Issue categories:
July 18, 2022 1 min read

The Relationship Between Home Prices and Real Estate Commission Rates

R

CFA released a new report on residential real estate brokerage that found no consistent relationship between home prices and commission rates.  “The research provides additional evidence that the structure of agent compensation is both inequitable and inefficient,” said Stephen Brobeck, a CFA senior fellow and the report’s author.

The report was based on a comparison of housing prices and buyer broker commission rates in 17,805 recent sales in 35 cities.

  • In ten cities, the rates were so uniform that meaningful comparisons could not be made.
  • In five cities, rates were fairly similar for all housing price categories.
  • In eight cities, higher-priced homes tended to carry higher commission rates than did lower-priced homes.
  • In only eight cities did higher-priced homes tend to carry lower commission rates.

Our Subject Matter Experts

Related Articles

R
August 22, 2026 / CFA in the News
So a C-List Celebrity Is Selling Your House?

The Atlantic

R
August 18, 2026 / Blogs
Demystifying the Fixer-Upper Home: Renovation Mortgages 101
R
July 20, 2026 / Blogs
The First Congressional Hearing on the Federal Home Loan Banks in 15 Years: A Taxpayer-Subsidized Housing System Gone Astray
R
July 14, 2026 / Reports
Redlined

The Persistence of Racial Inequality in the Cost of Homeowners Insurance