Consolidation, Mobility Shape Real Estate Agent Recruiting In Q2

Real estate brokerages are experiencing accelerated internal consolidation, increased agent mobility and deepening productivity divides, according to new data from Recruiting Insight.

The Q2 2025 Agent Migration and Brokerage Model Performance Report — released Wednesday — draws on verified data from more than 100,000 agents across four major MLS regions.

Findings reveal that while total agent membership remains steady, internal shifts and strategic recruiting are becoming key levers for growth.

“The importance of leadership and seven levels of communication has never been clearer,” said Mark Johnson, managing partner at Recruiting Insight. “For the innovative and driven, this market has hope and opportunity. Lead or bleed.”

Internal consolidation gains momentum

A notable trend highlighted in the report is the increase in internal agent movement — agents changing offices or teams within the same brokerage brand.

This internal migration is being driven largely by structural and leadership changes, Johnson said.

“Well, there could be a number of factors, and we’re still in the midst of doing some of the post-move surveys with agents,” he said. “There’s two key trends; office consolidations and broker code changes. In a few cases, it’s something like, ‘Hey, the manager down the street is in a better position to help me reach my growth goals than my current manager.'”

The shift is most pronounced in markets where modern, technology-enabled firms are expanding their presence, often aligning back-end systems and team support under unified branding.

Agent productivity and mobility up

Agent movement remained high in Q2, with 2.96% of productive agents switching firms or teams — a 6% increase over the previous quarter.

Productivity also increased, with 38.1% of agents completing at least one transaction, up 5.6% from Q1.

This movement has favored brokerages offering integrated platforms and incentive structures that align with agents’ business goals.

“The key is to understand: What are your towering strengths? What is unique about your culture?” Johnson explained when asked about brokerage differentiation. “Some cultures have high-tech, self-serve support, and some agents like that. That’s a niche. Some brokerages have, you know, high-touch, in-person support, and some agents love that, right? So what is it you’re offering and what? What’s attractive to the total addressable market in your area?”

Membership holds, top producers widen gap

Total agent counts held steady across the regions studied, despite the high rate of turnover.

Three out of four MLS areas reported small increases in total membership — indicating that the profession continues to attract new talent even amid heightened competition.

The report shows the top 25% of agents continue to outpace the rest of the field in both transaction volume and value, with the gap between top producers and mid-tier performers continuing to widen.

To stay competitive, brokerages are encouraged to tailor high-level support systems specifically for elite agents.

“Well, I think first they have to have a clear understanding of what their niche is and their offering compared to others,” Johnson said. “And then you can articulate a value proposition for those types of agents.”

Smaller firms can still compete

While national firms with large-scale tech systems are gaining ground, Johnson pointed out that smaller brokerages still have viable paths to success — if leadership is proactive.

“One of the beautiful things about technology is it levels the playing field,” he said. “I just saw an advertisement basically saying, ‘Hey, my team of 10 can compete with a team of 1,000 because we’re using artificial intelligence and technology in new and different ways.’ So technology levels the playing field, and many of these technologies are now at such a reasonable cost that if you’re a single office operator, you can take advantage of a lot of things.”

Johnson added that real estate associations are also helping close the gap.

“I’m actually shocked at the breadth and depth of what’s offered at (California Association of Realtors) and Texas Realtors for the single office operator, you know, all the way up.”

Targeted recruiting recommended

Recruiters should focus their efforts using precision data to identify agents most likely to move, according to the report.

“Does the agent feel that their business is at risk at that particular firm? Online development and training is great, but many agents miss and crave personal connection. Some could care less about that. They just want to be go online and do it right. So carve your lane and know who’s in your lane.

“We’ve also had numerous people who would tell us, ‘I made the initial switch because of dollars, and I got to work where I was going, and it wasn’t worth what I lost in either support or feeling my business was at risk.'”

The Agent Migration and Brokerage Model Performance Report analyzes agent movement, productivity and brokerage model outcomes across West MLS, Mid-South MLS, North Central MLS and Southeast MLS.