Boundaries Article March 2025
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As part of my role with ARELLO, it is important that I keep a finger on the pulse of the latest industry trends and emerging conversations shaping real estate. For our members and leadership, staying ahead of these shifts isn’t just beneficial—it’s essential. The topics driving discussions today often influence regulatory decisions tomorrow, starting at the local level, moving through state legislatures, and ultimately reaching Congress. With that in mind, here are a few key issues that have been top of mind for me this past month.
1. The Rise of Gen Z in Real Estate: A New Challenge for Regulators
With a growing number of Gen Z professionals entering the real estate industry, regulators must consider how licensing standards, education requirements, and ethical expectations align with this tech-savvy and social media-driven generation. Are current licensing exams and continuing education programs preparing them adequately? Additionally, regulators may need to address new compliance risks stemming from digital marketing and non-traditional lead generation tactics.
2. Commercial Real Estate’s Shift Toward Residential: What It Means for Oversight
As commercial property investment declines and shifts toward residential developments, regulators may see an increase in real estate transactions, property management disputes, and licensing needs in the residential sector. Are regulatory frameworks prepared for this shift? Does licensing need to evolve to accommodate professionals moving between commercial and residential real estate?
3. Consolidation in the Commercial Property Sector: Implications for Regulation and Consumer Protection
The growing trend of consolidation among commercial real estate firms could create challenges in oversight. Regulators may need to monitor whether mergers and acquisitions lead to reduced competition, conflicts of interest, or increased risks for consumers. Should states consider enhanced reporting requirements for large firms controlling significant portions of the market?
4. ARELLO’s Recognition of Excellence in Fair Housing Education: How Can States Encourage More Participation?
Fair Housing was a big piece of the recent ARELLO webinar that we co-hosted with Zillow regarding the rise of Private Listing Networks (PLNs). While I will save the discussion on the rise of PLNs until after we host another panel at our Mid-Year Meeting next month, I think it’s important to highlight the importance of fair housing laws in all of our education and programs. In 2024, ARELLO recognized four recipients for our esteemed Fair Housing Awards: The CE Shop, Neil Garfinkel, Nea Maloo, and the Texas Real Estate Commission. State regulators should assess whether their licensees are meeting the highest standards in fair housing compliance. Should states mandate more rigorous fair housing training? How can regulators encourage real estate schools to adopt best practices in education delivery?
5. Preparing for the ARELLO 2025 Mid-Year Meeting: A Must-Attend for Regulators
As I teased above, there are some really great hot topics being discussed at the upcoming ARELLO Mid-Year Meeting in San Diego. It will be a key opportunity for regulators to discuss how changing market conditions are affecting enforcement, consumer protection, and professional standards. Topics such as emerging business models, evolving commission structures, and technology-driven compliance challenges will be critical for state agencies to stay ahead.
Until next time,
Jessica Hickok, RCE, CAE
ARELLO® Chief Executive Officer
