Canada faces an affordable housing crisis driven by basic supply and demand: when demand exceeds supply, prices rise. Despite federal and provincial incentives, the housing shortfall persists. Recent headlines claiming housing starts are increasing illustrate the problem. The statistic reflects a national average, but a closer reading shows year-over-year declines in major markets such as Toronto and Vancouver. In British Columbia, conditions remain especially challenging, making headline optimism misleading.

Current policy focuses on stimulating construction without addressing the root cause of delays: municipal processes. Federal and provincial mandates pressure municipalities to accelerate approvals, yet often bypass critical checks to ensure infrastructure can support new density. Cities must provide adequate water, sanitation, transportation, emergency services, and community amenities for developments that may double or triple local demand.

To cope, municipalities rely on Development Cost Charges. These include transportation, water, sanitary sewer, drainage, parks, fire and police services, plus regional levies such as TransLink and school site acquisition. As population density increases, so does the need for schools, community centres, and parks. These costs routinely reach into the millions and are borne upfront by developers.

Developers therefore assume enormous financial risk long before a project is approved. Construction is highly time sensitive: delays translate directly into rising carrying costs, particularly interest payments. When approvals stall, projects can become financially unviable, leading to bankruptcies and foreclosures. The result is wasted capital, stalled housing supply, and losses for all parties.

Developers are the true risk takers in this system. They envision the final product and its benefits for builders, municipalities, and end users, while managing the triple constraints of project management: cost, time, and scope. Municipal staff, by contrast, are largely insulated from these pressures and lack direct exposure to escalating construction costs and financing risks.

This disconnect creates a paradox. Cities and politicians depend on private developers to deliver housing, yet the bureaucratic structures governing development are becoming slower, more complex, and more expensive. If projects cannot achieve profitability, they will not proceed, regardless of demand.

A practical solution would be the creation of a dedicated municipal liaison or mediator. This role could bridge the gap between developers and city hall, resolve bottlenecks, and streamline timelines. Without such reforms, incentives alone will not solve the housing crisis. Addressing risk and bureaucracy together, rather than separately, is essential to delivering sustainable, affordable housing where it is most urgently needed.

Source:
CMHC says housing starts rose 5.6% in 2025 but still ‘far from the target’ – Western Investor

There is a fundamental distinction between for-sale condominiums and purpose-built rental apartments. They are entirely different asset classes, and comparing them leads to inaccurate assumptions.

According to the October 2025 issue of Canadian Apartment Magazine, Canada continues to face a significant housing shortfall. CMHC estimates the country will require 3.5 million additional homes by 2030. As of 2023, only 56% of that target had been delivered, leaving a deficit of approximately 1.54 million units.

Condominium development depends on pre-sales to secure construction financing. Builders typically must achieve about 20% pre-sales before lenders approve the loan, effectively leveraging purchasers’ deposits to fund construction. Purpose-built rental projects operate differently: investors finance the entire development from beginning to end, with no revenue until the building is completed and tenants move in.

This financial structure explains why condo developers often run multiple projects simultaneously. Their business model resembles sequential flipping: once a building sells out, they must transition immediately to the next opportunity. Any delay in acquiring new sites or obtaining approvals increases holding costs and erodes margins. A typical condo pipeline might involve four stages running in parallel—selling out one project, constructing another, rezoning a third, and acquiring land for a fourth.

Purpose-built rental projects cannot absorb this pipeline style. The capital requirements are far higher, the investment horizon is longer, and revenue arrives only after occupancy.

Recent headlines highlight the dangers of overleveraging, including unprecedented bankruptcies involving developers with excessive project loads. Bull-market optimism and low interest rates can tempt firms to take on more than is prudent. Risk registers do not always account for emotional bias, and strong internal controls are essential to avoid herd mentality. Following the crowd is not a strategy.

Between 1974 and 1982, the federal MURB program stimulated rental construction by offering substantial tax incentives, resulting in about 122,000 new purpose-built rental units. Because this program ended over forty years ago, much of Canada’s rental stock is now aging. Modern rental development is costly, and returns materialize only after tenants occupy the building. Success requires discipline, patience, and a LEAN mindset focused on efficiency and concurrent engineering.

Our advantage lies in rigorous oversight from a forensic auditor who examines every financial and technical element of the project. We also maintain a one-project-at-a-time approach to avoid overextension, reduce risk, and position each development for long-term success. Overleveraging, much like multitasking, leads to cognitive overload, lower productivity, and increased errors—outcomes we are structured to avoid.

Sources:

Vancouver Mayor FREAKS OUT As 3500 Empty Condos Trigger MASS BANKRUPTCIES!
https://www.youtube.com/watch?v=PRs8QhtEr-U&t=76s

Debt Owed By 55-Storey Vancouver Developer Likely Over $169M
https://storeys.com/1045-haro-street-debt-statement/

Joint Tenants share equal ownership of an asset. Each joint tenant has a 100% stake in the asset. This means they can only sell or transfer the asset with the consent of the other joint tenants. When one joint tenant dies, their share automatically passes to the survivor(s) known as “right of survivorship.” The deceased joint tenant’s share does not go through probate.

A Power of Attorney (POA) gives the attorney the authority to make financial decisions on behalf of an individual that is alive. The authority granted by a POA terminates upon the death of the individual.

During a recent asset transaction, we assumed that the Executor of an estate had the authority to sign legal documents on behalf of the deceased. This was not so. We were notified that the Executor cannot sign on behalf of their deceased spouse. Fortunately, an online check of the mortgage documents confirmed the spouses were listed as joint tenants. The mortgage transaction was completed by way of release via “transmission to surviving joint tenant” when presented with an original death certificate.

If the couple had been listed as separate individuals known as tenants in common, this would have prevented the closing. The only other option would have been to wait for probate of the estate which could take six months to a year or more.

In the past year, two close friends that I’ve known for decades passed away suddenly, no history of illness, no symptoms, no warning. It’s the wakeup call that prompted me to update our last will and testament that I hadn’t looked at in 19 years.

It took years for an older friend of mine to finalize the estate of her friend who died without a Will. During the 5-year probate, the empty condo sat vacant while property taxes, utilities, and strata fees accumulated with interest and penalties.

Fewer than half of Canadians have a Will. There are DIY options if your estate is simple. It may take a little bit of time and effort to think about bequeathing your assets, but this document ensures a faster and smoother transition for your beneficiaries.

Source:

https://narrativeresearch.ca/half-of-canadians-dont-have-a-last-will-and-testament-while-diy-online-providers-are-now-responsible-for-a-quarter-of-existing-wills/