Sasha Cucuz on Toronto Under Construction: Navigating Costs, Cycles, and the Path to Real Estate Resilience

Sasha Cucuz, CEO of Greybrook, joined Jake Cohen, President of Daniels Corporation, and Bob Blazevski, President and CEO of Blaze Urban, on the Toronto Under Construction podcast hosted by Ben Myers, President of Bullpen Research & Consulting Inc. The discussion was a clear-eyed on Toronto’s real estate evolution—from policy opportunities to resilient strategies for growth.

Opportunities Amid Cost Challenges

Sasha framed the core issue: “We’re not in an affordability crisis. We’re in a cost crisis. The replacement cost of new housing is too high.” While interest rates and hard costs have eased, soft costs from government development charges, taxes, and fees now exceed 30 percent of total project costs. Jake and Bob both acknowledged this as the biggest roadblock to new housing delivery today.

The November 4th federal budget missed requests for GST relief on new homes, 50 percent municipal development charge cuts, and multi-unit tax incentives. Instead, Build Canada Homes, was launched in an attempt to address some of the supply side challenges including in the delivery of affordable homes.

While Sasha believes BCH is well intentioned, one of the concerns he raised is that public processes move slowly and lack agility. As he put it, “Imagine every decision we made had to go through 11 committees. It’s just inefficient.” Streamlining processes offer a faster path to housing than new public programs. Having said that, Jake from Daniels has proved that private partnerships work, having delivered 6,000 affordable units over 41 years. Addressing the key issue of cost, creating the right incentives for the private sector and speed will be critical to addressing making sure there is a steady flow of attainably priced housing that is delivered each year to meet the GTA and Southern Ontario’s needs.

Lessons Learned: Strength Through Downturns

The guests discussed Toronto’s strong market fundamentals and reflected on the shifts that drove the surge in demand for pre-construction condominiums in the years leading up to mid-2022, as well as the lessons learned in the period since. As with all market cycles, this phase has reinforced resilience and clearly distinguished disciplined operators from the rest.  Bob looked back at his Tridel experience during the 1990s recession: “I learned a ton. I’m glad I went through it.” That downturn taught him how to negotiate with banks through extended recovery periods and which product types—like stacked townhomes—could generate cash flow during stressed markets. The panel agreed that today’s correction will do the same: weed out single-product developers and strengthen those with diversified portfolios, streamlined project timelines, and adaptable strategies.

At Greybrook, our team has sharpened our skills during this period, positioning us as stronger operators for recovery.

Why Toronto Retains an Advantage

Sasha distinguished Toronto’s structural advantage from other North American markets. Immigration fuels predictable growth. Regional mobility within the GTA is stable and consistent. U.S. cities where Greybrook operates face volatile migration patterns where cities can lose population and oversupply emerges rapidly.

This demand advantage is what sets Toronto apart. “The worst problem of all would be no demand for our product,” Sasha said. “That’s not a problem we have.” When fundamental demand exists, the market eventually stabilizes despite supply constraints, elevated costs, and regulatory hurdles.

As Sasha put it, “The goal now is to stay in the game and survive to get to a point where the market looks different than it does today.” Greybrook is positioned to lead this transition. With fewer speculators, rising needs-driven demand, and policies evolving to address cost barriers, our accumulated expertise and focus on efficient, adaptable projects position us to thrive in the years ahead.

Listen to the full episode below:

• Cost crisis vs. affordability myth: Government soft costs exceed 30% of projects—the real barrier to new housing delivery
• Private partnerships proven effective: Daniels delivered 6,000 affordable units over 41 years through incentivized public-private models
• Diversification as downturn survival: Multi-product operators outperform single-focus condo developers
• Toronto’s predictable demand edge: Stable immigration ensures absorption unlike volatile U.S. markets