As 2024 comes to a close, we’re taking a moment to reflect on a year of growth, learning, and progress at R-LABS. Together with our partner companies, we’ve tackled major challenges in real estate and housing, launched impactful initiatives, and welcomed new team members. Every step forward brings us closer to our mission: build great companies to solve major problems in real estate and housing.

Here’s a look back at some of the highlights: 

Setting the Stage for True Industry Innovation 

This year saw the launch of the 2024 Industry Innovation Agenda (IIA). Developed by the Industry Innovation + Transformation Council (I+T Council) convened by R-LABS, the agenda outlines the most pressing challenges in the real estate sector, identifies systemic bottlenecks and proposes actionable steps to drive solutions. 

Amid affordability, sustainability and climate challenges, the IIA calls for collective, ecosystem-wide efforts to deliver transformative change. To support this, the I+T Council also launched the Innovation Pledges initiative, rallying stakeholders from the private sector, government and non-profits to commit to small-scale experimentation with scalable outcomes. With 21 pledges received so far, the initiative is cultivating a culture of action and collaboration, setting the stage for a thriving ecosystem of startups, greener cities and smarter infrastructure in the years to come. 

Driving Innovation in Housing: Key Conversations in 2024

In 2024, R-LABS actively engaged in conversations shaping the future of housing and affordability across Canada. George Carras, Founder & CEO of R-LABS, participated as a speaker and moderator in nine high-profile events, joining industry leaders, policymakers, and innovators to address the urgent challenges facing the housing sector.

Collaboration remained at the heart of these efforts, with R-LABS partnering with the Canada Green Building Council (CAGBC), the Federation of Rental-housing Providers of Ontario (FRPO), PwC, Greater Vancouver Realtors, and Osler to drive conversations on sustainable solutions, housing supply, and innovative paths forward. This collaborative spirit was reflected in events like DiscoveryX, where technology’s role in solving Ontario’s housing crisis took focus, and Urban Land Institute (ULI) Toronto National Housing Week, where the discussion centred on fostering innovation in real estate.

Additionally, George joined The Current with Matt Galloway and Michael Brooks, CEO of REALPAC, to further amplify the dialogue on Canada’s most pressing housing issues.

Housing affordability remains one of Canada’s most urgent challenges, and R-LABS continues to advocate for leveraging novel technologies to accelerate the delivery of affordable housing. These achievements would not be possible without the collective efforts of our partners and ecosystem, who play a vital role in advancing our shared mission.

Assembly Corp: Tackling Housing Affordability

Our partner company, Assembly, demonstrated how innovative construction methods can address urban housing challenges, affordably and sustainably. By offering prefabricated wood structures with fixed-price, turnkey services, Assembly has revolutionized housing delivery.

With nine active projects currently underway, Assembly is setting a new standard for delivering housing solutions at scale. Among these, a standout achievement this year was the 1120 Ossington Avenue project in Toronto, which assembled 25 deeply affordable housing units in just 17 days. Using prefabricated kits, this low-rise, infill building exemplifies sustainability and climate resilience while showcasing the potential of industrialized housing to transform communities. This project was a powerful example of how innovative methods can address Canada’s housing crisis.

Perhaps the most exciting news was that Assembly secured $2.18M in funding through CMHC’s Housing Supply Challenge: Round 4 – Building for the Future. This critical investment will propel advancements in Productization and Manufacturing, enabling the scaling of all-wood, modular housing solutions. This milestone reinforces Assembly’s leadership in tackling housing challenges with groundbreaking solutions, driving affordability, sustainability, and efficiency in housing delivery.

NOAH: Leading in Climate Action 

This year R-LABS partner company NOAH Intelligence welcomed Chris Godsall as Co-Founder and CEO. With nearly 30 years of experience in Canadian innovation, Chris brings unparalleled expertise to address property-level flood resiliency – a critical issue that was brought to the forefront in the wake of the July 2024 storm in Toronto, which delivered nearly a month’s worth of rain in just three hours and caused billions of dollars in damage across the GTA. Chris joins Co-Founder and President, Steve VanHaren to form a winning team to lead this company.

NOAH’s advanced analytics platform is fast becoming a leader in flood risk mitigation, helping property owners and municipalities navigate the “here and now” challenges of climate change.

RIOS Canada: Transforming Assignment Transactions

RIOS launched its first product, Assignmate™, into market this year—a new utility connecting builders, realtors, and new homeowners. Bringing innovation to an industry in a challenged market, the platform is streamlining assignment transactions and delivering efficiency and clarity to real estate processes.

RIOS Canada also engaged a broader group of industry stakeholders to explore information and workflow challenges, uncovering opportunities for industry-level efficiencies to be addressed in the new year.

HomePorter: Elevating Home Inspections Through Innovation

HomePorter is working with Carson Dunlop to launch Virtual Condo Inspections, unveiled at RealtorQuest in May 2024. Combining Carson Dunlop’s 46 years of home inspection expertise with HomePorter’s AI-driven platform, the offering delivers inspections at an unprecedented price point.

Additionally, Carson Dunlop’s renowned Home Inspection Training Program now leverages HomePorter’s platform for enhanced virtual experiences, including real-time visual support and intelligent transcript enrichment. Together, these innovations are redefining the home inspection process for professionals and homeowners alike. Solving defined problems in 2024 and through expansion of the technology platform – positioned to solve more problems in 2025

Strengthening Our Leadership Team 

To support our mission, we expanded our team with two dynamic Managing Directors:

• David Barnes, Managing Director, Capital & Corporate Development, is focused on capital raising, investments, and strategic partnerships. With extensive experience in M&A and venture leadership, David is driving growth initiatives for our limited partners and partner companies. 
• Erik Garbin, Managing Director, Ventures, has brought deep expertise in corporate and entrepreneurial venture building. Erik leads new venture creation and innovation activities for R-LABS.

David and Erik join Matt Skynner, Managing Director, Operations to complete an experienced and skilled team to lead our success going forward.

In addition, the R-LABS convened I+T Council welcomed several new members this year, including Giles Gherson (Toronto Region Board of Trade), Sean Keenan (Housing, Infrastructure and Communities Canada), Tony Irwin (Federation of Rental Housing Providers of Ontario) and Richard Lyall (Residential Construction Council of Ontario).

Looking Ahead 

2024 was a year of progress, but we know the work is just beginning. With a strong foundation, a talented team and a clear vision, we’re ready to tackle 2025 with even more energy and ambition.

We’re calling on experienced entrepreneurs, innovators and stakeholders to join us in shaping the future of industrialized housing in Canada. Through our co-creation model, R-LABS connects founders with the resources, funding, and partnerships needed to address the sector’s biggest challenges.

Ready to build the future with us? Learn more about our venture-building platform and get in touch.

Here’s to building a more sustainable, affordable, and equitable housing future—together!

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.

A way to transform housing, Canadian productivity, and prosperity – addressing everything from trees to keys, and everyone has a role to play.

On October 10th, 2024 a diverse group of innovators across various industries including real estate, manufacturing, forestry, technology, finance, infrastructure, and government from Canada and other parts of the world helped take Industry Innovation in Canadian Real Estate to the next level with the creation of the Innovation Map for the Industrialization of Housing.

Climate resiliency and low carbon were among the five critical priorities for Canadian innovation in real estate identified by the R-LABS I+T Council in the 2004 Industry Innovation Agenda report released earlier this year.

Ensuring Canadian real estate can withstand extreme weather events and reducing the industry’s carbon footprint to meet Canada’s 2030 climate goals must be a key focus for the sector, along with addressing affordability and labour shortage issues while increasing productivity and supply.

Despite the urgent need for innovation around environmental and climate change issues, it can be tempting for firms and investors to put ESG agendas on the backburner given current economic pressures and uncertainty. One respondent to PWC’s recent Emerging Trends in Real Estate survey even suggested that “the sentiment among investor feedback is that it’s maybe less important than the year before.”

However, climate change is no longer a distant threat, but a pressing reality demanding innovative solutions from Canada’s real estate and construction industries. Extreme weather events – and the extensive damage that comes with them – are becoming alarmingly more frequent, causing billions of dollars in insured losses and contributing to the rising cost of living for Canadians.

Investing in innovation to increase climate resiliency is no longer a nice to have, it’s a must.

The growing issue of urban flooding is a perfect example of the pressing need for innovative solutions to address the effects of climate change.

“The most expensive thing you can do is be unprepared,” says Chris Godsall, CEO and Co-Founder of NOAH Intelligence, a Canadian climate analytics platform that unlocks land value, addresses flood risk, and enhances flood resiliency currently preparing for growth stage at R-LABS. “And whatever we were prepared for is no longer relevant when urban flooding occurs annually.”

While climate change brings with it a myriad of challenges that will affect generations to come, Godsall and NOAH co-Founder Steve van Haren refer to flooding as a “here and now problem.”

Case in point: on July 16, 2024 Toronto saw close to an entire month’s worth of rainfall in roughly three hours – the city’s third “once-in-100-years” storm in under a decade. Flooding, caused by both the volume and intensity of the rainfall left drivers stranded on roadways, halted public transit, knocked out power and left billions of dollars in damage in its wake.

Godsall points to the flooding caused by extreme rain and overwhelmed storm systems as proof that we no longer live in the environment that current sewer and storm systems were meant for.

Even spaces designed with the most sophisticated engineering systems and built specifically to mitigate flooding such as The Evergreen Brickworks, a community hub located in the Lower Don floodplain, were overwhelmed by the July storm and now require a multi-million dollar effort to recover from the flash floods.

In 2021 alone, asset managers, lenders and insurers incurred $99 billion in losses due to an insufficient understanding of property-level risks. By 2050, annual losses are projected to soar to $5.6 Trillion.

With extreme rainfall only expected to increase in both frequency and severity, protecting property and defending against flooding is a modern ESG response strategy that has clear and near-immediate economic impacts.

The mounting financial and human costs of each extreme rainfall event only increase the need to deliver solutions, and fast – but modernizing storm water systems and municipal infrastructure is expensive and slow, taking upwards of 15 to 20 years to complete.

Not only that, but there is no unified, coordinated flood mitigation or response strategy across individual property owners, cities, regions, provinces or at the federal level – increasing anxiety as flood damage continues to compound and contributing to further uncertainty on who owns the problem. This siloed approach has made it difficult, if not impossible, for asset managers, insurers and financial institutions to agree on who owns the contingent liabilities that come with flooding, blocking the potential for innovative solutions.

Godsall admits that the current situation is scary, but is optimistic that solutions are available to mitigate risks and protect against damage from floods in the future.

“The nightmare scenario is that there is nothing that we can do, but that’s not the case,” Godsall says. “There are concrete steps we can take. Investments in innovation and climate resiliency are unlocking the opportunity for individual property owners to take actions today to understand their precise flood risk and implement practical defense strategies.”

There is no one single solution to solve the pressing issues of flood risk, damage and real estate resiliency in the face of extreme weather – it will take a series of innovative solutions at all levels to win the fight.

That’s where NOAH’s advanced technological solutions come in. The platform provides asset managers, lenders and insurers with precise flood risk visualization and insights at the property level, enabling effective risk management and mitigation strategies.

That’s good news, not just for the individuals, but for everyone. Protecting one property from flood risk and damage has a domino effect, it also reduces the risk for the surrounding community. This buys governments the time that they need to create stormwater infrastructure that’s needed for our new climate reality, while also reducing damage and associated costs from the next storm.

The challenges posed by climate change, particularly the increasing frequency and severity of extreme weather events, demand urgent action. By investing in innovative solutions like NOAH’s intelligent technology, individuals, communities and industry can mitigate flood risk, protect property values and build a more resilient future for generations to come.

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.

Canada’s real estate sector is a cornerstone of the economy, but it faces a number of complex challenges. The recent Innovation Industry Agenda Report released by The Industry Innovation and Transformation Council, outlines the five pressing issues facing the industry today from low carbon and climate resiliency to housing affordability.

Innovation is key to overcoming these hurdles, but the real estate and construction industries face a critical roadblock: a skills and labour shortage.

Canada faces construction labour challenges

The Canadian Mortgage and Housing Corporation has estimated that Canada needs to build an additional 3.5 million homes above the business-as-usual case before 2030 to restore affordability to the market. These homes are above and beyond the 1.66 million that the CMHC forecasts will be built during this period, requiring the construction of 5.1 million homes – triple the current rate of housing completions.

But labour shortages are a significant challenge for the real estate sector and puts this ambitious goal at risk. In the second quarter of 2023, there were more than 62,000 job vacancies in the construction industry – a job vacancy rate in the sector of 5.1 percent compared to the 4.4 percent vacancy rate across the economy.

Innovation across policies, systems, products and processes will be required in order for Canada to meet this ambitious goal – but without the labour needed to execute the work, it will be impossible to meet the demands.

New skills required to drive innovation

In addition to having people to do the work, it is also essential that the real estate sector has the skills needed to drive innovation.

Innovation requires a complex mix of skills such as creativity for problem-solving; continuous improvement to identify challenges and iterate; and risk assessment. Social and emotional skills such as communication, relationship building, team- and client-oriented skills are also required, as well as digital skills that range from general to advanced.

As the construction industry evolves to integrate technology, industry professionals will need a new set of skills. Digital tools for project management, collaboration and communication are fast becoming mainstays on job sites. And as new building processes and materials are developed, they require technical skills to execute.

At the leadership level, innovation relies on managers with the skills to identify opportunities and implement and manage innovation. For many Canadian firms, the lack of leadership is one of the most critical impediments to our ability to commercialize innovations, integrate and compete in international markets, and ultimately grow local, innovative companies.

From climate concerns to affordability and supply, industry leaders must shift away from conventional silos and commit to collaboration 

Canada’s real estate and housing sector is in crisis.

An integral part of the Canadian economy, a well-functioning real estate sector is needed to ensure that companies have room to grow and expand, and families have access to attainable housing that meets their needs near employment opportunities.  

Yet today we find ourselves in an environment where many complicated and interrelated problems exist – from affordability and supply to sustainability and climate resilience. And there is no one single stakeholder at the helm to lead to the change the industry needs to address these complex challenges.  

At the launch of the Industry Innovation Agenda report in March 2024, R-LABS founder and CEO George Carras remarked that when it comes to real estate “we’re all in this together, but no one is in charge.” 

Traditionally, the real estate and construction industries have functioned in silos. While this fragmented approach might have worked in a more stable environment, collaboration is the key to unlocking the innovation and transformation needed to address the complex challenges faced by the sector. 

To enable the kind of small-scale experimentation needed to discover the big transformations necessary to meet the sector’s ambitious goals, Canadian organizations and individuals need to commit to creating a collaborative space for innovation and continuous learning throughout the sector.  

Key advantages of collaboration include:  

• Enhanced Problem-Solving: Diverse perspectives lead to more creative solutions. 
• Technological Innovation: Collaboration between fast and nimble startups and established firms can accelerate the adoption of new technologies that streamline processes, improve transparency, and enhance customer experience.
• Risk Mitigation: By sharing market data and insights, industry players can collectively assess risk and develop cross-functional strategies to migrate them.
• Building a Sustainable Future: Reaching Canada’s carbon emission goals means players across the sector must collaborate to find new and innovative ways to build and retrofit buildings to ensure they are low-carbon and climate resilient.  
  
  

Collaboration in Action: The Industry Innovation & Transformation Council 

After a successful event at R-LABS in 2022 that explored the formation of a global cluster of innovation for the Canadian real estate industry, the I+T Council first convened in 2023. The I+T Council is a group of trusted industry leaders with deep and diverse expertise in real estate and housing industry challenges. 

Supported by R-LABS, the work of the I+T Council ensures that industry innovation is catalyzed across the real estate and housing sub-sectors. This collaborative approach will enable the sharing of outcomes from innovative practices, ensuring that the real estate industry can withstand extreme weather events, meet the country’s housing construction goals, and improve affordability for all Canadians.  

Collaboration in the real estate industry is essential to address the pressing challenges of housing supply, affordability, and sustainability in Canada. By fostering a culture of innovation and risk-taking, stakeholders from government, not-for-profits, and the private sector can work together to create a more resilient and adaptable real estate landscape.  

A recent study found that extreme weather events cost the Canadian sector over $18 billion between 2010 and 2019. Climate change is no longer a distant threat, but a pressing reality demanding innovative solutions from the real estate and construction industries.   

The good news? These challenges present an exciting opportunity to create a more innovative, sustainable and resilient real estate sector. The Industry Innovation Agenda, released earlier this year by the Industry Issue + Transformation Council (I+T Council) convened by R-LABS, identifies five key areas for action, with climate change at the forefront.  

By embracing innovation, Canadian companies can not only meet our ambitious climate goals, but also build a future where our communities are better protected from extreme weather events, and our buildings are more energy-efficient and cost-effective.

Canada’s real estate sector stands at a crossroads.

Exorbitant housing and commercial real estate prices have severely impacted productivity and living standards across the country. Furthermore, climate change requires our buildings to meet ambitious sustainability targets and be resilient to extreme weather events that have become the norm globally. To add to the challenges, the sector must also overcome labour, capital, infrastructure, and leadership hurdles.

An integral part of the Canadian economy, a well-functioning real-estate sector is needed to ensure that companies have room to grow and expand, and families have access to attainable housing that meets their needs near employment opportunities.