Operating revenue for Canada's real estate agents and brokers industry group fell from a record high of C$26.7B in 2021 to C$20.9B in 2022, profit margin down from 36.5% to 31.3%; Ontario accounted for 55.0% of total operating revenue: Statistics Canada

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OTTAWA , January 29, 2024 (press release) –

Canadian real estate agents and brokers industry operating revenue falls in 2022 from record level in 2021
Operating revenue in the Canadian real estate agents and brokers industry fell by over one-fifth (-21.8%), from a record high of $26.7 billion in 2021 to $20.9 billion in 2022.

Higher borrowing costs dampened existing home sales through 2022, as the Bank of Canada raised the policy interest rate seven times, going from 0.25% in January to 4.25% in December. This also contributed to a downturn in the commercial real estate market in 2022. Despite the decline, the operating revenue of the industry was 34.5% higher than before the COVID-19 pandemic in 2019.

Large declines in the industry's operating revenues were seen in almost all provinces in 2022. Ontario, which accounted for the largest share of operating revenue nationally (55.0%), fell 25.9% to $11.5 billion in 2022. Revenue was also down in British Columbia (-27.3%) and Quebec (-14.5%) from 2021. By contrast, Alberta was the only province to post an increase in operating revenue, growing 5.0% from 2021 to 2022, fuelled by strong increases in home sales and prices in the first quarter of the year.

The industry's operating expenses declined by 15.4% from 2021 to 2022. Subcontract expenses, which include commission expenses paid to other brokers, continued to make up the largest portion of total operating expenses (37.6%). The operating profit margin decreased from 36.5% in 2021 to 31.3% in 2022, because operating revenues declined at a faster pace than operating expenses.

The real estate agents and brokers industry is expected to continue facing challenges in 2023
Operating revenue in the real estate agents and brokers industry is expected to continue to decline in 2023, as most real estate associations reported continuing weakness in both residential home resale transactions and home prices across Canada. The industry also faced affordability challenges because the cost of borrowing continued to increase in 2023. Commercial real estate transactions also trended lower in major markets throughout most of the year. A comprehensive look at how these factors shaped the real estate agents and brokers industry in 2023 will be provided when data from the next annual survey become available.

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  Note to readers
Data for 2020 and 2021 have been revised.

These and other data related to business and consumer services can be found at the Business and consumer services and culture statistics portal.

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