The Competition Bureau of Canada has expanded its investigation into potential anti-competitive conduct in the real estate sector to include Greater Vancouver REALTORS, the organization representing more than 15,000 real estate professionals in the region. The probe, which began in 2024 with a focus on the Canadian Real Estate Association (CREA), examines whether commission rules requiring sellers to offer compensation to buyers' agents through Multiple Listing Service systems may contravene abuse of dominance provisions under the Competition Act. The bureau is investigating concerns that current rules discourage price competition among buyers' agents and encourage "steering" practices where agents prioritize properties offering higher commissions, potentially inflating costs for home sellers across Canada's hottest housing markets.

Research from the Fraser Institute suggests this investigation reflects broader concerns about government-created barriers to competition across multiple sectors of the Canadian economy. According to the Institute's analysis, "eliminating government-created barriers to competition (e.g. restrictions on foreign businesses, state-owned monopolies and regulatory barriers to entry)" should be prioritized over increased government intervention. The think tank has consistently argued that promoting greater competition within markets could help lower costs of goods and services and improve economic outcomes, positioning the Competition Bureau's real estate investigation within a larger framework of market liberalization efforts needed across Canada.

The Fraser Institute's research specifically addresses Vancouver's housing affordability crisis, identifying regulatory barriers as key contributors to restricted supply and elevated prices. In examining barriers to housing construction, the Institute found that Vancouver imposes substantially higher regulatory costs and longer approval timelines compared to neighbouring municipalities, with Burnaby having timelines 14 months shorter and regulatory costs averaging $16,000 per unit. The organization's broader analysis demonstrates that regulation of residential development restricts housing supply, encouraging growth of prices and distorting local economies. This research suggests that while commission structures affect transaction costs, the more fundamental issue facing Vancouver homebuyers involves supply constraints created by land-use regulations, development fees, and lengthy approval processes that restrict new construction even as demand continues growing.

The Fraser Institute recommends comprehensive reforms extending beyond commission structures to address Canada's housing affordability challenges. Their policy framework emphasizes removing regulatory barriers to make it easier and more financially attractive to construct new homes, which would, over time, put downward pressure on housing prices. For Vancouver specifically, the Institute advocates reducing onerous barriers holding back supply of new homes and updating zoning regulations to allow more diverse housing types, though noting such measures alone represent only a starting point. The think tank's analysis concludes that Canadians should think about housing affordability not just in terms of housing supply but as part of a broader economic challenge—one that also depends on growing the economy, increasing savings and investment, and limiting how much governments take in taxes, suggesting the Competition Bureau's investigation addresses one piece of a much larger puzzle requiring coordinated policy reforms across multiple levels of government.