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.