NAR addresses DEI, hate speech and shrinking membership at midyear conference

Of the proposed changes to the policy, one would create a more specific definition of “harassment” to align the policy with NAR’s code of conduct. Another change would make it so Realtors were “encouraged” but not “required” to follow the policy in all facets of their lives. The trade group would only be able to take disciplinary action for violations that took place when the member was working as a Realtor. 

According to Sears, these proposed changes are the result of years of complaints from local Realtor associations over the ambiguity in the wording of the policy. On Tuesday, NAR’s Professional Standards Committee will consider the proposed changes. If the changes are approved, they will be considered at the board of directors meeting on Thursday. 

“We were already aware of some issues that were percolating because of Standard of Practice 10-5 and because of that, last summer, we began the conversation about ‘OK, well, what do we need to do in order to help solve the problem [and] remove some liability, not only for our local associations, but for our volunteer leaders?’” Sears said.

NAR CEO Nykia Wright also addressed the rumors that she has dismantled the organization’s DEI programs.

“I don’t know if people see my complexion and recognize me as a woman,” Wright said to laughter from attendees. “But that could not be further from the truth. What we are continuing to do internally is make sure that we have the best-in-class staff to get us through today’s transactions and tomorrow’s transactions.”

All of the proposed changes are tied to efforts by Jonathan Waclawski, NAR’s new general counsel, to “de-risk” the organization’s portfolio.

“You should be able to come to NAR to understand what the de-risking of the portfolio is, not listening to chatter out there, swapping ignorance on social media, but understanding exactly what we are doing,” Wright said.

Financial concerns

In addition to these initiatives, Wright and Sears also addressed NAR’s shrinking budget.

In 2025, the trade group budgeted for just 1.4 million members, cutting nearly $20 million in expenses as a result. In 2026, NAR is projecting a $32 million decline in revenue as membership is projected to fall to 1.2 million members. Due to this, Wright said the organization needs to focus on picking its “bets.” 

According to Wright, 2024 marked the first time in at least the past decade that NAR managed to balance its budget. But with it expected to become even tighter, she acknowledged that the organization will not be able to do everything everyone wants.

“Kevin has always said that everything has to be affected in an equitable fashion, but we’re not going to cripple anything,” Wright said. “Fair housing, DEI has not been crippled. We are just trying to be more strategic and talk to stakeholders and understanding how we are placing our bets.”

Sears added that NAR needs to be able to maintain the products, tools and services that members have come to expect. Despite the projected drop in revenue, Sears said that NAR will not be raising dues after conversations with leaders at large brokerages left out of the group’s commission lawsuit settlement.

“Unfortunately, as part of the settlement, there was a carve-out of approximately 92 or 96 brokerages, and so they’ve had to negotiate their own settlement, and rightfully so, they’re upset now,” Sears said. “We broke their trust overnight, and now we are slowly trying to rebuild it. One thing we heard loud and clear is: ‘Don’t increase dues. We can’t do it on our end. You shouldn’t do it on your end.’”

To meet its next $72 million settlement payment that’s due in February 2026, Wright and Sears said NAR will take roughly $10 from its $45-per-member special assessment for its consumer ad campaign.

The trade group is allowed to do this due to a motion approved at NAR NXT in November 2024. It allows advocacy and consumer advertising campaign reserves to “be used to fund NAR’s settlement obligations.”

While this move means fewer funds will be available, more than 20 state Realtor associations have their own consumer advertising budgets. 

“So what we should be doing is leveraging the three-way agreement and working together to make sure … we are managing that at the local level, and that we are able to provide resources where we need them to be,” Wright said.

Three-way membership

NAR continued to stress the importance of its three-way membership agreement — which is currently under fire through several lawsuits — in a presentation by Jarrod Grasso, the trade group’s senior vice president of industry relations. 

“Local associations: They are the boots on the ground. They’re the main point of contact. They are the foundation of our organization, and I wanted to make sure that I emphasize key components of what they do to bring value to the membership,” Grasso said.

“State associations back up those local associations, provide enhanced value, but also have strategic partnerships when it comes to our lobbying efforts on specific state issues. The National Association of Realtors: We bring more value and connect all three levels.” 

Looking ahead, Wright said she wants NAR to be the “base camp of the industry.” 

“Regardless of what company you work for, at the end of the day, you should always be able to come back to NAR and understand how you can move to your next company, how you can move to the next tier in terms of profitability, how you can start your own brokerage. … That is the true north,” she said.