NAR Prepares for Major Membership Decline and $32M Budget Shortfall Amid Industry Shakeup

The National Association of Realtors (NAR) is bracing for a steep decline in membership as the real estate industry undergoes sweeping changes. According to internal projections, the organization expects membership to fall to around 1.2 million in 2025—down from a peak of nearly 1.6 million just a few years ago.

This anticipated drop would result in a $32 million revenue shortfall, largely due to reduced dues income from departing members. The projected decline follows recent legal and structural upheavals in the real estate sector, including growing scrutiny of broker compensation models, heightened legal challenges over commission structures, and increased pressure for transparency and reform within real estate organizations.

NAR leadership has acknowledged the financial pressure this decline could place on the organization and is actively exploring ways to adjust its budget and long-term strategy. These changes may include operational streamlining, staff restructuring, and reprioritizing programs to focus on core services for remaining members.

The association is also confronting reputational challenges following leadership turnover and lawsuits related to anti-trust allegations—factors that have contributed to uncertainty among its member base and the broader real estate community.

Despite these challenges, NAR officials remain committed to supporting agents and brokers during what they describe as a period of historic transformation in the housing industry. The organization is working to adapt to changing market dynamics while advocating for its members in legal, legislative, and regulatory arenas.

As the housing market continues to shift in response to economic pressures and evolving consumer expectations, the role and relevance of national real estate organizations like NAR are being reexamined, both from within the industry and by the public at large.

Source:

• “NAR Braces for Membership Drop Amid Industry Overhaul.” The Real Deal, June 4, 2025.