Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
The American Real Estate Association is absorbing a New York City real estate trade group in order to launch its first local chapter, the association told Inman exclusively.
The group is called the New York Residential Agent Continuum (NYRAC) and claims 176 members from prominent New York-based brokerages such as Compass, Douglas Elliman and SERHANT., among others, according to its website.
TAKE THE INMAN INTEL INDEX SURVEY FOR JANUARY
Terms of the deal were not disclosed. But no money changed hands between the two organizations as part of the deal, which will close at the end of first-quarter 2025, Jason Haber, co-founder of the American Real Estate Association, told Inman. NYRAC will be folded in under American REA’s umbrella.
Jason Haber
“We are thrilled to welcome NYRAC as our first local chapter,” Haber said in a statement.
“This integration not only strengthens our presence in New York City but also sets the foundation for our broader vision of establishing local chapters across the country.
“By aligning with organizations that share our commitment to elevating the real estate profession, we aim to provide unparalleled support and resources to agents nationwide.”
This is the first local chapter American REA, which has more than 5,000 members, is debuting as part of a plan to open local chapters nationwide and will serve as a model for subsequent chapters, according to the trade group.
“What’s key about NYRAC is that most of the top agents in NYC are members, so it’s not a huge group by agent count but it’s enormous in terms of the prestige and weight that it carries in the NYC brokerage community,” Haber said.
Membership in American REA will be optional for NYRAC members, according to Haber.
“We hope they join the federal trade group as well, but they will not have the requirement to do so,” he said.
“We believe in choice, it’s a founding principle of our association,” he added, pointedly. “We’ve seen the [acrimony] around the country when agents have no choice when it comes to joining NAR.”
Referring to the requirement that agents and brokers join three Realtor associations — a local and state, in addition to NAR — if they want to join either one, Haber added, “[W]e know that agents don’t like the mandatory dues that come with the three-way agreement and we’ve heard from agents around the country that this creates a tension between them and NAR.”
According to American REA, members of both organizations will receive “enhanced resources, expanded networking opportunities, and a stronger collective voice in the real estate industry” by teaming up.
American REA plans to use the NYRAC merger to “activate and organize” New York City’s real estate industry, “which continues to be misunderstood and maligned by policymakers,” Haber added.
American REA has previously joined the Real Estate Board of New York (REBNY), in opposing the FARE Act, a recently-enacted law that requires landlords to cover the cost of broker fees rather than passing them on to tenants.
NYRAC will help American REA fulfill its vision of a “more affordable, sustainable and vibrant” New York City, according to Haber.
“I fully expect NYRAC to take a leadership role for the residential agents of NYC who for too long have felt the scorn and wrath of local elected officials,” he said.
American REA will continue to work with NYRAC’s existing board of directors and executive committee, all of whom will continue with the organization, to further NYRAC’s mission of elevating ethical standards and advocating for agents and consumers, according to Haber.
“We are excited to lead the way as the American Real Estate Association’s first local chapter and look forward to collaborating on initiatives that will benefit real estate professionals and consumers alike,” said Heather Domi, a co-founder and Chair of NYRAC, in a statement.
NYRAC will keep its name but its transitional branding will reference American REA, according to Haber.
“[O]ur national trade group name will be integrated into all collateral materials, marketing, online info, etc, so it’s clear that NYRAC is the NYC chapter of the American Real Estate Association,” he said.
The combined trade group’s first action will be a town hall meeting in February “with a very important NYC public official,” whom Haber declined to name.
“This event will bring together the real estate industry and a top City official to discuss the City of Yes Rezoning and what it means for the real estate industry,” Haber said, referencing a city initiative launched by New York City Mayor Eric Adams in 2022 intended to boost affordable housing and environmental sustainability.
“This is part of our effort to inject NYRAC into more contemporary education and information providing for the agent community,” he added.
Editor’s note: After publication, Haber clarified that although he told Inman American REA had acquired NYRAC, no money changed hands in the deal. The story has been corrected. Inman regrets the error.