Housing market slowdowns are not new or rare, but every time sales dip, commission-based real estate agents are often affected. Real estate agents aren’t the only ones feeling a pinch. Their clients are concerned, too.
A Clever Real Estate study found that 80% of Americans believe the U.S. is facing an affordable housing market crisis. When clients tighten their budgets, this can seriously affect your bottom line. Whether you are a real estate agent running your own business or working for a larger brokerage, here are 15 ways to cut costs during a market slowdown.
Marketing and advertising
1. Cut paid ads
Solo agents and those working in a real estate group can save money on advertising by shifting the focus from paid ads to organic social media marketing. Use this time to connect with potential clients by producing creative, engaging posts instead of serving paid ads.
2. Explore low-cost and free design tools
Free versions of Canva and MailChimp can supplement some of the simpler design work and email services you’d normally send to an expensive designer or marketing agency. AI tools like ChatGPT are also an option, but buyer beware: The information returned when entering generic prompts is not always accurate. Be prepared to proofread and edit whatever you use.
3. Consider pausing or reducing paid lead services
Paid lead services can be a helpful tool when the market slows, but they can also be a drain on your resources. Consider pausing or reducing the services you use, even temporarily. Of course, if they are continuing to send leads that convert, try another cost-cutting tactic first.
4. Go digital
It’s good for the planet, it’s good for your budget, and it’s probably overdue. It’s important to have some printed materials for open houses, but now might be the time to replace that bundle of brochures outside the house for sale with a handy QR code that shoots buyers right to your listing.
5. Collaborate
You might be tempted to hunker down and get stingy when a real estate market downturn hits, but resist the urge. Now’s the time to collaborate and partner with other agents or vendors for co-hosted open houses or other marketing efforts.
Partnering with other agents is a great way to double your exposure with the same advertising budget. It may seem counterintuitive to pool resources with the competition, but many real estate agents are specialists. If you build relationships with agents, they may send clients they cannot serve your way. Not only are you saving advertising dollars right now, but you’re also building a foundation for future sales.
Big-picture operational expenses
1. Renegotiate your lease or go virtual
Brokerages typically charge agents a fee for office space, but they may be amenable to fee relief during a market slowdown. Renegotiate your fees if possible, or close your physical space and join the remote workforce.
If you’re running a brokerage and don’t own your own commercial space, it might be time to re-evaluate your needs. If you’re leasing more office space than you need, consider moving to a space that better fits the size of your operation.
2. Evaluate your subscriptions
If you haven’t taken the time to tally up your subscription services — apps, tools, memberships — now’s the time. Chances are good you are paying for services you no longer need or just forgot about.
3. Manage your debt
Interest rates may be stubbornly high, but for those with excellent credit, there are still opportunities to save. Look into better rates on company credit cards and consider consolidating business loans and outstanding debt.
4. Whittle down your tech
Free and basic tiers of tech services, such as email platforms, transaction management, and customer relations management, are surprisingly robust. Review the tech you pay for and whether you utilize all the features of a paid plan. Downgrade to a cheaper or free plan if you don’t need all the bells and whistles.
Daily expenses
1. Minimize small expenses
Providing free coffee and snacks for the office, throwing elaborate celebrations for all occasions, and paying for daily food delivery are small expenses that can make a big dent in a reduced budget. These gestures can impact office morale, so don’t cut them out entirely if there’s a little wiggle room in the budget. But be deliberate and thoughtful about what occasions you celebrate and how often you provide food for all the agents in the brokerage.
2. Consolidate showings
Another big win for the environment, consolidating your showings is also an easy way to save some money on gas. Group your appointments by geographic area or consider starting with virtual showings. Virtual showings became very popular in the COVID era and continue to be a great tool for buyers and real estate agents.
3. Track your mileage
If you aren’t already doing so, keep track of all mileage when driving clients to properties or using your car for business. In 2025, the standard reimbursement for self-employed and business workers is 70 cents per mile, according to the IRS. This may not provide immediate relief, but it can yield a pretty hefty deduction on your taxes.
4. Limit entertainment expenses
If you regularly eat out or attend events in the hopes of attracting clients, consider limiting that when the market cools. Entertainment expenses are no longer a tax deduction for self-employed workers, and chances are good these don’t bear much fruit. If dining out and entertaining clients is part of your brand, limit these to high-value prospects until the economy picks up.
Professional development
1. Register for free classes
All 50 states require some form of continuing education in order for real estate agents to maintain their license, according to the National Association of Realtors. Look to state associations and larger brokerages that offer free or discounted continuing education.
2. Attend free local events
Expensive conferences can be a fun way to network and make connections, but when money is tight, keep it affordable by staying local. Area chambers of commerce and other business associations frequently hold meet-and-greets or opportunities to network. Also consider events at local libraries or festivals.
Grow your income streams
Selling homes is a real estate agent’s bread and butter, but when the market slows, expanding your offerings is a great way to preserve your income. Sellers might need staging consults and help getting their listing ready to go, while buyers who are new to the area might love a neighborhood tour and help finding local resources.
Whatever you do, continue to focus on developing relationships and serving your clients. The relationships you build when times are good are the ones that will sustain you when times get tough. Adjusting your offerings and making deliberate budgetary choices can minimize the impact of a market slowdown and help your business emerge even stronger in the next market.
Luke Babich is CEO of Clever Real Estate.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
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