NAR Annual Report Highlights $50M in Budget Cuts, Legal Strategy & Relationship Repair

The National Association of REALTORS® just released its 80-page 2025 Annual Report, offering the most detailed look yet at how the organization responded to legal pressure, financial strain, and fractured relationships across the industry last year.

This week on The Real Word, Byron Lazine and Nicole White dig into the report’s biggest claims and themes, including what NAR says it fixed in 2025 and what it’s promising to tackle next as it moves into year one of its 2026–2028 Strategic Plan.

Framed by NAR as a turning point, the report documents actions taken across budgeting, legal strategy, communications, and broker engagement. 

It also sets expectations for continued reform in 2026, with many initiatives still in early stages.

Read on for the highlights from NAR’s report, and tune in for the full Real Word breakdown with Byron and Nicole. 

What the Report Covers and Why It Matters

The annual report tracks progress across all 24 initiatives in NAR’s 2026–2028 Strategic Plan, each of which was launched in some form during 2025. 

Rather than focusing on transaction volume or market performance, the document centers on internal operations, governance changes, and risk management. 

NAR CEO Nykia Wright positioned the report as a starting point rather than a conclusion. 

“The work we undertook in 2025 is just the beginning.”

That framing runs throughout the report, which outlines what NAR says it changed last year and where additional work is planned in 2026.

Financial Discipline and Budget Reform

The most concrete outcomes in the report relate to financial management. Under new CFO Matthew Cenedella, NAR conducted a comprehensive review of expenses and hired an outside global firm to conduct an independent audit.

NAR reports several financial milestones from that process:

• The association delivered its second balanced budget after roughly a decade of deficit budgeting.
• Year-over-year expenses were reduced by nearly $50 million.
• Internal budgeting practices were restructured to improve transparency and accountability.

During a virtual member town hall in December, Wright described the shift in how the organization approaches spending. 

“We are being much better stewards of the money that comes through our doors and how we are developing products and services to help you get to your next transaction.”

The report also outlines a broader move toward zero-based budgeting, a system that requires departments to justify every expense annually rather than relying on historical budgets. Wright explained the reasoning behind that approach. 

“That essentially means every year the budget starts back at zero,” she says. “That way there isn’t a set it and forget it” with vendors, etc.

NAR says it plans to move further toward this budgeting model in 2026.

Time will tell what that means for NAR’s annual marketing spend, including its longstanding arrangement with Havas Marketing Group. 

Broker Engagement and Relationship Repair

Another central theme in the report is relationship repair, particularly following tensions tied to the Sitzer/Burnett settlement and its financial impact on brokerages.

At the start of 2025, Wright appointed Sherry Chris and Jarrod Grasso to newly created leadership roles focused on re-engaging brokerages, MLSs, and state and local associations. Reflecting on that gap back in November, Wright acknowledged that brokerage voices had previously lacked a direct channel into NAR leadership, leaving many of those voices unheard. 

The report outlines several engagement efforts that followed:

• Nationwide travel by Wright, Chris, and Grasso to meet with partners.
• An October meeting in Chicago with dozens of brokerage CEOs representing roughly 700,000 members.
• Participation in 47 broker summits hosted by state and local associations.

NAR also shared early participation metrics. Broker Power Hour attendance increased by nearly 22% in 2025. For 2026, the association says it is targeting another 20% increase and an 85% participation rate in quarterly conversations with association executives.

Legal Strategy Changes and Litigation Outcomes

On the legal side, the report highlights a strategy reset under General Counsel Jon Waclawski, who stepped into the role in February 2025. NAR conducted a comprehensive scan of legal risks associated with its policies, which led to several changes:

• The introduction of Multiple Listing Options for Sellers (MLOS).
• 18 updates to the MLS Handbook focused on local discretion and removing outdated enforcement practices.
• Code of Ethics updates related to harassment.

On the Real Estate Insiders Unfiltered Podcast, Waclawski described the approach as more deliberate and risk-focused:  

“We’re going to be more strategic and laser-focused on the derisking aspect and what it means for the industry. Business decisions will still be made, but legal will inform them, so at least we’re knowledgeable about the risk portfolio, and the risk we’re willing to take on and that risk that we’re willing to shed.”

The report also notes that in July 2025, judges dismissed three lawsuits against NAR. Those rulings reinforced “the association’s position that its policies foster a competitive, fair and transparent housing market benefiting both members and consumers,” according to the report. 

NAR says it continues to coordinate with state and local counsel to monitor emerging legal risks.

Communication, Transparency, and What Comes Next

To address trust concerns, NAR restructured its communications strategy by consolidating member-facing content under REALTOR® News, formerly REALTOR® Magazine, and aligning member stories with public press releases. 

The report positions REALTOR® News as a central source for litigation updates and regulatory explanations.

NAR leaders also increased their public visibility. According to the report, association experts conducted more than 400 media interviews in 2025 as part of an effort to reestablish NAR as the “first voice” on industry news.

Chief Marketing and Communications Officer Bennett Richardson framed the report as a transparency milestone. 

“NAR’s 80-page annual report represents the most comprehensive and transparent accounting coming out of the association in recent history. It is a big step in the association’s commitment to be accountable and transparent, working in the spirit of collaboration with its partners to lead and to serve its members.”

For more details, click here to download the full Annual Report. 

As NAR moves into 2026, the report sets a clear expectation that this next phase will be less about outlining intentions and more about demonstrating follow-through.

That question of accountability is central to this week’s episode of The Real Word, where Byron Lazine and Nicole White walk through the report’s claims point by point. Their breakdown offers a closer look at what the data actually shows, and where open questions remain as NAR heads deeper into its strategic plan.