Ontario is currently facing a crisis in affordability and supply. The Ontario Real Estate Association believes that with increasing demand, rising prices, and a significant decrease in housing starts, the province needs to explore alternative methods to meet its housing goals.
In their new report, Building More, Building Faster, OREA suggests that factory-built housing, also known as modular or prefabricated housing, could be a crucial part of the solution.
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Addressing affordability and supply challenges
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Ontarians are losing confidence in the possibility of owning a home. OREA points to a recent survey where nearly half of aspiring homeowners have either given up on the dream of homeownership or are pessimistic about it. The association attributes this to regulatory and supply issues such as lengthy approval processes, zoning restrictions, and a shortage of developable land and skilled trades.
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What is factory-built housing?
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Factory-built housing refers to homes that are partially or fully manufactured off-site and then transported for assembly. This includes modular, panelized, kit homes, and fully manufactured mobile homes. OREA claims that these construction methods can significantly reduce build times without compromising quality.
These homes can be designed to match local architectural styles, accommodate various residential formats, and meet national building standards.
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Adoption across Ontario and beyond
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Several Ontario municipalities have embraced modular housing initiatives. For example, Toronto’s Modular Housing Initiative has built over 200 affordable units using this approach. Federal investments, such as Canada’s Rapid Housing Initiative, have also supported factory-built housing.
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Economic and environmental considerations
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OREA sees factory-built housing as both a construction solution and an economic development opportunity. They believe that this sector could create jobs, boost the economy, and align with environmental goals by reducing waste and improving energy efficiency.
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Potential benefits for aging populations
Factory-built housing could address the needs of Ontario’s aging population by enabling the rapid development of accessible communities for seniors. This could help ease demand pressures in the broader housing market.
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Challenges to scaling up
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While there is promise in factory-built housing, OREA acknowledges barriers to adoption such as inconsistent definitions, outdated regulations, and limited public awareness. They also point out specific challenges like zoning requirements for modular homes and road restrictions that impact transportation.
OREA argues that addressing these issues is crucial to encourage investment and growth in the factory-built housing sector.
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