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2023
Real Estate Industry Trends Report
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59% of Canadians
EXPERT EVALUATION
Elton Ash, Executive Vice President
RE/MAX Canada
“Government implemented measures to reduce risk to the country’s housing markets, including the much-maligned stress test, have also gone a long way in maintaining the overall health of the Canadian market. The housing market in Canada has a reputation for stability relative to other international markets, and prudent policy plays a substantial role.”
Christopher Alexander, President
RE/MAX Canada
of Canadians worry about the rising cost of living and inflation. These were the highest-ranking concerns.
25%
of Canadians are concerned about the lack of affordable housing in their community.
34%
Amid a fluctuating economic environment, RE/MAX Canada examined how key economic and transactional trends are likely to impact Canadian homebuyers and sellers, the real estate industry and the broader economy in 2023.
25%
of Canadians worry that the rising cost of rent will impact their ability to save for and buy a home.
Impacts Beyond the transaction
Beyond the direct implications that housing affordability and supply challenges may have on Canadian homebuyers and sellers, such factors can have a trickle-down effect on the real estate industry and the broader economy. According to Statistics Canada, the share of contributions from the Real Estate and Rental and Leasing (RERL) sector to Canada’s gross domestic product (GDP) has grown considerably in the last two decades, with up to one in five GDP dollars now generated from RERL in some provinces. Nationally, RERL is the largest contributor to the Canadian economy, at 13.5 per cent.
On the other hand said they have at least one concern related to their home-buying or selling journey in 2023. These factors are top of mind:
Canadians & home ownership
Among those who may be interested in buying/selling in 2023, the housing market moderating and regaining balance is the greatest cause for optimism.
Hover over the icons to get more insight.
Homebuyer sentiments
Looking forward, Canadians believe the following will be factors in their real estate journey.
of Canadians believe that addressing the affordability and supply crisis should be among the most important priorities for governments across the country.
66%
of Canadians feel that removing zoning and development red tape is a key measure to improve housing supply and something they hope will continue to expand.
41%
Adapting to changing market conditions
Elton Ash, Executive Vice President
RE/MAX Canada
“Our severe lack of supply seeps into almost every facet of the lives of Canadians. Not only are their housing options being impacted, but a tighter housing market may compromise job prospects, among other things, placing even greater urgency on governments and housing industry experts to address Canada’s affordability crisis. While we wait on these longer-term solutions to be implemented, Canadians should stay informed and work with experienced real estate professionals to help them navigate the challenges of affordability, neighbourhood liveability, climate risks and zoning realities, among other factors, so that they may make the best buying and selling decisions for their unique situation.”
"The impacts of Canada's housing crisis can be mitigated, but challenges need to be tackled in a coordinated, strategic effort by all levels of government. I encourage visionary thinking and solutions that may include reforming municipal zoning laws to allow for a greater diversity of housing; expanding capacity for laneway developments; and using available land to drive housing supply in a manner that doesn’t compromise climate adaption and mitigation efforts. For that to happen, tough decisions must be made.”
RE/MAX Canada
Christopher Alexander, President
Looking beyond the transactional impacts on consumers, real estate companies and the housing industry, the challenges felt in Canada’s housing market could likely touch other industries as well. Impacts may include employers’ and companies’ ability to attract new workers, who may find it difficult to secure housing; local communities' ability to attract and retain new businesses to support economic growth due to rising office rental prices, lack of availability, and more.
Regional insights
Greater Vancouver Area
Greater Toronto Area
Edmonton
Winnipeg
Halifax
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As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
This report includes "forward-looking statements" within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
Canadians and home ownership
Those more likely to own are aged 35+, live outside of Quebec, live in a rural setting, with an annual household income of $100,000+.
61% of canadians currently own thier home.
Renters are more likely to be younger (age 18-34), live in Quebec, live in an urban setting, with an annual household income below $60,000.
32% of canadians currently rent thier home.
The trend is more common among younger Canadians (age 18-34), residents of Quebec and those who live in urban and suburban communities.
16% want to enter the market, or sell to "move up."
Homebuyers continue to see the value in properties located near public transit hubs, whether in "car-free urban" or "commuter suburban" communities.
38% said investments in public transit.
Proptech is indeed becoming an increasingly important way for the industry to connect with technologically savvy homebuyers and sellers.
47% said the use of technology in transactions.
Canadians consider this essential to their quality of life. Plans to develop the Greenbelt in Ontario has been a particularly contentious topic.
66% said protecting the environment.
Data in this report was obtained through Leger, the largest Canadian-owned full-service market research firm. An online survey of 1,554 Canadians was completed between January 20-22, 2023, using Leger’s online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.
Read the Press Release
Real Estate Industry Trends Report
2023
Amid a fluctuating economic environment, RE/MAX Canada examined key economic and transactional trends that are likely to impact Canadian homebuyers and sellers, the real estate industry and the broader economy in 2023.
The trend is more common among younger Canadians (age 18-34), and those who live in urban and suburban communities.
16% want to enter the market, or sell to "move up."
Renters are more likely to be younger (age 18-34), live in Quebec, in an urban setting, with an annual household income below $60,000.
32% of Canadians currently rent their home.
Those more likely to own are 35+, live outside of Quebec, in a rural setting, with an annual household income of $100,000+.
61% of Canadians currently own their home.
Canadians & home ownership
Among those who may be interested in buying/selling in 2023, the housing market moderating and regaining balance is the greatest cause for optimism.
These are the top-ranking "feel good" factors:
On the other hand said they have at least one concern related to their home-buying or selling journey in 2023. These factors are top of mind:
59% of Canadians
25%
of Canadians worry that the rising cost of rent will impact their ability to save for and buy a home.
of Canadians worry about the rising cost of living and inflation. These were the highest-ranking concerns.
82%
25%
of Canadians are concerned about the lack of affordable housing in their community.
Looking ahead, Canadians said they believe the following will be factors in their real estate journey.
38% of Canadians prioritize investment in public transit expansion in their home-buying journey.
47% believe technology could be more relevant in real estate transactions.
66% said protecting the environment is essential for long-term quality of life.
Beyond the transaction
Beyond the direct implications that housing affordability and supply challenges may have on Canadian homebuyers and sellers, such factors can have a trickle-down effect on the real estate industry and the broader economy. According to Statistics Canada, the share of contributions from the Real Estate and Rental and Leasing (RERL) sector to Canada’s gross domestic product (GDP) has grown considerably in the last two decades, with up to one in five GDP dollars now generated from RERL in some provinces. Nationally, RERL is the largest contributor to the Canadian economy, at 13.5 per cent.
Looking beyond the transactional impacts on consumers, real estate companies and the housing industry, the challenges felt in Canada’s housing market could likely touch other industries as well. Impacts may include employers’ and companies’ ability to attract new workers, who may find it difficult to secure housing; local communities' ability to attract and retain new businesses to support economic growth due to rising office rental prices, lack of availability, and more.
Adapting to change
of Canadians believe that addressing the affordability and supply crisis should be among the most important priorities for governments across the country.
66%
of Canadians feel that removing zoning and development red tape is a key measure to improve housing supply and something they hope will continue to expand.
41%
"The impacts of Canada's housing crisis can be mitigated, but challenges need to be tackled in a coordinated, strategic effort by all levels of government. I encourage visionary thinking and solutions that may include reforming municipal zoning laws to allow for a greater diversity of housing; expanding capacity for laneway developments; and using available land to drive housing supply in a manner that doesn’t compromise climate adaption and mitigation efforts," says Christopher Alexander, President, RE/MAX Canada. "For that to happen, tough decisions must be made.”
Adds Elton Ash, Executive Vice President, RE/MAX Canada, “Our severe lack of supply seeps into almost every facet of the lives of Canadians. Not only are their housing options being impacted, but a tighter housing market may compromise job prospects, among other things, placing even greater urgency on governments and housing industry experts to address Canada’s affordability crisis. While we wait on these longer-term solutions to be implemented, Canadians should stay informed and work with experienced real estate professionals to help them navigate the challenges of affordability, neighbourhood liveability, climate risks and zoning realities, among other factors, so that they may make the best buying and selling decisions for their unique situation.”
Regional insights
Click to Search Listings
Find a RE/MAX Agent
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
This report includes "forward-looking statements" within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
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Data in this report was obtained through Leger, the largest Canadian-owned full-service market research firm. An online survey of 1,554 Canadians was completed between January 20-22, 2023, using Leger’s online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.