Liberal contender wants to incentivize prefab housing to lower costs and speed up construction
Liberal leadership candidate Mark Carney is putting housing affordability at the centre of his campaign, proposing incentives for modular and prefabricated homes as a way to lower costs and speed up construction.
Speaking at the University of British Columbia’s Smart Structures Lab in Vancouver on Thursday, Carney emphasized that modular construction could help address Canada’s housing shortage by reducing waste, cutting building time, and making homeownership more attainable.
“We have a huge problem with affordability. If we can strip out 25% of the cost of homes, it’s going to make it easier for young Canadian families to get those homes,” he said. “This is a time to build. It’s directly relevant to the tariff response to the United States.”
However, Carney did not provide specific details on what incentives his plan would include, nor did he outline any concrete funding commitments or tax credits.
Modular housing, which are built in factories and assembled on-site, are becoming an increasingly attractive alternative to traditional construction. Their shorter build times, reduced labour costs, and lower material waste have made them a potential game-changer in addressing Canada’s housing shortage.
Industry experts have pointed to modular housing as a key tool in tackling affordability concerns, but widespread adoption would likely require significant government backing, something Carney appears willing to push for if elected.
Carney’s announcement came as Chrystia Freeland, another frontrunner in the Liberal leadership race, released a competing proposal focused on Canada’s healthcare workforce. Her plan aims to bring doctors and nurses back from the US by offering financial incentives, a move she says would help address critical shortages in the country’s healthcare system.
Freeland’s proposal includes subsidies to help medical professionals return to Canada, with doctors receiving $200,000 and nurses $100,000 after five years of service. Additionally, Ottawa would pay off a portion of their US student loans – up to $300,000 for doctors and $50,000 for nurses – and any loans transferred to Canada would be made interest-free.
Read next: Freeland pitches tax cuts to ease housing costs
The timing of Freeland’s plan aligns with recent concerns over Canada’s economy, as President Donald Trump threatens new tariffs on Canadian imports. If those trade measures move forward, Freeland argues that Canada must bolster its domestic workforce, particularly in healthcare, to withstand potential economic disruptions.
The competition for Liberal leader is gaining momentum as candidates prepare for two upcoming debates in Montreal, one in French on February 24 and another in English.
Fellow candidate Ruby Dhalla has been met with a challenge ahead of the French-language debate, as the Liberal Party has denied her request for a translator. Party spokesperson Parker Lund confirmed that only the candidates and the moderator will be allowed on stage and that no translation assistance will be provided.
Despite this, Dhalla has committed to attending the debate, stating that she will deliver both her opening and closing remarks in French, even though she is not fluent in the language.
“As leader, I will always champion a Canada where every citizen, regardless of language, is included in the conversation about our future,” Dhalla said in a statement.
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