To restore some sense of affordability to the housing market in Canada, we must build a staggering number of new homes over the next decade, according to the latest stats from CMHC.
The agency figures between 430,000 and 480,000 homes must be built each year over that timeline. That’s a very tall order considering that we presently aren’t anywhere near those targets.
It is unlikely the gap will close under the present conditions. In 2023, only 240,267 housing units were built in Canada and in 2024 we saw construction started on roughly 245,360 new units. In the decade between 2011 and 2021, the nation built an average of only 204,000 units.
To boost productivity, we must find a way to build homes far faster. We must lower taxes, fees and levies to make homes more affordable, and cut down on red tape. But we also need to modernize and speed up production of homes as well as tweak the mechanics of how they’re built.
Traditionally, onsite construction of new housing has relied heavily on paper-based drawings, manual calculations and isolated workflows. There are gaps in communication, and an absence of real-time data which only results in delays, cost overruns and safety problems.
While other industries have automated and digitized their processes, the construction industry has been stuck in the dark ages. That must change if we are to meet the demand for housing.
We now have digital tools at our disposal, such as Building Information Modeling (BIM) which uses 3D models and data to streamline the planning, design, management and construction of projects.
Meanwhile, we have offsite construction methods that enable panelized and modular housing to be built in a factory setting. Countries like Sweden have had success with offsite construction.
The way I see it, we are in need of a ConTech and PropTech revolution here in Canada.
PropTech, short for property technology, refers to the use of digital technology to streamline how properties are bought, sold and operated. It’s about using a wide range of technological solutions, from BIM to the Internet of Things, artificial intelligence and augmented reality, to name a few.
ConTech, short for construction technology, is the application of digital tools and software to improve the construction industry’s efficiency, productivity and safety. It includes an array of digital technologies, automation, robotics and data-driven solutions and other breakthroughs such as modular construction, 3D printing and smart site management platforms.
Together, PropTech and ConTech applications could be a game-changer as they’d help transform development and building approvals and lead to quicker production and delivery of projects.
A couple of systems come to mind – LandLogic and DEVNEX. They take the guesswork out of searching for a property that meets the criteria of a developer and help to reduce their risks.
LandLogic is a platform that uses a custom-built Data Fusion Engine to streamline the site selection process and help developers quickly find the right property for a project. The system cuts down on time by unifying and analyzing zoning and other data on thousands of properties.
DEVNEX is a real estate development firm that guides clients from property acquisition to project completion. It uses tools to help clients identify and source parcels of land and prepare for a smooth development process by uncovering regulatory, environmental and other risks.
Innovations in panelized and offsite housing, meanwhile, are also advancing. RESCON staff and board members recently toured the H+ME Technology plant in Etobicoke with federal Housing and Infrastructure Minister Gregor Robertson. Building materials such as floor and wall panels are engineered in a controlled environment for just-in-time delivery to the jobsite.
With a growing labour shortage and serious construction productivity challenges, a recent report from the CD Howe Institute called on governments at all levels to create the conditions necessary for innovation to thrive, including targeted financial tools to incentivize investors.
The report highlighted that innovative construction methods – such as modular, panelized, mass timber and 3D printing – offer potential to improve productivity and accelerate housing delivery, but adoption here is stymied by high upfront costs, fragmented regulations and insufficient data.
As the report noted, rapid advancement of technology is reshaping industries and construction is no exception. From artificial intelligence and machine learning to software and automation, the landscape is shifting, driven by the demand for efficiency, accuracy and adaptability.
New housing starts and sales have cratered badly, and industry job losses are mounting. We have a choice: either adapt or fall behind. The latter is not an option.
Richard Lyall is president of the Residential Construction Council of Ontario (RESCON). He has represented the building industry in Ontario since 1991. Contact him at [email protected].
