A growing number of brokerage leaders say it will be difficult to make profits this year. Intel takes a closer look at a recent survey of broker owners and executives.
The advent of commission negotiation gave a small but high-performing group of agents and brokers the opportunity to obtain a larger share of the deal than before.
Despite this, some brokerage leaders report that they are finding it difficult to turn a profit.
The results of the May Intel Index survey shed new light on the opportunities and challenges facing securities industry leaders as the industry pivots further from past negotiation-related discussions.
The percentage of brokerage leaders who said their commission rates were higher than they were before the Realtor settlement increased from 8% of Intel respondents between March and May of last year to 19% during the same period in 2026. Still, this percentage is smaller than the 36% who reported a decline in commission rates during this period, although almost all said such declines were “slight.”
The numbers highlight how a small but growing percentage of agents and intermediaries are taking advantage of increased negotiation to their advantage, asserting their value to clients and earning higher fees than they have charged in the past.
At the same time, executives at many of these brokerage firms are increasingly recognizing “margin compression” as the biggest challenge they currently face.
What’s driving these diverse trends? Intel delves into this question in this week’s report.
conclusion
Recruitment and retention remains a top concern for the largest brokerage leaders who respond to Intel’s survey each month.
However, that share has gradually declined in recent months, and concerns about margin compression are increasingly looming.
Among large brokerages surveyed by Intel between March and May, the percentage of respondents who cited “margin compression” as their top business concern today rose from 11% last year to 21% this year. Additionally, the proportion expecting margin compression to be their biggest concern one year from now has increased from 15% to 21% over the same period.
A closer look at the data reveals that this movement was primarily driven by brokerages affiliated with brands, whether owned by large publicly traded companies like Compass or affiliated with franchised brands like Keller Williams.
For these leaders of branded brokerage firms, stocks that cite “margin compression” as a top concern today have recently climbed above 30% in three of Intel’s last four surveys. This is nearly double the rate of margin compression concerns reported by small independent brokerages.
As mentioned above, this growing sense of caution about margin compression coincides with the trend of more securities companies winning in commission rate negotiations with their customers.
To be clear, most brokerages are still reporting a net negative impact (albeit small) on fees since the NAR settlement took effect. But over time, more brokerages have found ways to assert their value in ways that impact their bottom lines, at least their agents’ bottom lines.
However, not all brokerages are joining this trend.
Leaders affiliated with large brands are more likely to report this type of fee increase than those affiliated with independent brokerage firms.
Why are more branded brokerage leaders feeling like their margins are being squeezed at the same time more agents are negotiating higher commission rates? Intel’s research doesn’t partially explain this.
But there are some clues in the data.
As an example, this year’s agent respondents in our Intel survey self-reported a commission split of less than 80/20, which was slightly lower. In some cases, brokerages may have felt they needed to increase the split amount in order to recruit and retain quality agents.
For another, brokerage leaders are already reporting that headcount is higher this year than this time last year. And they continue to prepare for job growth.
Thirty percent of brokerage leader respondents said their headcount increased last year, compared to 20 percent who said their headcount decreased. Over the next 12 months, 53% of leaders expect to increase headcount in the future, while just 8% say they expect to reduce their workforce.
As the industry continues to consolidate, Intel will continue to track agent and broker trends.
Methodology note: This month’s Inman Intel Index survey was conducted from May 19th to May 28th and received 469 responses. The entire Inman reader community was invited to participate, and a rotating selection of randomly selected community members were encouraged to participate via email. Users answered a series of questions about their self-proclaimed niche in the real estate industry, including real estate agents, brokers, financiers, and proptech entrepreneurs. Results reflect the views of our passionate Inman community, but do not necessarily align with the views of the broader real estate industry. This survey is conducted monthly.
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