A New Blueprint: How Modern Methods of Construction Can Help Solve Canada's Housing Crisis

Proposed By

Stephanie Shewchuk

RBC Thought Leadership

The RBC report, A New Blueprint: How Modern Methods of Construction Can Help Solve Canada's Housing Crisis, highlights the significant potential of Modern Methods of Construction (MMC) —including modular, panelized, and factory-built housing — to help Canada deliver homes up to 50% faster and at significantly lower cost than traditional construction methods.

However, RBC emphasizes that MMC is not a standalone solution; rather, it represents a broader shift toward a more industrialized housing system that can improve productivity, address labour shortages, reduce waste, and increase housing supply at the scale required to meet Canada's affordability challenges. Despite this potential, MMC currently represents only a small share of Canada's construction market and faces substantial barriers to widespread adoption.

The report argues that unlocking MMC at scale will require a coordinated national effort across governments, industry, capital providers, and the broader housing ecosystem. Specifically, RBC identifies three critical enablers:

1) Policy and regulatory frameworks that are designed for off-site and industrialized construction, including harmonized building codes and procurement approaches;

2) Market and industry conditions that support adoption, including workforce development, standardization and repeatability, and stronger integration between manufacturers, builders, and developers; and 

3) Financing and capital structures that recognize the economics of factory-based production and provide manufacturers with the demand certainty needed to invest and scale.

Together, these conditions can help create the commercialization and deployment infrastructure necessary to accelerate housing innovation and build a more productive, resilient, and affordable housing system across Canada.