A three-storey home built in just three days? Why this Toronto tear down may hold the key to Canada’s house building strategy

A Toronto home was recently built in just three days, showcasing the potential of modular construction in addressing Canada's housing crisis. This innovative approach involves assembling homes in factories before transporting them to the site, significantly reducing construction time and costs. The rapid completion of this three-storey house highlights how modular building techniques could revolutionize home construction in urban areas.

Modular construction offers several advantages over traditional methods. By manufacturing components off-site, builders can avoid delays caused by weather and labor shortages. Additionally, this method reduces waste and minimizes disruption to neighborhoods during the building process. According to a report by consulting firm McKinsey, modular construction can accelerate building timelines by 20 to 50 percent and potentially lower costs by up to 20 percent.

The Canadian government is recognizing the benefits of modular construction and is taking steps to promote its adoption. In 2024, Prime Minister Justin Trudeau announced a $600 million package aimed at making it easier and cheaper to build homes faster. This includes a $50 million Homebuilding Technology and Innovation Fund to support innovative housing technologies, such as modular and prefabricated homes. Additionally, $500 million is allocated to support rental housing projects that utilize these advanced construction techniques.

Despite these initiatives, modular construction currently accounts for only about two percent of the Canadian housing market. Challenges such as regulatory delays, financing inefficiencies, and resistance from traditional construction sectors hinder its widespread adoption. For instance, Z Modular, a company specializing in modular construction, had to close its Kitchener, Ontario factory due to rising costs and regulatory hurdles, despite initial support and investment.

To overcome these obstacles, experts suggest that systemic changes are necessary. This includes streamlining regulations, providing consistent demand to justify factory investments, and educating stakeholders about the benefits of modular construction. Countries like those in Scandinavia have successfully integrated modular building into their housing strategies, with prefabricated homes making up a significant portion of their housing stock.

The successful construction of a three-storey home in just three days in Toronto serves as a compelling example of what modular construction can achieve. As Canada grapples with a housing shortage, embracing such innovative building methods could be key to providing affordable and efficient housing solutions for its growing population.