Construction and real estate outlooks

The U.S. housing crisis has hit workforce households the hardest. These are the essential workers—teachers, nurses, police officers—who are being pushed into unaffordable rentals or out of the communities they serve. Bridging the gap between low-income housing and market-rate rentals is now urgent, and it requires both government support and private investment.

Developers and investors—including family offices—who are able and willing to leverage tax breaks, partnerships and public incentives can help solve the workforce housing crisis while building lasting value. 

The housing crisis in both Canada and the U.S. is no longer just about financing or affordability; it’s about how and where we build. Treating housing as infrastructure, embracing engineered supply models and activating “meanwhile space” are potential strategies to help bridge the gap. But the clock is ticking, and the players who move first will shape the future of urban growth on both sides of the border.

Commercial real estate entered 2025 with optimism following rate cuts, but that optimism was short-lived. Tariff uncertainty has jolted the market, slowed deal activity and fundraising, and reignited fears around inflation and elevated borrowing costs.

Investors and investment managers are now prioritizing stability and exercising caution. While there may be opportunities in specific markets, navigating this high-cost, high-volatility environment requires strategic positioning to address tariff-related business and drive competitive returns.