Right now, there are more real estate agents in the U.S. than homes available for sale. The combination of consumer demand for single-family housing, limited supply, and folks being forced to find new work opportunities have all been contributing factors. What’s going on, and what could it mean for real estate investors?
What’s happening here?
At the end of January 2021, there were 1.04 million homes on the market in the U.S (down 26% from 2019’s inventory), the fewest homes on the market in nearly 40 years. Meanwhile, the National Association of Realtors (NAR) has 1.45 million members, 4.8% more than the year prior. To put it in perspective, that’s nearly 40% more agents hunting for deals than there are houses on the market.
Since it’s relatively easy to get a real estate license, depending on the state you’re working in, many new Realtors came from industries hit hardest by the pandemic, such as those previously working in restaurants or hospitality, as a way to try to turn things around.