Despite persistent high interest rates and a slowdown in real estate transactions, real estate brokerages are beginning to show signs of financial improvement, according to new data from AccountTECH. Its May EBITDA margin index, tracking more than 150 brokerages nationwide, rose to 3.4962%. This figure signals a rebound in profitability after several challenging years.
The index offers a clear window into the basic profitability and cash flow of brokerages. In May, it showed a notable increase from the 2024 rate of 3.3019%, reversing a longer-term downward trend that began in 2019—apart from a single uptick during the pandemic.
For context, the EBITDA index stood at 6.5368% in 2019, fell to 3.8506% in 2020 at the height of the pandemic, regained some strength to reach 5.7587% in 2021 and 5.5947% in 2022, then slipped to 4.1044% in 2023, and dipped further in 2024.
The latest data also marks a 6% improvement over May 2022. Still, the EBITDA margin is now just 62% of its May 2022 level and 91% of its May 2020 reading. While brokerages have not fully recouped the high profitability levels seen from 2019 through 2021, the recent uptick underscores stabilization after years of market volatility and shifts in consumer behavior.
May’s EBITDA margin was also the highest recorded in the past twelve months. In 2025, month-to-month figures showed a steady climb from -3.442% in January and -2.702% in February, to 0.815% in March and 1.9174% in April. According to AccountTECH, this progress is largely due to brokerages tightening operations, adjusting agent commission splits and improving cost controls.
The 3.4962% index for May 2025 represents a blended figure across all brokerages in the study. However, profitability varied widely. Among firms with positive EBITDA, the average index was 5.9121%, a figure that has typically ranged between 5.29% and 7.25% over the past seven years. Meanwhile, brokerages operating at a loss posted an average EBITDA of -5.0003%. Losses for this group have ranged from -4.21% to -9.74% since 2019, indicating some recovery from pandemic lows, but a persistent divide in profitability between the two segments.
“Real estate brokerages are proving remarkably adaptable,” said Mark Blagden, chief executive officer of AccountTECH, in prepared remarks. “After the challenging market conditions of 2022 and early 2023, we’re now seeing signs of stabilization and cautious optimism. May’s EBITDA improvement isn’t just a seasonal bounce—it reflects more disciplined financial management across the industry.”
Blagden added that the most resilient brokerages tend to be those investing in automation, restructuring compensation models and upgrading backend operations.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.