How Much Do Real Estate Agents Make in New York?
Learn more about working as a New York real estate agent and get exclusive offers!
Real estate agents in New York earn an average of $54,000 per year, though income varies widely based on location, experience, and transaction volume. Top-performing agents in high-value markets like Manhattan can earn $100,000-$500,000+, while new agents typically earn $15,000-$30,000 in their first year.
Unlike salaried positions, real estate agents work on commission—typically 2.5-3% of the home's sale price. Your actual earnings depend on the number of transactions you close, average home prices in your market, your commission split with your brokerage, and whether you represent buyers, sellers, or both.
| Metric | Amount | Notes |
|---|---|---|
| Average Annual Salary | $54,000 | Statewide median |
| Typical Commission per Sale | $6,000-$12,000 | Based on 2.5-3% after split |
| Average Home Price (NY) | $400,000-$800,000 | Varies significantly by region |
| Deals Needed to Earn $54K | 5-9 transactions | Depends on price point and split |
| First-Year Average | $15,000-$30,000 | Building client base |
| Top 10% Earn | $100,000+ | Experienced agents in high-value markets |
How Real Estate Commission Works
Real estate agents earn a percentage of each home sale, split between the buyer's agent and seller's agent. Here's how the math works:
Example Commission Calculation:
Sale price: $500,000
Total commission (6%): $30,000
Split between buyer/seller agents: $15,000 each
Your brokerage split (70/30): You keep $10,500
Minus expenses (marketing, MLS, gas): ~$9,000-$9,500 net per deal
This is why transaction volume matters as much as individual sale prices. Most new agents start with a 50/50 or 60/40 split with their brokerage. As you gain experience, you can negotiate better splits—80/20 or even 90/10.
Income by Region in New York
Where you work dramatically affects your earning potential. Home prices in Manhattan are 4-5x higher than upstate markets, which means fewer transactions needed to hit income goals.
Average Income by New York Region:
| Region | Avg. Home Price | Avg. Commission per Deal | Transactions Needed for $54K |
|---|---|---|---|
| Manhattan | $1,200,000 | $18,000-$21,000 | 3-4 deals |
| Brooklyn | $900,000 | $13,500-$15,750 | 4-5 deals |
| Queens | $650,000 | $9,750-$11,375 | 5-6 deals |
| Long Island | $550,000 | $8,250-$9,625 | 6-7 deals |
| Upstate (Albany, Buffalo) | $250,000 | $3,750-$4,375 | 12-14 deals |
Based on 2.5-3% commission with 70/30 broker split
While Manhattan agents need fewer deals to hit $54,000, competition is fiercer and cost of living is significantly higher. Upstate agents need higher transaction volume but often have lower business expenses.
Income Progression and Key Factors
First year: $15,000-$30,000 (2-5 transactions while building your client base)
Years 2-3: $40,000-$60,000 (6-10 transactions with established referrals)
Years 4-5: $60,000-$90,000 (10-15 transactions with efficient systems)
Years 6+: $90,000-$200,000+ (15-25+ transactions with strong reputation)
Top 10%: $200,000-$500,000+ (high-volume or luxury specialists)
What drives higher income:
Location: Manhattan agents earn 3x more per transaction than upstate agents
Transaction volume: Closing 2 deals/month at $500K beats 1 deal/month at $1M
Experience: Better splits (80/20 vs. 50/50) and faster closing times
Lead generation: Active marketing earns 2-3x more than relying on brokerage leads
Specialization: Luxury, commercial, or investment properties have higher commissions
Expenses to Consider
The $54,000 average is gross income before business expenses. Real estate agents are independent contractors responsible for their own costs.
Typical Annual Expenses for NY Real Estate Agents:
| Expense Category | Annual Cost |
|---|---|
| MLS Fees | $300-$600 |
| Brokerage Fees (desk/transaction) | $2,400-$12,000 |
| Marketing & Advertising | $2,000-$10,000 |
| Professional Development | $500-$2,000 |
A $54,000 gross income typically translates to $30,000-$45,000 net after expenses, depending on your business model and market.
How New York Compares to Other States
| State | Average Real Estate Agent Income |
|---|---|
| New York | $54,000 |
| California | $63,000 |
| Texas | $48,000 |
| Florida | $52,000 |
New York agents earn mid-range compared to other major markets, though NYC agents specifically often earn significantly more than the state average.
How to Increase Your Income
Focus on volume early: Ten $400K sales beats five $800K sales when building experience
Build a referral network: Past clients are your best source of future business
Invest in lead generation: Active marketing generates 2-3x more income than waiting for brokerage leads
Specialize in a niche: Luxury homes, investment properties, or first-time buyers
Negotiate better splits: Move to 80/20 or 90/10 brokerages once established
Get certifications: Designations like ABR, CRS, or GRI increase credibility
Frequently Asked Questions
How much do real estate agents make per house in New York?
Agents typically earn 2.5-3% of the sale price before their brokerage split. On a $500,000 home with a 70/30 split, you'd net $8,750-$10,500 per transaction before expenses.
How many houses do you need to sell to make $100,000?
With an average commission of $10,000 per deal after splits, you'd need approximately 10 transactions per year to gross $100,000 before expenses.
Do real estate agents get paid if they don't sell anything?
No. Agents work entirely on commission. Having 6-12 months of savings before starting is critical.
What's the highest-paid real estate agent salary in New York?
Top agents in Manhattan's luxury market can earn $500,000-$1,000,000+ annually, though this represents less than 1% of all agents.
How long does it take to start making money?
Most new agents close their first deal within 2-4 months of getting licensed, though building sustainable income takes 6-12 months.
Ready to Start Your Real Estate Career?
Real estate offers significant income potential in New York, especially as you gain experience and build your client base. While first-year earnings are modest, agents who focus on volume, marketing, and client relationships can build six-figure incomes within 3-5 years.
Getting started takes 4-8 weeks to get licensedNew York How To Get New York Real Estate License Career Center and costs $369-$571 totalNew York Real Estate License Cost Career Center. AceableAgent's course prepares you to pass with mobile-friendly lessons, unlimited practice tests, and a money-back guarantee.
Start your New York real estate license course todayReal Estate License New York Aceableagent.com