Mattamy Homes is redirecting its construction strategy towards prefabricated multi-unit housing to navigate a prolonged real estate downturn and declining new-home sales. This pivot aims to deliver affordable homes, particularly “missing middle” housing, as highlighted by The Toronto Star.
The company is also addressing buyer affordability challenges with its “First-Year Mortgage, On Us” initiative. This program, available in markets like Edmonton, Calgary, Sherwood Park, and Airdrie, covers buyers’ mortgage payments for the first 12 months, capped at $4,150 per month.
David Wan, Vice-President of Sales at Mattamy Homes’ Alberta division, noted that traditional discounts often fail to resolve buyers’ cash flow issues, especially for first-time purchasers. The incentive program helps alleviate immediate financial strain, which can be significant after making a down payment and covering closing costs.
Mattamy Homes CEO Brad Carr revealed in an interview with the Toronto Star that the company has dedicated the past 18 months to extensive consumer research. This research aimed to understand the evolving preferences and ownership decisions of homebuyers in 2026, leading to the strategic shift.
The company’s focus is now on constructing more multi-unit, family-oriented housing, specifically two- and three-bedroom units within mid-rise buildings. This approach diverges from the smaller condominium units that have been prevalent in recent developments, with a particular emphasis on a six-storey format.
Carr emphasized the goal of this strategy: “It’s really trying to get affordable housing product in that six-storey format so we can deliver density but do it at a price that people can afford.” This aligns with the desperate demand for “missing middle” housing, a product category that Mattamy Homes aims to fulfill.
The decision to pivot comes amid a challenging Ontario housing market, characterized by record-low new-home sales and stalled construction projects. Developers have faced difficulties in securing financing due to weak presales, leading to project cancellations for Mattamy, including the Clove condominium development in Toronto’s Etobicoke district and the Clockwork 4 tower in Oakville, Ontario.
Carr expressed disappointment over the cancellations, stating, “It was a direct reaction to the market.” He pointed out a significant downturn in annual sales, with an estimated “90% reduction from the 10-year average,” underscoring the necessity for a market reset in product delivery.
To enhance efficiency and reduce costs, Mattamy Homes is heavily investing in prefabricated construction. This method involves manufacturing housing components off-site and then assembling them at the build location, enabling scalable production and improved affordability.
A 470,000-square-foot factory is currently under construction near Toronto Pearson International Airport, designed to produce 3,000 prefabricated homes annually. Initial multi-unit projects will commence in Mississauga, with future expansion planned across the Greater Toronto Area. The company has also partnered with a prefab-housing manufacturer for master-planned communities in Alberta, utilizing a 60,000-square-foot manufacturing facility in Calgary.
Despite the current challenges, Carr conveyed optimism regarding recent government incentives, such as tax rebates and reduced development charges. These measures are anticipated to help stabilize the housing sector and foster a return to growth. He concluded, “We’re on the precipice of, I think, some real stabilization of our sector and hopefully a return to growth.”
