Could Modular Homes Be the Solution to Canada’s Housing Crisis?
Canada is facing a serious housing problem — and one of the boldest ideas on the table comes from none other than Mark Carney, former Bank of Canada Governor and current Liberal leadership frontrunner.
His proposal? Launch Build Canada Homes, a national initiative to construct 500,000 new homes per year, with a major focus on modular and prefabricated housing.
But what are modular homes, and how realistic is this plan?
What Are Modular Homes?
Modular homes are factory-built homes, constructed in sections and then assembled on-site. Unlike mobile homes or manufactured homes, they must meet the same local building codes as traditional houses.
This isn’t a brand-new idea — during World War II, Canada used prefabricated homes to rapidly house veterans and workers through Wartime Housing Limited. Over 46,000 homes were built in record time. The question is, can we do it again — and at scale?
What’s in Mark Carney’s Housing Plan?
- Build Canada Homes (BCH): A federal development agency to build homes on public land.
- $25B in debt financing and $1B in equity to support modular construction companies.
- Focus on affordability, speed, and energy efficiency.
- Incentives for developers, including eliminating GST on new builds and subsidizing development fees.
Why Modular?
Speed: Homes can be built 30–50% faster.
Cost: Factory efficiency lowers labour and material waste.
Flexibility: Designs range from condos to family homes.
Sustainability: Lower environmental footprint.
Quality Control: More consistent than traditional builds.
Will It Work?
Like any big plan, there are challenges:
- Local zoning regulations could slow implementation.
- Public perception still carries outdated notions about prefab homes.
- Modular construction is efficient, but not a silver bullet.
Still, modular homes could be a vital part of the solution, especially in cities like Hamilton and Toronto where affordability is a growing crisis.
Thinking of buying or investing in Hamilton?
Download my Free Buyer Guide and book a call to talk strategy here.
Let me know your thoughts — is this the type of housing innovation we need in Canada?
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