Drop in US Real Estate Appraisers Slows: AI Research

Real estate appraisers stats

80,500 Total number of active real estate appraisers

CHICAGO (July 31, 2014) – The number of active real estate appraisers in the United States fell less than 1 percent in the first half of 2014, the Appraisal Institute announced today, lower than the average annual decrease of 2.6 percent over the past six years.

Research conducted by the nation’s largest professional association of real estate appraisers found that as of June 30, the total number of active real estate appraisers in the U.S. stood at 80,500, down from 81,050 on Dec. 31, 2013. A broader analysis suggests the rate of decrease could rise sharply over the next five to 10 years due to retirements, reduced numbers of new people entering the appraisal profession, economic factors and greater use of data analysis technologies, Appraisal Institute research found.

“As appraisers leave the profession, the Appraisal Institute is preparing the next generation through its education, publications and other training,”

said Appraisal Institute President Ken P. Wilson, MAI, SRA.

“As the real estate valuation profession’s leader, we will continue to ensure that we are preparing tomorrow’s appraisers today.”

The Appraisal Institute’s research also found that the proportion of licensed appraisers in the U.S. continues to decrease and stands at 11.3 percent as of June 30. The proportions of certified residential appraisers (56.7 percent) and general/commercial appraisers (32 percent) increased slightly from year-end 2013. Also, 18.5 percent of appraisers held a license or certification in one or more states outside their home state. That number increased slightly from 18.2 percent in 2013 and 17.2 percent in 2012.

Appraisal Institute surveys also found:

  • Two-thirds (66 percent) of appraisers have spent at least 15 years in the valuation profession.
  • Thirty-nine percent work as sole proprietors (no employees/partners), and another 22 percent are an owner or partner in a firm.
  • Forty-one percent work as commercial appraisers, while 31 percent are residential appraisers.
  • Seventy-five percent work for an appraisal services firm.
  • More than half (51 percent) are ages 51 to 65, and another 11 percent are 66 or older.
  • Fifty-eight percent hold a bachelor’s degree, and another 20 percent hold a master’s or doctoral degree.
  • Forty-seven percent of Appraisal Institute professionals earn more than $100,000 per year, compared to 22 percent of non-AI professionals.

U.S. appraiser population statistics were derived from the Appraisal Subcommittee National Registry as of June 30, 2014. Demographic statistics were derived from Appraisal Institute studies conducted in 2014 of 1,451 randomly selected AI professionals and non-AI individuals. The survey had a margin of error of +/- 2.6 percentage points.

View the highlights of the survey results below.

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3 Responses

  1. Retired Appraiser Retired Appraiser says:

    FOOT NOTES

    *Never trust anything that the Appraisal Institute tells you. Appraisal Institute PRs ALWAYS have a bias towards recruitment and or membership retention. This one is no different.

    *Never trust anyone who refers to residential real estate valuation as a “profession” after 2009. True “professions” have organizations in place to protect members from extortion and other fee grab devices.

    1
    • bubba jay bubba jay says:

      agree. this statement “As appraisers leave the profession, the Appraisal Institute is preparing the next generation through its education, publications and other training” is just regurgitated verbal diarrhea.

      the “profession” is a mess and the AI allowed it to get that way. good luck preparing the next generation of appraisers with zero experienced appraisers left to sign off on anything. empty AI class rooms wont accomplish anything but create the next generation of cobwebs.

      1

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Drop in US Real Estate Appraisers Slows: AI Research

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