Journal of Real Estate Finance and Economics, 25:1, 51¡À65, 2002 # 2002 Kluwer Academic Publishers. Manufactured in The Netherlands.
Technology and Realtor1 Income
JOHN D. BENJAMIN Kogod School of Business, American University, 4400 Massachusetts Avenue, NW, Washington, DC 20016, USA E-mail: jbenj@american.edu G. DONALD JUD Bryan School of Business and Economics, University of North Carolina at Greensboro, Greensboro, NC 27412-5001, USA E-mail: juddon@uncg.edu KEVIN A. ROTH National Association of Realtors1, 700 Eleventh St. NW, Washington, DC 20001, USA E-mail: kroth@realtors.org DANIEL T. WINKLER Bryan School of Business and Economics, University of North Carolina at Greensboro, Greensboro, NC 27412-5001, USA E-mail: dt_winkler@uncg.edu
Abstract
The ever-expanding use of the Internet and various other information technologies may directly impact the income levels of the real estate brokerage community. With a database of more than 6,000 usable observations from the 1999 National Association of Realtors1 member prole, we examine the impact of technology usage on the incomes of Realtors1. In a two-step procedure, we rst develop factor loadings, using factor analysis, for multifaceted technology usage by Realtors1. Then we perform a regression analysis of Realtors1 income incorporating a variety of independent variables representing licensee (brokers and salespersons) demographics and brokerage rm characteristics as well as the factor score for technology usage. Our results show that the use of the Internet and other information technologies is positively related to the earnings of Realtors1. In a second regression analysis, we use our technology factor score to determine which of a variety of individual Realtor1 demographic and brokerage rm characteristics are more related to technology usage than other characteristics. We nd that technology usage increases with schooling, number of rms for which the agent has worked, marriage, franchise afliation, rm size, ownership interest, and hours worked. By contrast, technology usage falls with age, and usage is lower for females and nonwhites. The results of this paper expand our knowledge concerning familiarity with and use of real estate technology and related income. Key Words: Internet, earnings, realtors, technology, income, e-mail, web, broker, brokerage

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