Limited regulator awareness is among the major barriers to widespread adoption of factory-built homes
The federal government has said that it is looking at factory-built homes as a method of quickly boosting Canada’s housing supply, but market players argued that regulatory issues will remain a hurdle in the widespread adoption of this strategy.
Sunil Johal, vice president of public policy at CSA Group, said that modular housing offers unique advantages that policy makers can leverage in addressing supply shortages.
“Modular really represents an opportunity to give the construction sector different options to help meet that significant demand by fabricating different building components or modules in an off-site controlled factory environment,” Johal told BNNBloomberg.ca.
However, Johal said that utilizing this type of housing will not be as simple as the government might hope, citing limited regulator awareness as among the major barriers.
“They tend to take quite a bit of time to review and approve these projects,” he said. “That really eats into one of the big advantages that modular offers, which is the speed and timeliness with which it can be delivered.
“Things are done differently and we need to make sure that we recognize that. That could involve greater recognition of standards around how modular homes are built.”
Amid projections of continued declines in housing supply and affordability throughout 2024, RESCON is urging political leaders at all levels of government to address these issues.
— Canadian Mortgage Professional Magazine (@CMPmagazine) January 5, 2024
Read more: https://t.co/aaL3eBy7zw#mortgageindustry #housingmarket #housingsupply #mortgage
Last month, federal housing minister Sean Fraser told BNN Bloomberg that a major focus of housing policy this year will be improving Canada’s housing supply, with factory-build homes being a crucial component of this drive.
Fraser said that the ambitious strategy will be feasible through collaboration with private sector entities and multiple levels of government.
The latest estimate by Canada Mortgage and Housing Corporation (CMHC) pegged that Canada will need around 3.5 million more homes by the end of the decade to bring back a measure of housing affordability.
