Revitalizing Canada’s Housing Market: The Need for a ConTech and PropTech Revolution

To restore a sense of affordability to the housing market in Canada, experts assert that we must undertake a monumental task: building between 430,000 and 480,000 homes annually over the next decade. This figure, provided by the Canada Mortgage and Housing Corporation (CMHC), underscores a stark reality—the country is currently far behind these targets.

The Current Landscape

As of 2023, only 240,267 housing units were constructed, and slightly more—around 245,360—were initiated in 2024. Reflecting on the previous decade (2011-2021), the average construction rate stagnated at merely 204,000 units per year. This significant shortfall indicates a looming housing crisis if we remain on our current path.

Barriers to Growth

Achieving the ambitious building targets will require strategies that foster productivity. At the forefront of these solutions are crucial measures to lower taxes, fees, and levies associated with housing development. Additionally, reducing bureaucratic red tape is vital for streamlining construction processes.

However, it is not enough to simply rethink policies; we must also modernize the methods by which homes are built. The traditional onsite construction approach relies heavily on outdated practices—paper-based drawings, manual calculations, and fragmented workflows, leading to inefficiencies, delays, and inflated costs.

Embracing Digital Transformation

While many industries have already embraced digital transformation, construction has lagged. This situation needs urgent attention if we aim to rise to the escalating demand for housing. The advent of digital tools like Building Information Modeling (BIM) offers a path forward. By utilizing 3D models and data, BIM streamlines the entire spectrum of planning, designing, managing, and constructing projects.

In addition, offsite construction methods, such as panelized and modular housing built in factory settings, demonstrate potential for efficiency gains. Countries like Sweden have successfully navigated this transition and showcased the viability of advanced construction techniques.

The Call for ConTech and PropTech

The time has come for a ConTech and PropTech revolution in Canada. PropTech—property technology—leverages digital solutions to improve processes surrounding property transactions and management. ConTech, or construction technology, focuses on using advanced tools to enhance construction efficiency, safety, and productivity.

Together, these technologies could yield transformative impacts on development approval processes, significantly reducing the time required for project delivery.

Innovative Solutions

Companies like LandLogic and DEVNEX exemplify how technology can optimize the real estate development process.

• LandLogic employs a custom-built Data Fusion Engine to aid developers in site selection, unifying and analyzing zoning and other important data across thousands of properties.

• DEVNEX simplifies the real estate development journey by guiding clients from property acquisition to project completion. Employing tools that reveal regulatory and environmental risks, the company prepares clients for a smoother development process.

Advancing Housing Technologies

Recent innovations in panelized and offsite construction have gathered significant attention. The H+ME Technology plant in Etobicoke illustrates this progress, where building materials are engineered under controlled conditions for just-in-time delivery to construction sites. This approach aligns well with addressing the growing labor shortage in the construction sector.

A recent report from the CD Howe Institute has emphasized that for innovative construction methods—ranging from modular and panelized technology to 3D printing—to gain traction, government interventions are essential. Policy adjustments that encourage innovation, including targeted financial incentives, will be critical for overcoming existing barriers.

Adapting to Change

As the demand for new housing starts and sales declines, the construction industry faces mounting job losses. The path forward requires adaptation to new technologies and methodologies. Falling behind is simply not an option.

In conclusion, the combination of ConTech and PropTech can pave the way for a revitalized housing market in Canada. Through innovation, efficiency, and a willingness to embrace change, we can move towards meeting the critical housing demands of our populace.

About the Author

Richard Lyall is the president of the Residential Construction Council of Ontario (RESCON) and has represented the building industry in Ontario since 1991. For inquiries, please contact him at media@rescon.com.