Why the Premium for Master’s Degrees is Rising in CRE

Elliott: “You have the master’s graduates with higher expectations because they’ve spent $40,000 to $70,000 a year getting their degree.”

NEWPORT BEACH, CA—According to a recent survey from national real estate recuiting firm RETS Associates, the existing wage gap between those with a master’s degree and those with a bachelor’s degree has grown by 50% in the top MSAs nationwide. In its 5th Annual Survey of Real Estate Financial Analysts, RETS, in association with Charles Schilke, JD, CRE, FRICS of the Colvin Institute of Real Estate Development at the University of Maryland, polled more than 230 financial analysts with up to seven years of experience from across the nation on their salary, education, willingness to relocate and more. In both the Pacific Northwest and Northeast regions, respondents who hold master’s degrees have experienced a 15% increase in median annual base salary compared to 2015. In Texas and California, data reveals a 3% increase and 11% increase, respectively.

According to Elliott, financial analysts with a higher education and at least three to five years of experience are still in high demand, which has continued to push base salaries to the highest levels seen in this cycle. Additionally, survey results demonstrated a rising preference for growth potential as a top factor when considering a new position, since most financial analysts see the long-term career potential in the real estate industry. This preference increased by 3% in 2016—a significant boost compared to compensation, which grew by just 0.5% in the same year, but remains the number-one factor among job-seekers.