If you’re thinking about starting a career in real estate, one of the first questions that comes to mind is: How much do real estate agents make? The answer depends on several factors—including experience, commission rates, and, most importantly, location. In this guide, we’ll break down how much a real estate agent makes in different states across the United States so you can make an informed decision.
Key Takeaways
- Real estate agent income varies by state – Agents in high-cost states like New York, California, and Massachusetts earn significantly more due to higher home prices.
- The national average salary for real estate agents is around $62,000 per year, but top earners can make six figures or more.
- Commission-based pay means agents earn a percentage of each home sale—usually between 2.5% to 3%—with no fixed salary in most cases.
- Location, experience, and niche (such as luxury or commercial real estate) have a major impact on how much a real estate agent makes annually.
- Success in real estate depends on effort—the more deals you close and the higher the property value, the more income you can generate, regardless of your state.
Average Real Estate Agent Salary in the U.S.
According to the U.S. Bureau of Labor Statistics, the national average salary for real estate agents is around $62,000 per year. However, this number can vary widely depending on where the agent is based and their level of activity. Some earn less than $30,000 annually, while top-performing agents make over six figures.
Top States Where Real Estate Agents Make the Most
1. New York
- Average Salary: $93,000 – $100,000+
- Real estate in cities like New York City is expensive, which leads to higher commissions per transaction. Luxury markets and commercial deals boost earnings significantly.
2. Massachusetts
- Average Salary: $90,000+
- A competitive housing market with high property values means agents can earn more per sale, especially in cities like Boston and Cambridge.
3. California
- Average Salary: $85,000 – $95,000
- With a hot housing market in cities like Los Angeles, San Francisco, and San Diego, California agents benefit from high transaction values.
4. Connecticut
- Average Salary: $80,000 – $90,000
- Real estate agents here earn well due to the affluent communities and steady demand for property.
5. Texas
- Average Salary: $75,000 – $85,000
- Fast-growing cities like Austin and Dallas offer real estate agents plenty of opportunities to close deals and build steady income.
States with Moderate Real Estate Agent Incomes
6. Florida
- Average Salary: $60,000 – $75,000
- Florida’s housing market remains strong, especially in tourist-friendly cities like Miami and Orlando.
7. Illinois
- Average Salary: $55,000 – $65,000
- Agents in Chicago and the suburbs can earn a good living, especially when specializing in commercial or luxury real estate.
8. Georgia
- Average Salary: $50,000 – $60,000
- Atlanta’s growing economy offers a steady flow of new residents looking to buy or rent.
States Where Agents Make Less on Average
9. Ohio
- Average Salary: $45,000 – $55,000
- Lower home prices mean smaller commissions, but there’s still opportunity with higher volume.
10. Mississippi
- Average Salary: $40,000 – $50,000
- Real estate is more affordable here, so agents may need to close more deals to earn higher income.
11. West Virginia
- Average Salary: $38,000 – $45,000
- With one of the lowest housing costs in the country, real estate agents earn modest commissions per sale.
Factors That Affect Real Estate Agent Income
Even within each state, how much a real estate agent makes can differ due to:
- Experience: Veteran agents often have larger networks and higher-value listings.
- Brokerage Split: The percentage of commission shared with the brokerage impacts take-home pay.
- Location: Urban agents tend to earn more than those in rural areas due to higher property prices.
- Specialization: Agents dealing in commercial, luxury, or rental properties can earn more.
- Work Ethic: Real estate income often correlates directly with effort, marketing, and follow-up.
Final Thoughts
If you’re wondering how much do real estate agents make and whether it’s worth entering the field, the answer depends on your personal goals, skillset, and location. Agents working in high-demand states with expensive property—like New York, California, or Massachusetts—can earn significantly more due to higher commission payouts per sale.
But income in real estate isn’t just about geography. Your earning potential grows with dedication, networking, client relationships, and follow-through. Agents who go the extra mile in marketing, negotiation, and lead generation tend to close more deals and earn higher commissions—even in lower-cost states.
Just like understanding the importance of a contingent beneficiary in financial planning ensures that your long-term goals are secure, choosing a career in real estate requires foresight, strategy, and effort. You’re essentially building your future on the deals you close and the trust you establish with clients.
With the right mindset, real estate can be a flexible, high-reward career path—whether you’re working full-time, part-time, or transitioning from another industry. It’s a business where the ceiling is high, but your success is truly contingent on the effort you put in.
FQAs
1. How much do real estate agents make on average in the U.S.?
The average real estate agent in the United States makes around $62,000 per year, but earnings can vary widely based on state, experience, and the number of transactions they complete annually.
2. Which states pay real estate agents the most?
States like New York, California, Massachusetts, and Texas tend to offer the highest average earnings for real estate agents due to higher property values and active housing markets.
3. How much does a real estate agent make per sale?
Real estate agents typically earn 2.5% to 3% of the home’s sale price as commission. For example, selling a $300,000 home could earn an agent $7,500 to $9,000 before brokerage splits
4. Do real estate agents get a base salary?
Most real estate agents work on commission only, meaning they only get paid when they close a deal. However, some larger brokerages may offer a small base salary or stipend to new agents.
5. Can a real estate agent make six figures a year?
Yes, many successful agents earn over $100,000 per year, especially in competitive or luxury markets. It often depends on how many properties they sell and the price range they work in.
