Adapting to a Shifting Market: Why Apartment Locating Can Boost Realtor Success in 2025

The real estate landscape is changing rapidly, and agents in markets like Texas, Illinois, Colorado, and Georgia are feeling the impact. Recent industry shake-ups – from a landmark National Association of Realtors (NAR) settlement to surging interest rates – are squeezing traditional home sales. Some experts predict that these pressures will push a significant number of agents out of full-time real estate (NAR Membership Dips Below 1.5M — Will Losses Continue?) (Keeping Tabs on NAR Membership). But, amid these challenges, one segment of the industry continues to boom: rentals. In fact, demand for rental housing is growing faster than demand for homes to purchase, and a record number of new apartments are hitting the market to meet that demand (Renter Households Are Growing 3 Times Faster Than Homeowner Households) (New Apartment Construction to Reach Historic High in 2024). For forward-thinking realtors, apartment locating (helping clients find and lease rental properties) can be a game-changing addition to your service offerings. This in-depth analysis explores why the industry is at a crossroads and how integrating apartment locating into your business can supplement your income and keep your career thriving.

Market Headwinds: NAR Settlement and Rising Rates Reshape the Industry

As mentioned above, two major forces are buffeting the real estate industry as we head into 2025: a drastic change in commission practices due to the NAR legal settlement and the highest mortgage interest rates seen in decades. Together, these factors are fundamentally altering how realtors earn their living in potentially unfavorable ways.

The NAR Settlement & New Rules on Commissions 

In late 2024, the NAR implemented significant rule changes as part of a $418 million class-action settlement that aimed to increase transparency and competitiveness in commissions. The most impactful change, according to The Pearl Antonacci Group at Compass, is that home sellers (and listing brokers) can no longer offer commissions to buyer agents through the MLS. In other words, the long-standing practice of sellers effectively paying both the listing agent and the buyer’s agent is coming to an end. MLSs have removed fields that display buyer-agent commission offers, and agents representing buyers must now secure written agreements with their buyers outlining how they will be compensated before showing homes (The NAR Settlement and It's [sic] Impact on the Real Estate Industry).

These changes mean buyer agents may need to negotiate their pay directly from their clients rather than counting on a split of the seller-paid commission. Critics worry that this pay structure could deter cost-conscious buyers from using an agent at all or squeeze agents into reducing their fees to stay competitive, as The Pearl Antonacci Group notes. First-time and lower-budget buyers, already stretched by high prices and rates, might balk at paying an agent out-of-pocket (The NAR Settlement and It's [sic] Impact on the Real Estate Industry). The bottom line: the NAR settlement is poised to put downward pressure on buyer agent income and make each client engagement more labor-intensive to secure. Realtors who have long relied on “automatic” MLS co-op commissions must adapt quickly to a new reality of explaining their value and justifying their fees directly to buyers.

Rising Interest Rates, Fewer Deals to Go Around 

On top of commission reforms, the housing market itself has cooled due to high interest rates. Mortgage rates climbed to ~7-8% in the past year, the highest in over twenty years, which has pushed many would-be buyers to the sidelines, according to Newser, a news summarizing website. These high financing costs, combined with still-elevated home prices, caused home sales to plunge. Existing home sales in 2024 fell to just about 4.06 million – the lowest annual total in nearly 30 years. In fact, 2023 and 2024 have been the weakest years for home sales since 1995. Inventory is tight as well, with about half the normal number of homes for sale, so buyers who are in the market have limited choices (Home Sales Slump to a 30-Year Low).

For real estate agents, fewer sales means fewer commission checks. The typical Realtor completed fewer transactions in 2023 than in the prior year, reflecting the slump in volume (Slow Market Not Scaring Agents Away From Real Estate). The squeeze is especially acute for agents who primarily serve first-time buyers or middle-class move-up buyers. Many of those clients simply cannot afford to buy now due to the double whammy of high rates and high prices. Nevertheless, the industry has yet to see an exodus of agents. Lawrence Yun, the NAR’s Chief Economist, who thinks such an exodus is inevitable, put it plainly: “When there are fewer market opportunities, some people leave the business. It’s as simple as that” (Keeping Tabs on NAR Membership). Thus, all signs point to a contraction in the number of active, full-time real estate professionals if market conditions remain challenging.

Why Fewer Realtors Might Stay Full-Time in 2025

Between the NAR settlement’s new commission paradigm and the sharp decline in home sales, experts anticipate a shake-out in the agent population. Many agents, especially those with lower annual sales volumes, may find it difficult to earn a sustainable income in this environment. Recent data bears this out:

• Agent Attrition on the Horizon: A survey of MLS leaders across the country found that many expect a notable degree of agent attrition in 2025, as AJ LaTrace states on Real Estate News. After swelling to record highs in the boom years, Realtor membership is now receding. The NAR’s membership dipped below 1.5 million at the start of 2025 after losing over 25,000 members in just one month in December 2024 (NAR Membership Dips Below 1.5M — Will Losses Continue?). Brokers and associations are preparing for further membership declines as agents reconsider paying dues if their income falls off. In past housing downturns, the number of Realtors dropped significantly – for example, during the late-2000s crash, NAR’s membership fell nearly 30% from its peak (Keeping Tabs on NAR Membership). We’re likely to see a similar winnowing in the next couple of years.

• Part-Timers and Career Changers: Some agents who do stay in real estate may not do it full-time. When home sales opportunities dry up, they could pivot to other jobs or side gigs. Markets tend to see an influx of new agents during real estate booms, but right now, many newly minted entrants struggle to close enough deals. A few low-volume sales a year cannot comfortably support most people as a full-time income, especially after covering brokerage splits, marketing, and expenses. If those agents don’t find alternative revenue streams in real estate, they might exit for more stable work.

In short, traditional transactions that focus solely on home buying and selling are under pressure. Fewer transactions and potentially lower commissions per transaction threaten the livelihood of agents who don’t adapt. But, adaptation is possible. The housing market isn’t entirely in the doldrums; it has just shifted where the action is happening. While home purchases have slumped, rentals remain a bright spot. People still need places to live, even if buying is unaffordable, so they turn to renting. This is where savvy realtors can find opportunities: by pivoting to serve the booming rental market.

The Rental Market Is Booming: Rentals Outpace Home Sales and New Construction

Renters on the Rise 

2024 saw an explosion in rental demand. Nationwide, the number of renter households is growing three times faster than the number of homeowner households, according to data journalist Mark Worley at Redfin. In the third quarter of 2024 alone, renter households increased by 2.7% year-over-year (the fastest growth since 2015), while homeowner households grew by just 0.9%. As Worley points out, this trend has now persisted for multiple quarters: ever since interest rates spiked, renting has often been more financially attainable than buying, leading many families, especially younger adults, to continue renting instead of purchasing. Even in traditionally homeownership-centric markets like Texas or Georgia, more people are renting now than a few years ago, as high mortgage costs push the dream of owning further out of reach. In the words of Worley, with house prices at record highs and 7%+ mortgage rates, “renting is increasingly the only viable choice for many young people and families” (Renter Households Are Growing 3 Times Faster Than Homeowner Households).

Record-High Rental Supply 

Developers have taken note of this strong rental demand and have dramatically ramped up apartment construction in recent years. The U.S. added nearly 440,000 new apartments in 2023, the highest number in 36 years (Rents Remain Flat Under Supply Pressure in December | RealPage Analytics Blog). And, 2024 smashed records with approximately 518,000 new rental units, a 9% increase over 2023 and roughly 30% more than were built in 2022, according to RentCafe. As Veronica Grecu notes, it is the first time in U.S. history that over half a million apartments were completed in a single year. Many of these new communities are concentrated in high-growth metro areas. For example, Texas is leading the charge: the Dallas–Fort Worth and Austin markets together account for about 10% of all the apartments opened nationwide in 2024. Denver and Atlanta are not far behind, each seeing tens of thousands of new units in their pipelines (New Apartment Construction to Reach Historic High in 2024). In Chicago and across Illinois, new luxury high-rises and suburban multifamily projects are adding much-needed rental stock as well. This construction boom means renters have more options than at any time in recent memory, easing the squeeze of the 2021-2022 rental crunch.

Rentals Vs. Homes: A Tale of Two Markets 

To put it bluntly, the rental market’s growth has been outpacing the for-sale market by a wide margin. While 4 million existing homes changed hands last year, that same year saw over 44 million occupied rental units and climbing. Only 2.5% of U.S. homes sold in the first eight months of 2024, the lowest turnover rate in decades, whereas apartment leases are turning over constantly as people relocate for jobs, upgrade their living situation, or move out on their own (Renter Households Are Growing 3 Times Faster Than Homeowner Households). In addition, built-to-rent single-family homes are a growing trend: builders are constructing houses intended specifically as rentals, adding another facet to the rental supply that competes with traditional home sales. For realtors, this means a huge segment of housing activity is happening outside the buy-sell arena. In other words, there is money to be made and clients to be won in rentals if you know where to look.

Apartment Locating: A Valuable New Service Line for Realtors

Faced with a slow sales market, apartment locating can be a lifeline for real estate agents. Apartment locating (also known as rental brokering) is the practice of helping clients find apartments or rental homes and guiding them through the leasing process, much like an agent would with a home purchase. The twist is that instead of a commission from a home sale, the agent typically earns a referral fee or commission from the property owner or management company for bringing in a qualified renter. Landlords commonly pay a commission equal to one month’s rent (or a percentage of the lease) to agents who fill their vacancies. This situation presents a significant income opportunity for realtors who embrace rentals.

That said, here’s why apartment locating is a smart move in the current climate:

• Supplemental Income in Slow Times: Each rental deal closed is a paycheck, and those paychecks can add up. According to internal data at AptAmigo and The Nav Agency, more than 70 apartment locating agents there earned over $10,000 in revenue in just January 2025. Impressively, 35 of those agents earned over $20,000, and the top two agents brought in over $70,000 in one month (yes, just from rental transactions!). This level of income is on par with or even exceeds what many sales-focused realtors are making in today’s sluggish sales market. It demonstrates that rentals can be lucrative. The key is volume: an apartment locator might close 5, 10, or 15 leases a month. With typical commission payouts ranging from a few hundred to a few thousand dollars per lease, the math works out favorably, even after taking the brokerage split into account. In short, apartment locating can replace or significantly boost the income that’s been lost from fewer home sales.

• High Demand = More Clients: As discussed, there’s no shortage of renters out there looking for a place to live. By advertising yourself as a resource for renters, you tap into a much larger pool of potential clients than just buyers and sellers. Especially in major cities like Austin, Chicago, and Atlanta, thousands of people are moving and renting every month, and many of them could benefit from professional help. A skilled apartment locator can handle multiple clients concurrently (since the rental search timeline is shorter) and convert a high percentage into closed deals. More clients served also means more future referral opportunities and a bigger sphere of influence for your business.

• Quick Turnaround, Quicker Pay: Leasing transactions generally have a faster cycle than sales. A rental client’s search might last a few weeks at most, and many apartment tours and applications can be completed in days. Once a lease is signed, you often receive the commission within 30-60 days (sometimes sooner). There are no lengthy escrow periods, mortgage underwriting delays, or drawn-out negotiations, which means cash flow from rentals can smooth out the feast-or-famine nature of sales commissions.

• Build Future Buyer Pipeline: Today’s renter is tomorrow’s buyer. By helping clients rent now, you establish a relationship and earn their trust. When those clients are ready to become buyers (or if someone they know is looking to buy), who are they likely to call? You. Apartment locating is not just a short-term fix, it’s a long-term client acquisition strategy. You’re effectively nurturing leads for eventual home sales while earning income in the meantime. In a market where first-time buyers are postponing purchases, staying connected with them through their rental phase is crucial. You’ll be top-of-mind when they later decide to house-hunt for real.

• Better Service = Client Retention: If you traditionally only handle buy-sell transactions, you might be losing clients who decide to rent when market conditions aren’t right for buying. For example, maybe you have a client who decided not to buy due to interest rates. If you don’t handle rentals, that client might go find an apartment on their own (or through another agent), and you risk losing them entirely. By offering to help with their rental, you keep that client in-house and provide a continuity of service. They’ll appreciate having one go-to real estate advisor for all their housing needs, which boosts your professional reputation. In challenging markets, customer loyalty and positive referrals can make all the difference, and being an agent who’s willing to work on rentals amounts to added value in the client’s eyes.

• Low Barrier to Entry: If you’re already a licensed real estate agent, you typically don’t need any additional licensing or certification to do rentals in your state. (Always check local regulations, but generally, a real estate license covers rental transactions too.) The main “learning curve” is becoming familiar with rental inventory, but you can attain that knowledge quickly, especially if you partner with an apartment locating service or brokerage that provides centralized resources, such as access to apartment databases, availabilities, and landlord contacts. In places like Texas, apartment locating is a well-established industry, and there are platforms like AptAmigo and human networks to plug into that make it easier to hit the ground running. In other words, you don’t have to reinvent the wheel; you can join existing systems that match renters with apartments and start closing deals within weeks.

Actionable Strategies for Incorporating Apartment Locating into Your Business

Ready to diversify your business with rentals? Here are some concrete tips to successfully integrate apartment locating into your work:

• Educate Yourself on the Rental Market: Start by getting up to speed on local rental trends in your area. Research typical rent prices, popular apartment complexes, average commissions offered to agents, and vacancy rates. Knowing the market lets you advise clients confidently. For instance, if you know that median rents are up only 0.6% year-over-year while home prices are up 10%, you can speak to the relative affordability of renting (Renter Households Are Growing 3 Times Faster Than Homeowner Households). If new buildings in downtown Denver are offering “2 months free” promotions, that’s valuable information for your clients and a sign that those properties are eager to pay locator fees. So, subscribe to rental market reports, use sites like RentCafe or ApartmentList for data, and talk to local property managers to gain insights.

• Leverage the Right Platforms and Partners: Consider partnering with an apartment-locating brokerage or referral platform. Companies like AptAmigo and its related branch at The Nav Agency specialize in apartment locating and have robust databases of inventory, lead generation systems, and support teams. By teaming up, you can get a stream of renter leads and access tools to find units that match clients’ needs quickly. Alternatively, network with large apartment communities and property management firms in your city. Introduce yourself and ask to be added to their list of brokers they work with. The goal is to have a readily accessible catalog of apartments and a clear understanding of how to schedule tours and collect commissions from each property. The more connected you are to the rental inventory, the faster you can serve clients and close deals.

• Market Your Rental Services: Make sure potential clients know you can help with rentals. Update your website, LinkedIn page, and social profiles to mention apartment locating or rental assistance. Share content about cool new apartment buildings or tips for renters (this tactic both attracts renter clients and shows your expertise). If you have an email newsletter or past client list, announce that you’re now offering rental search services for anyone who isn’t ready to buy. Many recent transplants to your area might rent before buying, so target those newcomer groups. Recent grads or tech workers might be prime rental clients in cities with major universities or tech company headquarters. Consider running targeted ads, partnering with local HR departments, or tapping into university alumni networks to reach people relocating to your area who will need rentals. By proactively marketing to renters, you’ll fill your pipeline. Remember, every renter you help might refer friends if you provide great service. Since not all agents are willing to work on rentals, make it known that you welcome it.

• Streamline Your Process for Volume: Success in apartment locating often comes from handling a higher volume of clients efficiently. To do this, systematize your process. For example, create a renter intake form to gather their criteria (budget, neighborhoods, must-haves), so you can quickly narrow down options. Develop email templates for responding to initial inquiries, setting up tour itineraries, and application guidance. Use scheduling tools to batch showings (you might show one building to two different clients back-to-back if their interests align, saving you time). Leverage virtual tours and videos when possible to pre-screen options. The idea is to reduce time per client without sacrificing service quality. The more organized and tech-enabled your workflow, the more rentals you can close each month, directly impacting your earnings.

• Stay Updated on Rental Laws and Commission Agreements: Each state and city can have different norms for rental transactions. For instance, Chicago has a standardized leasing form and some local ordinances to be mindful of; Texas requires certain disclosures in leases; some cities require landlords to pay the broker commission (listing agent), while others allow tenant-paid commissions. Make sure you know who is expected to pay you by law and when. Most apartment locating scenarios involve the property owner paying the agent a referral fee after the renter moves in. Clarify this agreement with each building and get their commission structure in writing (many of them have broker registration portals or a schedule of fees). Also, stay on top of any licensing requirements or agency disclosures for rental clients in your area. Being professional and compliant will set you apart since the rental side of real estate is sometimes less regulated than sales.

• Highlight the Value of Your Service to Clients: When dealing with renter clients, take a moment to explain the benefits of having an agent assist them. Many renters don’t even realize it’s an option. Emphasize that your services are free to them in most cases since the property compensates you and that you can save them time, hassle, and potentially money by finding specials or negotiating on their behalf. Educate them on how going through you gives them the added advantage of accessing your market knowledge and having someone on their side. By setting this expectation upfront, clients are more likely to stick with you through the search and not drift off to try things on their own. In a cluttered online search environment, with scams on Craigslist and pay-to-list sites, you are a trusted guide. This effort not only helps you close the deal, it also fosters a positive relationship that will pay dividends if they later refer you or return to you as a buyer.

• Balance Rentals and Sales Strategically: Moving into rentals doesn’t mean you abandon your home sale business; it means you diversify your activities. Smart agents allocate their time based on market conditions. In a slow sales quarter, you might devote more hours to chasing rental leads. When mortgage rates dip, and buyer interest sparks again, you can shift focus back to sales while referring out some rental leads or handling a few high-value rentals only. Over time, you’ll learn how to juggle both. Some days, you might be at a home inspection in the morning and an apartment tour in the afternoon. This adaptation is actually a resilience strategy: by having multiple income streams within real estate, you’re less vulnerable to one segment’s downturn. The key is to stay organized with a good CRM (Customer Relationship Management software) to track both kinds of clients and to treat rental clients with the same care as buyers and sellers. Don’t give in to the trap of thinking rentals are “less important.” In this market, they are just as critical to your success.

Thriving in a Challenging Market

The housing market in 2025 presents challenges that many newer agents, and even veterans, have never experienced at this scale. High interest rates and evolving commission rules are testing the traditional ways realtors make money. It’s understandable that some agents are feeling discouraged. However, as with every market shift, new opportunities emerge for workers willing to adjust their approach. Apartment locating is one such opportunity that aligns perfectly with current housing trends. People are renting in greater numbers, and they need expert help to navigate an increasingly complex and competitive rental landscape.

By pivoting to include rentals, real estate professionals in Texas, Illinois, Colorado, Georgia, and beyond can bolster their income, broaden their client base, and position themselves as comprehensive housing advisors. The data is clear – there’s a robust business to be built in rentals, as evidenced by agents earning tens of thousands of dollars in a single month from apartment deals alone. More importantly, by serving renters, you are investing in relationships that can fuel your business for years to come through repeat and referral opportunities.

In a market where fewer realtors may remain fully active, those who innovate and adapt will stand out. Adding a service line like apartment locating is not just a stop-gap measure to survive a slow year; it’s a strategic expansion that can make your business more resilient and well-rounded. You’re meeting your clients where their needs are, and right now, a safe, affordable place to rent is a key need for many.

The days of easy sales may be over (for now), but housing never goes out of style. If you’re a realtor facing lean times in the sales market, consider this your call to action: embrace the rental market. Arm yourself with data, partner with the right people, and go find those clients who need a home to rent. By doing so, you’ll not only supplement your income, but also provide an invaluable service during a time when consumers need knowledgeable guidance more than ever. The real estate profession is evolving; evolve with it, and you’ll remain successful no matter how the market shifts.

– Dan Willenborg, CEO of AptAmigo & The Nav Agency

Sources:

• NAR Settlement changes and commission rules and its impact on buyers and agents – Pearl Antonacci Group Blog (The NAR Settlement and It's [sic] Impact on the Real Estate Industry).

• Home sales at a 30-year low, high mortgage rates – AP News via Newser (Home Sales Slump to a 30-Year Low ).

• Realtor membership and attrition forecasts – RealEstateNews (NAR membership dips below 1.5M — will losses continue?); NAR Realtor Magazine (Keeping Tabs on NAR Membership).

• Renter vs. homeowner household growth – Redfin News (Renter Households Are Growing 3 Times Faster Than Homeowner Households).

• Record apartment construction in 2023-2024 – Harvard JCHS (America's Rental Housing 2024); RentCafe Report (New Apartment Construction to Reach Historic High in 2024).

• RealPage market analysis on supply surge – RealPage Analytics (Rents Remain Flat Under Supply Pressure in December | RealPage Analytics Blog).