It’s a complex time for the market, but Canada’s most successful builders aren’t sitting on the sidelines right now. Here’s why.
Erin Nicole Davis | January 29, 2026
It’s no secret that Canada’s homebuilding sector has weathered a few tough years. The country’s new condo sales in places like the Greater Toronto Hamilton Area (GTHA) have hit lows we haven’t seen in decades. The root causes – things like reduced immigration, high construction costs, elevated interest rates, and the collapse of investor demand – have created a perfect storm of volatility. An increasingly uncertain geopolitical climate (to say the least) doesn’t help.
So, it’s become common for Canadian developers to drop like dominoes, putting projects on hold or cancelling them altogether. Some, however, have strategically shifted focus to adjust for the changing times. This could mean moves like a pivot to purpose-built rentals, recapitalizing assets, increased cost consciousness, leveraging government incentives, and a reliance on vertical integration.
The common denominator? These developers aren’t sitting on the sidelines.
From Quick Flips to Forever Yields
Purpose-built rentals continue their moment in the spotlight, as more developers have shifted from a reliance on condo pre-sales, to a focus on a more stable, recurring income in recent years. In 2025, Canada’s purpose-built rental starts hit an all-time high, according to Canada Mortgage and Housing Corporation (CMHC). Notable Canadian developers like Dream Unlimited Corp, Bosa Properties, and even the commercial real estate-focused RioCan have set their sights on the rental market as of late.
“Our pipeline is now split almost evenly between purpose-built rental and condo, and we continue to take a long-term view for both,” says Dan Cupa, SVP Residential at Vancouver’s Bosa Properties. He says the current market structure requires an innovative shift.
“With rental now the dominant form of housing activity, competition is increasing, and that raises the bar,” says Cupa. “Success is measured by resident retention, operational performance, and the durability of the asset over time, which means designing rental communities with renters’ needs squarely in mind and continuing to provide exceptional property service.”
Pre-sales still matter, however. “For us, it isn’t a choice between pre-sales and rental yield,” says Cupa. “A healthy housing system needs both. Programs like BPI Equity [Bosa Properties’ rent-to-own program] reflect that reality by supporting renters who want a pathway into ownership, allowing us to build stronger relationships with our customers across different stages of their housing journey. Ultimately, success means delivering housing that works for how people live today and performs over the long term.”
While pre-sales are still important, the waning of the investor-driven condo market means a mass move away from the “investor shoebox” era that started around 2010. “Success today means designing homes for end-users with a focus on livability and enduring value,” says Cupa.
The Daniels Corporation is no stranger to purpose-built rentals, having built them in Toronto for over 30 years. While many developers may have been caught off guard by the conditions in 2024-2025, Daniels had the experience to shape how they plan capital in a way that supports housing through multiple market cycles, says Jake Cohen, President of the Daniels Corporation.
“While the current environment has reinforced the importance of that approach, our focus has long been on capital structures that prioritize resilience, diversification, and durability over short-term returns,” says Cohen. “Today, that means deepening our emphasis on purpose-built rental, including seniors’, student, affordable, and accessible housing, alongside low-rise development opportunities that respond to real demand and support more predictable outcomes.”
This allows Daniels to remain active while underwriting projects with longer horizons and greater financial durability, says Cohen.