2025: The Year of the End User
How we left the investor boom behind — and why livable, lovable homes are leading the charge.
I remember standing in a 385 sq ft “junior one-bedroom” unit back in 2019, trying not to trip over the oven door, the Murphy bed, and my own dignity.
The “investor” I was introduced to — a guy named Steven who once bragged about flipping Dogecoin and pre-cons in the same sentence — was ecstatic. “This is perfect,” he beamed. “Tenants love compact living.”
I asked him if he’d ever tried living in a shoebox with a stove. He laughed. I didn’t.
Fast-forward to 2025. Steven’s ghosting his mortgage broker, his tenant just moved out to live with their parents in Pickering, and I’m sitting across the table from a downsizer couple with $5.5M cash, looking for a 2,300 sq ft suite with a view, a terrace, and enough space to host their actual family.
The tide has turned.
This Cycle Belongs to the End User
If the last decade was about investors, this one’s about people. Real people.
We’re talking:
Families who want good schools and bigger kitchens
Downsizers trading backyards for balconies — without giving up comfort
End users who crave quality, not just ROI
These folks aren’t buying spreadsheets. They’re buying homes. And guess what? They still have money — and they’re still buying.
The Smart Money Pivoted Early
Back when rates were 1% and hype was free, it was easy to crank out towers of 400 sq ft ATM machines.
But some of us saw the curve in the road. We started planning:
Larger floorplans
Real finishes
A+ neighbourhoods where people actually want to live
It wasn’t the fastest path to a quick flip — but it turns out it was the best path through the storm.
Today, that decision looks like gold. Supply is down. Approvals are a nightmare. Trades are thin. Financing is tighter than a Toronto laneway. But the product? The good product — it’s in demand.
Why the Shift?
Here’s the cocktail of change we’re all sipping:
Supply is drying up.
New launches are down. Projects are getting shelved. City processes are slower than molasses in January.Rates are (finally) falling.
The pressure cooker’s easing up. End users are starting to peek out from the trenches.Buyers want homes, not holding tanks.
The “starter condo” that doubles as a rental income stream? That model’s rusting. People want livability.Wealthy end users are still in the game.
They’re not waiting for interest rates. They’re waiting for the right product. And if you’ve got it? You’re going to sell out.
It’s Not the End — It’s a New Lane
This isn’t a collapse. It’s a correction.
Investors had their run. Now it’s time for homes that work, for people who stay.
If you’re a developer still pushing paper-thin suites with zero closets and rooftop amenities nobody uses — well, good luck out there.
But if you pivoted — if you built for the human being instead of the ROI calculator — then welcome to 2025. You’re right on time.
Come Hang With Us
We’re unpacking this and a whole lot more, three times a week on The Frankfort Report — live at 5PM.
We talk market cycles, deal war stories, economic headwinds, and occasionally, Toronto’s worst city planner of the week.
Tune in. Bring your questions. Bring your curiosity. Maybe even bring Steven — I hear he’s finally looking to live in one of his own units.