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. Shop Courses 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. Are you ready to launch your real estate career? Browse our highly-rated and state-accredited courses. Shop Courses 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.