The Canadian residential development industry is experiencing significant financial distress, with debtor-initiated real property insolvencies rising by 42.5% in 2024 and receivership appointments at a decade high. The construction sector also saw a 30% increase in insolvencies. Key factors include fluctuating interest rates, rising development costs, fewer multifamily project starts, decreased investment, and increased enforcement of real estate-backed loans. Additionally, political uncertainty, including potential US tariffs, adds to the challenges facing the industry.
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