The National Association of Realtors’ (NAR) board of directors voted Thursday to approve a proposal tying its annual membership dues to a measure of inflation.
The proposal was initially announced Sunday evening by Greg Hrabcak, the treasurer of the trade group.
“NAR ended 2022 with a strong financial position with record high membership,” Hrabcak told attendees on Sunday.
“With that said, the strength will be tested in the next few years under challenging conditions,” Hrabcak added. “Our chief economist Dr. Lawrence Yun predicts an estimated 15% decline in membership over the next couple of years. As a result, the association anticipates an estimated $10- $15 million budget deficit beginning in 2024.”
The approved policy is slated to start in 2025, and NAR’s Finance Committee will use the Consumer Price Index, “as a guide” each year when it recommends annual dues amount to the board of directors. The policy does not include a 4% increase cap like the initial proposal.
Despite this, the measure was approved 708-98 without any discussion on the floor.
Separately, the board voted to increase annual dues by 4% in 2024 to $156. Annual dues currently stand at $150, plus a special assessment for its consumer ad campaign of $45.
According to an exhibit provided with the proposal, NAR’s operating budget for 2023 anticipates a net income of $8.4 million, but in 2024, the trade group expects a net loss of $14.2 million, even with the $6 increase in annual dues. The Finance Committee attributes this to an expected decline in membership to 1.38 million in 2024. The trade group ended 2022 with a record 1,580,971 members.