Aside from grit, hard work, and a sprinkle of luck, being a successful real estate agent requires an environment that fosters career opportunities and healthy competition. The best states to work and live in offer a competitive agent salary, high home values, and moderate agent competition. From the Aloha State to the Beehive State, we evaluated all 50 states based on earning potential, cost of living, agent competition, and the local housing market to find the 10 best states for real estate agents in 2024.
1. Mississippi
Mississippi ranks as the best state to be a real estate agent primarily because of its low cost of living—number one on our list. There is also low agent competition (fourth) and high homeownership rates (74.3%, ranking sixth). These factors make it an ideal location for agents to start and establish a real estate career.
Mississippi River near the Vicksburg Bridge in Vicksburg, Mississippi
However, Mississippi ranked only 41st for the median home value at only $271,200. Surprisingly, despite low home values, Mississippi real estate agents make it into the top 10 states with a median agent salary of $69,590.00 (seventh). Although the low home values result in lower commissions from each transaction, the homeownership rates and low competition allow agents to make more transactions.
Want to become a real estate agent in Mississippi? Read our articles:
2. Michigan
Michigan ranks high on our list of the best states to be a real estate agent because of low agent competition (10th on our list) and a high percentage of homeownership rates (75.9%, ranking third). The state also boasts a low overall cost of living—15th on our list.
Downtown skyline in Grand Rapids, Michigan
Despite ranking highly for several criteria, Michigan’s median home value is low compared to other states at $252,200 (47th). Agent salaries are also low, with annual median salaries around $50,430 (26th). However, the low cost of living and high ownership rates make up for this, allowing Michigan to rank second on our list. It’s a great option for new agents who want to keep expenses low while building their businesses.
Want to become a real estate agent in Michigan? Read our articles:
3. New Hampshire
New Hampshire is a good place to become a real estate agent because of the state’s low agent competition (seventh on our list) and its high percentage of owner-occupied homes (71.6%, eighth). The median home value in New Hampshire is higher than two-thirds of the states, at $452,700. Furthermore, it has a high overall agent salary, ranking sixth. These create a promising and profitable environment for real estate agents.
Portsmouth, New Hampshire shoreline
However, New Hampshire has a high cost of living compared to other states (42nd on our list). This can make it a difficult environment for new agents starting off with a limited budget. New agents should consider joining a real estate team that works together to generate leads, conduct transactions, and build relationships to ease into their careers.
Want to become a real estate agent in New Hampshire? Read our articles:
- How to Get Your New Hampshire Real Estate License
- 6 Best New Hampshire Online Real Estate License Courses
4. Iowa
The fourth-ranked best state for real estate agents is Iowa because of the low cost of living (sixth) plus the high percentage of owner-occupied homes (71.6%, ranking ninth). These factors indicate a good environment for agents to generate leads due to the affordability and interest in homeownership. Moreover, overall agent competition is ranked third, making it easier to establish and sustain a successful real estate career in Iowa than in most states.
Des Moines, Iowa skyline
Because of its affordability, however, real estate agents may face a challenge in making larger salaries due to the low overall home values and commissions, which rank 49th in the country. Furthermore, the median home value stands at a low of $230,600, ranking 51st. This puts agents in a position where they have to sell a larger quantity of homes to earn a considerable income.
Want to become a real estate agent in Iowa? Read our articles:
5. Tennessee
Tennessee ranks as the fifth best state for real estate agents due to its low cost of living index (90.4, which ranks 10th) and high homeownership rate (72.20%, which ranks 16th). Additionally, the state offers a moderate level of agent competition (18th), which is healthy for the agents’ growth. All of these factors make it an ideal place for realtors to do business, as agents can expect to earn good commissions while helping clients find affordable and high-value homes.
The Lost Sea in Sweetwater, Tennessee (Source: Go Guides)
Although the overall agent salary in Tennessee is lower than that of half of the states in the U.S. (34th), the state’s low cost of living can still make it affordable for agents to live and work in Tennessee. Moreover, the high overall home values and commission rates may provide sufficient income opportunities for agents, which can offset the lower agent salary. Therefore, Tennessee can still be a place where real estate agents can prosper and succeed.
Want to become a real estate agent in Tennessee? Read our article:
6. West Virginia
At sixth on our list, West Virginia is one of the best states to be a real estate agent primarily because of the high percentage of owner-occupied homes and homeownership rate. Both criteria rank in the number one spot with rates of 73.9% and 79.4%, respectively. In addition, agent competition is low, ranking sixth. This information shows that homebuyers in West Virginia are financially prepared to purchase, and agents will not have to fight for clients.
West Virginia State Capitol in Charleston, West Virginia
West Virginia is ranked 32nd for home value, with a median of $304,400. This impacts the median agent salary, which has decreased to $46,690 annually. The overall cost of living in the Mountain state is 90.3, ninth in the country. Although agents may not earn as much money in West Virginia as in other states, this is offset by the lower cost of living.
Want to become a real estate agent in West Virginia? Read our article:
7. Alabama
Alabama ranks seventh on our list of the best states for realtors. It has a low cost of living, with an index of 88.8 and ranking fifth. This makes it a favorable economic backdrop for real estate agents who are just starting and have a limited budget. Moreover, the state’s homeownership rates are noteworthy, at 73.6% and securing a 10th ranking. This reflects a substantial market for real estate transactions and potential client engagement.
Huntsville, Alabama, USA skyline
Alabama exhibits a moderate level of agent competition, ranking 27th. Although the cost of living is favorable, the state’s annual agent salary is only higher than half of the other states (25th), with the median wage being $51,840 annually (20th on the list). While agents in Alabama may not be earning as much as compared to other states, the lower cost of living can make up for it.
Want to become a real estate agent in Alabama? Read our articles:
8. Maryland
Maryland is the 12th best state for agent salaries. With an annual median wage of $60,520, it is an attractive place to work in real estate. It also has a moderate level of agent competition (22nd), providing a good environment for agents to grow. In terms of home values and commission, Maryland ranks fourth. This signifies a strong housing market that offers business opportunities for agents and positions Maryland as one of the best states to be a realtor.
The Inner Harbor skyline, Baltimore, Maryland
Although Maryland real estate agents enjoy a good salary, the state’s cost of living is also high, ranking 45th on the list with an index of 119.5. This might make potential clients hesitant to invest. Therefore, as an agent, you might need to conduct not only property sales but also home rentals to accommodate those who cannot yet afford to purchase a home.
Want to become a real estate agent in Maryland? Read our articles:
9. Connecticut
Agents in Connecticut experience a low level of competition (ranking second). This presents an excellent opportunity to establish yourself as the go-to professional in the area, making it one of the best states to become a real estate agent. Furthermore, the annual average salary of $71,830 (ranked 16th) is more than half of the nation’s average agent salary. The overall home values and commission (ranked 17th) indicate opportunities for agents to earn a decent income.
New Haven, Connecticut
However, Connecticut’s homeownership rate is only higher than half of the nation (25th). The cost of living in the state is also relatively high (39th). While there may still be business opportunities with low competition, generating leads and finding valuable homes and potential buyers might be challenging due to the high cost of living. You may have to consider managing rental properties for those who cannot afford to purchase a home.
Want to become a real estate agent in Connecticut? Read our articles:
- 7 Steps to Get a Connecticut Real Estate License 2024
- 6 Best Online Real Estate Courses in Connecticut (CT) 2024
10. New Jersey
New Jersey ranks 10th on our list of best states for real estate agents due to its low agent competition (11th) and high agent salaries (seventh). Agents can expect to make an average of $82,090 (ranked fourth), and they will not have to struggle to generate real estate leads for their business.
Hoboken, New Jersey, waterfront from the Hudson River
However, the higher agent salary is in proportion to the high cost of living index of 114.1 in New Jersey, causing it to rank 40th in the nation. This could also be why the percentage of owner-occupied homes is 63.8%, giving an overall homeownership ranking of 44. The low homeownership rate and high cost of living could limit your potential client pool, making it harder to find buyers and sellers and impacting your earnings overall.
Want to become a real estate agent in New Jersey? Read our articles:
5 Worst States for Real Estate Agents 2024
The worst states for real estate agents in 2024 generally have low average agent salaries and home values despite the moderate agent competition. While the results are not definitive, the said factors indicate a weak real estate market, which may not yield significant business growth for new and experienced real estate agents.
Here are the five worst states for real estate agents in 2024:
With an average salary of $49,830 annually, Idaho real estate agents receive a lower salary compared to the majority of the nation, ranking 46th in overall agent salary. This means there is a surplus of real estate agents, making it challenging for them to earn a substantial income despite the high value of homes. With a median salary of $41,340, it can be difficult for agents to maintain a comfortable standard of living as the cost of living is relatively high.
Farragut State Park, Athol, Idaho
Moreover, with high average home values, properties seem to linger on the market for an average of 73 days. This is possibly influenced by the state’s relatively high cost of living, ranked 35th. Thus, it may be hard for agents to find prospective buyers and generate sales.
New Mexico sees a high level of competition among agents, ranked 39th in the country. Yet there is a low inventory (only about 4,200 listings), and the available ones often linger on the market for a long time. In fact, the average time a home stays on the market in New Mexico is around 73 days. With high competition and less demand, this can be a challenging setup for real estate agents.
Albuquerque, New Mexico
Additionally, the home values in New Mexico are relatively low ($349,200), and the average monthly rent is also low ($857). The annual average wage for real estate agents in New Mexico is only $50,920, ranked 45th in the country. This means that even if you manage to secure clients, you need to conduct more transactions to earn enough income.
Oregon may not be the ideal place for agents due to its high cost of living (43rd). This may also explain why Oregon is 42nd in the overall homeownership ranking, with a rate of 63.20% and a percentage of owner-occupied homes at 63.2%. The high cost of living, combined with the low homeownership rate, makes it difficult for real estate agents to find clients who can afford to buy or sell homes in Oregon.
Washington Park, Portland, Oregon
Moreover, despite the high cost of living, the average agent salary in Oregon is only $58,680, which ranks 31st in the nation. This means that agents may struggle financially to live in Oregon, especially if they are not able to acquire enough clients. The combination of high living expenses and low income potential can create financial difficulties, making it one of the worst places to be as a real estate agent.
Home prices in Hawaii are very high across the nation at $720,200, while homeownership is among the lowest at 62.8%. These make Hawaii the 45th-ranked state for real estate agents. With such high home values, it is very difficult for homeowners to afford to purchase property, leaving the homeownership ranking at 47th. The cost of living proves this further by ranking 51st, with a cost of living index of 179.
Honolulu, Hawaii
In terms of overall agent competition and salary, Hawaii ranks 36th and 27th, respectively. Agents are abundant in this area, so they may not make as much profit even with the highest home prices in the country. They may also struggle to live comfortably on a median salary of $57,760, considering the high cost of living. However, an experienced agent with a large client base can fare very well in Aloha State and may find it the best state for real estate for them.
Rhode Island has been ranked the worst state for real estate agents due to high competition and low homeownership rates. Although the state has a high median home value of $462,100, there are many real estate agents there, making it difficult to acquire clients. Additionally, with a median agent salary of $48,050 (30th), it can be challenging for agents to make a decent living in Rhode Island, which has a moderately high cost of living.
Mohegan Bluffs, Block Island, Rhode Island
With high competition, it is no wonder the state has the lowest available listings at 1,149. Since fewer listings are in the market, it may be even harder for real estate agents to facilitate transactions and earn commissions. Furthermore, with high property values, it can be difficult for first-time homebuyers to afford to purchase property, leading to Rhode Island ranking 46th in homeownership.
Complete Data & Rankings for Each State
If you’re curious about how your state stacks up against the best states to do real estate, check out our map below. Simply click on your state to see the rankings for each evaluation category.
Complete Data & Rankings for Each State – /best-states-real-estate-agent/
If you’d like to see all the information used to conduct our study, click here for all the data.
How We Evaluated the Best States for Real Estate Agents
To determine what states are best for real estate agents, we examined factors that indicate an area’s strengths and weaknesses for new and existing real estate agents. We looked into earning potential, opportunities for growth, and potential threats to success. In particular, we evaluated the following five key metrics:
- Agent salary
- Cost of living
- Home values and commission
- Homeownership
- Agent competition
Each category was given an equal weight of 20% based on the importance of each metric to the real estate profession. We then averaged the rankings for each state to obtain an overall ranking. Keep in mind that in some categories, state rankings were tied due to equal data points.
Frequently Asked Questions (FAQs)
Mississippi is considered the best state to get a real estate license due to its low cost of living index, low level of agent competition, high annual median salary of $69,590, and high homeownership rate of 74.3%. This information suggests that real estate agents in Mississippi have the potential to earn a good income while enjoying a comfortable lifestyle with a high chance of success.
Realtors make the most money in the District of Columbia (Washington, D.C.), the top state under the overall agent salary ranking. Agents in this state earn an annual average salary of $96,070 and an annual median wage of $95,800.
Mississippi has the lowest cost of living and a relatively high salary for agents, making it an ideal place to live for realtors.
Bottom Line
Choosing a state with a healthy real estate market, a low cost of living, and a competitive job market will jump-start your success as a real estate professional. However, if you’ve already started a real estate career in a more challenging state, you can still succeed by using unique strategies to build your client base, establish branding, and excel at transactions.