An integral part of the economy, the Canadian real estate sector is currently facing a number of complicated and interrelated problems – from unprecedented affordability to sustainability and climate resilience challenges.

Addressing these simultaneous challenges in the coming years will require monumental efforts from all players across the ecosystem. Yet when we look carefully, we find that no one is in charge of real estate and housing despite the fact that we are all involved – governments, industry and consumers.

In October 2023, issues around leadership and institutions were identified as a key challenge in real estate innovation from the R-LABS Industry Issue + Transformation Council (I+T Council).

The I+T Council launched the Innovation Pledges initiative to encourage stakeholders in the private and public sectors to take leadership and undertake specific, measurable actions to enhance real estate innovation in Canada.

The initiative aims to help address the bottlenecks to innovation described in the Industry Innovation Agenda and facilitate a culture of small-scale experimentation and information sharing. Pledges directly relate to the critical priorities for Canadian real estate identified by the Council which include:

• Affordability and Supply: Meeting Canada’s housing supply challenge and addressing high costs and low productivity leading to a lack of affordability.
• Climate Resiliency and Low Carbon: Ensuring Canadian real estate can withstand extreme weather events and reducing its carbon footprint to meet Canada’s 2030 climate goals.
• Optimization: Canada’s existing building stock is not used optimally due to factors such as a lack of transition options and a lack of flexibility to convert one form of building use to another.
• Capital, Labour and Supporting Infrastructure: Ensuring firms have the essential building blocks for success.

To date 20 diverse organizations from across Canada have taken an Innovation Pledge. George Carras, Founder & CEO of R-LABS, sees the momentum as evidence of a “growing cluster of innovation that is bringing new solutions through new companies that create new, higher productivity jobs.”

Among the pledges, Engaged Innovators such as PropTy, a blockchain enabled platform to invest in fractional rental properties across Canada, have committed to actively contributing to the idea and validation of at least one novel real estate solution or pilot project.

GroundBreak Ventures, an early-stage investor in home innovation and property technology, is just one of many Active Investors who have signed on to invest in at least one early-stage company delivering novel real estate solutions and innovation skills and capabilities.

As part of the initiative, R-LABS has pledged to invest up to $1 million in early-stage startups focused on solving key problems facing the real estate industry. With R-LABS partner company NOAH ready to launch, the venture studio has several more companies in the early stages of validation, each contributing to a more resilient, affordable and sustainable housing ecosystem.

There is no single solution that will solve the multiple, complex challenges facing Canada’s real estate and construction industries; but the first 20 Innovation Pledges are a bold step towards enabling the kind of small-scale experimentation needed to discover the transformation necessary to meet the sector’s ambitious goals.

And this is only the beginning.

Imagine a Canada where housing is not only affordable but also sustainable, where homes are built to withstand climate challenges, and where innovation is the foundation of every real estate development.

The Innovation Pledges are more than just commitments; they are catalysts for transformative change. A few years from now, we could see a thriving ecosystem of startups, greener cities, and smarter infrastructure, with new jobs and solutions that lead the world. This is the future we are building—together.

Maintaining momentum and building on the foundation of leadership displayed by cross-sectoral players will be top-of-mind as the I+T Council prepares to reconvene this fall and looks forward to the next phase of the initiative.

Individuals and organizations across the Canadian real estate space, from the private sector, governments and not-for-profits are invited to pledge their support and commitment to innovation.

Review the full slate of pledges and take the Innovation Pledge today.