How much can you make as a real estate agent?
The amount of money a real estate agent makes each year can vary greatly, but according to a survey of nearly 9,000 licensed real estate professionals, the average gross income for real estate agents in 2020 was $129,000. However, a real estate agent’s income is dependent on a number of different factors, including years of experience, hours worked, market conditions, specializations and more.
Here are the top four factors, outside of market conditions, that determine how much real estate agents make:
1. Hours worked
For the vast majority of real estate agents, income is highly dependent on the number of hours worked. This creates a wide pay gap between part-time and full-time agents with full-time agents earning considerably more than part-time agents. However, if you are not sure you can make the full switch to real estate, testing the waters by becoming a part-time agent first is a great way to earn extra income while hanging on to your current job.
2. Location
Average income for real estate agents is highly variable based on region, state, city, and the health of the local market. In general, if you want to earn more, you need to work primarily in urban or suburban areas where the average cost per home is higher.
Among the cities with the highest average real estate agent salaries are:
| State | City | Avg. Salary |
|---|---|---|
| Hawaii | Honolulu | $120,471 |
| Virginia | Charlottesville | $98,446 |
| Washington | Seattle-Tacoma-Bellevue | $96,004 |
| New York | New York-Long Island | $93,343 |
3. Specialty or niche
Just like doctors or nurses specialize in certain areas of medicine, real estate agents often specialize in different areas of real estate. Regardless of state, agents who specialize in commercial and luxury residential properties typically earn more than their counterparts as these types of properties have higher price points and therefore higher commissions.
Agent Annual Income by Niche
4. Years of experience
The first year in real estate is always the hardest, but agents who stick with it see the payoff within a year. After getting at least one year of experience under their belt, agents typically earn over $20,000 more per year. Agents who have the most success in the first year are those who find a supportive brokerage and seek out a knowledgeable mentor for guidance.
If you take these factors into consideration, you can have a more accurate estimate of the type of income you would earn as a real estate agent.
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Want to see how your city or state compares to the rest of the country? This table outlines the average salary for real estate agents for the top metro areas of each state.
| State | Location | Avg. Salary |
|---|---|---|
| Alabama | Birmingham | $95,571 |
| Alabama | Statewide | $94,433 |
| Arizona | Phoenix-Mesa-Scottsdale | $84,440 |
| Arizona | Statewide | $88,959 |
| Arkansas | Little Rock-North Little Rock-Conway | $90,670 |
| Arkansas | Statewide | $91,228 |
| California | Los Angeles-Long Beach-Anaheim | $91,205 |
| California | Statewide | $92,223 |
| Colorado | Denver | $89,243 |
| Colorado | Statewide | $82,601 |
| Georgia | Atlanta | $75,612 |
| Georgia | Statewide | $78,002 |
| Hawaii | Honolulu | $120,471 |
| Hawaii | Statewide | $117,392 |
| Illinois | Chicago | $79,654 |
| Illinois | Statewide | $81,122 |
| Indiana | Indianapolis | $82,357 |
| Indiana | Statewide | $92,372 |
| Iowa | Des Moines | $53,035 |
| Iowa | Statewide | $98,908 |
| Kansas | Wichita | $81,931 |
| Kansas | Statewide | $76,528 |
| Kentucky | Louisville | $80,722 |
| Kentucky | Statewide | $94,740 |
| Louisiana | New Orleans | $76,302 |
| Louisiana | Statewide | $59,548 |
| Maryland | Baltimore | $82,680 |
| Maryland | Statewide | $79,619 |
| Michigan | Detroit | $76,972 |
| Michigan | Statewide | $80,080 |
| Minnesota | Minneapolis-St Paul | $73,331 |
| Minnesota | Statewide | $81,426 |
| Mississippi | Gulfport-Biloxi-Pascagoula | $69,761 |
| Mississippi | Statewide | $98,675 |
| Missouri | St. Louis | $72,936 |
| Missouri | Statewide | $81,287 |
| Montana | Missoula | $61,798 |
| Montana | Statewide | $73,925 |
| Nevada | Las Vegas-Paradise-Henderson | $80,770 |
| Nevada | Statewide | $88,169 |
| New York | New York-Long Island | $93,343 |
| New York | Statewide | $86,872 |
| Oklahoma | Oklahoma City | $85,459 |
| Oklahoma | Statewide | $72,246 |
| Pennsylvania | Philadelphia | $72,234 |
| Pennsylvania | Statewide | $87,700 |
| South Carolina | Columbia | $57,656 |
| South Carolina | Statewide | $89,376 |
| Texas | Dallas-Fort Worth-Arlington | $84,044 |
| Texas | Statewide | $75,456 |
| Utah | Salt Lake City | $87,987 |
| Utah | Statewide | $87,576 |
| Virginia | Arlington-Alexandria | $82,415 |
| Virginia | Statewide | $78,204 |
| Washington | Seattle-Tacoma-Bellevue | $96,415 |
| Washington | Statewide | $95,050 |
| Washington, D.C. | District of Columbia | $85,281 |
| Wisconsin | Milwaukee | $75,170 |
| Wisconsin | Statewide | $79,855 |
The information in this table is taken from Indeed.com and other salary comparison sites. The average salaries listed are not a guarantee of how much money you will make as a real estate agent in that area. We recommend you conduct more research in order to get a more nuanced estimation of the amount of money you can expect to make as a real estate agent based on your work experience, skills, and education level.