The Appraiser Shortage and the Trainee Bottleneck

The appraiser shortage is one of those topics that starts arguments. Lenders say they can't get reports done fast enough in a boom. Appraisers say there's no shortage, just a shortage of decent fees. Both are describing something real. What's not in dispute is the bottleneck at the front door: getting from "I want to be an appraiser" to a license still depends on finding a certified appraiser willing to supervise you, and that's harder than it should be. This post goes through what the data shows, why the trainee path is so narrow, and what has changed, including the AQB's 2018 criteria and the PAREA path.

Key takeaways

• National Registry credential counts have fallen for years, and the people left are highly experienced.
• The trainee bottleneck is mostly economics: supervising costs time, liability and income.
• The 2018 AQB changes cut required experience hours. PAREA added a simulated path that states can accept.
• Firms that can make trainees profitable will be the ones that grow.

What the numbers show

The Appraisal Subcommittee keeps the National Registry of state-credentialed appraisers. Its annual reports show a steady decline: 94,522 credentials at the end of 2023, 91,036 at the end of 2024, and 89,618 at the end of 2025. The ASC is careful to say these are credentials, not individuals, because many appraisers hold licenses in more than one state. The actual number of people is lower.

This isn't new. Back in 2015, ASC staff wrote to the AQB that registry credentials had declined another 10% since 2010, and that various states reported trainee numbers down anywhere from 40% to 70%. In 2018, the Conference of State Bank Supervisors published a review of appraiser shortages in rural communities, noting regulators in several states reporting shortages and pointing to qualification requirements as a barrier to entry.

The people who remain have been doing this a long time. In the National Association of Realtors' 2025 survey, the typical appraiser respondent had 27 years of experience. The Bureau of Labor Statistics projects about 5,200 openings a year for appraisers and assessors of real estate over the next decade, mostly from people retiring or leaving the field, not from growth. (BLS groups fee appraisers with government assessors, so treat that as a broad signal.)

Note: "Shortage" depends on volume. In 2020 and 2021, when refinances surged, many markets felt short. When rates crossed 7% in late 2022, many appraisers were short of work instead. The long-run issue is who will be there for the next boom.

Why the trainee path is so narrow

Becoming an appraiser has three parts: education, an exam, and experience. The first two you can do on your own. The third has traditionally required a supervisor, and that's the bottleneck.

What a supervisor takes on

Under the AQB criteria, a supervisory appraiser generally must have been state-certified for at least three years, be in good standing, complete a supervisor and trainee course, and supervise no more than three trainees at once, though states can vary those rules. California's appraisal bureau, for example, publishes its trainee and supervisor requirements separately. Then the supervisor has to actually supervise: ride along on inspections, review the work, sign the reports, and accept responsibility for them.

Why many say no

Here's the honest list we hear from appraisers:

• Time. Training someone well means slower reports for months. Every report gets reviewed twice.
• Fee math. The fee doesn't go up because two people worked it. Our appraisal firm business math post walks through what that does to margins.
• Client rules. Some lenders and AMCs restrict trainee involvement or won't accept it on certain products, which limits what the trainee can work on.
• Liability. The supervisor's name and license are on every report.
• Training a competitor. After a year or two of investment, the new licensee may leave and take clients.
• Burnout. It's hard to mentor anyone when you're already behind. We wrote about that in why appraisers are burned out.

None of these are unreasonable. Together, they mean many talented people never get a start.

What's changed: the 2018 AQB criteria

The AQB took a real step in 2018. Under the criteria effective May 1, 2018:

The college requirement for Licensed Residential was dropped, and Certified Residential gained more ways to meet its college-level requirement. Certified General still requires a bachelor's degree. These are AQB minimums; states can and do require more, so always check your own state board.

Fewer hours made the path shorter. It didn't fix the supervisor problem.

PAREA: a path without a traditional supervisor

The more interesting change is PAREA, Practical Applications of Real Estate Appraisal. The AQB adopted the PAREA criteria in 2020, effective January 1, 2021, as an alternative to the supervisor and trainee model.

How it works, in short:

• You finish your qualifying education first.
• You complete a structured, largely virtual program with simulated assignments and periodic mentoring.
• You produce USPAP-compliant work products as part of the program.
• Completion can provide up to 100% of the experience needed for Licensed Residential and Certified Residential credentials.
• You still pass the national exam.

Two caveats. First, states decide whether to accept PAREA, so check yours. Second, it took time for programs to get through approval: the Appraisal Institute told Pennsylvania regulators its Licensed Residential program was approved in May 2023 and its Certified Residential program in October 2023. Check the Appraisal Foundation's PAREA page for the current list of approved programs.

PAREA doesn't replace the value of riding along with an experienced appraiser for a year. But it means a motivated person who can't find a supervisor isn't completely stuck.

The PAVE angle

The federal PAVE Task Force's 2022 action plan also took up the workforce, calling for removal of unnecessary education and experience barriers that make it hard for underrepresented groups to enter the profession. Whatever you think of the rest of the plan, the goal of a broader and younger appraiser pool is one most working appraisers share. They've just seen how hard the front door is.

If you're a trainee looking for a supervisor

Some practical advice from watching how trainees actually land spots:

1. Go where appraisers gather. State associations, coalitions, chapter meetings and CE classes. A face in a classroom beats a cold email.
2. Lead with what you'll take off their plate. Scheduling, photos, data entry, measuring help, sketching, comp research. A supervisor is more likely to say yes when you make the first months cheaper, not more expensive.
3. Be clear about your plans. If you're happy to stay as staff after licensing, say so. That answers the "training a competitor" worry.
4. Ask about PAREA acceptance in your state as a backup or a complement.
5. Learn the new report. Show up knowing UAD 3.6 and the redesigned URAR. Our UAD 3.6 complete guide is a good start. A trainee who already knows the new structure is useful on day one.

If you're an appraiser thinking about a trainee

The case for training is the case for your firm's future. Many of the busiest firms we know are built around one or two certified appraisers and a few trainees and staff. A few things make it workable:

• Split the work so each person does what they're best at. Trainees inspect, measure, photograph and gather data. You analyze, review and sign.
• Use software that handles the hand-off. You want to assign a report, see its status, and move it between people without emailing files around. Carat supports firms with roles, assignment and transfer of reports between staff and trainees, and its readiness checks catch rule problems in a trainee's draft before you start your review.
• Write down your standards. Shot lists, comment library, adjustment support. It shortens training and protects quality.
• Know your numbers. If a trainee lets you add five or ten reports a month, the math often works. If it doesn't, you'll know why.

Some appraisers also wonder whether there's any point training people if software will replace the job. We don't think so, and we explain why in will AI replace appraisers?

The long view

Every senior appraiser today got a start because someone took a chance on them. The profession will be healthier if more people get that chance, and if the people who give it can afford to. The registry numbers won't turn around on their own. They'll turn around one firm and one trainee at a time.

If you're building a firm with trainees, take a look at how Carat handles firm roles and report hand-offs.