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While the real estate market is facing economic headwinds and the stock market is currently in turmoil, there’s a much broader and more positive economic trend that brokerages need to pay close attention to if they want to thrive in 2025 and beyond.
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With an expected $84 trillion in wealth flowing from the Silent Generation and Baby Boomers to their heirs by 2045 — a shift being referred to by market watchers as the Great Wealth Transfer — brokerages will need clear, grounded strategies paired with both new and time-tested skills to win market share in the years ahead.
Understanding the great wealth transfer
As we navigate the Great Wealth Transfer, it behooves us as trusted advisors to deeply understand the context in which our clients are making major financial decisions. Brokerage leaders must guide agents in developing effective wealth-transfer strategies for their clients, rooted in the rules governing the transfer and taxation of multigenerational wealth.
The ultimate goal is to serve our clients, guiding them to make wise investment choices and buffer them against any potential impacts of this historic shift.
Building generational trust
As part of this approach, brokerage leaders must be skilled at building generational trust. Successful brokers will understand and align themselves with the lifestyle, values and goals of the next generation of clients.
If Baby Boomers and Gen X value long-term wealth building, retirement planning and strategic location investing in their real estate investment strategy, Millennials and Gen Z may be more prone to living as global citizens who place a higher value on lifestyle, sustainability and wellness.
By identifying generational values, asking astute questions and actively listening, brokerages can better serve each client’s unique needs and strategically capture market share throughout this seismic change.
Adopt a growth mindset
Brokerages should continually invest in expanding their team’s skills and expertise. Standing still means falling behind. For most of us, learning feels exhilarating. Don’t shortchange yourself or your team by missing opportunities to learn — and teach.
The hallmarks of a growth mindset include active listening, learning from feedback, embracing challenges as opportunities, persevering through change and believing that everyone is capable of growth through consistent effort. It’s not just about business growth — it’s about fostering a culture that values learning, growth and effort as much as results, where individual successes are celebrated.
Create memorable client experiences
In our most recent annual wealth report, we identified the evolving habits of the luxury consumer. As the next generation of real estate investors inherit wealth, brokerages that drive innovation through personalized and curated client experiences, strategic partnerships, and new products and services tailored to meet clients’ evolving needs are likely to thrive.
Brokerages that create unique brand collaborations or segment their database to deliver tailored communications and personalized messages are examples. Focus on your clients and respond to rapid-fire industry changes, market trends and economic fluctuations with valuable information and elegant solutions that fit the moment, not the industry as it was five or 10 years ago — or even last year. Personalized property searches, distinctive open-house events, and virtual home and neighborhood tours have become the industry standard.
Lean into digital innovation
As the luxury consumer’s habits evolve, savvy brokerages must lean into digital innovation to maintain a competitive edge. Delivering best-in-class digital experiences and innovative products and services online, where consumers spend much of their time, is crucial.
The best brokerages are more than a real estate brand; they’re a lifestyle and media brand, too. A strong and innovative tech team is essential to brokerage success in this digital age.
Focus on collaboration
Collaboration is a pillar of effective leadership, and at The Agency, we’re proud to foster a workplace culture where teamwork truly flourishes, diverse perspectives are welcomed, and every team member’s unique contributions are celebrated. It’s not just something we value — it’s central to who we are, and it results in greater productivity, inclusivity, innovation and better business outcomes.
At The Agency, we invite stakeholders across departments to gather and share new ideas, respecting established channels of communication, to drive forward the best consensus-based ideas.
Build a positive company culture
A healthy company culture doesn’t just happen — it’s intentionally cultivated and evolves as your brokerage grows. Instead of hiring for “culture fits,” look for “culture adds” — individuals who bring fresh perspectives and diverse experiences to enrich your brokerage team, avoid echo chambers and drive long-term growth.
In the face of economic headwinds and shifting market dynamics, brokerages must embrace change with clarity, strategy and agility.
The Great Wealth Transfer presents a once-in-a-generation opportunity — one that demands a deep understanding of generational aspirations, a commitment to building trust and an unwavering focus on innovation. By using these strategies, brokerages can position themselves not only to weather the current market — but to lead it.
Rainy Hake Austin is president of The Agency in Los Angeles. Connect with her on Instagram.
