NextHome is brimming with great people. Every day, I get to connect with the best in the business – people who are fun, and who share our vision and passion.
Their enthusiasm is contagious. Even as housing market conditions challenge and test us all, NextHome is adding strong brokerages around the country. Over the past two years, we have welcomed 145 new offices into the franchise family.
While growth is exciting, it’s important to put it into context. That’s why I look forward every other year to NAR’s Residential Franchise Report. This report details side-by-side growth information and fees for 20 of real estate’s most powerful players.
What we learned from the 2023 NAR Residential Franchise Report amazed and energized me.
NextHome was announced as the No. 1 leader among real estate franchises in net office growth.
We welcomed 145 new offices over the past two years, which is more than twice the office growth of the next highest brand.
|Franchise||Number of U.S. Offices 2023||Number of U.S. Offices 2021||Office Count Growth||Office Count Growth %|
|Engel & Völkers North America||239||195||44||22.6%|
|JPAR – Real Estate||66||56||10||17.9%|
|City2Shore National Franchises||13||12||1||8.3%|
|Real Estate One Inc||90||85||5||5.9%|
|Exit Realty Corp. USA||568||541||27||5.0%|
|Berkshire Hathaway HomeServices||1509||1442||67||4.6%|
|Windermere Real Estate||316||310||6||1.9%|
|Crye-Leike Franchises Inc.||140||140||0||0.0%|
|Realty World Inc.||187||188||-1||-0.5%|
|John L. Scott Real Estate Affiliates||104||106||-2||-1.9%|
|United Country Real Estate||470||480||-10||-2.1%|
|Realty Executives International||313||325||-12||-3.7%|
|Weichert Real Estate Affi liates||437||500||-63||-12.6%|
Putting these numbers into additional context, this is the second NAR Biannual National Franchise Report where NextHome was No. 1 in net office expansion. Between 2019 and 2021, we added 135 offices.
Among the franchises that provided office expansion data for the 2023 report, nine increased their number of offices, eight decreased, and two held steady.
It is powerful to know that the NextHome difference resonated with more than 145 people – real estate professionals who knew we were the right fit to take their business to the next level amid increasing industry challenges and market pressures.
Those times make it more important than ever that NextHome continues to emphasize quality over quantity. Especially as the industry attrition is expected to hit the highest in years, if ever.
Growing with the right people is crucial when scaling a company. Our growth is both an honor and a testament to our franchise model’s strength, flexibility, affordability, and all-inclusive tech stack in an industry that’s evolving. At our core, our model is focused on the human experience of buying and selling real estate.
As much as you are interviewing a franchise, we are interviewing you as well. We don’t want our owners to be exactly the same, but we do need to know that we share many of the same underlying values. Do humans come before houses? Are you willing to emphasize quality in your business? Then let’s talk. This way, we all succeed together.
At the core of these NAR reports are real people whose high-quality approach to business already aligns with NextHome. As Vice President of Sales, it’s my job and key responsibility to listen to people interested in franchising. We talk about their questions, concerns, and fears.
I make it a point to never sell them in this process. I am an advisor, here to listen to their needs, pain points, goals, and struggles. We identify gaps and determine if NextHome fills in or not. The client controls the process the entire way. Laying out all the fees, expectations, and overall direction up front makes for a much better experience. It is important that the client sets the pace and cadence of conversations. After all, franchising is a big decision and it should never be rushed into.
When I think of the magnitude of franchising, it reminds me of buying my first home. In our personal lives, buying a home is the biggest investment many of us will ever make. You crunch the numbers, you try to think about all the angles, and you perform the best inspection possible.
But there are some things that only the people who have lived in and near the house can tell you.
Franchising can be thought of in the same way. When it comes to sharing good information, our broker/owners exemplify what it means to be a good neighbor.
I am encouraged by stories of our existing NextHome members responding enthusiastically to others researching the franchise. I am even more inspired by those who are no longer with us and the way they talk so freely and openly about our support and culture. I often say, “Call anyone here, but the real story is with those who are not.” It tends to catch people off guard when I encourage that, but if you put Humans Over Houses® there is nothing to hide or fear.
A NextHome broker/owner’s enthusiasm is contagious. In an anonymous survey conducted by Franchise Business Review, NextHome was No. 1 for owner satisfaction in the publication’s annual rankings. This was the third year in a row for NextHome earning the No. 1 standing.
The NAR report also gave us important information about how various franchise owners are growing their offices.
Keller Williams topped the list of agents added, with 6,373 agents added throughout two years. The NextHome franchise welcomed more than 1,172 agents during the same time period, making our company fourth in agent count growth. In terms of percentage change from 2021 to 2023, this makes NextHome second in agent growth, behind Engel & Völkers North America.
This is impressive in its own right. At NextHome, we do not put any emphasis on agent count as we believe quality vs. quantity will always outperform in the market. We believe in “attracting” agents while most franchises focus on “recruiting” agents. One is not better or worse than the other, but they are very different strategies.
No.1 in office growth mixed with unhurried agent growth is a combination we are really proud of.
NextHome started in 2014 with zero agents and zero locations. By the end of 2015, we had over 330 members. Today, over 5,700 NextHomies represent the brand across 630+ locations.
However, we need to look beyond the numbers and focus on the people they represent. NextHome wouldn’t be what it is without our diverse, talented, and fun NextHomies. As of last month, our franchisees were 54% woman-owned. In addition, 24% of our franchises are minority-owned.
Franchise Business Review recognized our workplace culture, naming NextHome on its Top 100 Culture List once again. We’ve also been recognized as a Top Franchise for Women and a Top Franchise for Veterans for multiple years in a row.
Numbers and growth are exciting, but it’s easy to get distracted and lose sight of the humans who power your organization. The people who power NextHome are exceptional. They get up every day, do hard things, and get to work. I can’t wait to see where we all go together when the next NAR Biannual Residential Franchise Report is released in 2025.