Why empathy is the leadership superpower real estate needs now

The qualities of great leadership are being redefined. Nowhere is this more evident than in high-stakes industries like real estate, where emotions can run high and relationships are paramount. While significant management experience or operational expertise are still important, it is the so-called soft skills that increasingly distinguish exceptional leaders. 

Empathetic leadership is about seeing the whole person, not just the role they play in your organization, and responding with genuine care and support. Beyond just seeing them, it also means encouraging your real estate team to bring their whole, authentic selves to work. By creating a culture of trust and support, this approach strengthens decision-making, deepens team cohesion, and builds stronger client relationships.

Empathy as a bellwether of workplace change

You may have noticed that LinkedIn has become a significantly more meaningful platform in recent years. Previously, companies broadcast slightly hollow, self-congratulatory updates and it was a useful place to learn about people’s job changes. These days, you’ll still find some of that, but you’ll also find users sharing their personal stories and struggles, discussing mental health issues, and generally engaging in more authentic conversations. They’re also listening, offering support, and building relationships based on shared experiences.

Those more empathetic conversations reflect a significant shift in workplace culture. When our homes became our offices in 2020, we could no longer ignore the other 16 hours that make up everyone’s day. This welcome change has resulted in flexible work schedules that honor parents’ need to pick up their kids from school or stay home when they’re sick. Remote work has allowed us at The Agency to maintain continuity in a role and keep a valued team member who moved to Canada to get married, and to hire an experienced marketer based in Hawaii. 

Why we need empathetic leadership now

The need for empathetic leadership is more urgent than ever. The Harvard T.H. Chan School of Public Health and The World Health Organization have highlighted significant declines in Americans’ mental health in recent years. Our colleagues are facing economic pressures, incivility online, technological disruption, and social justice issues, among other factors, and all of these contribute to heightened stress and uncertainty. 

Couple these with the fact that real estate can often be an isolating profession. Brokerage leaders need to acknowledge these pressures, as well as the unique stressors that come with commission-based work and a fluctuating real estate market.

A playbook for empathetic leaders

Here are some of my favorite ways to lead with empathy. Schedule regular one-on-one check-ins, practice active listening in meetings, ask open-ended questions, and validate your team’s responses without judgment. A supportive environment where agents and staff feel comfortable sharing concerns, feedback and ideas often surfaces valuable perspectives that can inform smarter, more inclusive business decisions.

A hallmark of empathetic leadership is emotional intelligence. Seek out training or read some books about mindfulness and self-awareness so you can recognize your own stress responses in high-pressure situations. Your willingness to be vulnerable and share your own experiences and setbacks can also encourage trust and openness.

Provide mentorship through informal lunch-and-learns and make it a point to recognize collaborative wins alongside top sales to reinforce the value of teamwork. Leading with empathy is about more than being kind and thoughtful—it’s about creating a culture where everyone feels valued, heard, and empowered to contribute their best. And when they do, it results in better business outcomes.

Finally, a deep understanding of the challenges your agents are facing—especially in a client-facing industry like real estate, where they’re dealing with high-value, high-stakes transactions, is mission critical. By showing your team that you truly empathize with them with their day-to-day struggles, you can position yourself to proactively support them through difficult transactions, tricky negotiations or when dealing with demanding clients.

By modeling empathy, you’re likely to influence how your agents and employees, in turn, respond to clients’ needs. Client relationships can be strengthened with these soft skills I’ve outlined, including listening to understand, demonstrating emotional intelligence, asking open-ended questions, and surfacing their authentic motivations to inform better decisions throughout the transaction lifecycle. 

Empathy is one of the core drivers of a positive workplace culture, according to a 2024 Society for Human Resource Management (SHRM) report. If you’re just managing tasks, you really need to rethink your approach by investing in the well-being of your team. Cultivating empathy across your organization requires intentional effort and commitment. By making it a pillar of your leadership approach, you can foster resilience and help your team face today’s complex challenges, ensuring business success and a positive, inclusive culture for the long term.

Rainy Hake Austin is a brokerage leader at The Agency.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: tracey@hwmedia.com