Direct Answer
10 SEC filers are classified under the Standard Industrial Classification code that describes the residential real estate brokerage industry, and their latest annual reports show $47.6 billion of combined revenue and a median operating margin of -0.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Residential real estate brokerages employ or affiliate with agents who represent buyers and sellers of homes and earn commissions on sales. Revenue follows existing-home sales volume and prices, and commission rules are changing. The first numbers to compare across companies here are closed transactions and sales volume, average commission rate and agent count and productivity.
Key Industry Metrics
- Closed transactions and sales volume: The number of homes sold and their total value. It follows existing-home sales, so mortgage rates and inventory are the main influences.
- Average commission rate: The share of sale price earned as commission. Industry rule changes and competition are pressing it lower, which cuts revenue even if volumes hold.
- Agent count and productivity: The number of affiliated agents and transactions per agent. Recruiting adds capacity, but retention matters since agents can move to rivals.
- Gross commission income: Total commissions earned before splits paid to agents. It shows sales scale, though profit depends on how much is shared with agents.
- Franchise and ancillary revenue: Fees from franchisees and related services such as mortgage and title. It adds income that is less dependent on commissions alone.
Primary Macro Drivers
- Mortgage rates and affordability: Higher rates reduce what buyers can borrow, so fewer homes change hands, which shows in closed transactions and sales volume.
- Home prices: Higher prices lift commission per sale at a given rate, which shows in sales volume and gross commission income.
- Housing inventory: Few homes for sale limit deals even when demand is strong, which shows in closed transactions and agent productivity.
- Industry commission rules: Rules on how commissions are set and shown affect revenue per deal, which shows in the average commission rate.
Major Risks
- Low transaction volumes: Fewer sales cut revenue quickly while agent and office costs remain, shown in closed transactions and operating margin.
- Commission compression: Pressure to cut commissions or unbundle services lowers revenue per deal, which shows in the average commission rate.
- Agent retention: Agents can move to other firms and take their business with them, so watch agent count and productivity.
- Litigation and regulation: Lawsuits and rule changes can bring settlements and change business practices, so read legal proceedings notes and fee disclosures.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Residential Real Estate Brokerage Filers in the SEC Record
10 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6531. Their latest fiscal years end in 2025, and together they reported $47.6 billion of revenue. Median revenue growth over the prior year was 14.1%. Median operating margin was -0.7% and median net margin -0.7%. Median total liabilities were 58% of total assets, and 4 of 10 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Jones Lang Lasalle Inc | $26.1 billion | 11.4% | 4.2% | 3.0% | FY 2025 |
| Compass, Inc. | $7.0 billion | 23.7% | -0.9% | -0.8% | FY 2025 |
| Agnt, Inc. | $4.8 billion | 4.5% | -0.4% | -0.5% | FY 2025 |
| Opendoor Technologies Inc. | $4.4 billion | -15.2% | -6.6% | -29.7% | FY 2025 |
| Newmark Group, Inc. | $3.3 billion | 20.3% | 7.1% | 3.8% | FY 2025 |
| Douglas Elliman Inc. | $1.0 billion | 3.8% | 4.4% | 1.5% | FY 2025 |
| Offerpad Solutions Inc. | $568 million | -38.2% | -5.9% | -8.2% | FY 2025 |
| Fathom Holdings Inc. | $420 million | 25.4% | -3.7% | -4.8% | FY 2025 |
The 8 largest of 10 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Residential Real Estate Brokerage guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Residential Real Estate Brokerage industry?
Key performance indicators for the Residential Real Estate Brokerage industry include: Closed transactions and sales volume, Average commission rate, Agent count and productivity, Gross commission income, Franchise and ancillary revenue. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Residential Real Estate Brokerage industry?
The Residential Real Estate Brokerage industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Residential Real Estate Brokerage industry?
The primary risks for Residential Real Estate Brokerage companies include: Low transaction volumes, Commission compression, Agent retention, Litigation and regulation. Investors should assess each company's exposure to these factors and its track record of navigating them.