Addressing Homelessness Through Modular Housing: A Transformative Approach

By Sharif Hassan

Amidst the escalating housing crisis in Canada, innovative solutions are emerging, embracing both efficiency and compassion. A notable project by St. Clare’s non-profit, situated on Ossington Avenue, has enlisted the power of modular housing to address homelessness, proving that timely, thoughtful construction can create meaningful change.

Vision Turns into Reality

Andrea Adams, the executive director of St. Clare’s, envisioned a transformative project for the land adjacent to a 20-unit building on Ossington Avenue. Her daydream soon turned into a reality as she partnered with Assembly Corp., a pioneering firm specializing in mass timber modular housing. As the city sought “shovel-ready” affordable housing projects, St. Clare’s had the necessary land and a dedicated contractor, aligning perfectly with the city’s urgent needs.

The result was an impressive three-storey structure that now offers homes to over two dozen individuals previously facing homelessness. Adams described it as a “very assertive project,” highlighting its success in providing stable housing to people who would otherwise be living in shelters, couch surfing, or enduring life on the streets.

A Step Towards Housing Solutions

This initiative signifies a critical step in combating homelessness in Ontario, where an alarming 80,000 individuals experienced homelessness in 2024, according to the Association of Municipalities of Ontario. Experts emphasize that while modular homes alone cannot resolve the multifaceted crisis, they represent a vital component in expanding affordable and supportive housing options.

“The modular definitely helps because the faster construction is, the less expensive it is,” Adams explained, highlighting the efficiency of the manufacturing process. The Ossington project was completed in just 21 working days, culminating in a total construction time of eight months.

Designing for Aesthetic and Function

Each studio unit spans approximately 220 square feet and features essential amenities such as a bathroom, kitchen, and living space. The building, with its modern light brown exterior and expansive windows, is designed to not only maximize space but also to draw the admiration of passersby. Adams remarked, “It uses every square inch of property available to it and yet still looks beautiful.”

However, she stressed that despite these accomplishments, the urgency of the homelessness crisis calls for a broader response. “We need to do all the things and think of more things and then do those things,” Adams said.

The Bigger Picture of Housing in Canada

The shortage of housing in Canada is a nationwide concern, necessitating millions of new homes to accommodate a growing population. During the recent federal elections, Prime Minister Mark Carney promised a housing plan aimed at producing 500,000 new homes annually, coupled with $25 billion in loans to support factory-built home construction.

Ontario Premier Doug Ford also committed $50 million to modular housing technology in hopes of promoting sustainable and efficient housing solutions.

The Promise of Modular Housing

Experts point to several advantages of modular homes, notably quicker construction timelines, cost efficiency, and potential reductions in environmental impact. Carolyn Whitzman, a professor at the University of Toronto’s School of Cities, contended that achieving scale in modular construction is crucial for realizing its full potential. She commented, “The trick is how can Canada get to the scale,” noting that increased demand could lower costs further.

While modular housing currently represents a modest 4 to 6 percent of construction in Canada, it is gaining traction. Countries like Sweden have successfully leveraged modular homes to tackle housing shortages, with nearly 45 percent of their homes built in factories.

Funding and Affordability

Despite the advantages, modular housing isn’t a panacea for the affordability crisis. Significant government support is paramount. For the Ossington Avenue project, the federal government invested approximately $4.8 million, while the City of Toronto contributed around $1.7 million in incentives. St. Clare’s input was estimated at about $900,000, allowing rent for each unit to be set at around $500 monthly.

This model plays an integral role in Toronto’s strategy to provide affordable housing. Doug Rollins, interim executive director of the city’s housing secretariat, highlighted the goal of constructing 18,000 supportive housing units by 2030, with a portion being prefabricated.

The Path Forward

Other municipalities are following suit. For instance, Peterborough built a 50-unit modular complex in 2023, and London constructed a 61-unit building in 2022. As the momentum grows, there’s a palpable sense of urgency in addressing the housing crisis through prefabricated solutions.

Luke Moir, a project manager at Assembly Corp., points out that such developments represent a viable solution to urban land underutilization, stating, “It is a piece of the puzzle.” With modular construction, disruptions are minimized as components are largely manufactured off-site, enhancing the living environment for surrounding communities.

Conclusion: A Collaborative Future

As various stakeholders, including non-profits, government entities, and private companies, collaborate to embrace modular housing, the potential to create sustainable, affordable solutions to homelessness becomes more tangible. With ongoing investments and innovative thinking, Canada can shift from a scarcity mindset to one of abundance, transforming not just buildings, but lives.

The vision painted by St. Clare’s and its partners exemplifies the critical intersection of compassion, design, and technology—a beacon of hope in a landscape desperately in need of solutions.