When you think about the economic impact of real estate, new construction probably comes to mind first. You drive by a building site, see the workers, think about the architects and engineers behind the scenes. You know those jobs exist because you can see them.

But what about resale transactions? When someone buys an existing home through MLS Systems, does that create economic activity too?

Yes. A lot of it.

According to recent research from Altus Group for the Canadian Real Estate Association, home resales are responsible for close to $46.8 billion a year in economic activity, over and above the actual transaction values.

That's not the purchase price. That's the spin-off spending that happens because of the sale.

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$97,500 Per Transaction

Each home sale transaction through MLS Systems generates some $97,500 in spin-off spending. That includes fees paid to professionals like lawyers, appraisers, surveyors, and real estate professionals. It also includes spending on appliances, furniture, renovations, and other items a purchaser may need or want for their new home.

A typical home sale will stimulate nearly $30,000 in incremental renovation spending by either the vendor, purchaser, or both. Among all spending categories, renovations contribute more significantly to the economy because it's considered a capital investment.

Think about that for a second. When someone buys a home, they're not just moving in and calling it done. They're painting, upgrading kitchens, replacing flooring, updating bathrooms. That spending creates work for contractors, suppliers, retailers, and manufacturers.

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231,500 Jobs Per Year

The additional spending creates jobs directly and indirectly in the economy. Some 231,500 jobs are generated each year, with finance, insurance, real estate, construction, and professional service sectors benefiting most from MLS Systems home sales.

That's not a small number. That's more than the entire population of cities like Saskatoon or Regina. Those jobs exist because people are buying and selling homes.

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The Study Period Matters

Altus Group analyzed the impact home transactions processed through MLS Systems have on economic activity and government revenues by studying the 2022 to 2024 period.

There's been considerable volatility in the resale market since the previous report, which was completed in 2023 and studied the 2020 to 2022 period. In response to rapid inflation, the Bank of Canada began raising interest rates aggressively in 2022. That monetary tightening cooled housing markets across Canada, apart from Alberta and Saskatchewan.

Existing home sales were down during the more recent study period compared to 2020 to 2022. But here's the thing. Even with fewer sales, the total economic impact remained significant.

Inflation, elevated home prices, and growing household incomes supported increased spin-off spending per home buyer over the study period despite the challenges of high borrowing costs and softer housing demand.

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Close to 480,300 Home Sales Annually

There were close to 480,300 home sales annually processed through MLS Systems in the study period. Collectively, some $46.8 billion in spin-off spending per year was generated by these transactions, up from $41 billion in the previous study.

Ontario, being the biggest resale market in Canada at $22 billion, accounted for almost half of that spending.

That's worth repeating. Even with fewer transactions happening, the total economic impact went up. Why? Because each transaction generated more spending. Higher home prices mean more expensive renovations. Higher incomes mean buyers spend more on furniture, appliances, and upgrades.

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Government Revenue Adds Up Too

Home sales generate significant revenue for municipal, provincial, and federal governments. Resale transactions through MLS Systems are estimated to have generated $2.5 billion in municipal revenue through land transfer taxes and development levies, and $16.8 billion in federal and provincial tax revenue.

That's $19.3 billion in total government revenue from resale transactions alone. That's not pocket change. That's funding for schools, hospitals, infrastructure, and services.

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The Lag Effect Matters

The Canadian economy continues to face headwinds in 2025, though the volume of resale transactions is generally holding up. Sales are down just 4% in the first half of 2025 over the same period last year.

But here's something important. Even if housing sales ease further, the economic impacts from recent sales will continue to provide a boost to the economy. There's a lag between when someone moves in and when they decide to undertake renovations. That means positive impacts on the economy from recent activity will continue well into next year.

You buy a house in June. You move in July. You live with it for a few months. Then in October or November, you decide to renovate the kitchen. That spending happens months after the sale closes, but it's still a direct result of the transaction.

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Why This Matters

The resale market is a huge part of the Canadian economy. It's not just about homeowners buying and selling properties. It's about all the economic activity that happens because of those transactions.

Lawyers reviewing contracts. Appraisers assessing values. Moving companies transporting furniture. Contractors renovating kitchens. Retailers selling appliances. Furniture stores outfitting living rooms. Hardware stores supplying materials.

All of that happens because someone bought a home. And all of that creates jobs, generates tax revenue, and keeps money moving through the economy.

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The Human Side of the Numbers

When you're buying or selling a home, you're not thinking about economic impact. You're thinking about your life. Where your kids will go to school. How long your commute will be. Whether the kitchen is big enough. If the backyard has space for a garden.

But your personal decision has ripple effects. The lawyer you hire to close the deal. The moving company you call. The contractor you bring in to paint before you move in. The appliance store where you buy a new fridge because the old one doesn't fit.

Each of those transactions supports someone's job. Someone's livelihood. Someone's family.

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New Construction vs. Resale

It's easy to see the economic impact of new construction. The cranes. The workers. The materials. It's visible.

Resale transactions are less visible, but the economic impact is just as real. Maybe more real, because resale transactions happen more frequently than new construction. There were close to 480,300 resale transactions annually in the study period. That's a lot of economic activity happening quietly, behind the scenes, without construction sites or cranes.

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What This Means Going Forward

As the Canadian economy faces continued uncertainty around international trade tensions and immigration policy, the housing sector remains a critical driver of economic activity.

Resale transactions aren't just about moving from one home to another. They're about job creation, tax revenue, and economic stimulus that extends far beyond the sale itself.

The next time you hear someone talking about the housing market, remember this. It's not just about prices going up or down. It's not just about affordability or supply. It's about 231,500 jobs that exist because people are buying and selling homes. It's about $46.8 billion in economic activity that happens because of those transactions.

That's the real economic impact of real estate in Canada. And it matters a lot more than most people realize.