Where do real estate agents earn the most?

A career in real estate can be very profitable, but where you’re based is key to your success. Some states have significantly more potential for agents’ incomes due to housing booms, high property values, and strong population growth.

If you’re curious where real estate agents earn the most, this guide deconstructs the highest-performing states where agents succeed. From high-end markets in California and New York to booming cities in Texas and Florida, find the best locations to drive your commissions, grow your career, and achieve long-term success in real estate.

The best states to be a real estate agent

Real estate professionals thrive in states where the market is strong, home prices are high, and demand for housing continues to grow. But not all states offer the same opportunities for agents. If you’re considering where to start or expand your real estate career, knowing which states provide the best earnings, job growth, and overall business potential is essential.

Several factors influence an agent’s success, including:

• Average home price: Higher home values often mean higher commissions.
• Population growth: A growing population increases demand for housing.
• Housing market strength: Active markets lead to more transactions.
• Cost of living: Higher living costs can impact profit margins.
• Real estate agent salary: Some states have significantly higher earning potential.

Let’s explore the best states to become a real estate agent and why they stand out.

Top states where real estate agents earn the most

While real estate agent earnings vary by location, certain states consistently rank among the highest-paying. Based on average salary, commission potential, and market activity, these are some of the top 10 states to be a real estate agent:

1. New York

• Average real estate agent salary: $93,000+
• Why it stands out: It has high-value properties, a competitive luxury market, and a thriving commercial real estate sector.
• Challenges: High cost of living and steep competition.

2. California

• Average real estate agent salary: $91,000+
• Why it stands out: A booming housing market, particularly in cities like Los Angeles and San Francisco.
• Challenges: Expensive real estate licenses and high property prices.

3. Texas

• Average real estate agent salary: $80,000+
• Why it stands out: Strong population growth, affordable living, and no state income tax.
• Challenges: Market fluctuations and increased competition.

4. Florida

• Average real estate agent salary: $76,000+
• Why it stands out: A booming residential and commercial real estate market, plus strong demand from retirees and investors.
• Challenges: Seasonal demand and hurricane risks.

5. Colorado

• Average real estate agent salary: $75,000+
• Why it stands out: A strong economy, attractive landscapes, and high home values.
• Challenges: Competitive housing market and rising living costs.

6. Massachusetts

• Average real estate agent salary: $85,000+
• Why it stands out: High home prices and a well-educated buyer base.
• Challenges: Harsh winters and high taxes.

7. Washington

• Average real estate agent salary: $79,000+
• Why it stands out: A booming tech industry, high salaries, and a strong real estate market.
• Challenges: Costly licensing and competitive markets.

8. Nevada

• Average real estate agent salary: $72,000+
• Why it stands out: A fast-growing population and a strong tourism-driven real estate market.
• Challenges: Market reliance on tourism and economic shifts.

9. Virginia

• Average real estate agent salary: $71,000+
• Why it stands out: Proximity to Washington, D.C., strong job market, and stable housing prices.
• Challenges: Costly real estate broker fees and regulations.

10. Arizona

• Average real estate agent salary: $70,000+
• Why it stands out: Affordable home prices, strong population growth, and a high demand for housing.
• Challenges: Intense summer heat and fluctuating seasonal markets.

What makes a state the best for real estate agents?

Selecting the best state to invest in real estate hinges on several aspects that affect an agent’s earnings, job security, and career advancement. Top-performing states generally have:

1. Strong housing market

• High demand for homes leads to more transactions.
• Areas with new developments and commercial growth create additional opportunities.

2. High average home price

• Higher property values result in larger commissions for agents.
• Luxury markets, like New York and California, offer massive earning potential.

3. Growing population

• States experiencing population booms, like Texas and Florida, see increased home-buying activity.
• Retiree-friendly states attract buyers looking for permanent residences.

4. Favorable tax conditions

• States with no income tax, such as Texas and Nevada, allow agents to keep more of their earnings.
• Lower property taxes can make homes more attractive to buyers.

5. Affordable cost of living

• Some states offer high salaries but have high living expenses.
• Places like Arizona and Nevada balance earnings with lower costs.

Finding the best place to work as a real estate agent

Choosing the best place to be a real estate agent involves more than just salary. While income potential is a factor, career growth, professional network, market stability, and personal lifestyle needs are also significant factors in long-term success.

High-Value Transactions in Large Cities

Large urban centers such as New York, Los Angeles, and Miami have high-revenue real estate markets. They provide:

• Greater Commission Potential: With high-priced properties and luxury residences, brokers can potentially earn significant commissions.
• Diverse Client Base: International investors, celebrities, and corporate clients create a dynamic market with high-value transactions.
• Good Professional Connections: Best cities possess the finest real estate firms, leading to improved mentorship, partnerships, and referral relationships.
• However, with more competition and an increasing cost of living, they are most suitable for experienced agents who can handle the pace.

Rapidly growing markets with less competition

For agents looking for emerging opportunities, cities like Austin, Phoenix, and Denver present promising real estate landscapes:

• High Population Growth: These cities are experiencing a steady influx of new residents, increasing housing demand.
• Lower Cost of Living: Compared to larger coastal cities, real estate agents enjoy a lower cost of living with comparable commissions.
• Booming Growth: New residential projects, infrastructural projects, and expanding jobs markets make these cities attractive for long-term investment.

In these markets, agents can establish themselves more easily than in oversaturated markets, positioning themselves for long-term success.

States with a balance of income and lifestyle

Some real estate agents appreciate both income potential and lifestyle benefits. Florida, Texas, and Nevada states offer an extremely appealing mix:

• No State Income Tax: Florida, Texas, and Nevada allow agents to retain more profits than high-tax states like California and New York.
• Desirable Conditions of Life: Convenient climate, entrepreneur-friendly administration, and economic cost of living propel these states towards agents and their customers.
• Diverse Real Estate Markets: The agents can specialize in an enormous variety of niches, including beach houses in Florida to suburbs in Texas and entertainment-focused markets in Nevada.

Choosing the right market for your expertise

Apart from where they are located, real estate agents should consider their specialties:

• Luxury Real Estate: Beverly Hills, Miami Beach, and Aspen are good markets for high-end transactions.
• Commercial Real Estate: Business centers that are stable in cities like New York, Chicago, and Houston have great potential within offices, retailing, and industries.
• Resort and Vacations Markets: Properties such as Hawaii, Florida Keys, and Lake Tahoe have seasonal customers looking to purchase second homes or investment property.

Summing-up

If you’re considering where to start or grow your real estate career, choosing the best states to become a real estate agent can significantly impact your earnings and success. States with high home prices, growing populations, and strong housing markets—like New York, California, Texas, and Florida—offer some of the best opportunities.

Before making a decision, research the real estate agent salary, market conditions, and cost of living in each area to find the best fit for your goals. Ready to take the next step in your real estate career? Explore the best markets and set yourself up for success today!