Competitive Salaries, High Home Values, and More
In addition to determination, dedication, and a touch of good fortune, achieving success as a real estate agent necessitates an atmosphere that nurtures innovation, a multitude of professional prospects, and healthy rivalry. The optimal states for both work and residence provide attractive agent salaries, substantial property values, and manageable agent competition. Assessing all 50 states, from Hawaii to Utah, we examined earning potential, cost of living, agent competition, and the local housing market to identify the top ten states for real estate agents in 2025.
1. Mississippi
Mississippi is considered the top state for real estate due to its affordable cost of living, ranking first on our list. Additionally, it boasts low levels of agent competition, coming in fourth place, and a respectable homeownership rate of 72.3%, placing it 13th overall. These favorable conditions make it an excellent choice for agents looking to begin or establish a successful career in the real estate industry.
Despite having the lowest cost of living, the state also boasts the second-lowest median home value, which stands at a mere $125,500. Interestingly, Mississippi real estate agents manage to secure a spot in the top 10 states with a median agent salary of $69,269.50 (7th position). Despite the lower commissions due to the low home values, agents benefit from higher transaction volumes thanks to the high homeownership rates and limited competition.
2. Iowa
Iowa takes the second spot on our list due to its impressive homeownership rate of 76.8%, which ranks second nationwide. Additionally, the state boasts a low cost of living, placing it in the eighth position. Despite being ranked 20th in terms of agent competition, Iowa offers a favorable environment for establishing and maintaining a thriving real estate career compared to many other states.
In line with Iowa’s affordable cost of living, the average salary for agents in the state is lower compared to nearly half of the other states, at around $50,350 (ranked 23rd). Iowa ranks 42nd on our list for median home value, with a median home value of $153,900. Similar to Mississippi, agents in Iowa may face challenges in earning higher salaries due to the lower home values unless they are able to sell a larger number of homes.
3. West Virginia
Ranked third on our list, West Virginia proves to be an excellent choice for real estate agents due to its high percentage of owner-occupied homes and homeownership rate. These two factors, with rates of 75.2% and 77.8% respectively, take the top spot. Moreover, agent competition is relatively low, ranking second. This data indicates that potential homebuyers in West Virginia are financially ready to make a purchase, resulting in agents not having to compete fiercely for clients.
West Virginia holds the lowest rank, 50th, in terms of home value, with a median price of $123,200. As a result, the median salary for agents has declined to $48,440 per year. The cost of living in the state, known as the Mountain state, is rated at 90.5, ranking ninth in the nation. Even though agents may not earn as much in West Virginia compared to other states, this is balanced out by the lower cost of living.
4. Michigan
Michigan is considered one of the top states for real estate agents due to its low level of agent competition, ranking 10th on our list. Additionally, it has a high percentage of owner-occupied homes, coming in at third place with 73.2% on our list. Another advantage is Michigan’s relatively low overall cost of living, ranking 13th on our list.
Despite being highly ranked in multiple categories, Michigan has a relatively low median home value compared to other states, coming in at $162,600 (40th position). Agent salaries in Michigan are also lower than in other regions, with an annual median salary of approximately $49,150 (18th on the list). However, the affordable cost of living in Michigan compensates for this, earning the state a respectable fourth place on our list. This makes it an excellent choice for new agents looking to minimize expenses while establishing their businesses.
5. Vermont
Vermont presents a favorable setting for real estate professionals and stands out as one of the top states for obtaining a real estate license due to its minimal agent competition, ranking first on our list. Additionally, the state boasts a relatively high percentage of owner-occupied homes (72.7%, ranking eighth) and a homeownership rate of 73.3% (ranking tenth). This creates a significant opportunity for individuals aspiring to thrive as buyer or seller agents.
Vermont’s median home value is slightly above average, ranking 23rd with homes priced at approximately $230,900. However, despite these positive aspects, Vermont has one of the highest costs of living in the United States, placing 41st on our list for this metric. The salary for agents is relatively low, ranking at 20th with a median salary of $61,400. These unique characteristics make Vermont an ideal location for experienced agents who can manage the high cost of living while growing their business in a less competitive market with valuable properties.
6. South Dakota
South Dakota has secured the sixth position among the top states for real estate agents, surpassing others due to its low level of agent competition and relatively high agent salary (with a median of $77,560), which both rank fifth. This demonstrates that the state of Mount Rushmore offers ample opportunities for lead generation to real estate agents who are starting or advancing their careers.
In South Dakota, the value of homes is relatively low, with an average price of just $174,600, placing it at 35th in terms of value. Furthermore, the rate of homeownership stands at 69.3%, with 69.4% of homes being owner-occupied. While these rankings may be lower compared to other states, they indicate that real estate agents can capitalize on the low competition and potentially increase sales due to the state’s moderate cost of living, ranking 29th overall.
7. Wyoming
Wyoming is positioned among the top 10 states due to its high agent salary and homeownership ranking, which is the eighth highest in the country. The state takes pride in its annual median wage of $71,120, ranking fifth nationwide. With a substantial 71.4% of owner-occupied homes and a homeownership rate of 73.8%, Wyoming offers great opportunities for real estate agents. The majority of residents in Wyoming have the means to buy homes in the state, making it an appealing location for conducting business.
Despite the fact that the agent’s salary is quite high, the competition in Wyoming is challenging, placing it at 37th position. This implies that agents must employ distinctive marketing and advertising tactics to generate leads. Although Wyoming did not fare well in terms of median home value, ranking 24th on the list, the cost of living is still better than that of more than half of the states, coming in at 21st place.
8. New Jersey
The state of New Jersey holds the eighth spot on our compilation of top states for real estate agents. This is primarily attributed to the fact that there is relatively low competition among agents, landing it at number six. Additionally, the state offers high salaries for real estate agents. On average, agents can anticipate earning around $76,869.50, ranking it third in terms of salary. Furthermore, agents in New Jersey do not face significant challenges when it comes to finding real estate leads to grow their business.
The elevated income for agents in New Jersey is directly correlated to the relatively high cost of living index, which stands at 115.2 and places the state at the 40th position nationwide. This could potentially explain the 64.4% rate of owner-occupied homes, resulting in an overall homeownership ranking of 42. Despite this, there remains room for real estate enterprises to thrive in New Jersey, as agents should be equipped to handle both sales and rental transactions to accommodate individuals who are not yet able to buy a house.
9. New Hampshire
New Hampshire presents a favorable opportunity for individuals seeking to pursue a career as a real estate agent. This is primarily due to the state’s low level of competition among agents, ranking third on our list. Additionally, New Hampshire boasts a significant percentage of owner-occupied homes, ranking seventh in this regard. Furthermore, the state showcases a median home value surpassing that of over two-thirds of other states, amounting to $272,300.
Nevertheless, New Hampshire is known for its relatively high cost of living compared to other states (ranking 37th on our list) and a significantly lower overall salary (ranking 43rd). This combination of factors can pose challenges for new agents who are starting their careers with limited financial resources. One potential solution for these agents is to consider joining a real estate team that collaborates to generate leads, handle transactions, and foster relationships. By doing so, they can gradually ease into their careers while benefiting from the collective support and expertise of the team.
10. Missouri
Missouri rounds out our list of the top 10 best states for real estate agents. While its rankings are moderate, the cost of living ranked seventh, making it the primary reason for The Show-Me State’s inclusion on this list. In addition, agent competition is relatively low compared throughout the country at 13, which shows that agents will have an easier time gaining loyal clients.
On the other hand, the median home value of $163,600 (39th) and agent salary of $48,590 (23rd) show that agents must conduct more real estate transactions to earn a solid income. A homeownership ranking of 20 is promising next to other states in the top 10 rankings, proving that there is an opportunity for a lucrative real estate business in Missouri.
Bottom Line
Selecting a state that boasts a thriving real estate market, affordability, and a competitive job landscape is pivotal in propelling your success as a real estate expert. Nevertheless, if you have already embarked on a real estate journey in one of the more demanding states, employing innovative approaches to expand your clientele, establish a strong brand identity, and excel in transactions will enable you to flourish.
