Is NAR Membership Declining Because of Open MLS?

NAR membership trends have historically followed the economy and the strength of the overall real estate market. As shown in the attached chart, NAR experienced significant membership growth following the market crash of 2008 to 2010 and continued on that growth trajectory until recently when the real estate market slowed significantly because of high interest rates and more limited buyer demand. While there have been minor decreases in membership since 2023, we hypothesize that these declines are more likely due to limited market opportunities and retirements rather than the rise of Open MLS subscription offerings. 

The Growth of Open MLS

According to NAR, 38% of all MLSs now offer Open MLS subscriptions, and this number is increasing. The growth of Open MLS has been fueled in part by recent lawsuits in Michigan, Pennsylvania, Texas, and Louisiana, which challenge the requirement for practitioners to become REALTORS to access Multiple Listing Services.

Impact of Open MLS on Association Membership

Critics of Open MLS argue that allowing access to the MLS without requiring REALTOR® membership could significantly reduce association membership. They believe this shift could weaken the ability of REALTOR® associations to provide essential services such as education, professional standards, advocacy, and networking.

However, conversations with association leaders suggest that membership declines are not due to Open MLS options. Instead, many members who do not renew their memberships do so because they are retiring, relocating, or leaving the industry altogether.

There are several markets – California, Alabama, Florida, Georgia and several others that have offered Open MLS subscriptions since the 90’s. In those markets Associations are still thriving. Contrary to some fears, Open MLSs do not take down real estate Associations. Why?  Because local, state and national real estate associations provide critical trade association services protecting the best interests of practitioners and their clients. Associations also drive up professionalism, preparing agents and brokers for ever-changing market conditions and real estate consumer needs. 

A Call for Data-Driven Insights

Currently, there is no concrete data to prove whether Open MLS is significantly impacting NAR membership. If your association is willing to participate, WAV Group would like to collect and analyze local market data to better understand the real reasons behind membership declines. By gathering this information, we can provide the industry with a factual, data-backed analysis of whether Open MLS is truly affecting NAR membership. If you can ask exiting members why they are leaving it can help the industry prove that Open MLS is simply another option, but does not, in any way, weaken or eliminate the value and relevance of real estate associations. 

Join the Conversation

If you are interested in working with WAV Group to analyze membership trends in your market, please fill out the form below. 

Additionally, if your MLS or association is having discussions about Open MLS and would like a well-rounded presentation on its pros and cons, WAV Group is here to help. Let’s have an informed discussion based on real data rather than speculation. 

Contact us today to learn more!