High Art Capital recently announced the launch of a new fund called the Greater Toronto Area (GTA) Rental and Affordable Housing Initiative. It has been anchored by a $300 million mezzanine debt commitment (and a "nominal equity investment") from the Building Ontario Fund (BOF) and is expected to be capitalized in total with a minimum of $1.3 billion.

The objective is to acquire approximately 2,200 rental homes in blocks within newly completed, unsold condominiums across the GTA and convert them into long-term rental housing. Included within this will be approximately 550 affordable rental homes that are expected to be title-protected at rents set at the lower of 25% below local market rent or 30% of median gross household income.

This is interesting, but it's certainly not the first example of investors buying, or wanting to buy, excess condominium inventory. However, it may become the largest in Toronto and, as far as I know, it's the only one to partner with the public sector (BOF is a provincial Crown agency).

The way it is intended to work is as follows:

Condominium developers are sitting on unsold inventory and maybe on inventory they took back after purchasers defaulted (and which may be subject to legal action). What High Art will do is say to developers, "Hey, if you give me a really awesome deal, I'll take 50 of those condominium units off your hands." And if the developer is desperate enough, they will say, "Sure, that sounds good. Let's do a deal and then go for a nice closing dinner."

But at what price?

As we've talked about many times before on the blog, developer pricing is typically based on a cost-plus model. We take our costs, add a margin, and there's the final sticker price. The reason prices haven't fallen as much as one might expect on unsold units is because they're hitting the "cost floor"; developers don't want to lose money, unless they are given no other option.

But for this rental fund model to work at reasonable costs of debt, I suspect that, in many/most cases, deals will need to be struck below a developer's cost basis. So, it'll be very interesting to watch how this fund deploys capital and who the winners and losers are in this market.

Regardless, I think it is good that we are seeing this sort of activity. The faster we deal with the pain, the faster we'll get to the other side.

Cover photo by Patrick Boucher on Unsplash

As most of you know, the Toronto housing market has shifted its attention from condominiums to rentals. This is out of necessity. According to the Toronto Regional Real Estate Board, the GTA saw approximately 71,392 condominium apartments leased (counting only those leased through MLS) in 2025.

These increases are a result of having no other option. As demand has waned for new condominiums, a greater number of investors have decided to rent out their new condos. If you're a tenant looking for a new home to rent, this has been good news.

At the same time, Urbanation just reported that a total of 9,821 purpose-built rental apartments started construction in 2025, representing a 42% increase from the year prior. This is the highest annual total since the 1970s.

At year-end, this resulted in a total of 27,815 purpose-built rental apartments under construction in the Greater Toronto & Hamilton Area. And like individual condominium buyers, developers are doing this because there is, in most cases, no other option.

But while these may seem like large numbers, it's important to keep in mind that new condominium completions are currently on a downtrend toward zero completions in the coming years (for all intents and purposes).

Even with rental starts approaching 10,000 units per year, it's not enough to replace the condominium supply that is starting to evaporate. Based on current sales and starts, 2029 looks to be the year where we'll hit our housing supply bottom.

Cover photo by Nadine E on Unsplash

New York-based Extell Development is currently under construction on a Four Seasons Resort and Private Residences in the new Deer Valley East Village in Utah. When I was there in December, Bianca and I went by to check out the overall progress in the village, and the crew was in the midst of laying the decking for the ground floor. ODA designed the architecture, interiors, and landscaping.

The residential offering consists of Private Residences and Hotel Residences. The former are located in an owner-exclusive building and the latter are in the hotel building, where the units can be put into the Four Seasons Rental Program. I'm not sure if this is indicative of their overall inventory, but the remaining Hotel Residences are meaningfully larger than the Private Residences.

Based on current availability, the smallest remaining Private Residence (1,553 sf) is going for US$3,283 psf.

As a Park City booster, I think this additional village is exciting. There are now two large interconnected resorts and four distinct villages lining the Wasatch Back: Park City Mountain Resort, Park City Canyons Village, Deer Valley, and the Deer Valley East Village. Visit Utah would say that there's also a third resort in Woodward Park City (which happens to be adjacent to Parkview Mountain House).

But as a real estate developer and snowboarder, I do wonder about two things.

First, Deer Valley East Village is located in an area on the Wasatch Back that receives noticeably less snow compared to other areas because of its lower elevation and broad east exposure. If I refer back to Jim Steenburgh's book, Secrets of the Greatest Snow on Earth, the average annual snowfall at the base of the Jordanelle Gondola (located just north of the East Village) is probably less than 150 inches. This compares to 350+ inches at higher elevations in Park City and 500+ inches in the Cottonwood Canyons.

Because of this, the East Village has obviously invested heavily in snowmaking equipment. But artificial snow is not the same as natural snow. The higher elevations will be just fine, but the lower elevations will likely see marginal conditions. So why build a new village here? And was and is this a consideration for buyers at this new Four Seasons? Or are the luxury amenities and après events the real deciding factors? I'm not their target demographic, but from my perspective, this is reason enough not to buy here.

On the topic of the target buyer, my second question is about Deer Valley's "no snowboarding" rule (which is another reason why I'm not their target demographic). There are only 3 resorts in the United States that ban snowboarding. One of them is Deer Valley, and the other two are Alta (Utah) and Mad River Glen (Vermont). This seems to be a wildly popular rule among resort guests, and I support Deer Valley's decision to weed out "riff-raff" like me. Deer Valley is also known for capping daily lift tickets to keep the crowds down, so they don't seem to be hurting for patrons.

But according to recent data from Snowsports Industries America (SIA), the rough participation split in the US between skiers and snowboarders is somewhere around 60-70% and 30-40%, respectively. There are also many instances where families have a mix of skiers and snowboarders. If you're the Four Seasons at Deer Valley, this segment of the market is excluded. Oh well. The rich snowboarders have Park City, The Colony at Canyons Village, Powder Mountain, Aspen, and many other locations.

My assumption is that the ban on snowboarders is an unapologetic feature of Deer Valley and developments like the Four Seasons. It creates an air of exclusivity and differentiation. Some data also suggests that snowboarders tend to be a more ethnically diverse group compared to skiers (SIA reports show that among female snowboarders, 25% are Hispanic, and among males, 13% are Black — the highest diversity rates in winter sports), so one could argue that it's not just about the type of device used to get down the mountain. And, it seems to be working.

In July 2025, the Extell announced that they had closed a $600 million construction loan for the project from JVP Management and that 60% of the hotel residences were already sold. This is believed to be the largest construction loan on record for a hotel and residential condominium project in Utah.

At the same time, I'm also certain that the Four Seasons lost sales to certain buyers, perhaps a wealthy Boomer or Gen Xer with kids or grandkids who snowboard. Extrapolating this demographic trend, it is also believed that Millennials represent the first generation in the US with near-parity between skiers and snowboarders. So what will this mean for luxury real estate as these Millennials become the dominant buyer segment? My prediction is that the real estate market will respond.

Would you buy at the Deer Valley Four Seasons? Or have you already?

Cover photo: Deer Valley Four Seasons