“Canada to Launch Large-Scale Modular Home Initiative”

Canada is set to follow in the footsteps of Sweden, Japan, and the U.S. by launching a large-scale factory-built housing initiative next year. Build Canada Homes, a new federal agency, plans to finance the construction of 4,000 modular homes on federal land nationwide in 2023. Initially targeting six cities, the project has the potential to expand to constructing 45,000 homes, as per Ottawa’s announcement.

Despite this, the planned 4,000 homes are only a fraction of the estimated 4.8 million homes that the Canada Mortgage and Housing Corporation projects will be required by 2030 to address the housing affordability crisis in the country. The government is optimistic that prefabricated homes will be instrumental in tackling the housing shortage.

While Canada’s modular housing sector is still developing compared to other nations where factory-built homes are gaining popularity, it has room to learn from countries with well-established industries in this area.

In Sweden, a significant portion of housing is constructed using prefabricated components. Japan’s prefab industry is anticipated to surpass $23 billion by 2030, and Singapore boasts massive modular buildings housing close to 1,000 apartments.

However, not all attempts at scaling modular housing have been successful globally. Experts caution that Canada, with its unique housing challenges, must heed the successes and failures of other countries in this regard.

Insights from Global Experiences

Carlo Carbone, an environmental design professor at the University of Quebec in Montreal, noted the prevalent on-site construction culture in North America, contrasting it with Japan’s history of modular housing due in part to seismic risks. Sweden’s well-established prefabricated housing industry, dating back to the 1940s, is now highly standardized and integrated within supply chains.

WATCH | How modular housing could help solve Ontario’s housing crisis:

How modular housing could help solve Ontario’s housing crisis

March 14, 2025|

Duration 2:36

Many countries, including Canada, look to Japan and Sweden for inspiration in prefab housing technology and construction practices. Assembly Corps, a Toronto firm specializing in prefabricated wood buildings, recently acquired equipment from Swedish industry leader Lindbäcks to establish a new factory in Toronto.

Research indicates that successful modular housing industries are often driven by high demand for affordable housing or to support population growth, such as Sweden’s post-war baby boom.