FitSmallBusiness
  • HR
  • Retail
  • Sales
  • Marketing
  • Accounting
  • Real Estate
  • More Categories
    • Starting a Business
    • Banking
    • Credit Cards
    • Financing
    • Insurance
    • Office Technology
    • Online Business
    • Taxes
  • BE A PARTNER
  • WORK AT FSB
  • About
  • HR
  • Retail
  • Sales
  • Marketing
  • Accounting
  • Real Estate
  • More Categories
    • Starting a Business
    • Banking
    • Credit Cards
    • Financing
    • Insurance
    • Office Technology
    • Online Business
    • Taxes

Real Estate | Listicle

10 Best States for Real Estate Agents (& 5 Worst States) 2023

Gina Baker

WRITTEN BY: Gina Baker

Published March 16, 2023

Gina is a licensed real estate salesperson, experienced trainer, and former high school educator of 1,000+ learners. She writes for Fit Small Business with a focus on real estate content.

This article is part of a larger series on How to Become a Real Estate Agent.

TABLE OF CONTENTS
  1. 1 Mississippi
  2. 2 Iowa
  3. 3 West Virginia
  4. 4 Michigan
  5. 5 Vermont
  6. 6 South Dakota
  7. 7 Wyoming
  8. 8 New Jersey
  9. 9 New Hampshire
  10. 10 Missouri
  11. 11 Five Worst States for Real Estate Agents 2023
  12. 12 Complete Data & Rankings for Each State
  13. 13 How We Evaluated the Best States for Real Estate Agents
  14. 14 Bottom Line

Aside from grit, hard work, and a sprinkle of luck, being a successful real estate agent requires an environment that fosters creativity, a plethora of 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 local housing market to find the 10 best states for real estate agents in 2023.

US state map displaying the best and worst states to be a real estate agent

To review all of our data sources, jump to the “How We Evaluated the Best States for Real Estate” section.

1. Mississippi

Mississippi ranks as the best state to be a real estate primarily because of its low cost of living—number one on our list. There is also a low amount of agent competition (4th) and homeownership rates (72.3%, which ranks 13th). These factors make it an ideal location for agents to start and establish a real estate career.

Picture of Mississippi River near the Vicksburg Bridge in Vicksburg, Mississippi

Mississippi River near the Vicksburg Bridge in Vicksburg, Mississippi

However, the state with the lowest cost of living also has the second-lowest median home value at only $125,500. Surprisingly, despite low home values, Mississippi real estate agents make it into the top 10 states with a median agent salary of $69,269.50 (7th). 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:

  • How to Get Your Mississippi Real Estate License
  • 6 Best Online Real Estate Schools in Mississippi

2. Iowa

The second-ranked state on our list is Iowa because of the high homeownership rate (76.8%, ranking second) plus the low cost of living (8th). Although agent competition is ranked 20th, it’s easier to establish and sustain a successful real estate career in Iowa than in most states.

Image of the Des Moines, Iowa skyline

Des Moines, Iowa, skyline

Consistent with the state’s low cost of living, however, the average agent salary in Iowa is lower than almost half of the other states, at about $50,350 (ranked 23rd). The state ranked 42nd on our list for median home value, with a median home value of $153,900. Similar to Mississippi, low home values will inhibit agents from making larger salaries without selling a larger quantity of homes.

Want to become a real estate agent in Iowa? Read our articles:

  • How to Get Your Iowa Real Estate License
  • 6 Best Online Real Estate Courses in Iowa

3. West Virginia

At third on our list, West Virginia is a great option for real estate agents primarily because of the high percentage of owner-occupied homes and homeownership rate. Both criteria rank in the number one spot with rates of 75.2% and 77.8%, respectively. In addition, agent competition is low, ranking second. This information shows that homebuyers in West Virginia are financially prepared to purchase, and agents will not have to fight for clients.

Picture of the West Virginia State Capitol in Charleston, West Virginia

West Virginia State Capitol in Charleston, West Virginia

West Virginia is ranked 50th for home value, with a median of $123,200. This impacts the median agent salary, which has decreased to $48,440 annually. The overall cost of living in the Mountain state is 90.5, ninth in the country. Although agents may not earn as much money in West Virginia as in other states, it is offset by the lower cost of living.

Want to become a real estate agent in West Virginia? Read our articles:

  • How to Get Your West Virginia Real Estate License
  • 6 Best Online Real Estate Courses in West Virginia

4. 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 owner-occupied homes (73.2%, making it third on our list). The state also boasts a low overall cost of living—13th on our list.

Picture of the downtown skyline in Grand Rapids, Michigan

Downtown skyline in Grand Rapids, Michigan

Despite ranking highly for several criteria, the overall median home value in Michigan is low compared to other states at $162,600 (40th). Agent salaries are also lower than in other parts of the country, with annual median salaries around $49,150 (18th on our list). However, the low cost of living makes up for this, allowing Michigan to rank fourth 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:

  • How to Get Your Michigan Real Estate License
  • 6 Best Online Real Estate Schools in Michigan

5. Vermont

Vermont offers an excellent environment for real estate agents and is one of the best states to get a real estate license because of a low rate of agent competition—first on our list. The state also boasts a relatively high percentage of owner-occupied homes (72.7% and eighth on our list) and a homeownership rate (73.3%, ranking 10th), so there is a notable opportunity to become a successful buyer or seller agent.

Picture of the Montpelier, Vermont skyline

Montpelier, Vermont, skyline

Vermont also ranks slightly above average for median home value (23rd) with homes priced around $230.900. Despite these favorable factors, Vermont has one of the highest costs of living in the United States, ranking 41st on our list for the metric. Agent salary is relatively low, ranking at 20th, with a median salary of $61,400. This combination of characteristics makes the state a great fit for established agents who can afford the high cost of living while continuing to build their business without strong competition and with high home values.

Want to become a real estate agent in Vermont? Read our articles:

  • How to Get Your Vermont Real Estate License
  • 6 Best Online Real Estate Courses in Vermont

6. South Dakota

South Dakota is ranked number six of the best states for real estate agents, beating out other states because of the low agent competition and agent salary (median of $77,560), both ranking fifth. This proves the Mount Rushmore State provides many lead generation opportunities for real estate agents looking to start or continue their careers.

Picture of Mount Rushmore in Keystone, South Dakota

Mount Rushmore in Keystone, South Dakota

Homes in South Dakota have a low value, at an average of only $174,600, and in 35th place. In addition, homeownership rates of 69.3% and owner-occupied homes percentage at 69.4% While these rankings are lower compared to other states, 21st overall, they still show that with a moderate cost of living (29th), real estate agents can make more sales because of low competition.

Want to become a real estate agent in South Dakota? Read our articles:

  • How to Get Your South Dakota Real Estate License
  • 6 Best Online Real Estate Schools in South Dakota

7. Wyoming

Wyoming ranks in the top 10 because of its agent salary and homeownership ranking (eighth highest). The state boasts an annual median wage of $71,120 (5th), 71.4% of owner-occupied homes, and a 73.8% homeownership rate. These numbers bode well for real estate agents because most Wyoming occupants can afford to purchase homes in the Cowboy State, making it an attractive state to conduct business.

Picture of Grand Teton at Schwabacher's Landing on the Snake River, Wyoming

Grand Teton at Schwabacher’s Landing on the Snake River, Wyoming

Even though the agent salary is high, competition in Wyoming is tough, ranking 37th, which means agents must use unique marketing and advertising strategies to generate leads. Although Wyoming didn’t perform well for median home value (24th on the list), the cost of living is still better than over half of the states at 21st.

Want to become a real estate agent in Wyoming? Read our articles:

  • How to Get Your Wyoming Real Estate License
  • 5 Best Online Real Estate Courses in Wyoming

8. New Jersey

The Garden State ranks eighth on our list of best states for real estate agents due to its low agent competition, at number six, and high agent salaries. Agents can expect to make an average of $76,869.50 (ranked third), and they will not have to struggle to generate real estate leads for their business.

Picture of Hoboken, New Jersey waterfront from the Hudson River

Hoboken, New Jersey, waterfront from the Hudson River

However, the higher agent salary is in proportion to the high cost of living index of 115.2 in New Jersey, causing it to rank 40th in the nation. This could also be why the percentage of owner-occupied homes is 64.4%, giving an overall homeownership ranking of 42. While there is still opportunity for real estate businesses in New Jersey, agents should be able to conduct not only sales transactions, but also rentals for those who cannot yet afford to purchase a home.

Want to become a real estate agent in New Jersey? Read our articles:

  • How to Get Your New Jersey Real Estate License
  • 6 Best Online Real Estate Courses in New Jersey

9. New Hampshire

New Hampshire is a good option to become a real estate agent because of the state’s low agent competition (third on our list) and its high percentage of owner-occupied homes (seventh). The state also has a median home value higher than two-thirds of the states, at $272,300.

Picture of the Portsmouth, New Hampshire shoreline

Portsmouth, New Hampshire, shoreline

However, New Hampshire has a high cost of living compared to other states (37th on our list) and a notably low overall salary (43rd). 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
  • Best New Hampshire Online Real Estate License Schools 2023

10. Missouri

Missouri rounds out our list of the top 10 best states for real estate agents. While its rankings are moderate, the cost of living ranked seventh, making it the primary reason for The Show-Me State’s inclusion on this list. In addition, agent competition is relatively low compared throughout the country at 13, which shows that agents will have an easier time gaining loyal clients.

Picture of Kiener Plaza and the Gateway Arch in St. Louis, Missouri

Kiener Plaza and the Gateway Arch in St. Louis, Missouri

On the other hand, the median home value of $163,600 (39th) and agent salary of $48,590 (23rd) show that agents must conduct more real estate transactions to earn a solid income. A homeownership ranking of 20 is promising next to other states in the top 10 rankings, proving that there is an opportunity for a lucrative real estate business in Missouri.

Want to become a real estate agent in Missouri? Read our articles:

  • How to Get Your Missouri Real Estate License
  • 6 Best Online Real Estate Schools in Missouri

Five Worst States for Real Estate Agents 2023

The worst states for real estate agents in 2023 generally have low average agent salaries and home values despite the moderate agent competition. While the results are not definitive, the said factors may 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 2023:

1. Arkansas

Unfortunately, The Land of Opportunity State is not full of as much opportunity for realtors. Although the cost of living in Arkansas is one of the best rankings at 11th with an index of 90.9, the other evaluation factors like agent competition, salary, median home value, and homeownership remain low.

Picture of the Little Rock, Arkansas skyline

Little Rock, Arkansas, skyline

Competition ranked 37th and salary ranked 44th (median wages of $37,610), which means real estate agents will be fighting for clients, but also not making the income to back up their effort. Low salary is also the result of median home values of $133,600, which is 48th out of the 50 states. While these rankings show that Arkansas may not be among the best places to be a real estate agent, the low cost of living allows Arkansas agents to balance business and personal expenses.


2. Hawaii

Home prices in Hawaii are the highest across the nation at $636,400, while homeownership is among the lowest at 58.3%, which makes Hawaii the 49th-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 number 47. The cost of living proves this further by ranking 50th with a cost of living index of 193.3.

Skyline of Honolulu, Diamond Head volcano including hotels and buildings on Waikiki Beach.

Honolulu, Hawaii

In terms of agent competition and salary, Hawaii ranks 35th and 34th, respectively. This means real estate agents are abundant in this area and, therefore, do not make as much profit even with the highest home prices in the country. It will be difficult for agents to live comfortably on a median salary of $46,910, considering Hawaii’s high cost of living. However, an experienced agent with a large client base can fair very well in the Aloha State and may find it is the best state for real estate for them.


3. Texas

Even though Texas is ranked 15th for cost of living, other factors have negatively impacted the real estate opportunities available to agents in The Lone Star State. With owner-occupied home percentages at 62.6% and homeownership rates at 63.4%, Texas ranks 45th for individuals who can feasibly purchase properties.

Picture of the Austin, Texas skyline

Austin, Texas, skyline

In addition, median home values are moderately low—costing about $187,200 on average. This figure leaves real estate agents earning an average of $44,920 in 2023, 30th among the 50 states. Also, agent competition ranks 42nd. While there is a possibility for a plentiful real estate career in Texas, which for some might make it the best state for real estate agents, competition among agents and low home values may make it difficult to succeed.


4. Arizona

Median home values in Arizona are high compared to many states at $242,000, which is promising for commission numbers. In addition, a homeownership ranking of 28 provides a relatively high percentage of owner-occupied homes (67.6%) throughout the states.

Picture of the sunrise in Hunts Mesa in Monument Valley, Arizona

Sunrise in Hunts Mesa in Monument Valley, Arizona

However, an agent competition ranking of 46 leaves Arizona real estate agents scrouging for leads. That, plus the high cost of living (33rd) and moderate agent salary of $46,910 (ranked 37th), new agents in the Grand Canyon state could struggle to make ends meet.


5. Ohio

Agent salary and median home values landed Ohio on our list of the worst states to be a real estate agent. A median salary of $36,940 ranks 48th on the list, while the home value, averaging $151,400, ranks 43rd.

Picture of the view of downtown Columbus, Ohio skyline

View of downtown Columbus, Ohio, skyline

These two figures and the lower homeownership rank of 32, make the Buckeye State a challenging location to conduct a lucrative real estate business. However, agent competition (ranking 24th) and a low cost of living (14th) help real estate agents create a productive career in Ohio.


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.

Rankings for Each State

WA OR ID MT WY ND MN IA MO AR LA MS AL GA FL SC NC TN KY VA WV OH IN IL WI MI NY PA CT MA NH ME SD NE KS OK TX NM AZ UT NV CA AK HI CO MD NJ VT RI DE DC

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 the best states to be a real estate agent, we examined factors that indicate an area’s strengths and weaknesses for new and existing real estate agents in terms of 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
  • 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.

  • Agent Salary
  • Cost of Living
  • Median Home Value
  • Homeownership
  • Agent Competition

To evaluate states based on real estate agent earning capacity, we ranked each for annual median and mean real estate agent salary. This data was calculated by the Bureau of Labor Statistics (BLS) based on “year-round, full-time” hours and reported survey data from real estate agents.

Graphic showing the states with the highest and lowest agent salary

We included the cost of living in our rankings to adjust for average agent salaries in each state. Cost of living information was obtained from the World Population Review and represents data from 2023. When comparing the cost of living across all states, we ranked those with the lowest cost of living as well as the highest in our metrics.

Graphic displaying the states with the highest and lowest cost of living

We obtained median home value data for 2023 from the World Population Review. This metric represents the median value of homes in each state. In addition to being an indicator of real estate agent commission potential, the average home value reflects the overall health of a state’s housing market and its economy in general.

Graphic showing the states with the highest and lowest home values

We used two metrics to determine the overall homeownership in each state: homeownership rates and owner-occupied homes. Homeownership rates were taken from the 2022 iProperty Management data, which reflects the percentage of adults in the state who own a home.

Graphic showing the states with the highest and lowest homeownership

Owner-occupied homes refers to the percentage of owner-occupied homes. This represents how prevalent homeownership is in each state. Higher rates of owner-occupied homes demonstrate a higher likelihood of homeownership in the future, which suggests opportunities for new construction, new listings, and an increased need for buyer’s agents. Data was compiled by the Insurance Information Institute.

We measured real estate agent competition based on Bureau of Labor Statistics (BLS) data about the number of real estate agents per 1,000 workforce members in each state and the location quotient.

Graphic showing the the states with the lowest and highest agent competition