In Canada’s housing crisis, are modular homes a cheaper and faster solution?

Canada is facing a serious housing shortage. Rent is rising, home prices are out of reach for many, and more people are struggling to find a place to live. One idea gaining attention is modular homes—buildings made in a factory and put together on-site. These homes can be built much faster than traditional houses and often cost less, making them an option worth exploring.

In Toronto, a recent project turned unused church land into a 25-unit modular building. The factory-built units were installed in just 21 working days, and the entire project was completed in about eight months. Each unit is small—around 220 square feet—but includes a kitchen, bathroom, and living space. This kind of speed is almost impossible with standard construction, which can take a year or more.

The lower cost comes from building in a factory, where materials are used more efficiently and fewer workers are needed on-site. In Ottawa, another modular project was put together in just a few days. Projects like these show how modular homes could help add new housing quickly, especially for people in urgent need.

But there are challenges. Modular homes only make up a small part of the market, and factory production only becomes affordable when there’s steady demand. Builders need support and clear policies to make this approach work at a larger scale. Without that, factories may sit idle, and costs can go up.

Governments are starting to step in. Some projects have been funded with millions of dollars from federal and local programs, helping keep rents low. In one case, people moved into modular units that cost just $500 a month to rent. Other cities in Ontario have also started using modular homes for emergency and affordable housing.

Modular homes won’t solve the entire housing crisis, but they can play a big role. They’re quicker to build, can be more affordable, and are already helping some communities. If governments and builders continue to invest and work together, modular housing could help close the gap and give more Canadians a place to call home.