Breaking the Mold: A New Era for Canadian Homebuilding

The well-worn adage “If it ain’t broke, don’t fix it” has never felt more out of place than in the context of Canadian homebuilding. Murtaza Haider, recently appointed Executive Director of the University of Alberta’s new Cities Institute, passionately argues that the current system is fundamentally flawed. With Canada’s population surging from 20 million in the 1970s to over 41 million today, the country is producing far less housing per capita despite increased efforts and incentives. Haider insists we must explore radical new strategies to address this pressing issue.

An Urgent Need for Change

"For decades, despite our best intentions, we have failed to increase the rate, scale, scope, and frequency of housing construction," Haider explains. The challenge is not merely one of production; it encompasses the urgency to respond to a rapidly growing population and the mounting demand for affordable housing. With the industry stagnating, Haider believes we must significantly deviate from traditional practices.

The Case for Prefab Construction

In this light, prefabricated housing emerges as a potential game-changer. The Canadian government, led by Mark Carney’s Liberals, is championing this approach by launching Build Canada Homes (BCH), which aims to invest heavily in innovative prefabrication technologies. The BCH is set to provide $25 billion in debt financing and an additional $1 billion in equity financing for Canadian homebuilders engaged in prefab construction.

Haider highlights that prefabricated methods can reduce construction time by up to 50%, cost by 20%, and emissions by 22% compared to traditional building methods. The government plans to leverage Canadian technologies like mass timber and softwood lumber, and to foster apprenticeship opportunities to build a skilled trades workforce.

International Inspirations: Learning from Global Leaders

Despite skepticism from some industry veterans about the viability of prefab housing in Canada, Haider remains optimistic. He cites Japan as a success story, where prefab techniques yield an impressive 90,000 to 100,000 homes annually without compromising quality or customization. “Unlike the oft-maligned cookie-cutter homes, these houses in Japan offer a high level of customization,” he notes. He advocates for Canada to learn from countries like Japan and Sweden to improve its housing construction approaches.

Industry Innovations: Stelumar and Assembly Corp.

Promising advancements are on the horizon. Stelumar, a new prefab company backed by Mattamy Homes founder Peter Gilgan, is planning to ramp up production by 2026, aiming to supply modular components for approximately 3,000 housing units a year. Unlike their predecessors, this venture will focus on six-story buildings to address Canada’s “missing middle” housing crisis.

Peter Hass, General Manager at Stelumar, affirms that advancements in technology, including automation and 3D modeling, will enable the company to operate more efficiently than in previous decades. "The way we design and construct homes has fundamentally changed," he explains.

In parallel, Toronto-based Assembly Corp. has also positioned itself firmly in the prefab sector since 2017. With ten completed projects and eleven more underway, Assembly is focused on delivering prefabricated all-wood residential buildings. Their upcoming manufacturing facility in Toronto aims for an impressive production capacity of over 1,000 units annually.

Collaborative Efforts for a Sustainable Future

Both Assembly and Stelumar underscore the importance of unifying industry voices. Assembly has formed the Canadian Industrialized Construction Coalition alongside consultancy EY-Parthenon, aiming to build a roadmap for scaling prefab homebuilding across Canada.

Haider stresses that meaningful investment is crucial for success, noting that partnerships with international builders from countries like Japan and China could provide not just capital but valuable technical expertise. This collaborative framework echoes the strategies that municipalities employed to attract tech giants like Amazon—strategic incentives must be crafted to welcome foreign investment in prefab construction.

Conclusion: A Collective Responsibility

As Canada grapples with a housing crisis that threatens the very fabric of its society, the call for innovative solutions like prefab construction has never been more urgent. It’s clear that to transform the homebuilding landscape, the nation must embrace change and rethink its approaches. By pooling resources, leveraging technology, and welcoming international expertise, Canada can create a robust housing market capable of supporting its rapidly growing population. Only then can we hope to turn the tide and build a future where every Canadian has access to a home.