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In the report, Choosing a Career in Real Estate: A Perspective on Gender, Race, and Ethnicity, the most prominent race and ethnic groups are examined for their income, business activity, and demographic characteristics within the real estate industry. While White and Caucasian members made up the majority of NAR real estate agents at 74 percent of respondents, Black and African American members made up the third largest group at seven percent of respondents. For nearly half of Black and African American members, real estate was not their only occupation and income generated from real estate supplement their overall earnings.
Income
Black and African American residential-only specialists reported a median gross income of $23,000 in 2016, compared to all residential-only specialists at $48,300. Fifty-two percent of Black and African American members reported a median gross income of less than $24,999 in 2016. According to the 2017 Member Profile, 48 percent of Black and African American members said that real estate was not their only occupation and 59 percent of these members work less than 40 hours a week on real estate activities.
Sixty-seven percent of Black and African American members work on residential real estate as their only specialty. Only three percent work on commercial real estate and 30 percent work in dual specialties of both residential and commercial real estate. Of the members that work in residential real estate, 46 percent receive 75 to 100 percent of their income from residential business activity (compared to 62 percent for all residential-only specialists).
Twenty-one percent of Black and African American members that worked exclusively on residential real estate received less than 24 percent of their income from residential business activities, almost double the share as other race and ethnic groups. This indicates that their income is supplemented from outside the real estate industry.
Of the members that work on residential and commercial real estate, 52 percent receive 75 to 100 percent of their income from residential business activity (53 percent for all specialists of both). Forty-three percent receive one to 25 percent of their income from commercial business activity (43 percent for all specialists of both).
Business Activity
Thirty-one percent of Black and African American residential-only specialists had between one and five residential transactions in 2016. This group had a median residential sales transaction volume at $500,000 in 2016. Twenty-five percent of this group sold between $1 and $5 million in sales transaction volume last year (34 percent for all residential specialists).
Black and African American residential-only specialists had a median dollar value of residential sales transactions at $188,600 ($280,300 for all residential specialists). Forty percent of Black and African American members sold homes in areas where the typical sales price was less than $199,999 in 2016 (25 percent for all residential specialists). The median typical sales price in their area of business for this group was $235,700.
Demographics
Black and African American residential-only specialists had a median of 10 years of experience. Thirteen percent have 26 years or more of experience. Thirty-six percent of Black and African American members surveyed were between the ages of 35 and 49 years old. Twenty-seven percent were 50 to 59 years, the same share as Asian and Pacific Islander members.
Eighteen percent of Black and African American residential-only specialists worked less than 20 hours a week, and 10 percent work more than 60 hours, the same share as Asian and Pacific Islander members. Forty percent of the group work urban and central city areas and 53 percent in suburban areas. Sixty-seven percent are sales agents and 21 percent are brokers. Black and African American members are the most likely to have a bachelor’s degree (38 percent) compared to all residential specialists (32 percent).