December 24, 2025 · View original
2025 was a tough year to be a real estate developer in Toronto. And it was a tough year for a whole host of reasons, not all of which you might immediately expect. In addition to it being challenging (and in some cases impossible) to underwrite new projects, raise capital, sell pre-construction homes and many other things, it was also a challenging market from a psychological standpoint.
Real estate development is a business that arguably attracts “Type-A” personalities. These are people who stereotypically tend to be ambitious, driven, competitive, and impatient. Said differently, they tend to have a strong bias toward action and a strong internal locus of control. I’m certainly programmed this way. I have a real problem with free time, and I’m at my happiest when I’m achieving things. I’m sure that many of you are the same way.
However, when the market is soft or shut off, the primary modus operandi of action gets neutralized. And since people with a strong internal locus of control believe that it is their individual actions that directly lead to successes and failures, this can create a psychological crisis. Am I the one failing? Is there anything else that I could be doing to create action, right now? (Simply waiting could be the correct answer.)
The older I get, the more I realize that an important skill in life and business is managing your own psychology. In fact, it may be the most important skill of all. So, what I have been doing as of late is continually reframing the current market. Rather than focusing on what’s not happening, I like to remind myself that this market is surely presenting the greatest set of opportunities that I have seen in my real estate career.
It may not feel like the typical kind of action right now, but everything is strategic preparation.
Cover photo by Jānis Beitiņš on Unsplash
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