The interplay between Calgary’s rental and resale housing markets has historically demonstrated a high degree of correlation, with fluctuations in one sector influencing the other. However, as 2025 unfolds, an anomalous divergence has emerged: resale housing inventory is critically low, fostering a competitive sellers' market, while rental inventory has expanded significantly, creating a more favorable landscape for tenants.

Analyzing the Disparity: Contributing Factors

Several macroeconomic and policy-driven factors have contributed to this pronounced imbalance:

• Prolonged Homeownership Tenure – Homeowners are increasingly choosing to remain in their properties for extended periods, limiting the availability of resale inventory and reducing transactional turnover in the housing market.

• The Rise of Investor Landlords – A notable shift has occurred wherein first-time homebuyers who have progressed up the property ladder are retaining their initial properties as rental investments, thereby reducing the supply of resale homes.

• Increased Institutional and Individual Investment – A historically tight rental market in previous years attracted substantial investment from both institutional entities and independent investors, leading to a surge in rental property acquisitions and subsequent market saturation.

• Expansion of Purpose-Built Rental Housing – Large-scale real estate investment trusts (REITs) and developers have responded to demand signals by constructing an increased number of purpose-built rental units, substantially amplifying rental supply.

Market Correction and Transitionary Dynamics

As the market undergoes this period of structural adjustment, several key developments are anticipated:

• Some investors and landlords may opt to liquidate rental properties, thereby augmenting resale supply.

• A subset of rental properties may be repositioned and converted into condominiums to meet demand from prospective buyers.

• Over time, economic forces and policy responses will facilitate a gradual rebalancing of the supply-demand equation across both market segments.

Historical Precedents and Cyclical Market Behavior

Real estate markets are inherently cyclical, shaped by economic fundamentals, interest rate fluctuations, and investor sentiment. While the current market conditions may seem atypical, similar patterns have been observed in past cycles, ultimately leading to stabilization and equilibrium. Savvy market participants—whether buyers, sellers, or investors—recognize the importance of aligning their strategies with these evolving market dynamics to optimize outcomes.

Strategic Implications for Market Participants

For stakeholders seeking to capitalize on prevailing market conditions:

• Buyers: The limited availability of resale homes necessitates a proactive approach, with well-prepared buyers securing financing and acting decisively on opportunities.

• Sellers: With resale inventory constrained, well-positioned sellers can leverage market conditions to achieve optimal pricing and favorable contract terms.

• Investors: Those with existing rental portfolios must adopt competitive pricing strategies, offer incentives, or enhance tenant experience to maintain occupancy and yield stability.

• Renters: The influx of rental supply creates a more tenant-friendly market, offering increased negotiating leverage and greater selection.

As Calgary’s real estate landscape continues to evolve, staying informed and adaptable is paramount. Whether you are considering entering the market, adjusting your portfolio, or simply navigating these shifting conditions, a strategic, data-driven approach will be key to maximizing opportunities in 2025.

Every year, thousands of people dream of becoming a real estate agent in Calgary. The promise of flexible hours, high commissions, and an exciting industry full of possibilities seems like an irresistible career path. But before you jump in, let’s take a closer look at the reality of being a Realtor in Calgary—especially when it comes to the brutal imbalance between demand and supply.

The Hard Truth: More Realtors Than Deals

A quick glance at the latest data reveals a startling truth: the supply of real estate agents far exceeds the number of actual sales happening in the market. Take a look at these numbers:

• As of early 2025, Calgary has 8,528 Realtors, including 8,229 associates and 299 brokers.

• In December 2024, only 1,319 homes were sold in Calgary.

• Even in peak months like May and June, the number of transactions barely exceeds 3,000.

This means that, on average, a vast majority of Realtors aren’t closing deals every month. If every Realtor were to get an equal share of the market (which they don’t), the numbers would still be incredibly discouraging. The reality? A small percentage of top producers dominate the market, while many agents struggle to get even a few sales per year.

The Hidden Costs of Being a Realtor

Beyond the scarcity of sales, being a Realtor comes with a host of ongoing expenses:

• Brokerage Fees – Many brokerages charge monthly desk fees, transaction fees, and other costs that don’t go away even if you’re not making sales.

• Industry Memberships – You’ll be paying annual fees to the real estate board, CREA, and other required associations.

• Marketing Expenses – Websites, business cards, social media ads, signs, and professional photography all add up.

• Education & Licensing – Initial training and ongoing professional development come with hefty price tags.

• No Steady Paycheck – Unlike a salaried job, real estate income is commission-based, meaning months with no deals mean months with no income.

The Industry's Real Business Model: Recruitment

You’d think the real estate industry would focus on helping existing agents succeed, but instead, the real money is in recruitment. Brokerages and real estate boards rely on a constant influx of new agents to sustain their revenue model. Why?

• Brokerages thrive on monthly fees – Even if an agent isn’t selling, their brokerage is still collecting fees.

• Industry associations profit from annual dues – More members mean more revenue, regardless of whether those members are making money.

This creates a cycle where new agents are constantly lured in with promises of success, only to discover that making a sustainable income is far harder than they were led to believe.

So, You Still Want to Be a Realtor?

If you’re thinking about becoming a Realtor in Calgary, take a hard look at the numbers and realities of the industry. It’s not just about selling homes—it’s about competing in an oversaturated market, managing high costs, and enduring the stress of unpredictable income.

For those who are business-savvy, relentless, and willing to put in the work, there is potential for success. But for many, the dream of real estate quickly turns into a financial and emotional drain.

Before you take the plunge, ask yourself: Do I want to sell homes, or am I just being sold on a dream?