NAR Report Shows One-Third of Realtors® Say Lack of Inventory Limiting Potential Clients

Thirty-two percent of Realtors® named lack of inventory as the most important factor limiting potential clients from making a purchase, according to the National Association of Realtors®’ 2023 Member Profile. NAR’s annual report analyzes members’ business activity and demographics from the prior year. NAR’s research shows housing inventory fell to the lowest level recorded since 1999 as homebuyers entered the market at a frenzied pace to lock in historically low interest rates.

“The report’s findings clearly show that the lack of housing inventory is impacting Realtors®’ ability to find buyers a home,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Housing inventory and affordability continue to be the top obstacles that hold back potential clients in the housing market.”

PAR President Al Perry said, “This study reflects what we’ve been seeing in the Pennsylvania housing market. Our June monthly housing report showed listings were down 27% compared to 2022 at around 35,000, with just a 3.24 months’ inventory. That’s nearly half the number of listings available in 2020.”

NAR’s annual report reflected the strong demand for housing and rising home prices, showing the typical member’s sale volume increased to $3.4 million in 2022, up from $2.6 million in 2021. The typical member had 12 transactions in 2022, which remained the same as in 2021.

The annual report also showed that NAR membership grew to 1.58 million in 2022, up from 1.56 million in 2021. In addition, members typically have 11 years of real estate experience, up from eight years in the previous year.

Sixty-two percent of all Realtors® were female in 2022, down from 66% in 2021. The median age of Realtors® was 60, up from 56 in the previous year. Fifty-two percent of members were over 60 years old and 1% were under the age of 30.

In 2022, 81% of Realtors® were white, Hispanics accounted for 10% of Realtors®, followed by Black/African Americans and Asian/Pacific Islanders, who were both at 5%. New Realtors® tended to be more diverse, with those who had two years or less experience, 41% were racial minorities in 2022, an increase from 37% one year ago.