Canada's Housing Shortage - Can Technology Provide Solutions?

Canada is facing a major housing supply crisis. Home prices have risen over 20% in the past year, making ownership unaffordable for many working families. The shortage is driven by high immigration, limited housing construction, and growing demand in cities like Toronto and Vancouver.

How did we get here? For the past 30 years, housing construction has lagged behind household formation and population growth. Zoning restrictions also limit opportunities for more dense and affordable multi-family units. Currently, Canada has the lowest number of housing units per 1,000 residents of any G7 country. Experts estimate a shortage of 1.8 million homes nationally.

Advances in construction technology present an opportunity to rapidly increase Canada's housing inventory:

Modular and Prefabricated Construction

Factory-built housing units and components can slash construction timelines and costs. Japan has utilized these techniques to build high-quality affordable housing at scale. Modular construction is now taking off in Canada through innovators like Metric Modular. I know companies in USA are using similar companies for fast a rapid deployment, this may sound new, but its an old development concept in a new casing, I.e. technology.

3D Printing

Early-stage companies like Branch Technology and Apis Cor are exploring 3D printed housing. By automating construction processes with digital files and robotic arms, 3D printing promises continuous operation, reduced labor costs, and less waste.

Smart City Infrastructure

Cities can leverage sensors, IoT platforms, and integrated data to optimize energy use, mobility, and resource allocation. For example, Google affiliate Sidewalk Labs aimed to use high-tech infrastructure to tackle Toronto's housing crisis before the project was canceled. I have been to cities in East Asia where this is implemented to create not only more houses but also jobs.

While technology alone won't fix affordability, combined with progressive urban planning and zoning policy, it can help Canada's construction sector meet the growing demand for living space. Accelerating housing development will relieve squeezed budgets for Canadian residents and quell fears that the next generation won't have local options to put down roots.