Why are condo investors pulling out, and what does it mean for Canada's housing market? On this episode of Sync or Swim, Steve Saretsky, founder of Saretsky Group and co-host of The Loonie Hour podcast, joins the show to break down the shifting economics behind new housing. Steve explains why pre-construction condo sales have collapsed, how rising rates and falling rents are squeezing investors, and why developers are increasingly pivoting to purpose-built rentals. He also touches on issues like blanket appraisals, distressed buyers, and the long municipal approval timelines holding back supply. From policy missteps to structural market changes, Steve offers a clear-eyed look at where Canadian housing is headed and what needs to change to make new housing viable again. Tune in for a grounded, insider perspective on one of the country's most pressing economic challenges. Thanks for listening!

Key Points From This Episode:

• Introducing today's guest, Steve Saretsky, founder of Saretsky Group.

• Why the pre-construction condo market is collapsing.

• How rising rates and falling rents are squeezing investor margins.

• The risks of flipping assignments in a down market.

• Why some developers are renegotiating with distressed buyers.

• The growing use of blanket appraisals and the risks they pose.

• Why developers are shifting from condos to purpose-built rentals.

• How smaller investors are struggling to compete with bigger developers.

• The shift from a speculation-driven model to a more value-driven model.

• Challenges to meeting Canada's housing targets by 2030.

• The impact of red tape and fees on housing supply timelines.

• Why city governments may be forced to lower development charges.

• Predictions regarding the Bank of Canada, rate policies, and mortgage options.

• Steve's take on policymaker mistakes and housing speculation.

Quotes:

"The investor market and the new construction market is in a world of pain." — @SteveSaretsky [0:04:33]

"The more mom-and-pop investor types [who] don't have the deep pockets. It's harder for them to navigate [a difficult market] than it is for these big developers." — @SteveSaretsky [0:17:45]

"We're going back to a market where builders/developers are having to serve the market. And the market today is end users. And end users are looking for more space, ground-oriented. And that's what's happening." — @SteveSaretsky [0:20:01]

"I think cities are going to be forced, and we're starting to see it, to actually cut their development fees and charges if they want to get new housing off the ground." — @SteveSaretsky [0:23:21]

"If you're a developer with deeper pockets today, this is certainly a good environment for [you] to go and pick up some distressed land sites. And if you've got a long enough time horizon, there will be another bull market. I don't think it's in the next 12 months. It is further out." — @SteveSaretsky [0:28:03]

"What the federal government can and should be doing is they should be running good policy to ensure that you've got a healthy labor market that is seeing a lot of productivity and higher wages. And that will help people afford housing." — @SteveSaretsky [0:34:38]

Links Mentioned in Today's Episode:

Steve Saretsky

Steve Saretsky on LinkedIn

Steve Saretsky on YouTube

Steve Saretsky on Instagram

Steve Saretsky on Facebook

Steve Saretsky on X

Steve Saretsky on Substack

Steve Saretsky Linktree

Saretsky Group

The Loonie Hour Podcast

Rentsync

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