In Tennessee, real estate agents earn an adjusted $48,743 per year, compared to a national median of $48,930.
Even before COVID-19, real estate agents were adopting new technologies as a way to connect with young, tech-savvy home buyers. However, like so many other economic sectors, the real estate industry has been forced to expand these practices in response to social distancing measures. Now, virtual open houses and watch parties are the norm, and even formerly non-tech-savvy agents are embracing online document software and drone photography to comply with new restrictions.
Even with recent economic disruptions and high levels of unemployment, the real estate industry remains strong. Data from the S&P/Case-Shiller U.S. National Home Price Index reveals that home prices—fueled by strong demand and a limited supply—continue to rise.
Mortgage interest rates have been trending downward, hitting the lowest levels in the 50-year history of Freddie Mac’s Primary Mortgage Market Survey. At the beginning of December, average mortgage rates were nearly a full percentage point lower than the 3.68% rate observed in December 2019 for 30-year fixed-rate mortgages. Due to a combination of historically low interest rates and increased demand—in part, resulting from COVID-19—many real estate agents are busier than ever.
Data from the Bureau of Labor Statistics’ Occupational Employment Statistics reveals that the concentration of real estate agents and their typical pay varies significantly by location. While the highest densities of agents are located in the South, the highest wages (after adjusting for living costs) are primarily found in the Northeast and West.
To identify the best-paying states for real estate agents, researchers at Inspection Support Network (ISN) analyzed data from the U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis to calculate cost-of-living adjusted median annual wages. In expensive states, wages for real estate agents were adjusted down to reflect less purchasing power; whereas, in more affordable locations, wages were adjusted up to reflect greater purchasing power. ISN also calculated the relative concentration of real estate agents in each location compared to the U.S. average.
The analysis found that in Tennessee, real estate agents earn an adjusted $48,743 per year, compared to a national median of $48,930. Here is a summary of the data for Tennessee:
• Median wage for real estate agents (adjusted): $48,743
• Median wage for real estate agents (unadjusted): $43,820
• Median wage for all workers (unadjusted): $35,910
• Cost of living (compared to U.S. average): -10.1%
• Concentration of real estate agents (compared to U.S. average): -43.0%
For reference, here are the statistics for the entire United States:
• Median wage for real estate agents (adjusted): $48,930
• Median wage for real estate agents (unadjusted): $48,930
• Median wage for all workers (unadjusted): $39,810
• Cost of living (compared to U.S. average): Average
• Concentration of real estate agents (compared to U.S. average): Average
For more information, a detailed methodology, and complete results, you can find the original report on Inspection Support Network’s website: https://www.inspectionsupport.