{"id":3100,"date":"2022-05-06T20:09:52","date_gmt":"2022-05-06T20:09:52","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/05\/06\/nar-members-stymied-by-clogged-construction\/"},"modified":"2025-03-13T02:42:00","modified_gmt":"2025-03-13T02:42:00","slug":"nar-members-stymied-by-clogged-construction","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/05\/06\/nar-members-stymied-by-clogged-construction\/","title":{"rendered":"NAR members stymied by clogged construction"},"content":{"rendered":"\n<p>The most pressing concern for real estate agents? Not enough homes being built, say real estate agents who attended the <strong>National Association of Realtor\u2019s<\/strong> legislative meeting this week in National Harbor, Maryland.<\/p>\n\n\n\n<p>At a three-hour Board of Directors meeting held in a ballroom with 30-foot-high ceilings and plush, blue and red carpeting, Rebecca Thomson, a <strong>Coldwell Banker <\/strong>regional vice president in Chicago and part of NAR\u2019s strategic planning committee posed two questions:<\/p>\n\n\n\n<p>In your community, what is the biggest reason for the lack of inventory? And what is the biggest challenge real estate agents face over the next five years?<\/p>\n\n\n\n<p>The answers perhaps revealed something about the psyche of NAR members, who are facing a housing market in which <a href=\"https:\/\/preprod.housingwire.com\/articles\/can-3-d-printed-homes-help-solve-the-housing-crisis\/\" target=\"_blank\" rel=\"noreferrer noopener\">demand is historically outpacing supply<\/a> as well as a <a href=\"https:\/\/preprod.housingwire.com\/articles\/are-u-s-real-estate-commissions-illegal\/\" target=\"_blank\" rel=\"noreferrer noopener\">legal system probing NAR\u2019s active hand<\/a> in the home sale process.<\/p>\n\n\n\n<p>In the instant poll answered by approximately 1,000 people in the convention hall, including board members, 36% pointed to the lack of new construction as the biggest culprit for lack of inventory. About 18% laid the blame on restrictive zoning, while a few respondents cited cash or <a href=\"https:\/\/preprod.housingwire.com\/articles\/through-the-eyes-of-the-single-family-rental-lobby\/\" target=\"_blank\" rel=\"noreferrer noopener\">corporate buyers<\/a>.<\/p>\n\n\n\n<p>When asked to name the biggest challenge five years out, a few agents said climate change or cryptocurrency and non-fungible tokens in real estate. But about 33% said legislative advocacy and a similar number said the \u201cchange in the role and the focus of the NAR member agent.\u201d<\/p>\n\n\n\n<p>The real estate agent agent\u2019s role is challenged in court right now. A <a href=\"https:\/\/preprod.housingwire.com\/articles\/judges-ruling-its-heartland-homeowners-v-nar\/\" target=\"_blank\" rel=\"noreferrer noopener\">certified class action lawsuit<\/a> in Missouri is looking at how listing and buyer\u2019s agents split home sale commissions, a NAR promulgated rule. It is also being probed in a <strong>U.S. Justice Department Antitrust Division<\/strong> inquiry.<\/p>\n\n\n\n<p>But Thompson and other speakers Friday did not address such probes. Nor were they mentioned in deliberations from NAR\u2019s Legal Action committee. The board did pass a measure to pour $97,000 into a New Jersey brokerage, <strong>Weichert Realtors<\/strong>, which is fighting a lawsuit alleging its agents are misclassified as independent contractors.<\/p>\n\n\n\n<p>More than 90% of NAR\u2019s member agents are independent contractors, and the board decided, \u201cThis is an important case to support in order to preserve the ability of real estate professionals to be classified as independent contractors.\u201d<\/p>\n\n\n\n<p>The Board also adopted a measure raising members&#8217; dues toward advertising from $35 a week to $45.<\/p>\n\n\n\n<p>Neither of these measures, or any other agenda matter, was met with discussion or debate. At one point, Leslie Rouda Smith, NAR president, mistakenly thought someone stepped to the microphone.<\/p>\n\n\n\n<p>\u201cI\u2019m seeing that everyone is going to the bathroom, and no one is seeing recognition,\u201d Rouda Smith said to laughter.<\/p>\n\n\n\n<p>The relatively sedate Board meeting was in <a href=\"https:\/\/preprod.realtrends.com\/blog\/nar-rakes-in-member-dues-to-fight-doj\/\" target=\"_blank\" rel=\"noreferrer noopener\">sharp contrast<\/a> to the last get together in November. Then, the trade group adopted measures that were part of a consent decree that the U.S. Justice Department <a href=\"https:\/\/preprod.housingwire.com\/articles\/is-nar-ready-to-rumble-with-doj\/\" target=\"_blank\" rel=\"noreferrer noopener\">withdrew from<\/a>.<\/p>\n\n\n\n<p>Those <a href=\"https:\/\/preprod.housingwire.com\/articles\/nar-board-green-lights-consumer-transparency-measures\/\" target=\"_blank\" rel=\"noreferrer noopener\">items included<\/a> a change requiring the expected sales commission of buyer\u2019s agents to be disclosed to consumers, and another stating home search results on a multiple listing service cannot be sorted by commission compensation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are not enough homes under construction to satisfy historically high demand, contributing to the lack of inventory, realtors say.<\/p>\n","protected":false},"author":16592,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[736],"class_list":["post-3100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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