Whether rookies or vets, the real estate market has an abundance of agents. InboundREM reports that, as of May 2024, the Association of Real Estate License Law Officials (ARELLO) estimates that there are close to three million active real estate licenses within the United States. Of those, about two million are residential real estate licenses. That’s roughly 7.62 agents for every 1,000 adults.

While finding success in a competitive industry can be challenging, there are plenty of marketing strategies agents can use to rise above the competition. (Check our blog page and see for yourself.) This blog focuses on selecting a real estate niche as a smart way for agents to reduce competition, develop in-demand expertise, and work with people and properties they prefer. Specifically, it reviews five niche real estate markets demonstrated to be consistent winners.

CLICK to listen why Tom Hegna, retirement income specialist, says, “The riches are in the niches.”

For Sale by Owner Properties (FSBOs)

Many agents assume that FSBOs are a waste of time, but this couldn’t be further from the truth. These properties can be a viable option for both veteran and rookie agents—the key is to minimize an owner’s suspicion by demonstrating your value and not convincing them to hire you.

One of the best ways to illustrate your value is by educating homeowners. We’ve made that super easy for agents trying to convert FSBOs with our FREE resource, “The 5 Biggest Mistakes to Avoid When Selling Your Home.”

You can send this free e-book to attract listings, but it’s also a fantastic piece to offer FSBOs. While conversing with these potential clients, empathize with the difficulty of dealing with the details of selling a home and then offer to send them this resource to help. Once they see how involved and all-consuming selling a house can be, and how easy it is to succumb to pitfalls and mistakes that can cost them in more ways than one, they’ll be eager to speak with you.

But you must follow up to have that second conversation. Simply ask if they received what you sent and if they have any questions you can answer.

Once you’ve gotten a few of these properties under your belt, you’ll have perfected an approach that works best for you and enjoy less competition from agents who simply don’t know how profitable this real estate niche can be.

Vacation homes

A second niche real estate market you can explore is vacation or second homes. Working with buyers looking specifically for a vacation home can be extremely lucrative. Securing funds is generally not a problem for these clients, and homes in popular areas are typically priced higher than the average home, which means more GCI for you.

If you’re fortunate to live in one of these areas, use your local knowledge to your advantage by taking them on a tour that highlights the features and amenities most important to them. Let them know you’re well-connected with local businesses and can help resolve any of their needs, whether it’s finding the best lawn maintenance company or dog walker in the community.

First-time homebuyers

First-time homebuyers are in desperate need of an agent! Not only do they have insecurities about the financial aspects of purchasing a home but they’re also unfamiliar with the process—it’s uncharted territory. To enhance your value among clients in this real estate niche, consider creating useful resources to answer their questions, help them feel confident in their decisions, and make the process as smooth as possible.

You can do your research to find the most frequently asked questions, write up the answers, and then use Canva to design checklists, Q&A printable brochures, infographics to illustrate various timelines and processes, or other helpful documents. (Check out this blog for design tips for beginners.) Or, you can simply visit our free Resource Library and download what you need.

Baby boomers

It’s no secret that the majority of baby boomers are looking to downsize, and as an agent, this presents a significant opportunity to enter a growing real estate niche that has room for all.

CNBC reports that according to the Retirement Income Institute at the Alliance for Lifetime Income, in the years between 2024 and 2027, 11,200 US residents are estimated to turn 65 every day—that’s more than 4.1 million every year. The US Census tells us that by 2030, all baby boomers will be 65 years or older. And in 2024, NAR reported that 35% of homebuyers and 51% of home sellers were 59 years and older.

This population will have a vast array of requests and requirements when it comes to their housing. From income constraints to special housing needs, agents will need to be highly specialized to serve this niche well. Agents working with retirees are well advised to cultivate a network of referral agents in states popular with this group. You’ll also want to be friendly with the managers in your area’s retirement communities, and make a point of being a presence in various senior centers. Offer to present educational seminars to members about relevant real estate topics.

You can keep your name top of mind with these important connections, highlight your professionalism, and stay within easy reach for referrals by sending each a free subscription to your own personally branded magazine. It’s classy, impressive, and of the highest quality in all ways (and each issue costs less than a Hallmark card!)

Investors

For agents, cultivating investor relationships can mean consistent transactions and a powerful network for long-term growth.

Unlike typical homebuyers, investors often buy and sell properties regularly. This leads to steady, repeat business that you can nurture into a reliable client base. They also tend to have multiple properties in their portfolios and seek new opportunities frequently. Working with them can increase your transaction volume, boosting revenue and, for rookies, your experience.

This niche represents buyers who are generally well-informed, financially prepared, and motivated by returns, making the sales process faster and more efficient. Agents often face fewer emotional hurdles with investors, streamlining negotiations and closing.

Investors are also typically well-connected in the industry and know other investors. Helping them achieve their goals can lead to valuable referrals and new client introductions.

Take action

With nearly three million licensed real estate agents in the US, finding a way to stand out is critical. Choosing a niche market allows you to distinguish yourself, hone specialized skills, reduce competition, and build a reputation as an expert in your chosen area. If selecting a niche seems like a strategy you’d like to explore further, do a deep dive into the specifics of your market to determine which niche—whether it’s one of these five or another—has the potential to help you reach your goals.