The New York Attorney General’s office has launched an antitrust investigation into Compass, following the real estate firm’s $1.6 billion merger with Anywhere Real Estate. The probe was first flagged by The Real Deal, which reported that Compass agents had reached out to New York City brokerage leaders about the inquiry. A spokesperson for Attorney General Letitia James confirmed the investigation but provided no further details.
The merger, completed in January, was finalized months ahead of schedule. A lawyer with ties to the Trump administration helped Compass avoid a lengthy federal review, according to sources. New York, where Compass is headquartered, now hosts the largest residential real estate firm in the U.S. The combined entity, Compass International Holdings, operates with over 340,000 agents and franchisees nationwide.
Related: Albany real estate bills pass and stall
James’s office has a history of challenging policies linked to the Trump administration. Marx Sterbcow, a real estate attorney in New Orleans, said the AG’s team is likely targeting Compass due to its expanded market influence. “Anything touching the Trump Administration, they’re going to pick up,” he noted, referencing the office’s approach.
Investigators could determine whether Compass’s brands dominate certain New York markets. If so, remedies might include requiring the firm to divest franchises, reduce agent numbers, or pay fines. Blocking the merger entirely is considered unlikely, Sterbcow said. He pointed to Compass’s recent decision to end a licensing agreement with one of its affiliates in New York and the tri-state area as a possible preemptive step.
Another factor could help Compass reduce its footprint: agent attrition. Industry data shows 10–30% of agents typically leave firms within two years of a merger. Sterbcow suggested this “leakage” may naturally shrink Compass’s agent base in some areas. “They don’t have the market power today that they did before,” he added.
Related: Nykia Wright outlines NAR transparency and antitrust reset
New York lawmakers are also pushing legislation targeting private listings and broker licensing. If signed by Gov. Kathy Hochul, the private listing bill would require agents to post sale and rental listings on public platforms unless sellers agree in writing to keep them off-market. A prior version of the law had stricter rules, mandating postings within a day.
The broker licensing bill would extend the required experience for salespeople to become brokers from two to four years. Those without four years of experience would need to submit a sworn affidavit proving three years of industry work. These changes aim to raise entry barriers for new brokers.
Meanwhile, Compass’s merger has created dominant positions in key markets. Analysis by Capital Forum in 2024 found that the combined firm controlled most transaction volume in San Francisco and Manhattan. Other states, like Illinois and California, may follow New York’s lead, but Sterbcow said they’ll likely wait for the outcome of the current probe.
Related: Understanding the Basics of Rent Out Property
The most expensive sale in New York this week was a $36.3 million condo at Extell Development’s 50 West 66th Street. The unit spans nearly 4,900 square feet and includes four bedrooms, five bathrooms, and two private loggias. Amenities in the 70-story tower range from indoor and outdoor pools to a bowling alley and sports courts.
Sales for the building are handled by an in-house team at Extell, along with agents from Douglas Elliman and Corcoran. The unit’s price highlights the luxury real estate market’s resilience despite broader economic uncertainty.