Fair enough, single family homes are a different story because holding costs are so low, and the owner is usually financing the construction. Larger projects have significant construction mobilization (just the crane is costing hundreds of thousands) and the developer has already presold many or all of the units. I would estimate bankruptcy happens on less than 1% of our projects (we design about 30% of the residential towers you see being constructed in the lower mainland). That number probably shoots up for smaller projects.
Commercial units are left that way even for leasing, because the tenant will come and finish it to their specifications (once a tenant is found).
For these large projects, I've noticed something else that I've been curious about: condo projects that sit as empty lots with "coming soon" banners around them, for years at a time before they begin construction.
What's up with that? My first guess: by the time the developer gets zoning approval, the contractor they've retained has taken other work, and now they're waiting in line.
Yeah, a lot of the delay is coming from the rezoning and permitting process. There are crazy wait times for large projects because of the large queue of applications, understaffed planning departments, public consultations, and semi-extortionary negotiation over community amenity contributions (CACs). Often the trades aren't brought on board that early because the delay and uncertainty of whether the project will go forward. Once a permit is received, then it's usually full steam ahead and we are often asked to product tender and construction drawings in impossible timelines.
Commercial units are left that way even for leasing, because the tenant will come and finish it to their specifications (once a tenant is found).