Government initiative aims to boost local housing supply and economy
The Prince Edward Island government is seeking a private partner to build modular housing units directly in the province.
This initiative, part of a broader effort to address the housing crisis, was announced through a request for expressions of interest issued last Friday.
The selected company will be offered a government-owned site for the facility and could qualify for financial incentives under existing programs.
According to the government's request, the company that sets up operations is expected to prioritize the PEI market by dedicating the majority of its production to the local demand for at least five years.
Economic development minister Gilles Arsenault is expected to provide further details after the June 6 closing date for expressions of interest.
Expanding modular home construction was highlighted as a key goal in PEI's housing strategy, which was released in February. The strategy emphasizes the need to pursue more projects utilizing prefabricated units "to realize the benefits of efficient construction, use of materials, labour and energy."
While some recent builds in the province have used modular units shipped from other regions, such as apartment buildings for the Canadian Mental Health Association, the government aims to establish a local manufacturing base.
Sam Sanderson, general manager of the PEI Construction Association welcomed the prospect of locally-produced modular homes but raised concerns about labour constraints.
"That's the first question I'm going to ask: where's the labour coming from?" Sanderson told CBC News. "Are we taking more people out of the current labour market right now to build manufactured, pre-manufactured housing?"
Sanderson also urged the province to analyze whether modular construction offers cost savings compared to traditional building methods, noting the expression of interest requires the company to "implement processes and/or technology to achieve cost-effectiveness."
The push for modular housing production aligns with a January commitment by Atlantic housing ministers to explore factory-built homes as part of the solution to the region's housing crisis.
Read more: Adopting modular homes as a supply solution easier said than done, say experts
PEI has been among Canada's fastest-growing provinces in recent years, exacerbating its housing crunch. Last October, the Canada Mortgage and Housing Corporation reported PEI’s apartment vacancy rate at 1.1%, tied with Nova Scotia for the lowest nationwide.
This year, the province experienced its strongest first quarter for housing starts with 394 units, propelling it toward an ambitious annual target of 2,000 new builds – a level achieved only once before in 1973.
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