The Ontario Real Estate Association (OREA) highlights a growing housing affordability and supply crisis in Ontario and proposes factory-built housing—modular or prefabricated homes—as a viable solution. With demand rising, prices soaring, and housing starts in decline, OREA emphasizes that traditional methods alone cannot meet Ontario’s ambitious housing targets. The association argues that unless significant reforms are made, homeownership will become increasingly out of reach, with nearly half of aspiring homeowners already pessimistic or giving up on the idea entirely.

Factory-built housing involves constructing homes off-site and assembling them on location. This method includes modular, panelized, and mobile homes and can reduce construction time by 20–50% without compromising quality. These homes can align with local architectural styles, meet national building standards, and support multi-unit designs. OREA presents factory-built housing as not only a faster, cost-effective solution to the housing crisis but also as a strategy for economic growth and environmental sustainability.

Several Ontario cities have already seen success with modular housing initiatives. Toronto has built over 200 affordable units, Peterborough completed 50 tiny homes in seven months, and London used a hybrid model to expedite a 61-unit project. At the federal level, Canada’s Rapid Housing Initiative has contributed to over 15,000 new homes using modular construction since 2020.

OREA also emphasizes that factory-built housing could help meet the needs of Ontario’s aging population by enabling the rapid development of accessible, ground-level communities for seniors, potentially easing pressure on the resale market.

However, challenges remain, including inconsistent municipal definitions, outdated regulations, limited public awareness, and transportation issues such as seasonal road restrictions. To address these barriers, OREA proposes five key policy recommendations: standardize definitions, collaborate nationally, reduce regulatory hurdles, invest in public-private partnerships, and amend transport laws.

Overall, OREA argues that with the right policy environment and investment, factory-built housing could significantly boost Ontario’s housing supply, reduce costs, create jobs, and support long-term sustainability goals.