US Real Estate Brokerages Show Improvement in Profitability Amid Cost-Cutting Measures
US Real Estate Brokerages Show Improvement in Profitability Amid Cost-Cutting Measures
Recent insights from AccountTECH's annual financial benchmarking research indicate that US real estate brokerages demonstrated a noticeable uptick in profitability during the year 2025. This boost in profitability is attributed primarily to significant cost-cutting efforts rather than an increase in revenue streams or sales growth.
The study reviewed the financial performance of 157 brokerage firms and highlighted a modest, yet encouraging, increase in profit margins compared to the previous year. According to the data, the median EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin rose from 1.35% in 2024 to 1.68% in 2025. While this change reflects a welcome shift, it's important to note that these margins remain substantially below the pre-pandemic levels seen in 2021, where the median margin stood at 4.31%.
The rise in profitability is described as a product of what AccountTECH dubs the