As Canada faces a persistent housing affordability crisis, many homebuyers are turning to alternative options that offer both cost savings and efficiency. Modular housing is catching on across the country, with many officials seeing it as a faster, more efficient way to build affordable homes that the growing population of Canada needs.
This guide answers the most frequently asked questions about modular homes and your top questions about modular living—and who knows, it might just be the key to your next move.
Jump Ahead
1)What is a modular home?
A modular home is prefabricated housing built in sections, or modules, within a factory setting. Once completed, these modules are transported to a prepared building site and assembled on a permanent foundation. The construction process ensures that key elements (such as electrical wiring, plumbing, insulation, and interior finishes) are completed before delivery, significantly reducing on-site build time. For instance, Smart Casa, a Nova Scotia-based modular home company, can build 7,000 units in just one month.
Think of it this way: in most cases, a person can’t tell the difference between modular and traditionally built houses. They aren’t like mobile homes because they can’t be moved.
2) Are modular homes the future of Canadian homeownership?
The newly elected Liberal government’s ambitious housing plan relies heavily on modular housing, which reduces construction time by up to 50%, lowers costs by up to 20%, and cuts emissions by up to 22% compared to traditional building methods.
As Prime Minister Mark Carney said in a recent press conference, “The way we build homes needs to change, and refabricated and modular housing are the future.”
Both federal and provincial initiatives promote modular housing to accelerate construction and cut costs. The CMHC and its program, like the Housing Accelerator Fund, support this shift by offering financial incentives, streamlining permits, and partnering with municipalities to scale affordable, sustainable housing nationwide.
3) What are the benefits of modular homes?
One of the most significant advantages of modular homes is that they simplify the entire building process. This means there are fewer delays due to inclement weather or sourcing materials, which gives buyers a better idea of how much their home will cost.
In an interview with the Canadian Real Estate Association blog, Ian Garrity, the president of Built Prefab, a company that installs premium prefab modular buildings in as little as six months, explains that modular construction allows for more predictable pricing.
“Modular homes can offer fixed costs for the factory-built modules. We have standard designs that can be customized with different materials and upgrades. Starting from this baseline, we’re able to be very transparent, especially when it comes to cost. If you choose one of our models, we can deliver it at a high standard.”
Garrity also noted that many buyers now prefer an all-in-one solution.
“These days especially, we find that buyers want us to handle everything—from design and engineering to permitting, site work, manufacturing, delivery, and final installation. That’s part of our value proposition: we take care of the entire process.”
4) How do modular homes hold up in Canadian weather?
Modular homes are built to meet the same building codes and structural standards as traditional site-built homes, which means they’re designed to handle Canada’s diverse and often harsh climate. They can be engineered with the same insulation, roofing, and materials you’d find in conventional construction, whether dealing with heavy snowfall, strong winds, or freezing temperatures.
ProFab, a Canadian modular construction company, builds everything from modern cottages and townhouses to spacious two-storey homes and residential apartment buildings.
5) Can modular homes be built as multi-unit or apartment-style buildings?
Modular homes can also be multi-level. Modular construction is highly adaptable and can be used for two-storey single-family homes and multi-unit dwellings. Several apartment-style modular buildings in Toronto have already been constructed to house vulnerable populations, demonstrating the method’s effectiveness for a long-term housing solution. The city even had a Modular Housing Initiative, which helped to create these four modular buildings.
6) Are modular homes available in rural areas?
Yes! Modular homes are particularly well-suited for rural areas where land is more readily available and zoning is more flexible. These homes provide a cost-effective option for buyers looking to build on family land or those priced out of urban markets. For example, some young buyers are constructing small modular homes on their parents’ rural properties as an affordable path to homeownership.
7) Why are modular homes becoming popular in Nova Scotia?
Modular homes are gaining traction in Nova Scotia due to their speed, affordability, and ability to address urgent housing needs. Early this year, 51 modular public housing units were announced in 12 communities, Nova Scotia’s most significant public housing investment in three decades. They’re also being used to support essential workers. In 2024, Nova Scotia announced 12 modular homes near hospitals in Port Hawkesbury and Guysborough to provide homes for healthcare professionals in areas with limited housing availability.
Bonus: Is a modular home right for you?
As Canada expand support for innovative housing solutions, modular construction is poised to play a bigger role in meeting the nation’s housing needs. If you’re interested in buying property where you can build a modular home, contact one of our helpful Zoocasa agents today.
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