RISK, REALITY, AND THE “EVIL DEVELOPER” MYTH

If you believe the headlines, developers are the villains of the housing story — greedy, secretive, and out for themselves. Ray Nothstein has heard it all. And while he admits there are bad actors in every industry, he’s quick to point out that building communities is far from a sure bet.

RAY: “Developing homes is actually a good thing — we’re building homes for people. But to do it, a developer goes into debt for tens or hundreds of millions of dollars. It’s a huge gamble, and it doesn’t always work.”

Who Really Pays for Amenities?

From parks and trails to schools and rec centres, amenities are often seen as “gifts” from the developer. In reality, they’re built into the cost of every home sold.

RAY: “The developer fronts the cost for amenities — parks, pools, ice rinks, theatres. But at the end of the day, it’s the homeowner who pays for them through the price of their home. We can’t afford to build without profit at the end.”

That means delivering the good stuff early — long before the balance sheet shows black ink — requires deep pockets and long-term commitment.

RAY: “One of the best lessons I learned was to build the park first, the green stuff first, the pretty stuff first — so people see it’s there. You don’t promise it’ll come one day, you show it’s already part of the community.”

The Canadian Lens on Wealth

Paul asks why Canadians seem particularly suspicious of developers’ motives.

RAY: “We have this sociological bent where some people get frustrated with those who have money. A few developers are big personalities, very public — so it’s easy to think, ‘They must have ripped people off to get there.’ But most developers work hard, take big risks, and live okay lives. They’re not robbing society.”

Adaptability as a Survival Skill

For long-term projects like Burke Mountain, the ability to pivot is essential. Market demands shift, housing forms evolve, and sometimes the land itself dictates a change.

RAY: “Moving to townhouses wasn’t about making more money — it was about the slope and what made sense for the land. Sometimes you barely break even, but it’s still the right choice for the community.”

The reality of development is messy. It’s risk-heavy, capital-intensive, and subject to forces no single player can control. The irony? The same developers often criticized for being “in it for the money” are the ones financing the parks, schools, and trails we all use.