Simon Belanger

investors willing to pay if the cap rate, the yield that they're searching doesn't change, which why would it right now if they don't have a change in the interest rate to peg it to?

And then...

Sorry, go ahead.

Yeah, so housing starts are down slightly, but if I pull up, when you say down, it's really easy to-

Yeah.

Yeah.

So like anybody who has a condo pipeline, who has units in the pipeline that were contemplated as condo is pivoting to purpose-built rental.

They don't really have a choice, right?

Like unless you're like a legacy landowner and you have

a lot of time on your side but if you bought the land recently which like if you're in the condo trade you probably would have like those guys were basically like buying inputs land and then selling outputs if you're trapped kind of with a couple of units that that are a couple of projects that don't no longer work because there's no exit liquidity to sell those condos into you would be trying to pivot to get those into purpose-built rental to the best of your ability and and

So some projects work, some don't.

The investors certainly have to leave a lot more equity in the deal to make the numbers work.

But basically, the pipeline will probably in Toronto, the idea that everybody's saying, oh, they're going to have zero supply by 2028.

I think that the market will find a way to keep it supplied on the purpose-built rental side of things.

We probably won't see a lot of condo supply, but I don't think that we'll be... You might get a one or two-year gap where the market supply is down, maybe 28, 29.

And if population growth resumes, which is projected to by then, 28, I think 29, you might see a little bit of the start of a recovery take place in the...

with an excess demand scenario.

But beyond that, I think at a national level, we're building more residential than we have ever.

Rental as a percentage of total construction is the highest that it's ever been or near the highest that it's ever been.

So I think there's a lot of factors that would say we're probably going to be in an excess supply situation longer than we need to worry about an excess demand situation in the next three to five years.