To be successful in a career that values “location, location, location” above all, you might wonder where it’s easiest to be a successful real estate agent in the US. I ranked the ten best states for real estate agents based on a variety of essential data, like earning potential, cost of living, agent competition, and the local housing market. See which states made the list, and consider whether your current location fits your real estate goals.
Best 10 States for Real Estate Agents
1. West Virginia
- Cost of living ranking: 9th
- Agent competition ranking: 7th
- Median annual agent salary: $70,830 (18th in the country)
- Homeownership ranking: 1st
Within the tree-covered Appalachian Mountains, West Virginia, is the state that tops our list of best states for real estate agents. More than just its low cost of living, West Virginia ranks number one primarily because it has both the highest percentage of owner-occupied homes and homeownership rates in the country at 74.5% and 79.4%, respectively. This data tells us that listings are abundant and that homebuyers are financially ready to purchase.
Another reason that West Virginia ranks as the best state to do real estate is its low agent competition. With 0.486 agents employed per 1,000, it’s ranked seventh among all the US states. Combining this data informs us that agents wouldn’t have to market themselves too hard to find clients in West Virginia.
2. New Hampshire
- Cost of living ranking: 42nd
- Agent competition ranking: 3rd
- Median annual agent salary: $73,830 (18th in the country)
- Homeownership ranking: 6th
New Hampshire ranks high on our list of the best states to do real estate primarily because of its low agent competition. It has the third-lowest agent competition rate, and the mean annual wage of agents is $73,830—about $4,000 more than the national average. This fact means it’s ideal for new real estate agents to start their careers without worrying about a market saturated with many experienced agents.
New Hampshire also ranks well in homeownership, with a 79.4% homeownership rate and 72.3% owner-occupied homes. In fact, the only area in New Hampshire that doesn’t rank well compared with other states is its cost of living—although it takes a specific type of person to handle the winters. With a love of winter gear and activities, a real estate agent could absolutely be successful in New Hampshire.
3. Vermont
- Cost of living ranking: 41st
- Agent competition ranking: 8th
- Median annual agent salary: $100,750 (3rd in the country)
- Homeownership ranking: 4th
For agents looking for a reason to pack their bags and head Northeast, the salary of a Vermont real estate agent tops six figures at $100,750, which is the third highest in the nation overall. Another benefit of Vermont is the agent employment rate of 0.52 out of every 1,000 people!
Although the median home value is the 21st highest of all the states, this could actually benefit agents wanting to work with first-time homebuyers. It also has the 4th highest homeownership rate, meaning that Vermont residents are more likely to want to purchase a home. Time to start packing your snow boots and cross-country skis!
4. Tennessee
- Cost of living ranking: 10th
- Agent competition ranking: 26th
- Median annual agent salary: $84,110 (7th in the country)
- Homeownership ranking: 22nd
Based on our exclusive variety of calculations, Tennessee is the fourth-best state to be a real estate agent. Even if you have no interest in the country music scene, Tennessee has plenty of other things to offer as a home state, like a relatively low cost of living (10th overall), a high number of available homes (32,362, ranking 5th) for agents to sell, and a homeownership rate of 70.9% (15th).
Combined with a high salary for real estate agents at $84,110, Tennessee would be an excellent entry point for any new real estate agent trying to start their business. Plus, Nashville is among our top 10 best cities for real estate agents.
5. Michigan
- Cost of living ranking: 15th
- Agent competition ranking: 4th
- Median annual agent salary: $68,430 (21st in the country)
- Homeownership ranking: 7th
As our fifth-best state for real estate agents, Michigan is ideal for agents who want to keep expenses low as they build their business. It boasts a low cost of living (15th on our list in terms of affordability) and has the 4th lowest rate of agent competition in the country. This combination means new agents could market to their farm area or niche audience more affordably.
The only perceived drawback of an agent starting in Michigan is the lower salary, which ranks in the 23rd spot at $68,430. However, with a low cost of living and low competition, agents could expect to be successful here and grow their knowledge. Plus, with its position near the Great Lakes, agents could have fun in unique real estate niches like lakefront properties!
6. Maine
- Cost of living ranking: 38th
- Agent competition ranking: 10th
- Median annual agent salary: $73,110 (9th in the country)
- Homeownership ranking: 3rd
If you’ve ever had the pleasure of spending a summer day in Maine or even a crisp fall morning, you will understand the appeal of living in the country’s furthest state in the northeast. Maine is one of the best states for real estate agents primarily because of its low agent competition (ranking number 11 on our list) and high rates of both homeownership (77.2%) and owner-occupied homes (74.1%). With such high homeownership rates, agents can potentially help clients across varying generations of home buyers and sellers.
On the other hand, Maine doesn’t rank as well in cost of living (38th among other states) and home values, with the median price being $373,700. However, if you’re prepared with a financial cushion, Maine offers plenty of listing opportunities.
7. Connecticut
- Cost of living ranking: 39th
- Agent competition ranking: 1st
- Median annual agent salary: $84,810 (15th in the country)
- Homeownership ranking: 31st
Even though Connecticut is the seventh-best state to get a real estate license on our list, it is the number one state for low agent competition, with only 0.27 agents per 1,000 people. This statistic alone is a great reason to start or grow your real estate career in Connecticut. However, another huge benefit of doing real estate in Connecticut is the high annual wage of $84,810—the 4th highest in the nation.
Even though Connecticut ranks exceptionally well in agent competition and salary, the major drawback is its high cost of living, ranking 39th in affordability. However, such a high salary could be worth the risk for aspiring agents. The housing market in Connecticut is also growing at a healthy rate, with a 9.6% increase in home prices year over year. Check out our 2024 housing market charts if you’re considering the move.
8. New Jersey
- Cost of living ranking: 40th
- Agent competition ranking: 2nd
- Median annual agent salary: $82,490 (5th in the country)
- Homeownership ranking: 43rd
New Jersey ranks eighth on our list of best states to be a real estate agent because of its low agent competition (second on our list, just below Connecticut) and high agent salaries (sixth overall). Agents can expect to make an average of $82,490, the fourth-highest salary overall.
However, this state has an undeniably high cost of living, being just a stone’s throw from Manhattan, ranking 40th. It ranks just slightly more expensive than Connecticut, which ranks 39th. However, the higher agent salary may balance out this drawback for experienced agents. In addition, New Jersey has a low homeownership rate of 59.9%, which could limit potential business.
9. Minnesota
- Cost of living ranking: 21st
- Agent competition ranking: 13th
- Median annual agent salary: $62,050 (39th in the country)
- Homeownership ranking: 8th
Aside from bordering Canada and Lake Superior, Minnesota has a great real estate market for agents. It’s one of the best states to be a real estate agent because of its homeownership rate of 71.8% (eighth overall) and its rate of owner-occupied homes at 72.1%. These two real estate statistics show that Minnesota residents generally choose to buy instead of rent, making it a great place to get real estate listings.
Minnesota also ranks better in terms of cost of living than our previous three states, with an index of 94.1 (ranking 21st). It also has a relatively low competition rate for agents, with only 0.654 agents for every 1,000 residents.
10. Mississippi
- Cost of living ranking: 1st
- Agent competition ranking: 11th
- Median annual agent salary: $67,770 (22nd in the country)
- Homeownership ranking: 11th
The main reason that Mississippi is one of the top 10 best states to be a real estate agent is due to its low cost of living—ranking number one among all states! Mississippi also has high homeownership rates (10th highest) and low agent competition, with only 0.635 agents per 1,000 residents—better than Minnesota and Tennessee.
However, the flip side of its low cost of living is that its homes have a low median home value of $271,200. This affordability is almost the lowest in the US, ranking 50th. To combat the decreased income from lower home prices, agents will have to sell more houses—but the combination of homeownership rates and agent competition makes that extremely possible.
Full Data & Methodology for Best States for Real Estate Agents Data
The complete data can be viewed here, but read our breakdown and methodology below.
Our proprietary tool collated and analyzed data sets from numerous verified sources, ranking each state. We started by dividing all the data into five categories and then gave each category an equal weight of 20%. In addition to the categories, multiple data points were gathered to depict each location’s ranking accurately. This ranking system ensured objectivity and resulted in a score for each city.
Cost of Living Ranking
- Cost of living index (data from World Population Review): The cost of living ranking is based on the cost of living index per state. The lower the cost of living, the more agents can afford.
Agent Competition Ranking
- Agent employment per 1,000 people (data from US Bureau of Labor Statistics): Fewer agents per 1,000 is better for agents as they will experience less competition.
- Location quotient (data from US Bureau of Labor Statistics): This measures the density of and occupation in an area compared with the US average; fewer agents per location gives less competition and more opportunity for agents to succeed.
Agent Salary Ranking
- Annual mean salary range (data from US Bureau of Labor Statistics): Higher salaries indicate better opportunities for agents to make more money in the specific state.
- Hourly median salary range (data from US Bureau of Labor Statistics): Similar to above, there are more opportunities to earn a higher wage, but also research hourly for more accuracy and to account for part-time agents.
Home Value & Commission Ranking
- Median home price (data from World Population Review): The higher the home prices, the higher the agent commission.
- Average rent (data from World Population Review): Similar to above, rental commissions are typically one month’s rent, so the higher the rental price, the more money agents earn.
- Number of homes available (data from FRED): When there are more available homes in the area, agents will have more opportunities to work with clients, increasing their likelihood of completing more transactions.
- Median days on the market (data from FRED): When median days on the market are lower, homes sell quicker, meaning agents can complete more transactions.
Home Ownership Ranking
- Homeownership rate (data from Census Bureau): If the state has a high homeownership rate, this indicates that people relocating to this area will likely buy instead of renting.
- Percentage of owner-occupied homes (data from PropertyShark): Similar to above, if homeowners are occupying properties in a particular state, it indicates interested buyers and sellers, which gives agents more business opportunities.
Frequently Asked Questions (FAQs)
What is the best state to be a real estate agent?
Our evaluation shows that the best states to do real estate are West Virginia, New Hampshire, Vermont, Tennessee, Maine, Connecticut, New Jersey, Minnesota, and Mississippi. Although this is somewhat of a subjective question, we used important data to evaluate which states are most likely to help agents be successful, like cost of living, average real estate agent salary, median home values, and homeownership rates.
What are the worst states to be a real estate agent?
According to the real estate data we collected, Nevada, Arizona, Rhode Island, Oklahoma, and Hawaii are the five worst states to be an agent in. These states tend to have low annual real estate salaries, high levels of agent competition, and low homeownership rates.
What state pays real estate agents the most?
According to the Bureau of Labor Statistics, Massachusetts has the highest annual mean income, at $127,810, and New York has the second highest average, at $112,080.
Bringing It All Together
Choosing the best states for real estate agents isn’t quick and easy. We used extensive data on various important factors, like cost of living, agent salary, median home values, homeownership rates, and real estate agent competition. However, other factors can’t be calculated for all agents, like the location of their family and climate preferences. If you’re looking for a fresh start and the highest chances of real estate success, pack your bags and business and head to one of our top ten states.
Which state do you live in? Let us know how the market is by you!
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