The National Association of Realtors has just announced that its membership has grown to over one million members, but what does a 25 percent increase in membership since 2000 really mean? While it means more clout on Capitol Hill, it also means a shift in attitudes toward the real estate industry.

As Realty Times supposed a year ago, the membership of the NAR is getting younger, due in part to the dot-com fallout and job loss in technology firms, but the real story is how many believe in the opportunity to become a Realtor and what impact they may have on the industry as they hunker down for long-term careers.

Anticipating a possible cultural shift caused by the burgeoning numbers of Realtors joining the NAR since 1997, which coincides with a housing boom, low interest rates, and favorable loan product introduction, among other factors, the NAR has done a special study of its new members since 2000.

"The Survey of New Members" is being released shortly, and Realty Times has an exclusive on some of the survey's findings of interest, namely that members are getting younger, attrition is down (despite the less than favorable earnings by new members) and new members say they are in it for the long haul.

"There are two factors to consider," says Steve Cook, spokesperson for the NAR. "People are going into the real estate business and that has to do with jobs and the booming real estate industry, so there has been opportunity in real estate because of the robust real estate economy. The second thing is that people are choosing to become Realtors because the vast majority of transactions - about 90 percent - are done by Realtors."

In 1978, the median age of a Realtor was 42. According to the latest Realtor survey, the 2001 NAR Member Profile, the median broker and agent are 52 years old, but the numbers could change if the trend to younger Realtors holds. New members since 2000 average 43 years of age and they are already pushing the average age of members down to 51, says Cook.

A little more about attrition, please? "Attrition is down," responds Cook. "We didn't do a survey on attrition but we did find in our new member survey that they are finding membership to be valuable. What you'll see in the study is the reason they are joining is to call themselves Realtors which relates to our recent trademark victory."

Sixty-eight percent of new members said they joined the NAR for the Realtor designation; 61 percent for "professionalism", 55 percent for the Code of Ethics; 54 percent for the education, and nearly tied at 48 percent and 47 percent were professional development and training.

"The reasons they are joining are very professional," observes Cook, "and by being a member they can further their career. There are tools at the national, state and local levels. At the local level, you have training, education and networking; at the state level, you have state advocacy; and nationally, you have federal advocacy and national programs."

On everyone's minds are these questions: Who are these folks, where did they come from and will they stay the course through the shifting housing markets to come?

"New members are younger," explains Cook. "The typical member is 51 and new members are 43 - that is significantly younger. The other question and issue that has come up is where have they come from. Are these temporary people laid off from dot-coms and will they go back to what they did when the economy improves?"

According to the survey, there is a telltale bulge of new members in 2002 and 2003 after the dot-com fallout, but Cook says they aren't all from technology firms and management as would be supposed.

Cook says, "We asked that in our member profile last year, many are saying that it is a plus that they are coming in with new skills that the traditional real estate person might not have.

The new member profile didn't have the same questions, but "we asked the new members whether they planned to be in the real estate business for two years or longer, says Cook, "and 85 percent said they were certain they would be in real estate at least two years. They have made commitment to this business."

New Realtors also plan to continue their educational edge. Most new Realtors plan to pursue one or more professional designations.

As they get their businesses going, many are making modest livings, compared to more experienced Realtors.

"Three-quarters make a full-time living in real estate," says Cook, "making $36,000 a year, far below the $52,000 that the average member makes, but that figure can also include the ones who have joined since 2000. We did the member survey in July 2003, and the new member survey was in February 2004."

The survey also says they are working harder to get ahead than the typical Realtor. While the typical sales associates (not brokers) makes $39,300 annually and works 38 hours, the new member works 43 hours and earns $36,000.

What effect will a large new member base have on the NAR?

"Since 2000, we've grown about 25 percent," says Cook. "We are constantly revising old programs and developing new programs that aren't necessarily for new Realtors. They are bringing knowledge and skills from other occupations and they are needing education and training in the real estate business, so I think a lot of the focus is on the local boards. That's where the outreach is for new members. We have full-time staff that works on that."

Published: April 19, 2004

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.