The U.S. real estate industry is witnessing a seismic shift as Compass Inc. and Anywhere Real Estate Inc. move forward with a proposed $1.6 billion merger that would unite the nation’s two largest brokerages. Announced last week, the deal has already sent ripples through the industry, dominating headlines and prompting both optimism and concern from agents, analysts, and shareholders alike.
According to NPR, the merger will combine Compass’s regional strength with Anywhere’s powerhouse national brands—including Century 21 and Coldwell Banker—creating a sprawling network of approximately 340,000 agents. The combined company is expected to be valued at $10 billion, a testament to the scale and ambition of the agreement. The merger, pending shareholder and regulatory approval, is set to finalize in the second half of 2026.
The fine print of the merger agreement, as detailed in a Globe Newswire release from Brodsky & Smith, reveals that each share of Anywhere common stock will be exchanged for 1.436 shares of Compass Class A common stock. This exchange rate pegs the value of Anywhere shares at $13.01 apiece, based on Compass’s 30-day volume-weighted average price as of September 19, 2025. Once the dust settles, current Compass shareholders will own around 78% of the new entity, while Anywhere shareholders will hold about 22%.
But not everyone is celebrating. Brodsky & Smith, a national litigation law firm, has launched an investigation into whether the Anywhere board breached its fiduciary duties to shareholders by failing to conduct a fair process and adequately evaluate the deal’s value. The firm is inviting shareholders to reach out with concerns, a reminder that even in headline-making mergers, legal scrutiny is never far behind.
The deal’s announcement came at a time when the real estate market is showing signs of strain. As reported by Inman, sales have slowed to an annualized rate of 4 million homes in 2025, according to a recent National Association of Realtors (NAR) report. Inventory remains tight, home prices are elevated, and mortgage rates—though expected by Fannie Mae economists to dip below 6% next year—are still high compared to the pandemic-era lows. Against this backdrop, the industry is seeing a wave of consolidation, with larger firms gobbling up market share and smaller brokerages feeling the squeeze.
The merger is just the latest in a series of headline-grabbing moves. Earlier this year, Rocket Companies, the parent of Rocket Mortgage, announced acquisitions of both Redfin and Mr. Cooper, further concentrating power in the hands of a few major players. In 2024, Compass, Anywhere, and eXp Realty together accounted for 17% of total U.S. sales volume, and the top 10% of brokerages represented a staggering 42% of the market.
Compass CEO and founder Robert Reffkin struck an optimistic tone in his public statement, emphasizing that the merger would preserve the independence of Anywhere’s brands while creating "a place where real estate professionals can thrive for decades to come." Anywhere CEO & President Ryan Schneider echoed this sentiment, saying, "We have a unique opportunity to utilize the incredible breadth of talent across our companies, especially our world-class agents and franchisees, to deliver even more value to home buyers and home sellers across every phase of the home buying and home selling experience."
Industry experts, however, are divided on what the consolidation means for consumers and smaller brokerages. Tomasz Piskorski, a real estate professor at Columbia Business School, told NPR, "On one hand, bigger firms can wield monopoly power, limiting transparency and raising the risk of monopolistic practices. On the other, scale brings efficiencies—technology adoption, cost savings, and potentially lower fees—that can benefit consumers." He also noted that U.S. real estate commissions, typically around 5% to 6%, are about double the global average, but expects that technological innovation and regulatory pressure could drive those fees down over time.
Peng (Peter) Liu, a professor of real estate and finance at Cornell University, sees benefits for both consumers and agents. "Both consumers and agents can switch firms readily, with households enjoying a wide range of options," Liu said, highlighting the continued presence of local brokerages, discount models, and tech-driven iBuyer platforms. Still, he acknowledged that the scale of the merged company would offer sellers wider reach, stronger databases, and advanced technology.
For small, independent brokerages, the outlook is less rosy. Jack McCabe, CEO of McCabe Research and Consulting, warned that the trend toward consolidation is forcing many smaller firms out of the market. "Some will be pushed out of business; others will join the big firms because they really have no choice," McCabe said. He likened the current environment to the aftermath of the Great Recession, when hundreds of banks were absorbed by a handful of major players. "Compass only started in 2012, and now—just 13 years later—they could become the largest brokerage in the world. That's remarkable."
Despite these concerns, the combined Compass/Anywhere entity would still control less than 20% of the market, leaving room for competitors like eXp Realty, RE/MAX, Berkshire Hathaway HomeServices, and Redfin to challenge their dominance. The rapid pace of change is also driving innovation. Piskorski pointed to the "Holy Grail" of digital closing—where buyers could reserve a home, see appraisals and titles instantly, get loan offers, and close in days rather than weeks—as an example of how technology could reshape the industry, even as it raises barriers for smaller firms.
Meanwhile, agents and consumers are navigating a market in flux. Inman reports that new agents are entering the industry with optimism, buoyed by a surprising 20.5% jump in new home sales that reversed a downward trend in 2025. The cash offer pioneer is rolling out a national "Buy Before You Sell" bridge financing program, and economists at Fannie Mae are more upbeat about growth and less worried about inflation than their counterparts at the Mortgage Bankers Association.
Yet, challenges remain. The National Flood Insurance Program is set to lapse on September 30, 2025, and key federal agencies involved in mortgage processing face staff reductions. In Los Angeles, the United to House LA (ULA) tax continues to weigh on the housing market. And, as Inman notes, real estate agents are being urged to focus on branding, lead management, and protecting client data to stay competitive in an industry where change is the only constant.
As the Compass-Anywhere merger moves forward, the industry will be watching closely to see whether the promises of efficiency, innovation, and opportunity are realized—or whether the tide of consolidation leaves too many behind.
