Canada Bets on Modular: Federal Funding and Build Canada Homes Signal a Factory-Built Push for Faster Housing Delivery

MBSP
Muncy Homes
New Era
Signature
All Photos -Quality Homes, Canada

Federal support for modular housing in Atlantic Canada is expanding with a new announcement of nearly CAD $13 million in federal funding aimed at accelerating housing delivery by encouraging modular and prefabricated construction methods across the region. The Honourable Sean Fraser, responsible for the Atlantic Canada Opportunities Agency (ACOA), confirmed the investment will be spread across 28 projects that help builders, suppliers, manufacturers, and trades adopt faster, factory-based construction approaches as part of the federal Build Canada Homes agenda.

A significant allocation of this funding — CAD $1.8 million — is directed toward initiatives at the University of New Brunswick’s Off-site Construction Research Centre. These resources are intended to help small and medium-sized construction businesses trial new building techniques, improve productivity, and integrate modular and prefabricated systems into their delivery models. Local politicians emphasized the practical role this research plays in strengthening regional housing supply chains and supporting adoption of innovative methods.

This funding initiative is part of the broader Regional Homebuilding Innovation Initiative (RHII), a CAD $50 million national program running through March 2026 that is delivered via Canada’s regional development agencies. In Atlantic Canada, ACOA is administering part of this program to support activities such as scaling offsite manufacturing capacity, upgrading factory equipment, and commercializing new construction technologies. Federal officials have positioned modular and prefabricated construction as a structural response to labour shortages, productivity constraints, and housing delivery timelines in the region.

Build Canada Homes is a newly created federal agency within Housing, Infrastructure and Communities Canada designed to address Canada’s housing supply challenges by planning, financing, and constructing affordable housing at scale. The organization combines access to public lands, flexible financial incentives, and development expertise to help large-scale housing projects move forward more quickly, with an emphasis on modern construction methods like factory-built and prefabricated housing.

The agency’s mandate includes three primary functions: leading the development and construction of affordable housing, providing predictable, low-cost financing to support community and Indigenous housing providers, and catalyzing the broader housing industry toward more productive and innovative building techniques. By streamlining processes and fostering partnerships with private sector builders, governments at all levels, and manufacturers, Build Canada Homes seeks to expand housing supply, reduce homelessness, and strengthen supply chains across Canada.

.

With more than 10,000 published articles on modular and offsite construction, Gary Fleisher remains one of the most trusted voices in the industry.

.

CLICK HERE to read the latest edition

Contact Gary Fleisher

Saratoga Modular Homes
Select Modular Homes
Sica Modular Homes
MBSP
Muncy Homes
New Era