“Trust is not a transaction.”
As the industry waves goodbye to a year of historic changes (and turmoil), no one is more eager to turn the page than the National Association of REALTORS® (NAR). Facing what seemed like a neverending cascade of challenges—from the earth-shaking consequences of the commission lawsuit saga to deeper questioning of the organization’s leadership and mission—2024 left many real estate practitioners frustrated and even angry at the organization that is meant to represent them.
In an exclusive and wide-ranging interview with RISMedia Founder and CEO John Featherston today as part of RISMedia’s 5th annual virtual Rocking in the New Year event, NAR CEO Nykia Wright spoke directly to the association’s urgent need to rebuild its relationship not only with members, but with media, consumers and the entire real estate community.
“It’s super important to understand historically what mistakes NAR has made over time so we can correct those,” Wright told Featherston. “We want to make sure all of our members can see themselves in NAR…it is not lost on us that this is going to take a herculean effort, and we are certainly up for the challenge.”
With many of 2024’s more urgent questions still unresolved heading into 2025, Wright also didn’t shy away from addressing several hot-button topics, including an ongoing legal spat with a local association, the divisive Clear Cooperation policy and political advocacy.
In response to a direct question from Featherston, Wright finally put a timeline (albeit a loose one) for “what side will be taken” in regards to Clear Cooperation after NAR declined to take any action or substantively address criticisms of the policy in 2024.
“We have to make sure we go through our proper governance procedures, governance policies (and) governance bodies over the next—I want to say, 30 or 60 days,” she said. “Unless something significant happens that puts a monkey wrench in this, we should hopefully have this settled within the next couple of months.”
An NAR MLS advisory board previously declined to recommend any changes to the policy leading into the organization’s annual meeting in November, despite pressure from numerous brokerage leaders.
Notably, NAR is staring down the possibility of facing another jury later in 2025 in an antitrust case based largely around allegations that Clear Cooperation illegally suppresses competition. The Supreme Court is also expected to rule this Monday on whether the Department of Justice can continue to investigate the policy.
MLS policy was also at the center of another late-breaking 2024 controversy that has seen NAR facing pushback from members. Long-simmering dissatisfaction with how REALTOR® memberships are tied to MLS access bubbled over into multiple lawsuits, culminating with a very public battle between NAR and a local association (Arizona-based Phoenix REALTORS®), which announced it was creating a non-REALTOR® MLS option back in November.
NAR subsequently sent the Phoenix REALTORS® a cease and desist, and then announced it was revoking the association’s charter in what was seen as a significant escalation in the battle over the “three-way agreement” of REALTOR® association membership.
Wright stressed that NAR’s objections to Phoenix REALTORS®’ actions are about following and enforcing the association’s own bylaws.
“We do not internally at NAR look at this as a choice about MLS,” Wright said. “We…have a fiduciary duty to our bylaws, our constitution and our charters, just like any other company. McDonald’s is not going to sell Burger King fries. It is our responsibility to make sure we are running NAR within the confines of the documents that have been created. Until those documents change, until the language changes, until the board, the executive committee and the leadership team come up with something different, it is my fiduciary duty to hold the line.”
Wright further claimed that the conversation between the two associations remains ongoing, and had been taking place “full force and in earnest” since “the September, October timeframe”—something Phoenix REALTORS® has disputed, claiming that NAR is refusing to talk until its demands are met.
“This is not something we woke up with at the end of 2024,” Wright said. “In order to protect the integrity and transparency of those conversations with those specific stakeholders, I don’t want to say more.”
“Mirror image”
Across all the topics she discussed with Featherston, Wright returned to the same larger themes: trust, communication and reflection. Those are what drive her personally, she said, but are also a huge part of NAR’s mission in 2025.
The idea of reflection—which can be both introspective as well as provide a “mirror image” for others to see their own values and priorities—is something NAR is using as a high-level analogy for its 2025 goals.
“There’s a lot of noise in the industry, and I continue to say we need to be that signal. And in being that signal, (we are) continuing to interact with companies like yours, the trade publications, as well as the national media outlets,” said Wright. “When there is breaking news—whether that’s good or bad—at least people will have an understanding of the underlying economics of the transaction, and also a better view of what NAR is and how it’s represented in the industry. That way, I think, we can be better stewards for all consumers who are trying to understand the real estate industry.”
Wright highlighted her own background as a former media executive (leading the Chicago Sun-Times for six years) and promised to use NAR’s “megaphone” to reach not only its members but also media outside the real estate industry, serving to educate consumers and provide balanced perspectives on news events involving real estate.
But that goal of better communication also extends to real estate professionals. Joining Wright on her journey in shaping NAR’s future is industry veteran Sherry Chris, who has been brought on by NAR as an independent consultant and special advisor to Wright. Wright told Featherston that she and Chris intend to tour the country together to help “right the ship,” fitting in with the plan of directly talking to membership and ensuring the association represents its members.
“Sherry’s primary responsibility is to help us restore trust among the big brokers—we have independent brokers, franchisees, franchisors across the entire spectrum—and it’s super important that we meet them where they are,” Wright said.
On an even more basic level, Wright said NAR is recommitting in 2025 to more support and understanding for everyday REALTORS®, and how they are dealing with changes wrought by lawsuits and new policies.
Asked by Featherston about how members are “faring” since the settlement, Wright said she “really appreciated” that kind of question.
“You are the first that I know who asked how our members (are faring),” she said. “The data has not come in to even understand how people are faring. I will say, I have anecdotal evidence that people have decided to take this bull by the horns, to follow the settlement to the best of their understanding.”
But where there is “disagreement” or “nebulous characterization of how people can transact business,” Wright promised NAR was working with its attorneys and plaintiff attorneys to clear up any misunderstandings. A lot of “negativity” has come from misunderstandings on how transactions can or should take place, Wright claimed, and she committed to clearing up those misunderstandings.
“When REALTORS® are continuing to showcase angst in one way or another, then that is a signal to us that we have to do more,” she said.
“Purple” politics
One of the criticisms leveled against NAR in 2024 came from a New York Times investigation that found the organization was sending money to right-leaning organizations that had little or nothing to do with housing policy.
Wright did not address these findings directly, with NAR previously having defended the donations as “consistent with (the) stated mission of advocating for the rights of property owners.” But looking ahead at a new presidential administration, Wright promised that NAR was fully committed to advocating for REALTORS® and optimistic about working with both major political parties.
“We are over 100 years old—as you can imagine there (have) been tons of elections over the last 100 years, and an administration change is not new to NAR,” she said.
She added that early conversations ahead of the new Congress showed that lawmakers are possibly more tuned into housing issues than ever before.
“Both major political parties were interested in understanding the impact of inflation, affordability and all of the primary issues that most people think about as it relates to housing. That was top of their agenda,” she said. “As you know, the difference in political parties has a lot more to do with the ideologies, and how they approach solving those problems, but we were very pleased that that was at the top of both of their agendas.”
New year, new NAR?
Despite these new commitments and promised steps around policy and communication, NAR is very likely to face continued pressure in 2025. While much of it will likely come externally from still-ongoing class-action lawsuits, a federal law enforcement investigation and scrutiny from regulators, the criticism from rank-and-file REALTOR® members and brokerages is also unlikely to disappear overnight.
In her first extended public remarks of 2025, Wright’s near-unending focus on how NAR would reach members and rebuild trust appears to show a recognition by the organization that it has to adjust on a more significant, fundamental level to accomplish its mission.
“Members have been experiencing NAR in silos, so we’re cutting all that out, whether we’re talking about what we want to do with the big brokerages, how we want to engage more with state and local associations, how we think about bringing in members and understanding their entire lifecycle,” she said.
Additionally, a larger effort around “redefining (NAR’s) member experience” is a work in progress, Wright said, but is already receiving positive feedback. Three-quarters of respondents to recent surveys and recent focus groups said NAR was “on the right track” with changes it was proposing as far as new engagement and breaking down the aforementioned silos, according to Wright.
She also touted data showing that NAR membership sign-ups are “pacing” well in 2025, defying some analysts’ and pundits’ predictions that a significant number of real estate professionals would abandon the organization.
But in the end it will take more than promises and plans to revitalize NAR’s image and rebuild vital trust with more than one million REALTORS®. Wright also appeared to acknowledge this, and the reality that NAR can’t just lean on its history or the REALTOR® name as it seeks a turnaround in 2025.
“How we get better has nothing to do with our chronology—it has everything to do with the amount of feedback we are taking in, and adjusting ourselves accordingly,” she said. “The tone and tenor of that feedback is rough sometimes, but we understand where we are, and we are excited about trying to dance between the raindrops, and get to a future state whereby members are happy to be associated with NAR.”
