Real Estate Agents: Adapting to a Shifting Market & Future of Homeownership

The U.S. Real estate industry is bracing for a fundamental shift in how agents operate, moving away from a transactional model toward a long-term advisory role as affordability constraints and limited inventory reshape the market, according to industry leaders.

Mike Miedler, president and CEO of Century 21, emphasized the need for agents to broaden their expertise beyond traditional single-family homes. “We have counseled our agents to grow knowledgeable about other types of housing stock such as accessory dwelling units, modular homes and tiny homes,” he told HousingWire. “They can help create easier paths to increase the share of available homes while the market continues to wrangle with the larger supply issues around more traditional single-family stock.” This requires agents to understand valuation models for these alternative dwellings and navigate financing options outside of conventional mortgages.

The shift reflects a changing client base, as fewer first-time buyers are able to enter the market, according to Cindy Scholz, founder of the Family Office Division at Compass. “Affordability constraints and limited inventory are already compressing traditional buy-side volume, so we will see a meaningful shift in client mix,” Scholz said. “Fewer first-time buyers will be able to transact at any given moment, which naturally increases engagement with renters, long-term planners and investors.”

This evolving landscape necessitates a move from simply closing deals to managing a client’s real estate strategy over time. Scholz noted that agents will increasingly “steward clients through multiple phases such as renting, investing, refinancing and repositioning assets, often before a primary home purchase is even feasible.” Investors, less sensitive to interest rate fluctuations, are expected to become a larger segment of the business.

Technology will play a crucial role in this transformation, raising the bar for agent value. “Access, judgment and network become the differentiators,” Scholz added. “Off-market opportunities, early insight into supply and the ability to structure creative deals will matter far more than simply sourcing listings.” She anticipates agents will explore alternative revenue streams, including advisory retainers, investor partnerships, and rental portfolio management.

Debra Beagle, founder and CEO of The Ashton Real Estate Group of REMAX Advantage, highlighted the need for agents to become “problem-solvers” adept at navigating complex financing options and timing. “We will need to be more of a real estate advisor and our value will come from helping clients navigate their custom path to homeownership,” she said. Beagle also stressed the importance of diversifying services, including strengthening partnerships with builders and offering relocation and homeownership coaching.

Data indicates a growing proportion of renter-occupied households. According to analysis of U.S. Census and Apartments.com data, the share of renter-occupied households rose from 29.9% in 2010 to 34.7% in 2024, while owner-occupied households declined from 70.1% to 65.3% over the same period.

Despite these trends, industry leaders remain optimistic about the enduring appeal of homeownership. Alex Vidal, president of ERA Real Estate, pointed to a National Association of Realtors survey revealing that 90% of Gen Z desires homeownership, though only 62% believe it is attainable. “There’s no doubt that today’s market is particularly challenging, but I believe that the level of demand from aspiring homeowners of all demographics will win out,” he said.

Miedler echoed this sentiment, dismissing the notion of a permanent renter society. “Yes, the economic and affordability challenges may delay entry into homeownership, but I don’t think the desire to rent will become part of our DNA,” he said. “As we return to a more balanced market where modest annual price gains are normalized, more people will be able to overcome the current affordability concerns as they generate wealth.”

Ginger Wilcox, president of Better Homes and Gardens Real Estate, emphasized the emotional significance of homeownership. “Homeownership is emotional. We don’t trade our homes like you would a stock or bond,” she said. “We live in our homes, enjoy the freedom to make changes to the home, establish roots and become vibrant and contributing members of our community.”

Beagle acknowledged the challenges facing first-time buyers, noting a shortage of affordable homes. “I do see fewer first-time buyers coming forward as our supply of affordable homes across the country is undersupplied,” she said. “That doesn’t mean the desire to become a homeowner goes away; it just means it becomes more challenging.”

Scholz described her brokerage’s adaptation to longer homebuying timelines, emphasizing the importance of building relationships with renters as potential future clients. “Renters are no longer viewed as a short-term pipeline to a sale. They are long-term clients,” she said. “We are building infrastructure around rental advisory, portfolio management for investor clients and stronger partnerships across financing, tax and legal so One can support clients holistically as their situation evolves.”

Federal policy efforts, such as the 21st Century ROAD to Housing Act, recently approved by the Senate, could influence the market. Miedler urged the House to address concerns regarding FHA loan limits and build-to-rent provisions within the bill. “We’re urging the House to secure this across the finish line but get it right. The American dream of homeownership deserves nothing less,” he said.

Wilcox sees broader significance in the political focus on affordability. “The affordability challenge will not be solved overnight, but the urgency is real and the momentum is worth building on,” she said. “Housing is foundational to how families place down roots, build wealth and contribute to their communities.”

Scholz cautioned that limiting institutional buyers could have unintended consequences, potentially reducing capital for new housing development. Beagle called for a focus on increasing supply, improving federal processes, and reducing regulatory barriers to home construction.

Vidal noted that while national median home prices increased by 1.3% in 2025 – the lowest increase in 14 years – prices had never decreased since NAR began keeping records in 1968 prior to the 2008 recession. “Today, about a quarter of metro areas are showing declines,” he said.