If one of Canada’s biggest developers gets his way, it might not be long until every new house on your block is assembled in three days like a giant Lego set.
Driving the news: The founder of Mattamy Homes — one of Canada’s largest homebuilders — is launching a new prefabricated housing company with plans to open a new factory near Toronto by next year, per the Globe and Mail.
- The company will start by producing parts for mid-rise condo buildings, which they claim can be built in under six months — down from as much as three years using traditional methods.
- Building parts or entire homes in a factory instead of on-site can cut building times in half, reduce energy consumption, and lower construction costs by up to 20%.
Yes, but: The lower costs of prefab construction largely hinge on building a lot of homes at once, making it vulnerable to dry spells in the housing market. Without consistent buyers, factories can quickly go under — as has been the case with several builders in the U.K. and the U.S.
Why it matters: With 3.5 million new homes needed in Canada by 2030, the feds have put a lot of their eggs in the prefab home basket. A private developer of this size putting its weight behind factory-built housing is a major vote of confidence that it can be a real solution.—LA