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In Canada’s housing disaster, are modular properties a less expensive and quicker resolution?

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In Canada’s housing disaster, are modular properties a less expensive and quicker resolution?



By Sharif Hassan

Andrea Adams, the manager director of the non-profit developer St. Clare’s, mentioned she was “daydreaming” about what could possibly be constructed on the yard subsequent to the 20-unit constructing on Ossington Avenue. 

She was finally launched to Meeting Corp., an organization that builds mass timber modular housing, across the similar time that town was searching for proposals for “shovel prepared” inexpensive housing initiatives. 

St. Clare’s had the land, the contractor — and, extra importantly, the need to get the undertaking performed. 

The result’s an attention grabbing, three-storey constructing that’s now dwelling to greater than two dozen individuals who have been experiencing homelessness.

“It’s a really assertive undertaking,” Adams mentioned in her workplace subsequent to the L-shaped motel-style construction. Its residents, she mentioned, “would have been people who have been residing in shelters or sofa browsing or residing in tents.”

The undertaking is a small step towards addressing the cost-of-living drawback in a province that noticed 80,000 individuals expertise homelessness in 2024, in keeping with an Affiliation of Municipalities of Ontario report.

Advocates and specialists say whereas there isn’t a single resolution to the homelessness disaster that’s compounded by psychological well being and addictions points, prefabricated properties may play a big position in addressing the scarcity of inexpensive and supportive housing.  

“The modular undoubtedly helps as a result of the quicker development is, the least costly it’s,” Adams mentioned.

The 25-unit advanced on Ossington was erected in simply 21 working days and general development took eight months. 

The dimensions of every small studio is round 220 sq. ft, with a rest room, a kitchen and a front room. The trendy, mild brown exterior with massive home windows and shading fins attracts the eye of passersby.

The construction “makes use of each sq. inch of property obtainable to it and but nonetheless appears stunning,” Adams mentioned. 

Given the urgency of the homelessness drawback, much more must be performed, she mentioned. “We have to do all of the issues and consider extra issues after which do these issues.”

Lack of housing is a Canada-wide situation and by some estimates, the nation wants thousands and thousands of latest properties for its rising inhabitants.

In the course of the federal election marketing campaign, Prime Minister Mark Carney promised a housing plan that will yield 500,000 new properties yearly and supply $25 billion in loans for corporations that make factory-built properties.

In his first information convention after the April 28 vote, Carney mentioned he goals to create an “completely new Canadian housing business” round modular housing, utilizing Canadian lumber, expert staff and know-how. 

In the course of the February provincial election, Ontario Premier Doug Ford additionally promised $50 million to help modular housing know-how.

Specialists say modular properties have a number of benefits that embody a faster development timeline, price effectiveness and a possibility to construct them in an environmentally pleasant method. 

The important thing to unlocking that potential is to create a secure demand for modular properties so factories can put money into them and rent staff with confidence, mentioned Carolyn Whitzman, a professor and researcher on the College of Toronto’s College of Cities. 

She mentioned the brand new authorities’s funding in factory-built properties is a welcome transfer, however extra must be performed to make the plan successful. 

“The trick is how can Canada get to the size,” she mentioned, noting modular development isn’t as quick or low cost because it has the potential to be, and that might change if manufacturing ramps up.

“With the intention to construct these factories and provides individuals manufacturing unit jobs, it’s essential to have a sure degree of demand. We merely don’t have that but.”

She mentioned the federal authorities may place an order for factories to construct a particular variety of modular properties for supportive, scholar or different kinds of social housing yearly to assist stimulate the market.

Although modular housing accounts for under 4 to 6 per cent of development, it is rising in popularity in Canada, a report co-authored by Whitzman mentioned. 

Whitzman mentioned Sweden is an instance of a rustic that efficiently turned to modular properties to handle a housing disaster, with almost 45 per cent of its properties in-built factories. 

In Canada, the place business labour shortages and lengthy winters can delay development timelines, prefabricated properties could alleviate a few of these uncertainties, Whitzman mentioned. 

However regardless of its many benefits, modular housing isn’t a “magic bullet” for affordability. Vital authorities monetary help and involvement is required, she mentioned.

For the Ossington Avenue modular constructing, the federal authorities supplied round $4.8 million in funding and the Metropolis of Toronto contributed roughly $1.7 million within the type of incentives, cost waivers and tax aid. St. Clare’s fairness was estimated to be round $900,000.

Adams, the manager director of St. Clare’s, mentioned the lease for every unit within the constructing is round $500 a month.

Modular models are an vital a part of Toronto’s inexpensive housing plan. Doug Rollins, the interim govt director of town’s housing secretariat, mentioned the objective is to construct 18,000 supportive housing models by 2030, a few of which can be prefabricated. 

The town not too long ago accomplished the development of a five-storey, 64-unit prefabricated constructing on Kingston Street within the east finish, with lease primarily based on every tenant’s earnings, Rollins mentioned.

“It would stay inexpensive and as their earnings adjustments, so will their lease,” he mentioned. 

Different modular housing initiatives are underway elsewhere in Toronto and builders say they’re seeing elevated demand for prefabricated properties. 

Luke Moir, who managed the Ossington Avenue undertaking, mentioned it’s a “nice instance” of how unused land in city centres could possibly be reworked. 

“It’s a piece of the puzzle,” he mentioned of prefabricated properties as a housing scarcity resolution. 

Moir, who works as a undertaking supervisor at Meeting Corp., the contractor that constructed the home for St. Clare’s, mentioned such development initiatives are additionally much less disruptive as a result of most elements are product of wooden and assembled off-site, that means there’s “so much much less nailing and banging, after which there’s no mud and grinding.”

In Ottawa, Theberge Group of Firms is engaged on its first factory-built dwelling with eight flats within the Westboro neighbourhood. Manufacturing started in early February. The modules have been introduced on website in mid-March and erected in simply three days. 

The undertaking is ready to be absolutely accomplished by the tip of June, and the primary tenant is anticipated to maneuver in on July 1. 

Jeremy Silburt, the corporate’s director of acquisitions, planning and improvement, mentioned Theberge is anticipated to start out engaged on just a few extra for-profit modular dwelling initiatives in late summer season. 

Non-profit teams have reached out to the corporate about partnering to construct inexpensive properties, he mentioned, including that modular properties lower the development time by one-third.

“So it permits us to construct a undertaking somewhat bit cheaper, sure, but in addition in a short time and that saves us a bunch of time and money,” he mentioned. 

Smaller cities in Ontario have additionally adopted modular development in an effort to construct small properties quick.

Peterborough constructed a 50-unit advanced in 2023, London constructed a 61-unit constructing in 2022 and Marathon, a city 300 kilometres east of Thunder Bay, has plans for the same 20-unit undertaking, in keeping with the Ontario Actual Property Affiliation.

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Final modified: Could 17, 2025

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