Amid a generational housing shortage, Cranson Capital chief executive Devon Cranson sees a huge opportunity to help fill the gap.
Cranson Capital has developed over $3bn of assets and raised more than $350m in capital since Cranson started the company with Anthony Heller in 2011. In fact, the firm has a dedicated Purpose-Built Rental Fund to raise equity for four ground-up developments, which together have projected values of approximately $246m at stabilization.
Green Street News spoke with Cranson about finding opportunities in townhouses and purpose-built rentals as condominium sales collapse, raising capital amid international trade chaos and the Liberal promise to axe GST on new homes at or under $1m.
What was your biggest transactional milestone in 2024?
One of our most significant milestones in 2024 was the completion of Plaza’s Encore Theatre District – a 600-unit, two-tower condominium development in Toronto’s Entertainment District. The project included an agreement with the Riu Hotel to occupy the lower 27 floors, with condominiums above. We later acquired a neighbouring property, which allowed us to integrate a shared underground infrastructure across both towers.
This strategic move added considerable value without requiring new equity, as we had already pre-sold 70% of the second tower by 2018, insulating our investors from recent market volatility.

“If we hit $30m, we plan to add two additional projects to the portfolio”
Why focus on purpose-built rentals now?
The traditional condo model has become increasingly unsustainable due to rising development charges and construction costs. From 2020 to 2023, costs soared, and while investors remained active through 2022, the sharp rise in interest rates halted pre-construction sales. As a result, new condo starts have plummeted.
We anticipate a severe housing supply gap starting in 2027 and deepening through 2029. Purpose-built rental projects have an opportunity to fill some of this market gap as they do not need to pre-sell to pre-construction investors.
Midrise PBRs, especially those without underground parking, are particularly viable. With building timelines of 2-3 years and municipalities easing parking requirements, projects can break ground in 2025 and deliver units by 2028. This allows us to address urgent housing needs while capturing a strong market position.
What is the core thesis behind the PBR Fund?
The core thesis of the PBR Fund is to build new purpose-built rental housing in Southern Ontario communities where demand is expected to outpace supply due to a drop in new housing starts.
While some markets, like Toronto, have a record number of new condo completions in 2025, the sharp decline in new project launches since 2023 means that by 2027–2029, housing supply will be far below what’s needed. Our strategy is to develop midrise, modular-built, transit-accessible rentals that can be delivered efficiently and economically during that anticipated supply gap, helping to meet market needs when new inventory is expected to be scarce.
“We anticipate a severe housing supply gap starting in 2027 and deepening through 2029”
Executing on this thesis means selecting sites that align with local market needs and long-term growth trends. Our Vaughan Road project is an infill development in a highly desirable, transit-connected Toronto neighbourhood known for aging rental stock. In Kitchener, we’re building within a new master-planned community, creating modern rental housing in an area of the city experiencing rapid growth. In Grimsby – Niagara’s fastest-growing community – our project responds to a profound supply gap: it will be the first new purpose-built rental building in over 50 years.
And in Toronto’s west end, our Toronto Standard Dufferin development brings a courtyard-designed rental building to a vibrant, intensifying Geary Avenue neighbourhood. These developments are about more than convenience – they’re about anticipating where demand is headed and delivering timely, much-needed rental housing.
Where does fundraising stand today?
We’ve currently raised approximately $10m towards our $30m target. Our immediate goal is to reach $17m–$18m to fully capitalize the four initial developments. If we surpass $18m, we plan to add additional projects to the portfolio.

“Our Vaughan Road project is an infill development in a highly desirable, transit-connected Toronto neighbourhood known for aging rental stock”
What are the challenges in raising capital right now?
Market uncertainty has made capital raising more challenging over the past year. Many investors have been understandably cautious navigating economic headwinds and shifting global conditions. Several of our clients, particularly business owners, have been taking a more measured approach to new investments.
That said, we are beginning to see signs of renewed confidence. With the recent federal election bringing a sense of policy stability and housing remaining a top national priority, long-term investors are recognizing the opportunity in purpose-built rental. Those with a forward-looking view – thinking four to five years ahead – are moving to position themselves now in anticipation of the upcoming supply gap.
How are trade policies impacting your costs?
The impact on construction costs from tariffs has been relatively modest. Imported materials typically account for under 10% of a project’s total hard costs, and only a small portion of those are directly affected by tariffs.
“We’re seeing a significant slowdown in new housing starts, which reinforces our outlook on the upcoming supply gap”
Moreover, we’ve seen a general easing in construction pricing, with some costs declining as a result of fewer new housing starts. This has helped offset any price pressures from international trade policy. While geopolitical tensions contribute to investor caution, we believe the cost environment remains favourable for initiating new developments.
What market trends are you monitoring?
We’re closely monitoring a range of factors impacting the housing market, including interest rates, the condo resale market and record-level condo completions this year. At the same time, we’re seeing a significant slowdown in new housing starts, which reinforces our outlook on the upcoming supply gap.
We have two townhouse projects in Scarborough that are ready to launch when conditions improve. While buyers have been cautious, we believe the environment is starting to shift. With the new federal government signaling a commitment to housing affordability and stability, there’s renewed optimism that promised policy changes – including a 50% reduction in development charges and the return of the [Multiple Unit Rental Building] tax incentive – could soon materialize.
We’re also encouraged by the federal GST elimination on new homes under $1m, which directly benefits our townhouse offerings. Our timing strategy is informed by these anticipated supports, which could unlock both affordability and investor confidence. These policies, if implemented, will further strengthen the case for purpose-built rentals and entry-level ownership housing.