Solving the Housing Challenge Through Collaboration and Innovation

Canada’s housing crisis extends beyond affordability—it is a supply issue that directly impacts economic productivity and competitiveness. Rising construction costs, outdated regulations, and inflexible financing structures have slowed housing starts. However, a shift toward industrialized construction and strategic collaboration presents a significant opportunity to transform Canada’s housing supply and drive economic growth. 

 

The Role of Innovation in Housing 

​Embracing technological advancements in construction is crucial for effectively addressing the housing crisis. Industrialized methods such as factory-built modules, modular construction, and robotics offer promising solutions to enhance efficiency, reduce costs, and ensure consistent quality in housing projects at scale.​ 

By adopting and expanding these technological advancements, Canada can more effectively address its housing challenges, leading to increased efficiency, reduced costs, and improved quality in housing projects nationwide. 

 

Collaborative Efforts in Housing Development 

At the Housing Symposium: Unlocking Solutions to a Generational Crisis on March 13, 2025, federal Housing Minister Nate Erskine-Smith emphasized the importance of aligning policy, funding, and industry to increase housing supply. One example of this coordination is the $2.55 billion federal investment in rental housing through the Apartment Construction Loan Program (ACLP), which will support over 4,800 new rental units, including 1,000 affordable homes. The City of Toronto’s $234.8 million in financial incentives aims to lower costs and accelerate construction. 

The University of Toronto Mississauga (UTM) is advancing a model that aligns directly with Canada’s broader housing goals: delivering more supply through sustainable, purpose-built construction. Its new student residence, set to open in 2026, is part of a tri-campus initiative that will add 1,446 new student housing spaces over the next three years.  

But while this kind of public investment is essential, it’s only one part of the solution. Bottlenecks like outdated approval systems, rigid financing structures, and high municipal costs—continue to limit how quickly and affordably housing can be delivered. 

 

Addressing Systemic Barriers  

At the Housing Symposium, John DiMichele, CEO, Toronto Regional Real Estate Board said,  “The thing that bothers me the most is that it takes forever to get that first shovel in the ground and then between then and actually giving someone the keys, 36% of that money goes back to the government. Get out of the way!” 

Key barriers in cost, permitting, and financing limit the ability to build faster and more affordably: 

  • Municipal development charges make up nearly 30% of project costs, increasing prices for developers and homebuyers.  
  • Cumbersome regulatory and permitting processes slow down housing delivery.  
  • Financing models must evolve to support new construction approaches.  

Without addressing these systemic barriers, even well-funded projects risk being delayed, downsized, or made financially unviable.  The solution is to embrace innovation, which was one of the key takeaways from the Housing Symposium.   

 

Embracing Innovation 

Canada can deliver more housing, reduce costs, and strengthen economic productivity by embracing industrialized construction, developing a more adaptive approval system to enable scalable modular and prefabricated solutions, and supporting innovative financing models that foster industrialized housing and purpose-built rentals. 

Innovation is already happening—but scaling it requires collaboration across industries, investment in new technologies and business models, and policies that enable rather than delay housing solutions. R-LABS is a partnership of corporations and game-changing entrepreneurs delivering industry innovation.  We are on a mission to co-found great companies that solve major problems in real estate and housing. If you want to get involved, learn more at www.rlabs.ca.

 

Scaling Housing, Driving Innovation & Building Smarter for the Future

Sustainable Housing: Built to Last 

The industrialization of housing means manufacturing homes with precision—faster, more efficiently, and at scale. Companies like Assembly Corp. are leading this transition with automation, advanced materials, and streamlined production to cut costs and speed up delivery. 

The Government of Canada’s $19 million investment through FedDev Ontario is accelerating this transformation, supporting 10 construction and homebuilding manufacturers in scaling production, driving innovation, and improving efficiency. Of this, $4 million is dedicated to Assembly Corp., enabling them to expand their manufacturing capabilities and deliver over 1,000 sustainable housing units annually. 

For Assembly Corp., this means automated prefabrication, less waste, and faster timelines— critical components for tackling Canada’s housing crisis. 

“Thanks to FedDev Ontario, we’ve secured factory equipment capable of producing over 1,000 sustainable housing units annually to meet Canada’s housing needs.” —Geoff Cape 

This project is supported by the Government of Canada through FedDev Ontario. 

 

Scaling Housing Through Collaboration 

To truly scale housing production, collaboration is key. Assembly Corp. is working with global leaders in modular construction to integrate advanced manufacturing techniques and improve efficiencies in housing delivery. Their recent partnership with Lindbäcks Group, a Swedish pioneer in precision-engineered modular and panelized wood housing, is helping bring highly automated, scalable homebuilding solutions to Canada. 

By leveraging Lindbäcks’ expertise in off-site manufacturing, Assembly Corp. is applying cutting-edge techniques to reduce costs, shorten build times, and improve sustainability in the Canadian market. This partnership is a strong example of how global innovation can drive local impact—delivering homes faster while maintaining high quality and environmental responsibility. 

With investments like FedDev Ontario’s, Canadian homebuilders are positioned to drive this transformation at scale, proving that industrialized housing is no longer an idea for the future—it’s happening now. 

 

Industrialized Housing: A Smarter Way to Build 

The shift toward industrialized housing marks a fundamental transformation in how homes are built. Moving construction off-site and into a factory-controlled environment ensures greater precision, efficiency, and scalability. 

Key benefits of industrialized housing include: 

  • Reduced Build Times – Factory-built components accelerate assembly, minimizing delays from weather and labour shortages. 
  • Lower Costs – Standardized production and automation reduce material waste and labour inefficiencies. 
  • Higher Quality & Performance – Homes are built to millimetre precision, ensuring better insulation, durability, and energy efficiency. 
  • Sustainability – Prefabricated wood structures lower carbon footprints and create less construction waste compared to traditional builds. 
  • Labour Solutions – Automation helps increase Canada’s productivity, making home production more resilient and efficient. 

With factories like Assembly Corp.’s, set to be operational by early 2026, Canada is embracing this model at scale, ensuring housing can be built faster, smarter, and more sustainably than ever before.  

 
The Future of Housing: Smarter, Faster, Greener 

Industrialized housing is not just about building more—it’s about building smarter. As a provider of efficient, panelized, wood buildings, Assembly Corp. is redefining housing by using: 

  • Automation, robotics, and AI-driven manufacturing to streamline production. 
  • Sustainable, high-performance wood materials to improve energy efficiency and carbon impact. 
  • Precision engineering and panelization for faster, scalable homebuilding. 

The path forward is clear: Housing must be treated as a scalable product, not just a one-off project. With government support and industry leadership, the next generation of homes will be faster to build, more affordable, and more sustainable than ever before. 

 

Read more about the FedDev Ontario investment here:

Government of Canada invests in building more homes across southern Ontario – Canada.ca 

 

Introducing the REALFounders Program: Partnering with Experienced Entrepreneurs to Solve Big Problems in Real Estate and Housing

At R-LABS, we believe in the power of innovation and entrepreneurship to drive meaningful change. That’s why we’re thrilled to announce the launch of our exclusive REALFounders program, an intensive 8-week program designed specifically for experienced founders with successful exits. This program aims to refine existing startup ideas, foster new ventures, and ultimately create impactful solutions for the real estate and housing sectors.


Why Work with R-LABS in the REALFounders Program?

Working with R-LABS in the REALFounders program offers a unique opportunity for experienced entrepreneurs to leverage the expertise and resources of The Real Estate Industry Venture Builder. R-LABS is dedicated to solving major problems in real estate and housing by partnering with innovative corporations, institutions, and industry organizations. Participants will gain access to a network of industry leaders, cutting-edge tools, and tailored support designed to help refine ventures and bring visionary ideas to life.

Partnering with a venture builder like R-LABS offers distinct advantages for experienced entrepreneurs compared to traditional startups. For example, the average internal rate of return (IRR) for studio-created startups is 53%, compared to 21.3% for traditional startups.[1] Venture builders provide a structured environment that combines resources, expertise, and strategic guidance to accelerate the growth of new ventures. By working with a venture builder, founders benefit from a collaborative ecosystem that includes access to a network of potential partners and investors. This support system helps mitigate risks and enhances the chances of success by providing tailored advice, operational support, and funding opportunities. Additionally, venture builders drastically reduce timelines, with startups reaching seed funding in 10.7 months compared to 36 months and Series A funding in 25.2 months instead of 56 months.[2]

In the REALFounders program, R-LABS’ venture-building approach ensures that founders can focus on innovation and execution, while leveraging the collective experience and resources of the R-LABS team to bring their visionary ideas to market.


Why the REALFounders Program?

The real estate and housing industries face numerous challenges, from affordability, supply and sustainability to technological advancements and regulatory changes. Addressing these issues requires not only innovative ideas but also the expertise and experience of seasoned entrepreneurs. The REALFounders program is designed to bring together such individuals, providing them with the resources, network and support needed to turn their visionary ideas into successful businesses.


Program Overview

The REALFounders program is structured to provide a comprehensive and immersive experience over eight weeks. Participants will engage in a series of workshops, lectures, and hands-on activities, all aimed at refining their startup concepts and preparing them for a final pitch session. Here’s a closer look at what the program entails:

  1. Ideation and Validation
    The first phase of the program focuses on ideation and validation. Participants will identify their target market, conduct effective market research, and understand their customer needs. Through interactive workshops and the use of advanced tools like Athena AI, founders will validate their venture ideas and ensure they are addressing real-world problems.

  2. Developing a Value Proposition and Business Model
    A compelling value proposition and a solid business model are crucial for any startup’s success. During this phase, participants will delve into the lean startup methodology, craft their value propositions, and develop business models using the business model canvas. Group activities and presentations will provide valuable feedback and insights, helping founders refine their strategies.

  3. Go-to-Market Strategy
    Launching a product successfully requires a well-thought-out go-to-market strategy. Participants will create detailed go-to-market plans, explore various marketing and sales strategies, and develop actionable plans to reach their target customers. This phase includes case studies of successful startups and group activities to develop and present go-to-market strategies.

  4. Pitch Preparation
    The final phase of the program is dedicated to pitch preparation. Participants will learn the elements of a successful pitch deck, design and refine their presentations, and practice their pitches. Peer feedback and one-on-one coaching sessions will ensure that founders are well-prepared for the final pitch day.

  5. The Final Pitch Day
    The culmination of the REALFounders program is the final pitch day, where participants will present their refined startup concepts to a panel of R-LABS leadership and industry experts. This high-stakes event provides founders with the opportunity to showcase their ventures, receive valuable feedback, and potentially secure investment.


Post-Program Opportunities

The journey doesn’t end with the final pitch day. Following the 8-week program, R-LABS will select 2 to 4 standout participants to lead the validation and founding of 1 to 2 new companies as Entrepreneurs-in-Residence. These selected founders will have the opportunity to receive an investment of up to $500,000 from R-LABS for the formation of each new company. This post-program support ensures that the most promising ventures have the resources and guidance needed to succeed.


Expressions of Interest

Submit your Expression of Interest (EOI) for the REALFounders program between January 16, 2024, and February 14, 2024. We are looking for up to 10 participants who have a proven track record of successful exits and a passion for solving big problems in real estate and housing. Interested founders can find details on our website at www.rlabs.ca/realfounders.


Conclusion

The REALFounders program is a unique opportunity for experienced entrepreneurs to collaborate, innovate, and create impactful solutions for the real estate and housing sectors. With the support of R-LABS and our strategic partners, participants will have the resources and guidance needed to turn their ideas into successful ventures. We look forward to welcoming the next generation of real estate innovators and helping them make a lasting impact on the industry.

For more information and to submit your Expression of Interest, please visit our website at www.rlabs.ca.

 
 
 
[1] Disrupting the Venture Landscape – Global Startup Studio Network (GSSN)
[2] Disrupting the Venture Landscape – Global Startup Studio Network (GSSN)

Driving Real Estate Innovation: R-LABS 2024 Year in Review

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!

Innovating the Future of Housing: A Call for Entrepreneurs

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.

The Dawn of the Innovation Map for the Industrialization of Housing in Canada

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.

What if our biggest problems were our greatest opportunities?

Is the current housing condition in Canada a crisis or the raw materials for our greatest opportunity? Research from CMHC in 2022 showed Canada needs to create 5.1 million new homes over 8 years, but in our best days, the housing industry in Canada has only been able to create a third of that number. We not only need to create three times more housing than we ever have before, but that housing also has to be affordable across the entire housing continuum, be sustainable with a reduced carbon footprint, and be resilient.

The Industry Innovation Agenda for Canadian Real Estate (Vision with Action)

There is a great formula on the Lab wall (as those who have been to R-LABS know). Outcome = Event + Response. On November 28, 2022, the Industry reflected on the crisis in real estate and housing as the event and asked “What if, together, we created an Industry Innovation Agenda?” (That was the industry’s “Crisi-tunity” moment.)

That good work was done through 2023 with the R-LABS Industry Issue + Transformation Council and in March 2024 the (world’s first) Industry Innovation Agenda in real estate was launched containing 5 areas of focus and 4 types of action.

With over 20 pledges and growing, the Council recently looked ahead to 2025, applying the learnings from Industry Innovation in our past and asked, “What is the one thing that can make progress on everything?”

The Industrialization of Housing – A Bold Focus in 2025 with the Power of Transforming Housing and Canada

Housing is something we are literally all in together. By continuing to apply lessons from around the world and expanding partners across multiple industry sectors, Canada is charting a course to an incredibly exciting future.

"If you want to go fast – go alone. If you want to go far – go together"

We realize that we have far to go and in taking this bold journey together, we will need a map. “Maps tell us where we’ve been, but their true power lies in guiding us toward what we have yet to discover.” On this day, a small group of industry innovators and pioneers helped set a vision and chart a course to an incredibly exciting road ahead for a better future for housing and Canada.

Questions addressed included:

  • What are the roles of Federal, Provincial and Municipal Governments?
  • What are the roles of Non-Profit and Standard Setting Organizations?
  • What are the novel new businesses that we need to create that could be in the form of born global companies?

Solving Housing and Productivity

Giles Gherson noted that the industrialization of housing relates to his top concern as CEO of the Toronto Region Board of Trade: declining productivity. “It’s very much tied up in the productivity question because employers need employees to be housed in relative proximity to where they work. So solving the housing problem is almost Job #1.”

As former Economic Development Deputy Minister for Ontario, Gherson has watched with interest the shift of the province’s automobile manufacturing base toward electric vehicle production, leading to the loss of jobs in the conventional car parts industry. Perhaps housing industrialization could provide a new way forward for advanced manufacturing, he suggested.

“Ontario's manufacturing sector, once Canada's powerhouse for productivity and economic growth, has faltered over two decades. GDP contribution has dropped 17% since 2002, productivity lags at 70% of U.S. levels, and per-worker investment fell from 79% to 55% of U.S. levels since 2014.”

Wood Can Do More Good

(left to right) Chris Walton, CEO (CRIBE) and Dennis Darby, CEO (CME)

Chris Walton, CEO for the Centre for Research & Innovation in the Bio-Economy, said the industrialization of housing represents an opportunity to use locally sourced lumber, “and keep the economic value of Ontario wood here in Ontario and increase domestic lumber production.”

Using mass timber gets a builder 40% of the way to decarbonization of the building, he noted. And using OSB plywood that’s made 100% of wood, with residual chemicals in turn used to create bio-based resins, can improve the sustainability of the structure.

“That’s the future of housing strategy, and industrializing the homebuilding process would accelerate that,” Walton said. “But piloting and demonstrating that these innovations work is essential. And we need to build more than just a storage locker to show it works. We need to think big.”

Canada is Currently Decades Behind – But We Have So Much Potential

(left to right) George Carras, CEO (R-LABS) and Geoff Cape, CEO (Assembly)

Geoff Cape, CEO of Assembly (formerly R-Hauz), an R-LABS partner company and growing leader in prefabricated mass-timber and light frame buildings solutions, said Canada is at the very beginning with housing industrialization. “We’ve just come back from Sweden and they’re 30 years ahead on this.”

A leading builder over there opened a 465,000 sq. ft. prefabrication facility. “They’re producing high quality end products with a viable business plan that’s feeding further investment.”

Canada could build a facility half that size that uses automation and robotics to build housing components, Cape said. “The challenge here is that there isn’t the supply chain network feeding it like with the auto industry. And banks don’t want to lend to these projects.

So demand is there, the requirement for innovation in the space is absolutely there, and everybody understands it intuitively. But it represents a change in an industry that is terrible at change.”

“Now the ecosystem in Sweden has expanded around them and there is a parts supply industry for housing. We know how to do this stuff in Ontario,” Cape added.

Advanced Manufacturing Can Play a Growing Role in Housing

Dennis Darby, CEO of the Canadian Manufacturers and Exporters association, told the panel that 80% of Ontario’s GDP comes from exporting manufactured goods, mostly to the U.S.

It shows Ontario has the ecosystem to support the industrialization of housing. “All the components would be pre-made, and we have the skilled workers and the lean production methods,” he said. “It’s an opportunity in Ontario because we have the human capital and the techniques.”

Advanced manufacturing technology would work for housing for a number of reasons, including speed, with modular components assembled in weather-controlled factories; efficiency, with lower per-unit costs; reduced waste; and quality control, as defects are eliminated in prefabrication.

“During the pandemic, manufacturing became sexy because we needed PPE,” Darby said. “Canadian manufacturers pivoted to do that, and we can do that again. And housing is equally as much of a challenge. Almost 50% of Canadian manufacturing is in Ontario, so there’s huge potential here.”

Piloting Our Way Forward

(left to right) Giles Gherson, CEO (TRBOT) George Carras, CEO (R-LABS), and Geoff Cape, CEO (Assembly)

“There are only two outcomes on the road ahead – Winning and learning” George Carras said. “Industrializing housing will require properly constructing pilots and ventures that could contribute to new housing solutions at scale, and this represents a massive value creation opportunity for corporations, inside and outside of real estate today, entrepreneurs and governments.”

Finding Your Opportunity on the Map ahead

(left to right) Giles Gherson (TRBOT), George Carras (R-LABS), Geoff Cape (Assembly), Chris Walton (CRIBE), Dennis Darby (CME)

As the Industry Venture Builder, R-LABS is strategically charting and managing the innovation ecosystem for the Industrialization of Housing in Canada across all stakeholder groups. Find your role: Get Involved Here

Facing the Flood: Innovative Solutions for Climate Resilient Real Estate

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.

Building a Foundation of Leadership: Canada’s Real Estate Sector Takes Bold Steps Toward Innovation & Collaboration

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.

Unlocking Canada’s Real Estate Innovation: Building a Skilled Workforce for the Future 

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.

 

A multilayered approach to skills development

Increasing skills and training across the sector will require a multilayered approach to meet demand which may include:

  • A robust regional lens to fostering skills for innovation as skills supply, demand and the capacity of education training and institutions vary from region to region.
  • Strategies to inform short- and-long term planning to identify the skills firms need, where significant gaps exist and what education and training are required to address shortages.
  • Collaboration between local firms and education and training providers to identify skills deficiencies and devise solutions to building and fostering a pipeline to meet industry demand.
    Increasing capacity, resources and willingness for firms to engage in support skills training for their staff to ensure they can successfully innovate.

Ending the stigma around trades and positioning the construction industry as offering good paying jobs and security with potential for career advancement are also keys to increasing the workforce.

“The trades offer endless opportunities,” wrote Richard Lyall, CEO of the Residential Construction Council of Ontario (RESCON) in an op-ed for On-Site Magazine. “We must keep pushing programs and strategies to encourage more individuals to take up the tools. We are at the point where we can no longer just talk about the challenge and hope for the best. We must now pull out all the stops and walk the talk.”

Committing to innovation

Representing residential builders across Ontario, RESCON seeks to drive innovations in the residential construction sector in a wide array of projects, in collaboration with many industry and research partners. As an Engaged Innovator, the organization has pledged to contribute to the ideation and validation of at least one novel real estate solution or pilot project.

RLABS is calling on organizations and individuals to commit to taking leadership on driving innovation to help solve Canada’s most pressing housing and real estate issues. Share a pitch to join our community of changemakers and make a commitment to bring transformative change to the real estate and housing industries.

Skills and labour are among the most critical enablers of innovation – the current shortages represent a significant challenge for innovation across the sector. While skills and labour shortages often intersect, they are distinct and represent unique challenges for the sector.

Real estate firms engaging in innovation will not only require workers but will need to be equipped with leadership skills to manage innovation and the technical and complementary skills needed to drive innovation.

Collaboration is the Key to Unlocking a Sustainable Real Estate Future

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.  


Building a Collaborative Culture
 

The benefits of collaboration are clear, but fostering a collaborative culture across the real estate industry requires a conscious effort.  

Public, private and non-profit organizations can start by making an Innovation Pledge to embrace collaboration and small-scale experimentation to drive change within the industry.  

And whether you are an entrepreneur or an established industry player, we invite you to explore collaborating to build with us.  

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