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The Canadian real estate sector is experiencing a dramatic contraction, with thousands of realtors either exiting the industry or scaling back their operations amid a notable decline in home sales across the nation. Once perceived as a lucrative career choice, the profession is now grappling with a downturn that has prompted seasoned agents and newcomers alike to reassess their futures.
A Market in Decline
After years of robust activity, the Canadian housing market has entered a prolonged slump, leading to a stark decrease in transactions. According to the Canadian Real Estate Association (CREA), home sales plummeted by 30 per cent from their peak in 2021 to the previous year, affecting every province. Ontario and British Columbia recorded the most severe declines, with sales down by 40 per cent. In response, many real estate professionals are leaving their positions or shifting to alternative careers.
Debbie Cosic, the founder and CEO of In2ition, a Mississauga-based brokerage, has felt the impact firsthand. Previously, her firm sold approximately 3,000 preconstruction condos annually, but that figure dropped to just 800 last year. Faced with this significant downturn, Cosic was compelled to streamline her operations, reducing her workforce from 150 employees to around 50. “We trimmed staff because builders were not launching,” she explained. The reduced demand for high-rise condos has forced her to pivot towards houses and rental-only apartment buildings, a shift that has reshaped her business model.
The Changing Landscape of Real Estate Careers
The fallout from the housing slump is evident in the statistics. At the close of last year, Ontario had 84,798 licensed realtors, marking a 1.3 per cent decline from 2024 — the first decrease in eight years, according to the Real Estate Council of Ontario (RECO). The number of provisional salespersons, or early-career realtors, has also dwindled, falling by 24 per cent from the previous year. In contrast, the market saw nearly 20,000 new entrants in 2022, highlighting the dramatic shift in sentiment as the industry grapples with a less favourable economic environment.
Phil Soper, president of Royal LePage, attributes this decline to the high overhead costs associated with maintaining a real estate licence. “In boom times, the industry attracts many aspirational new agents,” he noted. “But when they face association fees and professional insurance costs without making sales, it becomes financially unviable.”
Individual Stories of Transition
Realtor Larry Cunliffe, who had been part of a boutique brokerage in Ottawa, decided to step back from the profession due to a confluence of factors. As the real estate landscape changed, his brokerage began winding down operations, and new requirements for extended health insurance added financial strain. At 74, Cunliffe found the costs associated with maintaining his licence — approximately £4,000 per year — unsustainable. After years of dedication, he “parked” his licence in August 2025, allowing him to retain his credentials without the associated expenses.
Similarly, John Papaloni, a realtor in Toronto, also chose to depart from the field after experiencing burnout. Having entered the market in 2016, he thrived during the city’s real estate boom but found himself overwhelmed by the relentless pace of the job. With annual costs reaching £7,000, including multiple board fees and insurance, the demands became insurmountable. After a minor surgery in 2024, he opted not to renew his licence and instead launched a media business specialising in real estate photography and videography.
A Broader Economic Impact
The decline in real estate activity is not just a concern for individual agents; it poses a broader threat to the Canadian economy. The Bank of Canada has indicated that the housing slump could hinder economic growth in the country. The impact reverberates through various sectors, from construction to retail, as fewer home sales translate into diminished consumer spending and investment.
Despite these challenges, many industry veterans maintain a positive outlook on the profession. Cosic remains optimistic, asserting that there are opportunities for growth as developers prepare to launch new projects. “There’s a silver lining,” she stated, highlighting the potential for recovery as market conditions improve.
Why it Matters
The exodus of realtors from the Canadian market signals profound changes within the industry, reflecting broader economic vulnerabilities. As fewer professionals engage in real estate, the repercussions are likely to extend beyond job losses, potentially stifling economic regeneration and growth. Understanding this trend is crucial for stakeholders, policymakers, and aspiring agents who must navigate the evolving landscape of Canadian real estate. The situation underscores the need for adaptive strategies and innovative approaches to sustain a viable and thriving real estate market.
