This Freakonomics Radio episode investigates the high and seemingly fixed commission rates in the US residential real estate market. The podcast features interviews with economists Chad Syverson and Sonia Gilbukh, who argue that the system, facilitated by the National Association of Realtors (NAR), functions more like a tacit collusion than a competitive market, leading to inflated prices. The episode also includes interviews with NAR president Kevin Sears and chief economist Lawrence Yun, who defend the industry's practices and the recent antitrust lawsuit settlement. A key finding is that the ease of entry into the real estate profession, coupled with the commission-based compensation, creates a "tournament model" with many low-earning agents and a few high earners, while the NAR's actions have been deemed anti-competitive. Listeners gain insight into the economic forces shaping housing costs and the ongoing debate about the role of real estate agents.
