At ICNY, Leo Pareja, Eric Carlson, and Michael Leibowitz pondered how the industry might consolidate into a few powerful brands like the Compass/Anywhere merger, private listing networks, and the US airline industry.
Consolidation in the real estate industry has been seen as a long way off for years, but it has finally arrived in 2025, with the merger of Rocket-Redfin and Compass-Anywhere sending shockwaves through the industry. The deal immediately raised questions about who would merge next, who would make the decisions, and which industry players would be crushed on rocky shores or ride the tide to new heights.
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EXp Realty CEO Leo Pareja, REMAX Holdings CEO Eric Carlson and Douglas Elliman CEO Michael Leibowitz tried to answer these questions Tuesday as hundreds of attendees filled the seats in front of Inman Connect New York’s main stage.
Leo Pareja
“What I always point out is history,” Pareja said. “Industries can be fragmented over decades, even centuries. But if you look closely, you’ll see that there are patterns in this country. And for those of you who have some gray areas. [hairs]like me…we grew up with more airlines in this country. Remember that? And now we have United Airlines, Delta Air Lines, and American Airlines. ”
“We basically have three health insurance providers. So directionally, things like that tend to happen,” he added. “So I can’t make any predictions, but what I can say is that if you look at historical patterns, consolidation, you’re going to see more consolidation. So is that good or bad? That’s not decided yet.”
The real estate industry is potentially entering the era of aviation, with Compass Anywhere set to merge under the banner of Compass International Holdings on January 7th. The completion of the merger has leaders, agents and other industry players on edge as everyone wonders how Robert Refkin will leverage the deal.
“Congratulations. Please take action,” Leibovitz said jokingly, leaning back on the side of his chair. “I always pray for everyone’s safety.”
michael leibowitz
Chief Executive Douglas Elliman said he’s not worried about getting caught up in the Compass wave because he believes the merger, and other mergers that will undoubtedly take place next year, will clarify the company’s value proposition.
“I actually think this merger will bring the industry back a little bit to where it was,” he said. “I think there was a time in our time when everyone was just killing each other, and I think the industry lost a little bit of quality there.”
“So I actually think the merger will narrow the breadth of the business a little bit and create a clear differentiation between the two businesses,” he added. “And with an agent, you can really choose where you want to be and what fits with your philosophy.”
Carlson echoed Leibowitz’s sentiments, saying REMAX is focused on deepening its value proposition to franchisees and leveraging its reputation as one of the industry’s longest-running brands.
eric carlson
“There will be consolidation,” Carlson said. “Maybe we’re consolidating. Maybe we’re falling apart.” “And I come from the television industry, where we were apart. We all came together and then we all fell apart. So, it’s a cycle. And I think you control what you can control. Stay focused on what you’re trying to accomplish and your vision. Don’t get distracted.”
Pareja shared his thoughts on eXp’s market value, calling it the “home of entrepreneurial agents,” before diving into the real concern surrounding the Compass-Anywhere merger: the potential proliferation of a privately listed network.
“The question is what happens to private property, right? I don’t think anyone in this audience questions my position on that,” he said. “As someone who has sold 4,000 homes, sat in people’s kitchens, put people in their cars and helped them protect their assets, I fundamentally believe that it is my fiduciary responsibility to obtain the highest amount of money in the shortest amount of time. And that is what I will continue to do.”
eXp’s CEO cited Belize and the United Kingdom as examples of what is at risk if the United States abandons its current MLS system.
“I sold my parents’ house in Belize. It took four years and four different agents. What surprised me was that the listing agent had to post the listing on a shitty WordPress website. We had to show it to the buyer. He thought it was worth $350,000. And I actually said to the listing agent, “List it for $249,000.” He said, “It doesn’t make a difference.” It’s all about access and visibility. ”
“In the UK, I’m the single biggest brand. We have a monopoly called Rightmove, which is being investigated by the federal government as being an actual monopoly,” he added. “They charge me a fee of £50 a month. They have 800 agents in the UK. Last year my bill was £2 million. They looked me dead in the eye and said they were going to increase my price by 10 per cent every year forever. I said: ‘What about the market dynamics? What about interest rates, supply, demand, trade, etc.? They didn’t care.’
Pareja said there is no compromise in maintaining market transparency. Everyone needs to be on board to make it work.
“The agreement we have is a data cooperative. If a large enough player decides to suspend for a period of time, there will be an equivalent reaction from another large enough player and another large enough player,” he said. “And without us realizing it, consumers now benefit from a fragmented market that is not as efficient as we enjoy in North America. [That’s] Who is at risk? ”
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