Offices of Real Estate Agents and Brokers — Business Survival Rate
An estimated 44% of offices of real estate agents and brokers businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 15.2%.
Is Offices of Real Estate Agents and Brokers a Good Business to Start?
With a 44% five-year survival rate, offices of real estate agents and brokers has a below-average survival rate compared to the national average of ~50%. This indicates higher risk of failure — new entrants face significant competitive pressure or challenging economics.
The annual exit rate of 15.2% is elevated. If you're considering entering this industry, ensure adequate capitalization, a clear competitive advantage, and realistic timeline to profitability.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net negative: more businesses closing than opening (-1.2 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 394,353 workers across 108,748 firms.
Want to know how much offices of real estate agents and brokers businesses actually make?
See full revenue benchmarks for Offices of Real Estate Agents and Brokers →Frequently Asked Questions
- What percentage of offices of real estate agents and brokers businesses fail?
- Approximately 56% of offices of real estate agents and brokers businesses fail within their first 5 years. The annual closure rate is 15.2%, with 14,913 firms closing permanently in 2023.
- Is the offices of real estate agents and brokers industry growing or shrinking?
- The offices of real estate agents and brokers industry is currently shrinking with a net job creation rate of -2.1% per year. New businesses are entering at 13.9% while 15.2% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.