Building Momentum: Canada's Off-Site Construction Shift to Gain Steam in 2026

The narrative around solving Canada's housing crisis is undergoing a fundamental shift. In 2026, the conversation must move decisively from simply needing more homes to needing a smarter, faster, and more sustainable system to build them. At the forefront of this systemic change is the rapid advancement and political embrace of prefabricated and modular construction. From coast to coast, a combination of industrial investment, innovative government policy, and academic research is laying the groundwork for off-site construction to become a mainstream pillar of Canada's housing strategy. This is not a niche trend; it is becoming a coordinated national effort.

Industrial Expansion: Building the Factories for the Future

The most tangible sign of progress is the significant investment in new manufacturing capacity. These are not small workshops, but large-scale facilities designed to achieve the economies of scale necessary for impact.

• Strategic Facilities: Following the 2025 announcement of a major facility in Collingwood, Ontario, similar investments are emerging. A new 100,000-square-foot factory in Belledune, New Brunswick, backed by the provincial government, aims to produce 400-500 homes annually, creating over 120 local jobs and serving Atlantic Canada's needs. This model of regional manufacturing hubs reduces transportation costs and builds local economic resilience.

• Advanced Wood Manufacturing: The push for a Made-in-Canada solution is deeply tied to our forestry sector. Investments in plants specializing in Cross-Laminated Timber (CLT) and other mass timber products are creating a domestic supply chain for sustainable, prefabricated building components. This aligns wood, a renewable resource, with modern manufacturing.

Policy & Programs: Governments Become Active Market-Shapers

Governments at all levels are transitioning from passive regulators to active enablers, using policy and procurement to de-risk and stimulate the off-site construction industry.

• The Federal Push: While specific program names like Build Canada Homes are emblematic of the direction, the federal government's role is clear: using its financial leverage. Key moves include reforming the Canada Mortgage and Housing Corporation (CMHC) Apartment Construction Loan Program to create prefab-ready lending streams. This aligns loan disbursements with factory production milestones, solving a critical cash-flow problem for manufacturers. An idea that, we at Prefab Solutions also suggested, in our article" Blueprint for System Wide-Change."

• Provincial Leadership – B.C.’s DASH Tool: British Columbia has launched one of the most innovative policy tools: the Digital Advisory Service for Housing (DASH). This online platform allows builders to instantly analyze a property's zoning, potential cost savings from prefab, and site constraints. By derisking the initial planning phase with data, B.C. is actively encouraging builders to consider off-site methods from day one. The Site Analyzer module in our SaaS system, PrefabIQ offers similar insights.

• Municipal Innovation – Pre-Approved Designs: On the ground, municipalities are cutting red tape. As seen in Saugeen Shores, Ontario, towns are publishing free libraries of pre-approved home designs for duplexes, triplexes, and ADUs. This slashes permit approval times from months to weeks by removing the design review bottleneck, a simple yet powerful reform.

Research & Development: Building Better with Science

Canada's academic and research institutions are ensuring this industrial build-out is grounded in innovation and sustainability.

• Advanced Wood Construction: Provinces like Ontario have established multi-stakeholder Advanced Wood Construction Working Groups. These panels, featuring experts from the Canadian Wood Council, fire safety, and First Nations communities, are tasked with updating building codes, promoting wood use, and stimulating investment in wood-based prefab. Their work is crucial for standardizing and legitimizing new methods.

• Centres of Excellence: Models like the Maritime Advanced Manufacturing Centre of Excellence (MAMCE) at the University of New Brunswick provide a blueprint. These hubs bridge the gap between academia and industry, offering applied R&D, testing facilities for new building systems, and training for the high-skilled workforce this new sector demands.

The Path Ahead

The pieces of a new housing system are falling into place: factories to produce, smart policy to enable, and research to innovate. The challenge now is integration and scale. Success will depend on continued collaboration between industry and all levels of government to create predictable demand, a modernized regulatory environment, and a clear path for the skilled workforce needed to build Canada's future—one module at a time.

Sources

1. CTV News / Regional Reports on new modular factories in Belledune, NB and Collingwood, ON.

2. Government of British Columbia. Digital Advisory Service for Housing (DASH).

3. Government of Ontario. Advanced Wood Construction Action Plan and Working Group.

4. University of New Brunswick. Maritime Advanced Manufacturing Centre of Excellence (MAMCE).

5. Canada Mortgage and Housing Corporation (CMHC). Apartment Construction Loan Program.

6. CTV News London. (2026, Jan 8). Saugeen Shores offers free pre-approved home designs.