 Detroit, MI 31.11 168 175
177 El Paso, TX 29.62 178 165
178 Shreveport, LA 28.95 175 176
179 Brownsville, TX 24.80 179 177

 

Ask the Experts

The real estate market is often unpredictable. For advice and insight on the current market and future of the industry, we turned to a panel of experts for their thoughts on the following key questions:

  1. Should real estate agents feel threatened by new apps and other online tools offering services to potential homebuyers?

  2. How can real estate agents protect themselves from the “boom bust” cycle of the housing market?

  3. What tips do you have for a young real estate agent? What does he or she need to do to get ahead in the current market?

  4. In evaluating the best cities for real estate agents, what are the top five indicators?

  5. How likely is it that the Federal Reserve would increase interest rates again in the coming months? How would that impact real estate agents?

Gerald Klassan Research Data Scientist at the
Real Estate Center, Mays Business School, Texas A&M University

 

Should real estate agents feel threatened by new apps and other online tools offering services to potential homebuyers?

 

Online tools will automate the simplest services provided to homebuyers. Realtors who rely on providing simple services to clients will feel the biggest impact.

I liken the situation to the days of the full service stock brokerage charging a $100 fee to execute stock trades. The internet made personal trading possible and soon discount brokers emerged charging $8 or less per trade. The brokerages that didn’t adapt to the new technology disappeared. The brokerages that embraced the technology and found new fee based services survived and thrived.

The big difference is that real estate transactions are much more complex than stock trades so this works in the favor of Realtors. How many home buyers will have the confidence to execute a home purchase on their own? The rest will require some assistance so there will always be a need for real estate agents. It will be interesting to see what technologies Realtors adopt to provide a higher level of service than they do today.

 

How can real estate agents protect their business from the boom-bust cycle housing market?

 

Realtors can protect their business from boom-bust cycles by learning new skills that generate revenue in the “bust” times. During busts there is always a need for an appraisal and litigation support for real estate related lawsuits.

Another defensive strategy is to establish a good reputation for top notch service and high integrity. People still need to buy and sell homes during a bust period. Realtors with the best reputation will always be in demand for transactions even in the bad times.

 

What tips do you have for a young real estate agent? What does she/he need to do to get ahead in the current marketplace?

 

To get ahead in the current marketplace, young Realtors should do the same thing as experienced successful Realtors. Be dedicated to personal education. Learn as much about different property types, marketing and transaction types as possible. Most importantly, act with the highest level of integrity.

A reputation for honesty and fair dealing will open doors to new real estate opportunities. Homebuyers will always want to do business with a Realtor having good integrity.

 

In evaluating the best cities for real estate agents, what are the top five indicators?

 

Here are the four questions I think a Realtor should ask when evaluating the best city to conduct business:

  • Would I like living in this city? Will I be able to do the things that I enjoy most in life? If you aren’t happy with the city you live in it will negatively impact your business.

  • Are job opportunities expanding in this city? If jobs are growing then more people will eventually move to the city. That creates more opportunities to succeed in real estate.

  • Is the population growing in this city? This is closely related to job growth. More people mean more need for housing.

  • Does this city have an abundance of the property type I like marketing? If you don’t enjoy what you are selling, then it will negatively impact your business.

 

How likely is it that the Federal Reserve will increase interest rates again in the coming months? How will this impact real estate agents?

 

I think there is a low probability that the Fed will hike the policy rate in the coming months. Slowing global economic growth will likely contribute to slower growth in the US.

There are no significant inflationary pressures that would call for a rate hike. The recent decline in long term Treasury yields tells us that bond investors are concerned about future growth prospects. The falling Treasury yields are improving the prospects for Realtors because they are helping to bring down mortgage rates. In the current state of the economy there doesn’t seem to be a catalyst that would motivate the Fed to increase the policy rate.

 

Ken Johnson Ph.D. – Real Estate Economist, College of Business, Florida Atlantic University

 

Should real estate agents feel threatened by new apps and other online tools offering services to potential homebuyers?

 

In the residential real estate brokerage industry, we are nearing a tipping point in how residential sales and leasing services are delivered. A near complete public MLS (Multiple Listing Service) is now in play via third party information providers such as Zillow, Realtor.com, and Redfin. The apps coming to market with these third-party providers are lowering the need for human capital, i.e. real estate agents.

 

How can real estate agents protect their business from the boom-bust cycle housing market?

 

Residential housing is now in some form of a perpetual real estate cycle where ownership is not always preferred to renting depending on where we are in the cycle at any point in time. When at the top of the cycle, renting and reinvesting might be preferred because of an expectation of falling residential prices.

When at the bottom of the cycle, ownership would be preferred thanks to an expected increase in property prices. In this new environment, real estate agents should structure their business portfolio to include both property sales and leasing as this will allow them to thrive regardless of where we are in any real estate cycle.

 

What tips do you have for a young real estate agent? What does she/he need to do to get ahead in the current marketplace?

 

Real estate brokers need to understand that they are in the information business and not the selling or leasing business. The Zillows of the world understand this. If the real estate brokerage industry does not come to grasp with this fact very soon, they will find themselves being service (open house, showing property, etc.) providers at much lower margins.

 

In evaluating the best cities for real estate agents, what are the top five indicators?

  • Are you in a growing metropolitan area?

  • Is your city population increasing significantly?

  • Is the unemployment rate decreasing or low in your city?

  • Is the average credit score in your metro area increasing?

  • Are the impact fees for new construction in your city relatively low?

These are some of the factors that increase real estate agent productivity.

 

How likely is it that the Federal Reserve will increase interest rates again in the coming months? How will this impact real estate agents?

 

It is unlikely that we will see a near term increase in interest rates by the Fed. The real questions for real estate agents are:

  • Will rates move to a point that is consistently higher than present, and

  • if so, what does that imply for the residential real estate industry?

If rates move to a point that is consistently higher, say 6% for 30-year financing, the housing industry as we know it will suffer a catastrophic shock. Sales volumes will decline significantly as well as prices.