Government pledges $500 million to boost modular housing innovation

Prime Minister Justin Trudeau emphasized modular housing as a solution to accelerate home construction in a July statement. According to a McKinsey report, this method can expedite building by 20% to 50%, reduce waste, and lower costs by up to 20%. The Canadian Press reported that the government plans to allocate $500 million in loans to apartment builders using modular techniques, fund innovative housing solutions, and streamline regulatory processes.

However, industry insiders, like Kevin Lee of the Canadian Home Builders’ Association, stressed that broader housing market issues need addressing. Despite government support, modular housing remains only 2% of the market. Companies like Z Modular face challenges due to regulatory delays and financing inefficiencies, highlighting the need for systemic change to fully realize the potential of modular construction.