Ontario Construction News staff writer
Ontario must dramatically increase the pace of home construction to meet its goal of building 1.5 million new homes by 2031, and the Ontario Real Estate Association (OREA) says the solution is already within reach — factory-built homes.
In a new policy report the association outlines how prefabricated housing can play a key role in addressing the province’s ongoing housing supply and affordability crisis. Titled Building More, Building Faster, the report calls for policy changes to speed up the use of factory-built homes and modern construction technologies.
“Now more than ever, housing affordability needs to be the top priority for the Government of Ontario,” said OREA president Cathy Polan. “With precise policies and legislation, we can help scale the housing construction industry and get more families into great, affordable new homes.”
Factory-built, or prefabricated, homes are built in factories — often using 3D-printed or modular components — and assembled on site. The report argues that this method can save both time and money without sacrificing quality or design.
The recently re-elected Ontario government has signalled support for the approach, pledging $50 million in its 2025 campaign to support factory-built housing and other innovative construction methods.
But for the sector to scale, OREA says regulatory hurdles must be addressed.
Among the five key recommendations in the report are calls for a province-wide definition of factory-built housing, cutting red tape at the municipal level, and exempting such homes from outdated seasonal restrictions under the Highway Traffic Act.
The report also encourages interprovincial collaboration and further investment in Ontario-made materials such as mass timber and Canadian steel.
“Ontario already has many of the tools needed to build smarter and faster,” Polan said. “This is about unlocking those tools through collaboration and clear policy direction.”
With construction costs rising and ongoing supply chain disruptions, OREA says action is needed now to build a stronger, more resilient housing system — and that prefabricated homes may offer the speed and scale Ontario needs.
For more details on the policy recommendations, click here for the backgrounder and here to view the full policy report.
