A Conversation with Hugh Heron
In episode 81 of the Toronto Under Construction podcast, host Ben Myers is joined by homebuilding industry veteran Hugh Heron, founder of Heron Homes and Heathwood Homes. With decades of experience in residential development, Hugh shares insights on navigating market downturns, pioneering new housing concepts, and the challenges facing today’s homebuilders. From his early days in Scotland to becoming a household name in Canadian homebuilding, this episode dives into Hugh’s career, industry challenges, and his forecast for the future of low-rise housing.
From Scotland to Canada: Hugh’s Journey
Ben begins the conversation by asking Hugh about his early years growing up in Glasgow and his decision to move to Canada in 1967. At 3:07, Hugh recalls growing up in a working-class dockside neighbourhood, noting that he “didn’t know any better” at the time. He emphasizes his lifelong commitment to customer service, detailing his career path from working for various companies in Canada to launching his own homebuilding firm, Heron Homes. When Ben asks him to elaborate on the types of homes he was building, Hugh responds at 16:50, sharing some details but focusing on his motto: “the consumer comes first.”
Surviving the 1980s Housing Crash
Discussing the real estate boom and bust of the late 1980s, Ben highlights that Toronto’s housing prices surged by 150% between 1986 and 1989 before plunging by 27% in the following years. Many major developers went bankrupt during this time, but Hugh’s company managed to survive. At 19:04, Hugh explains his strategy during the downturn, detailing how he stayed ahead by being innovative. He recalls making headlines for incorporating heat pumps in every home, which led to pushback from gas companies. He also touches on the 1990s recession, emphasizing that market downturns are inevitable in the homebuilding industry.
Betting on Whitby in the 1990s
In the mid-1990s, Hugh was selling single-detached homes on 30’ lots in Whitby for $215,000, a time when Durham Region was not as sought-after as it is today. Ben asks what gave him the confidence to launch in Whitby at the end of a major recession. Hugh shares his reasoning at 23:09, explaining how he saw the long-term potential of the area.
The Growth of Low-Rise Housing Development
Ben brings up the rapid increase in new home completions in the Toronto Census Metropolitan Area, from under 12,000 single, semi, and row unit completions in 1996 to over 32,000 by 2021. He asks Hugh whether this growth was due to pent-up demand from first-time buyers, increased immigration, or other factors. At 24:37, Hugh discusses how the recession created significant pent-up demand, predicting that history will repeat itself. “This is a great time to buy a house because the whole industry is doing what it can to stay alive. There are opportunities out there, but there’s no leadership in the industry telling people that.”
Developers as the Villains?
Ben brings up the perception that developers are often cast as the “bad guys.” At 27:39, Hugh responds, “I think we come second to the banks.” He acknowledges that while there are some bad actors in every industry, the media tends to amplify negative stories about developers, even when the vast majority operate ethically.
The “Home at Last” Tagline
Ben recalls hearing Hugh’s radio ads and his memorable Scottish accent, leading to a two-part question: How has he maintained such a strong accent, and who came up with the famous “Home at Last” tagline? At 30:47, Hugh shares the story behind the slogan, revealing that previous Toronto Under Construction guest Linda O’Connor wrote the script for the campaign.
The Soaring Cost of Housing
Ben highlights that the price of a single-detached home in the Toronto CMA has skyrocketed from $285,000 in 1998 to $1.54 million in 2024—a 440% increase. Some argue that policies like the Greenbelt, Places to Grow Act, and government fees have had no impact on this rise. At 32:40, Hugh refutes this, pointing to higher taxes (now accounting for 35% of a new home’s cost), limited land supply, and lengthy approval processes as key factors.
Why Heron Homes Didn’t Go Vertical
Ben notes that many single-family homebuilders, such as Fernbrook and Aspen Ridge, shifted to high-rise development, yet Heron Homes completed only one condominium since 2008. He asks why the firm didn’t follow the same path. At 40:19, Hugh explains that rather than shifting product types, he focused on diversifying into other industries, ensuring long-term sustainability.
The Stacked Townhouse Experiment
Hugh launched Hampshire Mews, a stacked townhouse project in Richmond Hill in 2013. Ben, who visited the sales office at the time, recalls that buyers didn’t fully understand the product. At 42:06, Hugh explains why stacked townhouses didn’t take off and why he hasn’t pursued the product type again.
No Plans to Retire
Ben references Hugh’s 2018 BILD Lifetime Achievement Award and his comment that “80 is the new 60.” With market conditions becoming increasingly difficult, Ben asks why Hugh hasn’t retired. At 45:48, Hugh responds simply: “I just love the business.” He credits his attitude as the key to his ongoing passion, emphasizing, “Attitude is everything.”
Operating a Homebuilding Business Amid Falling Prices
Ben notes that suburban single-family home prices in the GTA fell 20% from $2.3 million in 2022 to $1.87 million in 2024. He asks Hugh how challenging it is to operate in a declining market. At 54:33, Hugh reiterates his belief that now is the best time to buy.
Hugh’s Forecast for 2025
Looking ahead, Ben asks Hugh to share his thoughts on the low-rise housing market for 2025. At 56:24, Hugh stresses the need for leadership in the industry, saying, “There are too many, but the big issue is that we have no leadership to understand what are the cause and effect.”
Rapid Fire
As the episode begins to wind down Ben asks Hugh some rapid fire questions like: If it were allowed, would you build gated-communities low-density like they have in the US? Should developers provide accurate sales data to companies like Altus and Zonda? I need a better formula for calculating premiums on oversized lots in new housing developments, can you share yours with me? What is the probability that Canada will biome the 51st State over the next 20 years? Should developers be more active in speaking to the media about their issues, or leave it to BILD to speak on their behalf? And more!
The Mikey Network
Before wrapping up the episode, Ben asks Hugh to share more about the Mikey Network, a charity initiative focused on providing defibrillators to public spaces. Tune in at 1:05:24 to hear Hugh discuss the organization’s impact and his commitment to giving back.
Don’t miss this insightful episode of Toronto Under Construction, where Hugh Heron shares invaluable perspectives on the homebuilding industry, market cycles, and the future of low-rise housing in the GTA. Tune in now to episode 81 of the Toronto Under Construction Podcast!
