I get asked this all the time—especially from folks considering leaving their 9-to-5 jobs for real estate. Texas has been one of the hottest real estate markets in the country over the last decade. But the million-dollar question is: How much does a real estate agent make in Texas?
The truth is, the answer depends on the market cycle, how agents manage their pipeline, and frankly, their drive. I’ve spent 15+ years advising professionals who’ve pivoted into real estate, and I’ve seen both rags-to-riches stories and careers that never got off the runway. Let’s break it down systematically.
1. The Average Real Estate Agent Salary in Texas
When people Google “How much does a real estate agent make in Texas?”, they’re usually hoping for a clear number. The Texas average hovers around $70,000 per year, with variation depending on city, brokerage, and personal grind.
But here’s the reality: most agents don’t see steady paychecks at the start. In your first year, you’re spending more—on marketing, licensing, MLS fees—than you’re making. I once coached a new agent in Dallas who spent nearly $12,000 before closing a single deal. By year two, though, she was crossing $100k.
Think of real estate as commission-based entrepreneurship. If you’re disciplined with lead generation and client follow-through, your Texas income can rival that of a VP at a mid-sized firm. But if you rely on “waiting for referrals,” you’ll likely sit below $40k.
The 80/20 rule applies here: roughly 20% of agents take home close to 80% of the commissions in Texas. That’s why averages can be misleading—they mask the huge gap between top earners and struggling agents.
2. City-by-City Breakdown: Houston, Dallas, Austin, and San Antonio
How much a real estate agent makes in Texas often depends on the city. Houston, with its sprawling neighborhoods and diverse housing stock, regularly produces agents clearing six figures. Dallas and Austin, with their booming corporate relocations, are equally strong.
Austin is particularly interesting. Back in 2018, people thought its market had peaked. By 2021, prices had doubled in some zip codes. I knew an agent there who focused solely on relocating tech professionals—her average commission jumped from $7k per deal to $15k in four years.
Houston, on the other hand, is more volume-driven. Homes move faster, but price points are more modest. A new agent here can build a career more steadily since transactions happen consistently. San Antonio strikes a middle ground—a strong military pipeline, affordable housing, and reasonable turnover.
This city-based lens matters because living costs differ, too. A six-figure income in Austin gets eaten alive by housing and traffic costs, while in San Antonio, the same income goes much further.
The bottom line: When evaluating how much a real estate agent makes in Texas, you have to zoom in on the specific market dynamics of each metro area.
3. Commission Structures and Splits in Texas
Here’s where new agents often misunderstand the math. Yes, the standard commission in Texas hovers around 5-6% of the sales price. But that doesn’t mean the agent pockets it all.
First, it’s usually split between the buyer’s and seller’s agents. Then your brokerage takes a cut—sometimes 50/50 if you’re inexperienced, tapering down as you prove yourself.
In Houston, I worked with a rookie agent who closed on a $300,000 home. At 6%, the commission was $18,000. After splitting with the other agent and her broker, she walked away with about $4,500. Not bad, but not life-changing either.
The trick seasoned pros use? Negotiating better splits with their broker, and eventually working toward independent status. By year five, many Texas agents set up their own LLCs or even transition into brokerage ownership. That’s when pay takes a leap.
What people outside real estate don’t realize is how much agents reinvest in growing their practice—marketing, lead systems, transportation, photography. I’ve seen agents spend nearly 20% of commissions on business expenses.
So to understand how much does a real estate agent make in Texas, you must adjust expectations. The gross commission looks glamorous on paper, but the net is often closer to half.
4. Factors That Affect Agent Income in Texas
Let’s talk about levers that actually impact agent earnings. From experience, I’d group them into four buckets:
- Market Conditions – In 2021, multiple offers pushed commissions higher per deal. In 2023, rising interest rates slowed that down.
- Networking – The best agents in Texas don’t just cold-call. They’re embedded in churches, local chambers, or even school boards. Deals come from trust, not postcards.
- Specialization – Agents who niche down—say, luxury condos in Dallas or ranch properties in West Texas—out-earn generalists.
- Work Ethic – I’ve seen agents treat this job like a 40-hour week and stagnate. The top income earners grind 60+ hours, but they build predictable pipelines.
One agent I coached specialized in military relocations near Fort Hood. She built relationships with base housing coordinators. Within 24 months, her referrals exploded, doubling her annual income from $50k to $120k.
The lesson? Don’t think of Texas real estate as “easy money.” Think of it as local entrepreneurship with income directly tied to strategy and hustle.
5. Comparing New vs. Experienced Agents’ Earnings
How much does a real estate agent make in Texas in year one vs. year ten? Night and day difference.
New agents typically struggle. According to my observations, first-year agents make $20k–$40k once expenses are factored in. It takes time to build a client base, credibility, and repeat referrals.
Experienced agents, especially those with strong brand positioning, can hit mid-six figures. I once knew a Houston agent with 15 years under her belt who closed 40 transactions annually at an average of $8k per deal—that’s $320k gross, with about 40% going to expenses.
The difference is compounded by systems. Veterans use CRMs, client appreciation events, referral rewards, and even assistants to free up time. It’s less about personal effort, more about process maturity.
Think of it like a tech startup: Year one you’re burning cash to build recognition. By year five you have predictable recurring revenue. The same applies in real estate.
So, if you’re entering Texas real estate expecting instant six figures, adjust your expectations. Build it right, and the numbers will come.
6. Real Estate Market Trends in Texas That Impact Income
Texas is a unique animal. Population growth, corporate relocations, and affordability (relative to California or New York) make it fertile ground. But with opportunity comes volatility.
Back in 2021, multiple-offer situations meant agents could make two to three times their usual annual income. By 2023, interest rate hikes cooled things, and many agents barely matched their 2019 numbers.
One Austin broker told me: “In booming years, even part-timers look like rockstars. In down years, only professionals survive.” That’s the hard truth.
Tech companies migrating to Austin and Dallas continue to fuel demand in the mid- to high-tier markets. Meanwhile, oil and energy cycles keep Houston’s market swinging up and down. And San Antonio remains steady with military families and affordability.
For context, sites like Indeed report that agents in Texas average around $72,000 annually, but individual performance swings far more than that number reveals.
The key advice? Don’t just chase hot cycles—build resilient strategies for lean years too.
7. Long-Term Career Growth Opportunities
How much does a real estate agent make in Texas doesn’t just stop at agent income. Smart professionals graduate to bigger positions:
- Team Leaders – Oversee groups of junior agents, earning off splits.
- Broker-Owners – Start their own firm and collect office-level revenue.
- Investors – Many seasoned agents use commissions to fund their own rental or flip portfolios.
I worked with one Dallas agent who, after ten years, earned $200k annually from commissions but another $250k from rental properties he picked up off-market. That’s stacking revenue streams the right way.
Also, technology has added new doors. Agents who master YouTube or TikTok marketing locally often land double the leads. I’ve seen this firsthand: one San Antonio agent’s video tours earned her luxury clientele she never would have landed cold-calling.
In other words, agent salary is the starting point, not the ceiling. A Texas agent with vision can create generational wealth, not just an annual paycheck.
8. Challenges Agents Face in Texas
Now, let’s not sugarcoat it. Texas real estate has challenges. The market is big and competitive.
First, licensing is relatively accessible, which means oversupply. Thousands of new agents flood the market every year, many only half-serious. That dilutes business for committed professionals.
Second, marketing costs are steep. From Zillow leads to billboards, I’ve seen agents swallow 25% of their income on marketing alone. Unless you’ve got discipline, the ROI crumbles.
Third, market cycles hit hard. If you started in 2021, you thought the sky was the limit. By 2023, many of those same agents were panicking as deals dried up.
And finally, the work is relentless. Nights, weekends, holidays—it all belongs to your client. I’ve seen marriages tested because the agent “was never off.”
The takeaway: yes, agents in Texas can make serious money. But it comes with grit, tenacity, and mental toughness.
Conclusion
So, how much does a real estate agent make in Texas? The realistic answer: anywhere between $40k and $200k annually, depending on experience, effort, and market. The averages (~$70k–$72k) don’t tell the whole story. What matters is your ability to approach this like entrepreneurship, not a side hustle.
If you treat real estate in Texas as a true business—with strategy, persistence, and reinvestment—you can thrive. If you treat it as “easy money,” you’ll likely wash out. The reality is, in this industry, you earn exactly what you build.
FAQs on How Much Does a Real Estate Agent Make in Texas
What’s the average income of a real estate agent in Texas?
Around $70,000 annually, though results vary significantly by city and experience.
Do new agents in Texas make good money?
Most don’t. First-year agents typically earn $20,000–$40,000 after expenses.
Which cities in Texas pay real estate agents the most?
Austin and Dallas produce higher commissions, while Houston has steadier volume.
How are real estate commissions split in Texas?
Typically 5–6% of sale price, divided between buyer/seller agents and then with the brokerage.
Can Texas real estate agents make six figures?
Yes, many experienced agents reach $100k–$200k annually with the right systems.
What factors most affect agent income in Texas?
Market conditions, specialization, networking depth, and work ethic.
Do real estate agents get a salary in Texas?
No, most are independent contractors, earning solely on commissions.
What expenses do agents face in Texas?
Marketing, licensing fees, car expenses, photography, and brokerage splits.
Is it harder to make money in small Texas towns?
Yes, smaller transaction volumes limit earnings unless you specialize.
Do Texas agents get paid at closing?
Correct, commissions are paid after the deal closes through the title company.
What’s the income potential after 10 years?
Experienced agents often earn $150k+ and some build brokerages or investment portfolios.
Do luxury real estate agents in Texas earn more?
Yes, but luxury is competitive. One closed deal can yield $20k+ commissions.
Does part-time real estate work in Texas pay well?
Rarely. Most part-timers struggle to generate sustainable income.
How many hours a week do Texas agents work?
Top earners often put in 50–60 hours, evenings and weekends included.
What’s the toughest challenge Texas agents face?
Competition, market shifts, and staying consistent through downturns.
Can agents transition into other careers later?
Yes, many move into property management, investing, or brokerage ownership.