While estimates differ among analysts, there is near universal agreement that Canada has a housing shortage – driven by record population growth and a multi-decade underinvestment in social housing. This housing supply shortage forms the foundation of Canada’s housing affordability challenges.
Research has shown that Canada must triple the rate of new housing built over the next eight years to simply keep up with demand – building 3.45 million homes above and beyond the status quo of 1.66 million homes that the CMHC forecasts will be built during this period.
However, a recent forecast from TD Economics highlighted by the Smart Prosperity Institute blog showed a decline in housing starts in 2024 – 234,000 units in 2024 compared to 242,000 in 2023 – and predicts that new housing starts will remain under 260,000 each year through 2029. The Canadian Press recently reported that Ontario has lowered projections for how many new homes will get built in the province over the next few years, putting the government further off the pace needed to meet the 1.5 million new homes it had pledged to build by 2031.
Canada’s housing crisis is a complex issue with far-reaching consequences that have spurred a pressing need for innovative solutions to reshape the real estate and construction industries.
One such solution lies in the industrialization of housing. By leveraging advanced technologies and manufacturing processes, industrialized housing offers the potential to swiftly increase housing production, improve quality, and reduce costs while meeting the highest environmental and sustainability standards to maintain resiliency as extreme weather events increase in both frequency and severity.
The industrialization of housing also has the potential to address the key areas of focus identified by the Innovation + Transformation Council (I+T Council) in the 2024 Industry Innovation Agenda Report, including:
- Leadership and institutions
- Affordability and supply
- Climate Resiliency and Low Carbon
- Optimization of Canada’s existing building stock
- Labour and supporting infrastructure
To capitalize on these opportunities, we need to foster a vibrant ecosystem of innovative new business ventures across the housing and construction supply chain – “from trees to keys.” Entrepreneurs and innovators can play a pivotal role in solving Canada’s housing crisis by developing solutions in areas such as:
- Automation and Robotics: Developing automated systems for tasks like framing, drywalling and plumbing, reducing labour costs and improving efficiency.
- Software and Digital Tools: Creating software solutions for design, engineering, construction management and property management.
- New Business Models: Pioneering innovative models for housing ownership and rentals, such as co-living, co-housing and subscription-based housing.
R-LABS, the Real Estate Industry Venture Builder, is at the forefront of driving the industrialization of housing in Canada and bringing innovative ideas to life by partnering with game-changing entrepreneurs and corporate innovators. Our venture building-process identifies specific problems in the sector and creates innovation through technology-enabled business models. These models develop transformative solutions that can be piloted locally and scaled globally to drive meaningful change in real estate.
Two examples of new ventures co-created with R-LABS and groundbreaking entrepreneurs are RIOS and Assembly.
RIOS (Real Estate Industry Operating System Platform) is on a mission to improve the efficiency of new housing development in Canada. Founded in partnership with R-LABS, Teranet and Stewart Title, RIOS is improving the building and development process through innovation in data, workflow and business models. With Assignment™ RIOS has streamlined the assignment listing, offer and builder-consent processes.
Addressing the urgent need for housing head-on, Assembly offers mid-rise mass timber residential buildings for investors and developers, laneway and garden suites for homeowners to make the most out of their urban property, and rapid, affordable housing to meet urgent housing needs for non-profits and municipalities. The company provides efficient, prefabricated, wood buildings for the urban environment through a fixed price, turnkey service.
Build the Future with R-LABS
We’re looking for experienced entrepreneurs and innovators to partner with R-LABS to shape the future of industrialized housing in Canada. Together, we can create a more sustainable, affordable and equitable housing future for all.
Through our co-creation model, R-LABS connects experienced founders with sectoral players looking to solve the most pressing challenges facing the sector. Founders pick a challenge, build a team and get the funding and professional support they need to get started.
Ready to build the future with us?
Learn more about our venture building platform and get in touch.
