Could prefab homes solve Canada’s housing crisis? ‘It’s like an orchestra’ – National | 24CA News

Canada
Published 01.01.2023
Could prefab homes solve Canada’s housing crisis? ‘It’s like an orchestra’ – National | 24CA News

Canada is dealing with a housing disaster — the variety of houses wanted within the nation retains rising however not the variety of folks wanted to construct these houses. As homebuilders and policymakers grapple with this downside, some might discover solutions in “prefabricated” homes, in line with consultants.

“Prefabricated (or prefab) housing is a form of housing where the building blocks are built in a factory rather than on site,” Matti Siemiatycki, director of the infrastructure institute on the University of Toronto, advised Global News.

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“By manufacturing in a factory, it means the construction can be done more precisely and it saves on energy costs,” he stated.

Not being constructed on-site additionally saves on labour prices, Siemiatycki added.

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What precisely is a prefab house?

Prefab houses have been fairly the craze of late, from tiny houses being flaunted on Instagram to being the favored selection for an Airbnb keep, to Elon Musk residing in a single himself.

As of final 12 months, the billionaire was recognized to be residing in Boca Chica, Texas, in a 375-square-foot, energy-efficient prefab house from the corporate Boxabl.

The mannequin of house, generally known as the Casita, begins round US$45,500 and is delivered to the client on the again of a semi-truck.


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Some firms, like Roombus, are even integrating software program into their design to make good prefab houses. Roombus’ Nest houses are geared up with the corporate’s personal RoomOS software program that can be utilized to unlock your own home, modify the lights and management the local weather — all with a cellphone.

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Prefab houses have been widespread in waves all through historical past, like within the U.Ok. after the Second World War following a housing scarcity, in line with Siemiatycki.

“There’s a long history of prefabricated homes. You used to be able to buy them from a Sears catalog,” stated Siemiatycki, who can also be a professor of geography and planning on the University of Toronto.

Between 1919 and 1928, Sears, Roebuck & Company bought house kits from its “modern home program,” in line with the James A. Garfield National Historic Site. One house was even named “The Garfield” after the twentieth president of the United States.

In Canada, many homes are sometimes constructed utilizing the “stick construction” methodology — in distinction to prefab houses, the place the house is delivered after it’s constructed, in line with Siemiatycki. Stick building means the supplies are assembled on website.

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“It’s interesting that we’re returning to (prefab) now because we’re in a housing crisis,” he stated. “You’re hearing a lot of emphasis on prefab housing, and it’s become more popular.”

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With elevated demand, there was an increase in firms creating prefabricated houses, although one hasn’t precisely dominated the market as of but, stated Siemiatycki. 

“These companies have struggled to find a foothold. There’s a lot of talk about this but if this is really going to catch on, who’s going to become the dominant player is still really up for grabs,” he stated.

Prehab houses are ‘fairly widespread’ in Canada

For 28-year-old Sasha Weekes and her boyfriend, transferring right into a 608-square-foot prefab house in central Prince Edward Island helped to “cut our expenses back by a lot.”

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“On the East Coast, they’re quite common, especially now with the housing crisis,” she advised Global News.

Weekes’ house certified for a mortgage via the Canada Mortgage and Housing Corporation.

The greatest hiccup, nevertheless, was the delay Weekes confronted in really getting her prefab house delivered amid building setbacks.

“People think that a prefab house will be a quicker option, but you have to do a lot of site preparations and then you have to wait for the house to be built and you have to wait for it to come,” she stated.


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When her house lastly did arrive, two months had been spent getting the septic dug and electrical installations achieved, earlier than they may really transfer in.

“I think a lot of people around our age on the East Coast that have been priced out, have had to use this option,” she stated.

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“They’re built really well, and they are a better option (price wise),” she stated, however one should be ready for the wait.

Part of the answer to Canada’s housing disaster might be enhance in provide and in line with Siemiatycki, “this is where prefab housing can have a big opportunity.”

Prefab houses might be constructed sooner than common homes, in line with Adam Dumond, designer at Royal Homes in Ontario.

“It’s like an orchestra,” he advised Global News. “The home is built pretty much all at the same time. Framing, windows and roofing — all of that can be done simultaneously in a manufactured prefab home.”

“It’s a really, really cool alternative to stick framing. The crews are happy your home is indoors being built while the weather’s doing whatever it’s doing,” Dumond added.

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After the home is constructed, it’s delivered in modules to the shoppers’ property to be assembled.

“A crane comes in and then we pick the home up and put it on the foundation one module at a time,” Dumond stated.

On common, Royal Homes sees about two and a half modules per home for one thing within the 1600-to 1800-square-foot vary. Each sq. foot ranges roughly between $350 to $450, relying on the place you reside, stated Drumond.

That means a 1600-square-foot house might value between $560,000 to $720,000 and an 18,000-square-foot house, someplace between $630,000 to $810,000.

“We have some homes that are a little bit less (in price) and obviously some homes that are a little bit more. It just really depends on where you want to build,” he stated.

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In Ontario, the typical worth of a house sat at $829,934, as of Nov. 2022, in line with the Canadian Real Estate Association.

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Though a prefab house could also be cheaper than the typical worth of a house within the province, buying land for it to perch on can also be an element that must be thought of.

“Every site is a little bit different,” stated Dumond. It is important to be aware of properties close to water-shedding areas or rock formations, he cautioned.

Siemiatycki agrees.

“We need to be very careful that people are not buying in places that are prone to flooding or prone to wildfires. We need to be very careful that we’re not building in low lying areas or areas that are right at the urban wildlife interface.”

In Ontario, practically two-thirds of residents are spending over 30 per cent on their family finances on housing, in line with a current ballot from the Ontario Real Estate Association (OREA).

Despite the rising value of residing placing stress on Canadians, seven in 10 non-homeowners in Ontario determine as somebody who “really wants to own a home,” the ballot discovered.

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And in Ontario, in addition to B.C., excessive rates of interest are anticipated to proceed to carry again homebuyers into the brand new 12 months, in line with a current report from RBC.

When it involves structure and design, prefab houses are usually “repetitive,” in line with Siemiatycki.

Putting private touches on the house may get difficult.

“There’s always a trade off with prefabrication about how much customization you want to do before you lose the benefits — the economies of scale of building it in a factory,” stated Siemiatycki.


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For prefab houses to essentially make their mark in Canada’s housing market, it’s essential to ramp up manufacturing, Siemiatycki stated.

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“If a part of supply is going to be provided by modular, either for single family homes or multi-units, there’s going to be a need for huge amount of capacity in the market that isn’t even available right now,” he added.

Durability may differ in the case of prefab houses, in line with Siemiatycki.

“It does vary depending on how it’s built and what its lifespan is going to be,” he stated. They want to come back with a historical past of being sustainable in locations “vulnerable to environmental conditions.”

“We continue to need good planning and making sure that where we’re building is safe to build and it’s not vulnerable because otherwise, you’ll just be creating real further challenges down the road for everyone involved — the municipalities, the first responders, and for the people that are ultimately living in these homes,” he stated.

What to think about when available on the market for a prefab house

It’s essential to go looking for a corporation that’s “reputable,” in line with Siemiatycki.

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“This is thinking through (not just) who’s actually manufacturing, but also who’s assembling it,” he stated.

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Also serious about whether or not the property might be rented out or resold down the highway is one thing to be aware of, Siemiatycki added.

“There’s a lot of research that goes into purchasing a home. For many Canadians, this will be the largest purchase they make in their life,” he stated.