PHOTO: With fewer homes being sold, many agents struggle on commission. FILE
📉 Active Licences Fall to 15,620 — Lowest Since Mid-2022
As of 31 May 2025, the Real Estate Authority reports:
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🟢 Active licences: 15,620
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⚪ Inactive licences: 3,460
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🏷️ Total registered licences: 19,080
That’s a notable decline in active practitioners compared to pre-pandemic peaks:
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In May 2024, active licences stood at roughly 15,460 rea.govt.nzportal.rea.govt.nz+10rnz.co.nz+10rea.govt.nz+10portal.rea.govt.nz+1en.wikipedia.org+1
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The absolute high of 16,902 occurred in September 2022, following a surge in new entrants rea.govt.nz
🧊 What’s Behind the Slide?
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Cooling Market Conditions
With fewer homes being sold, many agents struggle on commission — a trend RNZ notes has prompted many to scale back propertynoise.co.nz+3rea.govt.nz+3propertynoise.co.nz+3propertynoise.co.nz. -
Economic Headwinds
Rising interest rates, slower price growth, and living costs are pushing marginal licensees out propertynoise.co.nz+1propertynoise.co.nz+1. -
Post-COVID Correction
The 2020–2022 boom drew many newcomers who are now leaving or suspending licences as market conditions return to pre-boom norms rnz.co.nz+2rea.govt.nz+2rea.govt.nz+2.
📋 Licence Breakdown: Active vs Inactive
| Category | Estimate |
|---|---|
| Active licences | 15,620 |
| Inactive licences | 3,460 |
| Total licences | 19,080 |
Inactive licences are still registered but not conducting agency work — likely reflecting part-timers or licensees paused during market lulls.
🏢 Branch Managers Buck the Trend
Despite the overall fall, branch manager licences have continued to grow:
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A 21.6% increase in branch manager numbers reported to May 2024 rea.govt.nz+1rea.govt.nz+1.
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Supervision capacity is being reinforced even as salesperson numbers decline — a regulatory priority rea.govt.nz+5rea.govt.nz+5rnz.co.nz+5.
🔍 What This Means for Consumers & the Industry
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Supply-side squeeze: Fewer licensees may limit availability of agents to handle transactions — a concern as REINZ reports increasing days-to-sell in some regions reinz.co.nz.
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Pressure on remaining practitioners: Those staying face heavier workloads and must uphold high standards despite complexity rea.govt.nz+2rea.govt.nz+2rea.govt.nz+2.
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Opportunity for consolidation: Agencies with strong resources and compliance practices (e.g. robust branch management) could gain market share.
🛠️ What REA Is Doing
From its recent annual report and newsletters, the Real Estate Authority continues to:
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Push high professional and ethical standards
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Provide education, guidance and supervision frameworks
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Enhance consumer confidence — currently at record highs (88%) portal.rea.govt.nz+11en.wikipedia.org+11rea.govt.nz+11rea.govt.nz+3rea.govt.nz+3rea.govt.nz+3rea.govt.nz+1rea.govt.nz+1
The rise in branch manager licences supports REA’s focus on quality oversight, even as total numbers fall propertynoise.co.nz+2rea.govt.nz+2rea.govt.nz+2.
🎯 Final Take: A Market in Reset
NZ’s real estate profession is now in a post-boom recalibration:
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License numbers are dropping toward pre-COVID norms.
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The composition is shifting — fewer general salespeople, more qualified managers.
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The system is responding with strong oversight and educational support.
For consumers, this means a more professional environment — but potentially fewer agents and slower transaction times. For agencies, it’s a time for resilience, compliance, and strategy.
SOURCE: REA