In an era where the fight for equity in homeownership continues, a new threat looms large over Black real estate professionals and aspiring Black homeowners. Dr. Courtney Johnson Rose, President of the National Association of Real Estate Brokers (NAREB), has sounded the alarm on upcoming changes in agent compensation formulas that could undermine the progress made in bridging the racial homeownership gap.

“For decades, we've battled against the systemic barriers that have kept Black families from achieving the American dream of homeownership,” said Dr. Rose. “Now, we face a new challenge that threatens not only the livelihood of Black real estate professionals but also the ability of Black families to build generational wealth.”

Starting August 17, a monumental shift in the real estate industry will take effect. A recently negotiated settlement in Missouri has dismantled a long-standing system that required sellers' agents to share commissions with buyers' agents. Under the new rules, compensation for buyers' agents will no longer be outlined in MLS listings, leaving it to be negotiated separately, and often outside the purview of the seller’s proceeds. 

This change could force buyers to shoulder the burden of paying their agents, adding thousands of dollars to their closing costs. For Black homebuyers, who often already face significant financial hurdles, this could be an insurmountable barrier. Imagine needing to come up with an additional $15,000 on a modest $300,000 home just to cover your agent’s commission. It’s a scenario that could push the dream of homeownership further out of reach for many.

But the impact doesn’t stop there. Black real estate agents, who predominantly serve buyers—often out of a commitment to helping their communities—stand to suffer the most. With the average commission ranging between five to six percent of the home’s sale price, many Black agents could find their incomes significantly reduced or even eliminated.

“This is a devastating blow to our Realtists and other Black professionals in the industry,” warned Dr. Rose. “It’s not just about the agents. The entire real estate ecosystem is at risk—from appraisers to loan officers to mortgage companies. With white homeownership already at 74%, the industry’s future growth depends heavily on people of color. These changes could halt that growth in its tracks.”

Statistics paint a troubling picture: over the next five years, 1.5 million Black households, 775,000 Asian households, and 2.2 million Hispanic households are expected to reach the median homebuying age. Disrupting this momentum could have dire consequences, not just for the real estate industry, but for the broader economy.

Dr. Rose is particularly concerned about the potential for first-time Black homebuyers to forgo professional representation due to the added costs. Without an agent's guidance, these buyers could fall prey to predatory lending practices that disproportionately target Black communities. “Our families need more than just a chance to buy a home; they need education, guidance, and protection,” she emphasized. “Realtists are essential to navigating these treacherous waters.”

The situation is further complicated by the ongoing scrutiny of the real estate industry by the U.S. Department of Justice. Dr. Rose fears that any additional regulatory changes could exacerbate the already precarious situation for Black families and professionals. “We are working tirelessly to adapt to these new realities,” she said. “But the road ahead is uncertain, and the stakes could not be higher.”

To help navigate these challenges, NAREB is equipping its members with the resources and training they need to survive in this new landscape. Dr. Rose pointed to recent conferences and a soon-to-be-released toolkit designed to support Realtists as they adjust to the changing market dynamics.

“At the end of the day, the goal should be clear for all parties: increasing homeownership, especially in communities of color,” Dr. Rose asserted. “Building wealth, creating safer neighborhoods, and fostering stronger communities should be the priority—not undermining the industry with changes that could set us back decades.”

As the real estate industry braces for these changes, one thing is certain: the fight for Black homeownership and wealth-building is far from over. Dr. Rose and NAREB are committed to ensuring that the progress made is not undone by these new barriers. But the outcome will depend on the collective will of the industry, policymakers, and communities to prioritize equity and opportunity for all.