Thousands of Israeli Real Estate Agents Abandon Profession Amid Market Slump
Translated & summarized from Globes by baba
Around 3,700 real estate agents in Israel did not renew their licenses in 2026 due to a significant slump in the second-hand housing market. This has reduced the active agent count to approximately 25,000, down from a record high of over 27,000. The downturn, marked by the lowest transaction volume since 2023, is forcing many agents, especially those who held licenses for supplementary income, to leave the profession. Experts note that the current market demands significant expertise, leading to the exit of less experienced individuals.
The story in 6 lines · by baba
- Approximately 3,700 Israeli real estate agents did not renew their licenses in 2026.
- The exodus is attributed to a severe slump in the second-hand housing market, with transaction volumes at a multi-year low.
- The number of active agents has fallen to about 25,000 from a record high of over 27,000.
- Many agents who held licenses for supplementary income have left the profession.
- The current market requires complex financial understanding and continuous professional guidance to survive.
- The proportion of deals made through agents is not declining despite fewer agents.
Approximately 3,700 real estate agents in Israel did not renew their licenses in 2026, marking a significant exodus from the profession, according to data from the Ministry of Justice. While the number of licensed agents has historically remained stable, the current downturn in the second-hand housing market is believed to be driving many away. The number of licensed agents stood at a record high of 27,142 at the end of last year, with an additional 1,560 individuals recently passing licensing exams. However, the current active agent count has fallen to around 25,000, indicating that while new agents are entering, thousands of existing license holders are choosing to leave.
The immediate cause for this roughly 8% drop is the severe slump in the second-hand housing market, which is the primary focus for real estate agents. In the first seven months of the year, only about 32,000 transactions were recorded, the lowest figure since 2023. An analysis of agent numbers over the past 17 years shows a clear correlation with the real estate market's condition. Agent numbers grew by 74% between 2009 and 2019, decreased during the COVID-19 pandemic in 2020, surged by over 25% in the following two years, and then declined again during the war years of 2023-2024 amid the property market slowdown.
Itzik Levi, Chairman of the Real Estate Agents Association, stated that among those leaving are not only retiring veteran agents but also individuals who held licenses "on paper" only. He explained that during years of low interest rates, many obtained licenses as a supplementary income or in hopes of occasional deals. As market conditions changed and challenges increased, they found it illogical to continue paying state fees and dropped out. Ministry of Justice data supports this, showing that a third of new agents quit within a year, and only about a third remain in the long term.
The current macroeconomic environment, characterized by high interest rates, has further cooled transaction volumes and tightened survival requirements. Levi described the current market as demanding "Sisyphean work, complex financial understanding, and continuous professional guidance." He added that amateurs or those who entered the field with fantasies of easy commissions have quickly exited, and "those who don't generate deals simply don't survive." Despite the decline in agent numbers, there is no indication that the proportion of transactions conducted through agents, estimated at about a quarter of all real estate deals, is decreasing, as agents are still required to provide crucial planning and ownership information that inexperienced buyers may struggle to obtain independently.
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