How the real estate industry is changing

Texas' changing real estate market may be putting a damper on the allure of a real estate license, per a new report from the Federal Reserve Bank of Dallas.

Why it matters: A few years ago, it felt like everyone and their mother was thinking of becoming a Realtor, as a way to get a piece of the booming housing action.

• Now the party is over.

The big picture The real estate industry typically follows trends in the housing market, expanding as more homes hit the market and contracting as sales hit a snag.

By the numbers: Across Texas, the number of new licensed salespeople entering the market per quarter jumped 60% between early 2020 and early 2022.

• But as interest rates increased, the rate of new salespeople entering the market had declined by 50% by the end of 2024, the Dallas Fed found.
• Meanwhile, the rate of salespeople upgrading to broker status — which requires a combination of work experience, education and passing an exam — peaked in 2022 to around 800 brokers per quarter and fell to fewer than 400 per quarter in early 2025.

Zoom out: Since the pandemic, Texas has had one of the "most dynamic" real estate boom and bust cycles in the state's recent history, per the Dallas Fed report.

State of play: In Texas, prices have been softening as pandemic-era migration slows and insurance costs climb.

• Last October, Texas homes were on the market for a median of 74 days. The national median was 51 days.

Zoom in: Realtor.com projects the sales of existing Austin area homes will decline by 7% this year compared with last year.

The bottom line: "Thousands of Texans who made career bets on real estate during the pandemic era face uncertain prospects," the Fed says.

• "Some will transition to other industries, but not without some economic pain."

📬 Let us know: Are you an Austin Realtor? When did you get in the game — and how would you rate this moment in your industry?