- AccountTECH’s national brokerage EBITDA margin index rose to 3.50% in May 2025, marking the highest profitability in over a year.
- Brokerages have cut costs, changed agent pay models, and used more automation to limit losses.
- Margins remain below pre-pandemic highs, but the latest data points to steady improvement and better financial discipline across the sector.
As per GlobeSt, real estate brokerages in the US are starting to bounce back from years of shrinking profit margins. In May 2025, AccountTECH’s EBITDA margin index reached 3.4962%, the best monthly figure in over a year. The rise shows early signs of a recovery, even as sales stay slow and rates remain high.
Post-Pandemic Progress
Broker margins have dropped since 2019, with the worst declines coming during the pandemic. The index hit 6.5% in 2019 but dropped sharply after that, falling to 3.3% in 2024. May’s 2025 figure shows a clear gain, rising from negative margins in early 2025. January and February posted EBITDA margins of -3.44% and -2.70%, while March and April saw small gains. May marks a turning point in that trend of declining profit margins.
What’s Driving the Improvement
Many brokerages are seeing better results by cutting spending, using technology, and adjusting how they pay agents. Among firms with positive earnings, the average EBITDA margin stood at 5.91% in May. This level is close to the typical 5.29% to 7.25% seen before 2020. Loss-making brokerages averaged -5.00%, still a weak number but better than during the height of the pandemic.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Industry Divide
The gap between winning and struggling firms remains wide. Those that made smart changes to how they run their businesses are bouncing back faster. Mark Blagden, CEO of AccountTECH, said that firms investing in automation and better systems tend to lead the pack. These steps helped many brokerages cut waste and stay stable even with fewer deals closing.
Why It Matters
Even though real estate sales have slowed, the brokerage sector shows signs of adjusting to the new normal. Better cost control and smarter business models could help firms survive and grow in a tough market. The recent rebound in margins is one of the first strong signs of that shift.
What’s Next
Many brokerages will keep looking for ways to run leaner operations through the rest of 2025. If interest rates drop or buyer activity picks up, firms that already made key changes could benefit the most from a stronger market.
