Real estate agents and brokers, 2023

Released: 2025-01-28

Operating revenue in the real estate agents and brokers industry falls in 2023

The Canadian residential real estate market continued to face challenges in 2023 in the wake of lower home sales activity, contributing to an operating revenue decline of 16.6% to $17.6 billion in the real estate agents and brokers industry.

The Bank of Canada policy interest rate increased from 4.25% in December 2022 to 5.00% in July 2023, dampening home sales throughout 2023 as borrowing costs remained elevated.

Declines in operating revenue were seen across all provinces in 2023. Ontario (53.7%) continued to account for the largest share of operating revenue nationally, although operating revenue was down 18.2% from a year earlier to $9.4 billion in 2023.

Operating revenue in the second-largest contributing province, British Columbia (16.1% of the total share), showed a similar decrease of 17.6% to $2.8 billion during the same period. Quebec (-14.3%) and Alberta (-12.4%) followed the same downward trend.

Operating expenses in the real estate agents and brokers industry declined 12.9% to $12.6 billion in 2023.

Subcontract expenses, which include commission expenses paid to other brokers, continued to make up the largest portion of total operating expenses, at 33.9% in 2023. This share saw its second annual decline, down from 42.4% in 2021.

Conversely, the proportion of advertising, marketing, promotion, meal and entertainment expenses increased for the second consecutive year, from 7.4% of total operating expenses in 2021 to 9.1% in 2023. This partially offset the decline in the share of subcontract expenses. The operating profit margin also decreased, from 31.2% in 2022 to 28.1% in 2023.

Looking ahead to 2024

Operating revenue in the real estate agents and brokers industry should experience a shift in 2024, as real estate associations reported some increases in home sales and home prices across most provinces during the year.

Following a period of rate hikes, the Bank of Canada cut its policy rate from 5.00% to 3.25% by the end of 2024, easing homeownership costs in Canada.

A more detailed look at how these factors influenced the real estate agents and brokers industry in 2024 will be provided when data from the next annual survey become available.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).