California real estate license without REALTOR® Membership.

Colin Campbell

Sep 9

5 min read

How and why REALTOR® Membership Is Declining: For years, joining the local REALTOR® association, the California Association of REALTORS® (C.A.R.), and the National Association of REALTORS® (NAR) was considered a routine cost of doing business for many California real estate agents. But the numbers are beginning to tell a different story.

Membership at both the national and California levels has declined from the highs reached during the real estate boom, as agents face fewer transactions, higher operating costs, and increased scrutiny of every recurring expense.

For agents who only close a few transactions each year, the question is becoming increasingly simple:

Do I still need to pay all these annual dues just to keep my real estate business active?

NAR Membership Has Fallen From Its Peak

NAR experienced tremendous membership growth during the housing boom.

According to NAR's 2023 Member Profile, membership increased from approximately 1.56 million at the end of 2021 to approximately 1.58 million at the end of 2022.

Since then, membership has moved in the opposite direction.

NAR reported:

1,526,631 members as of October 31, 2024.
1,491,126 members as of September 30, 2025.
Approximately 1.44 million members in 2026.

Compared with the approximately 1.58 million members reported at the end of 2022, that's a decline of roughly 140,000 REALTORS® nationwide, or about 9%.

NAR points out that membership has actually remained relatively resilient considering the difficult housing market. Its chief economist noted in 2026 that membership above 1.4 million remains historically high.

Nevertheless, the direction is unmistakable: the REALTOR® population is smaller than it was at the market peak.

California Is Seeing the Same Pressure

California provides an especially interesting example.

As recently as 2024, C.A.R. publicly described itself as an organization representing approximately 200,000 members.

C.A.R.'s 2026 membership materials now state that the organization has approximately 185,000 members.

That's approximately 15,000 fewer members, based on those published figures.

The comparison isn't a precise year-end membership series because C.A.R. frequently publishes rounded membership figures. But it nevertheless indicates that California REALTOR® membership has moved down from the roughly 200,000-member level C.A.R. was reporting only a few years ago.

Why Are Agents Leaving?

While many agents have left the industry, but one could say the economics have simply changed.

An agent might close only one, two, or three transactions in a year while continuing to pay for some combination of:

Local REALTOR® association dues
C.A.R. dues
NAR dues
MLS fees
Lockbox or electronic key fees
Errors and omissions insurance
Brokerage fees
Technology subscriptions
Continuing education
Marketing expenses

Those costs may have been relatively easy to justify when transaction volume was high.

They're much harder to justify when an agent closes only a few transactions per year.

Being Licensed and Being a REALTOR® Are Not the Same Thing

This distinction is frequently misunderstood.

A real estate license is issued by the California Department of Real Estate.

REALTOR® is a membership designation associated with the National Association of REALTORS®.

They are not the same thing.

A California real estate salesperson can hold an active DRE license without automatically being a REALTOR®.

Likewise, depending on the MLS, brokerage and applicable rules, there can be alternatives that allow an agent to remain active in real estate without maintaining the traditional combination of local association, C.A.R. and NAR memberships.

That distinction has become increasingly important for part-time and low-volume agents.

The Rise of the Low-Volume Agent

Not every licensed agent wants to operate a traditional full-time real estate business.

Some agents have another career.

Some primarily handle transactions for friends and family.

Others work with past clients or referrals.

Some may close no transactions one year and several the following year. Some go dormant from burnout.

And some simply want to maintain an active real estate license so they're ready when an opportunity arises.

For these agents, paying thousands of dollars in recurring professional expenses can be difficult to justify.

The traditional brokerage and association structure was largely built around active, transaction-producing agents.

Today's real estate workforce is much more diverse.

Should You Park Your Real Estate License?

When expenses become too high, some agents consider putting their license into an inactive status or "parking" their license.

But that's a significant decision.

An agent may still want the ability to conduct licensed real estate activity when an opportunity arises.

Instead of asking:

"Should I give up my active license?"

A better question may be:

"Is there a less expensive way to keep my license active and continue practicing real estate?"

For many low-volume agents, there is.

A Different Brokerage Model for Part-Time and Low-Volume Agents

MLS Only Broker was created for agents who don't necessarily need the traditional high-overhead brokerage model.

The concept is straightforward:

Keep your California real estate license active with a broker while reducing unnecessary recurring costs.

This can be particularly attractive for agents who:

Close only a few transactions per year, AKA the side hustle.
Don't want to pay unnecessary REALTOR® association dues
Want to remain available for occasional clients
Have another full-time profession
Primarily work through referrals
Are considering making their license inactive because of ongoing expenses

Instead of paying like a full-time agent when you're producing like a part-time agent, choose a brokerage structure that better reflects the way you actually practice real estate.

REALTOR® Associations Aren't Disappearing

The decline in membership shouldn't be interpreted as the end of NAR or C.A.R.

NAR still has approximately 1.44 million members, making it an enormous national trade organization.

C.A.R. reports approximately 185,000 California members.

Both organizations continue to provide advocacy, education, professional standards and other services to their members.

For many full-time real estate professionals, membership can continue to provide substantial value.

But that doesn't mean the traditional membership structure makes financial sense for every licensed real estate agent.

And the declining membership numbers suggest more agents may be making that calculation for themselves.

The Real Estate Industry Is Changing

The industry increasingly includes agents who want flexibility.

They may not need a desk and work out of their automobile.

They may not need an expensive office.

They may not need dozens of technology subscriptions.

And they may not necessarily need every association membership traditionally bundled into the real estate business.

What they do need is a compliant brokerage relationship and a cost structure that makes sense for the amount of business they actually conduct.

For an agent closing zero to four transactions per year, eliminating unnecessary recurring expenses can make the difference between maintaining an active real estate business and leaving the business altogether.

Before You Make Your License Inactive, Consider Your Options

If you're a California real estate agent thinking about parking or inactivating your license because of REALTOR® dues, MLS expenses or brokerage costs, there may be another option.

MLS Only Broker provides an alternative for licensed California agents who want to stay active without the overhead associated with a traditional full-time brokerage model.

Your real estate career doesn't necessarily have to be all-or-nothing.

Stay licensed. Stay active. Reduce your overhead. And be ready when your next real estate opportunity arrives.