Faced with a significant budget deficit, the National Association of REALTORS® (NAR) is angling for a vote this Thursday on a policy that would tie REALTOR® dues to the consumer price index (CPI), effectively raising the annual association fee in line with inflation.
An NAR spokesperson told RISMedia that the Board of Directors would formally vote this Thursday on the proposal, while reserving the right to “pause” the index at any time.
“Increasing expenses and falling membership both detract from NAR’s bottom line. Unadjusted, NAR was facing annual deficits of $10 – $15 million over the next several years,” the spokesperson said.
Currently, REALTOR® dues are $150 a year. In 2019, NAR raised dues by $30, and last year raised fees for its consumer ad campaign by $10.
This new policy would seemingly result in a small dues increase yearly. CPI inflation has fallen steadily since last fall after reaching historic highs over the summer, currently sitting at 5%.
Using NAR’s estimate of 1.47 million REALTORS® this year, an increase of the maximum 4% would result in about $8.8 million in additional revenue.
The NAR spokesperson said that the association had been “trimming expenses wherever possible” as it put together a budget.
“Under the guidance of CEO Bob Goldberg, NAR staff prepare NAR’s annual budget proposal by reviewing all association programming…and exploring new proposals to grow non-dues revenue,” the spokesperson said. “In total, efforts to ensure member dues dollars are allocated as efficiently, effectively and responsively as possible have resulted in bottom-line savings of more than $45 million since 2017. Overall, NAR remains committed to providing approved programs and services that deliver maximum value and impact for our members at the lowest possible cost.”
NAR is currently gathered in Washington, D.C., for the annual midyear legislative meetings, focused on advocacy and lobbying.
