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Real Estate Associations

NAR Report: Realtor trends across demographics reveal interesting consistencies

(REAL ESTATE ASSOCIATIONS) The latest report from the National Association of Realtors digs into all kinds of demographics to reveal what brought folks into the field.

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Realtors across demographics looking at data on laptop with papers scattered across desk.

Data makes the world go round. Money does as well, but that isn’t the main point today. Data also comes in many different forms. Points of connection between two seemingly different things can pull together planets (seriously, that’s how gravity functions). Understanding how those things come together is how you can access the world around you in new and interesting ways. From that train of thought, then, knowing your demographics in business can give you insight into a vast realm of possibilities.

Starting in 2017 the National Association of Realtors, America’s largest trade association with 1.4 million members, did a deep dive into their members. They took a look at not only their financial accomplishments but their genders, orientations, races, and even personality traits. Some of their other questionnaires seem to even delve into personal life decisions. The resulting inferences create an intriguing picture across demographics.

So, are you a Gemini, who can split their personality in two? Maybe you’re a Taurus whose stubborn streak makes a glacier seem fast when it comes to changing your mind. An essential piece of someone, their personality. Knowing the personality attributes that can help someone be successful in a job is exceedingly beneficial. You can plan out a path ahead of time before jumping into something without knowing if it’ll work out. Through their surveys, NAR discovered that 62% of residential realtors chose their own career path. The vast majority of them proclaim that being self-motivated is a must to be successful. Other skills such as people skills, communication, and problem-solving actually rank lower while still being needed. Think about that for a moment. You need to be self-motivated to go out and do this job, but all of these successful people basically confirm that “It is mandatory to self-motivate”. Without this skill, you will not thrive.

NAR also did an analysis on how people got interested in real-estate in the first place. These numbers definitely reflect a corresponding link with the personality analysis. Less than 25% of people who answered the survey were brought into real-estate by someone else. This reveals yet again that self-motivated people are the ones who succeed across demographics.

But what they found is that the main draws of the job were also common. Being your own boss helps a majority in the commercial groups. Controlling your own workday with flexible hours was what pulled people into the more residential real estate. Both of these factors again lend towards a driven individual with a strong work ethic.

Interestingly, a lot of variation was found between demographics when it came to income comparisons between races. According to the NAR vice president Jessica Lautz “income may be lower as the typical home price in a neighborhood is lower, for other they may work only part-time and others may be new to the profession and have no ownership in the firm.” The associated numbers involved reveal that White/Caucasian members have the highest median gross personal income and then subsequently we have Asian/Pacific Islander, Hispanic/Latino, and Black/African-American.

There was also a correlation between the White/Caucasian group and the Black/African-Americans that showed that the former also used real-estate sales as their main or only source of income. Whereas the latter had the highest percentage of people who only used it as a part-time occupation. Having a second job to bring up their overall income. Racial lines also seem to be divided by different types of real-estate. Hispanic/Latino and White/Caucasian were much more likely to be in the suburbs. Asian/Pacific Islander seem to focus in small towns or rural areas. Black/African-American members showed their greatest areas as urban or city sites.

An interesting mound of data was the statistics around LGBTQ+ people that came of this. The information showed that these members were focused in the urban or city areas at almost 50% more than their heterosexual counterparts. These members also spoke highly of some extra skills needed to succeed in this career. Sales and marketing acumen were something that was rated very high on their lists, surpassed only by superior communication and problem-solving skills. This group also surpassed their counterparts in both median number of residential transactions (4-5) and sales volume ($1.6 million – $1.3 million).

A lot of the different aspects of these surveys creates a picture of the type of person who would do well as a realtor. If someone is a self-starting, determined, and an excellent communicator then they’d have a spectacular start. They would have to put in effort for marketing and build a network but it’s a start.

Robert Raney is a geoscientist whose been writing and painting for years to get his creative fix in. While working on his thesis in theoretical planetary physics he was also creating fantastical worlds on paper for fun. He's an at home Texan Houstonite who currently works slinging drinks at a local LGBTQ+ bar in the gayborhood, when not fielding oil & gas jobs that have taken him around the world.

Real Estate Associations

NAR updates code of ethics – here’s why it matters

(REAL ESTATE ASSOCIATION) The NAR amended their code of ethics to cover hate speech online – a decision for which we’ve been waiting for years.

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A welcome sign inside of a home that cannot be removed thanks to updated code of ethics

The National Association of Realtors voted to amend their realtor code of ethics in November 2020, leading to a crucial addition that will change the way realtors approach off-duty interactions and behavior—for the better.

This motion passed on the heels of several reports regarding disturbing speech and actions from realtors. While the comments in question were allegedly restricted to social media, some other members of the NAR went so far as to do things like remove property (e.g., Black Lives Matter signs) from neighbors’ yards. This clearly constitutes an ethical violation, but the line isn’t always so clear-cut—hence the updated code of ethics.

According to the revised code, any kind of hate speech or dissenting behavior toward protected classes from realtors will constitute a violation; this includes comments or harassment based on race, sex, gender identity, sexual orientation, religion, age, and much more. Should a realtor be found guilty of making such comments, they could face severe penalties.

Changing the code of ethics to reflect common decency is a part of this decision, but it isn’t the most important component. By adopting and enforcing these changes, the NAR gets one step closer to fair housing for all—something that many realtors consider to be of paramount value.

“[Fair housing] is something near and dear to my heart, and most Realtors’ hearts,” says Jennifer Stevenson, president of the New York State Association of Realtors and board member for the NAR.

Some may view this addition as meddlesome—after all, what one says in their private life and on social media has a certain impervious air to it. But the fact remains that realtors really are public servants; by that logic, they should be held accountable for their words whether they are on-duty or off—just like all other public servants.

Furthermore, realtors represent real estate as a whole; the institution itself deserves to be able to eradicate the member status of anyone who violates the ethics held by that institution. It’s a simple concept: Society is—or should be—moving towards greater acceptance and support of protected classes, and that support includes fair housing. Anyone who isn’t on board with that, even if it’s “just in their personal life”, should jump ship now.

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Real Estate Associations

NAR and AARP partner to create livability index for house hunting

(REAL ESTATE ASSOCATIONS) The National Association of Realtors® and AARP integrated the AARP Livability Index scores across the Realtors Property Resource® platform.

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A neighborhood with close-together houses, with different livability factors.

When you’re searching for your dream home, there are a lot of things to consider besides what you can afford from a financial standpoint. Factors such as being able to have a short commute to work, living in an area with a good school district, or being close to nearby entertainment and restaurants are all things you might take a look at. These are all considered livability factors — the measure of how various community characteristics play into where you choose to live.

Having access to all this information can be difficult to come by, especially if you live out of state and aren’t familiar with the area. The information you do have access to is what is available in the home listing and answers you get from your realtor or seller, but not much else.

So, where can you go to get that information? Well, the National Association of Realtors® and AARP are making it less of a hassle to acquire that information. In a joint effort, the two are integrating the AARP Livability Index scores across the Realtors Property Resource® platform.

“One of AARP’s goals through this collaboration with NAR is to help people better understand their housing needs over their lifetime and address the barriers that prevent people from living in their desired communities as they age,” said Rodney Harrell, VP of Family, Home & Community at AARP. “We are thrilled about the AARP Livability Index integration as it will provide homebuyers and other movers with the necessary information to make informed choices that meet their needs for today and into the future.”

To assist and give property buyers a chance to make “age-friendly decisions and purchases for the home”, the Index will offer insights on community factors. The tool will access these 7 categories of livability:

  • Housing (affordability and access)
  • Neighborhood (access to life, work, and play)
  • Transportation (safe and convenient options)
  • Environment (clean air and water)
  • Health (prevention, access and quality)
  • Engagement (civic and social involvement)
  • Opportunity (inclusion and possibilities)

The tool will score each neighborhood between 0 to 100, with an average score being 50. Communities with more diverse features that appeal to all ages, incomes, and abilities will score higher than those that are not.

Although a total livability score is based on the average of all 7 category scores, the Index lets you customize your score based on your personal preferences. If transportation is more important to you than housing or the environment, the tool will take into account what you set as most important.

The AARP Livability Index will give Realtors® access to “robust national data” that can be broken down by address, ZIP Code, city, or county to share with buyers. This data will have information on updated metrics and policies. You’ll also be able to compare up to three community performances side by side and even share a score on social media.

What is considered “livable” is different for each person. It can be that affordable home right in the middle of town or that spacious house removed from the bustling city. Whatever your form of livability is, the AARP Livability Index score aims to help you find the right home in just the right community.

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Real Estate Associations

NAR supports economic inclusion for equal housing opportunities

(REAL ESTATE ASSOCIATIONS) The NAR is pushing to insure anyone who wants a home can get one through a combination of economic inclusion, and eliminating implicit bias.

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economic inclusion

The National Association of Realtors® is working with the U.S. Chamber of Commerce’s Equality of Opportunity that addresses accessibility to housing based on economic inclusion. NAR CEO Bob Goldberg said,

“We believe that building a better future in America begins with equal access to housing and opportunity. With ongoing residential segregation contributing to many problems in our society, NAR recognizes that this nation cannot achieve true economic equality without first achieving true equality in housing. Our commitment to this cause and to Fair Housing has only strengthened in response to recent tragedies in America.”

What is economic inclusion?

According to the FDIC, economic inclusion describes the efforts to bring underserved communities into the financial mainstream. This could include things like making sure consumers have access to bank accounts and financial services; protections against discriminatory lending practices; and other types of consumer protections. Although the FDIC’s efforts seem to focus on unbanked and underbanked consumers, economic inclusion reaches around to all financial transactions, including housing.

Research from the Brookings Institution cites barriers to economic inclusion as slowing economic growth in local communities. Giving underserved communities access to financial products and opportunities actually spurs the local economy. The government bears the weight of services for the underserved. For example, childhood poverty costs the U.S. economy about 4% of the GDP annually. Nationwide, that is about $500 billion a year. Economic inclusion gives people a way out. It’s not a hand-out, but education and opportunities to change the future.

The NAR is making real change for the underserved

Last week, it was announced that the NAR introduced tools that would reduce implicit bias. Goldberg said, “NAR has spent recent years reexamining how our 1.4 million members can best lead the fight against discrimination, bigotry, and injustice.” The NAR isn’t just talking about it. They’re putting their money behind inclusion, and preventing unfair housing practices. These kind of changes matter for everyone.

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