California’s real estate market is evolving, and the latest licensing data from the state's Department of Real Estate (DRE) reveals critical trends. From shifts in broker numbers to changing patterns among salespersons, here’s a concise overview of what industry professionals and aspiring licensees need to understand.

Broker Licenses: Continued Decline Observed

Broker numbers have steadily decreased. The licensed broker population dropped from 123,316 in July 2024 to 121,920 in February 2025, reflecting a notable decrease of 1,396 brokers (-1.1%). Compared to the previous year, the number is even more pronounced, with February 2025 showing nearly 2,806 fewer licensed brokers. This ongoing decline suggests fewer brokers entering the industry or increased retirements and exits.

Salesperson Licenses: Slightly Decreasing but Generally Stable

The salesperson population remains fairly stable, though still declining slightly month-by-month. Numbers fell modestly from 309,461 in July 2024 to 308,284 by February 2025, marking a modest reduction of about 0.4%. The minor but consistent decreases indicate a cautious market approach among potential salespersons.

Total Licensees: Mild Overall Decline

When combining brokers and salespersons, California's total licensee population experienced a moderate dip, decreasing from 432,777 in July 2024 to 430,204 in February 2025, a loss of 2,573 licenses (-0.6%). Year-over-year comparisons further confirm this decline, showing a loss of 5,679 licensees from the previous year, underscoring a slow contraction of market participation.

New Licenses Issued: Volatility and Decreased Interest

Original Broker Licenses: Monthly Volatility with a Downward Trend

The monthly issuance of new broker licenses was notably erratic, reaching a high of 358 in October 2024 and dipping to a low of 193 in December. By February 2025, issuance stabilized at 232 new licenses, highlighting a clear 19% drop from the July 2024 level, indicating market volatility or uncertainty deterring new entrants.

Original Salesperson Licenses: Significant Annual Decline

Although monthly issuance figures for salesperson licenses between July 2024 (1,305) and February 2025 (1,274) showed minor fluctuations, the annual comparison reveals a substantial 40% decrease compared to February 2024. This sharp drop suggests shifting interests or less attractive market conditions influencing new entrants.

Examination Administration: Mixed Trends

Broker Exam Participation: Fluctuating but Stable Annually

Broker exams administered saw monthly fluctuations, from a low of 1,714 exams in November to a high of 2,501 in January 2025. By February, this number settled at 2,078, down 5.8% from July 2024. Year-over-year stability suggests continued but cautious interest in broker licenses.

Salesperson Exam Participation: Stable Engagement

Salesperson examinations maintained relative stability, fluctuating between 3,064 in November 2024 and peaking at 4,599 in July 2024. By February 2025, exam administrations were at 4,353, slightly below the July peak but marginally higher year-over-year, indicating stable interest despite fewer licenses issued.

Overall, California’s real estate licensing data indicates cautious optimism combined with selective engagement. Professionals entering the field should remain prepared for a competitive landscape influenced by evolving industry dynamics.