Could this be the key to Ontario's housing shortage?
A new report from the Ontario Real Estate Association (OREA) urges the province to embrace factory-built housing as a central strategy to address Ontario’s deepening housing supply and affordability crisis.
In Building More, Building Faster, OREA outlines how prefabricated housing – which includes homes constructed in factories using modular or 3D components and later assembled on-site – can dramatically accelerate construction timelines and reduce costs. The report comes as Ontario aims to meet its ambitious goal of building 1.5 million new homes by 2031.
“Now more than ever, housing affordability needs to be the top priority for the Government of Ontario to address,” said Cathy Polan, president of OREA. “With precise policies and legislation, we can help scale the housing construction industry and get more families into great, affordable new homes.”
Factory-built housing has gained renewed attention following the 2025 Ontario election, during which the provincial government committed $50 million toward innovative construction methods, including prefabricated homes. According to OREA, much of the infrastructure required to support this shift already exists in Ontario, including advanced construction techniques, mass timber, and domestic steel production.
However, the report notes that regulatory obstacles and outdated policies continue to slow progress. It recommends five targeted actions to promote the growth of factory-built housing:
- Establishing a consistent, province-wide definition of factory-built homes;
- Promoting cross-country collaboration with public and private stakeholders;
- Cutting red tape and easing municipal regulations;
- Investing in the expansion and adoption of prefabricated housing;
- Removing outdated “spring thaw” restrictions that limit housing transportation under the Highway Traffic Act.
OREA argues that, when paired with policy reform, factory-built housing could help create a more efficient and affordable construction model without compromising quality or the character of local communities.
The association emphasized the urgency of speeding up development in light of rising construction costs, supply chain disruptions, and ongoing economic uncertainty. “It will take strong collaboration with all levels of government and industry to get it done,” said Polan.
OREA noted that, if implemented, its recommendations could lay the groundwork for a “stronger, more resilient housing system – faster, smarter, and made right here in Ontario.”
What are your thoughts on factory-built housing as a solution? Share your insights below.
