As Canada’s housing crisis persists, technology and innovation are increasingly viewed as critical elements of potential solutions. One promising approach is factory-built housing, which has advanced significantly in recent years, transcending its origins in backyard sheds and single-family homes to include multi-unit structures. The recent opening of a three-storey modular housing development at 1120 Ossington Avenue in Toronto, demonstrated just how quickly a 26-unit residential building could be erected without compromising on quality or aesthetics. Led by the non-profit organization St. Clare’s, and supported by the City of Toronto and CMHC’s Rapid Housing Initiative, the affordable housing project was constructed using sustainable mass timber technology and finished in under three weeks.
“Twenty-six lives are being transformed as they move into their new homes on Ossington Avenue,” said Mayor Olivia Chow at the project’s grand opening in February. “A bed, a safe place to eat, to heal and find community. Astoundingly, through the partnership with St Clare’s and the federal government, this housing was built in just 17 days.”
Designed by Smart Density and McCallum Sather and developed in partnership with Toronto-based Assembly Corp, 1120 Ossington showcases innovative architectural features while exemplifying the potential of using prefabricated components and sustainable materials in multi-unit construction.
“Canada’s housing crisis demands urgent solutions,” asserts Geoff Cape, CEO at Assembly Corp. “3.5 million new homes are needed by 2030, yet traditional construction methods struggle with stagnant productivity, labour shortages, and supply constraints. At Assembly, we address this challenge by delivering sustainable, factory-built panelized mass and dimensional timber housing that enables gentle densification in already desirable urban neighbourhoods. With 85 per cent of Canadians living in cities, our approach ensures that new housing is not only affordable but also livable and environmentally responsible.”
The company uses domestically cultivated, harvested, and processed wood as the primary material for construction. This strategy is particularly beneficial in light of the ongoing U.S. tariff threats, as it enhances Canada’s ability to build sustainable housing using its own resources. The components are broken into five kits: decks and beams, load-bearing walls, facades, interior finishings, and technical installations. Semi-automated manufacturing techniques are employed to convert the wood into standardized products.
“We take a holistic approach to sustainability, tackling both urban density and climate change by reducing construction’s carbon footprint,” Cape explains. “Our Canadian supply chain is a key part of this strategy, and with our new manufacturing facility opening at Downsview in Toronto in 2026, we will be able to produce 960 units annually, with the potential to scale further.”
Cape credits the recent partnership with the Swedish company Lindbäcks for accelerating the expansion, emphasizing that it enabled Assembly to acquire manufacturing equipment and benefit from critical knowledge-sharing. With nations such as Sweden, China, and Japan at the forefront of the modular timber industry, accessing their expertise has proven invaluable. However, there is still progress to be made.
“Advancing industrialized construction requires product development, policy support, and cultural acceptance—and Canada is on the right track,” he says, noting that Ontario’s building code was updated in January to permit modular wood construction up to 18 storeys; a decade ago, the limit was four storeys. Nonetheless, he states that Assembly Corp will remain concentrated on mid-rise infill projects for the time being, as this strategy aligns with its objective of reducing urban sprawl.
“Our factory-designed, pre-clad panels and pre-site plans enable us to build on previously infeasible sites,” Cape points out, adding that, “we prioritize Canadian-sourced materials to reduce our reliance on foreign markets—and with ongoing U.S. trade uncertainties, our new factory will create local jobs.”
Building higher and faster
Assembly Corp isn’t the only prefabricated housing manufacturer pushing the industry forward. As the technology advances, and governments continue to invest in innovative building solutions, modular construction is on the rise. Montreal student housing provider UTILE recently completed a project in Rimouski, Quebec, featuring 155 rental units. A finalist in CMHC’s Housing Supply Challenge, the goal of the project was to “push the boundaries of what modular housing could achieve” and showcase the findings in an upcoming white paper, scheduled for release this fall.
While some of the benefits of modular construction are well documented—such as the climate-controlled environment which allows for year-round construction and the ability to simultaneously build various components, speeding up timelines—other key benefits come from using computer-aided design to ensure efficient use of building materials and bulk purchasing capabilities. And at the back end, manufactured housing offers the advantage of quick and easy installation on urban properties with limited space, environmentally sensitive sites, or remote rural regions. But that’s not to say there aren’t a few cons. According to CMHC, some of the current challenges include:
Design limitations – The need to transport modules to the construction site often restricts their size and shape, which can limit architectural creativity and flexibility.
Transportation and logistics – Moving large modules requires careful planning, special permits, and sometimes even custom routes, which can increase costs and complexity.
Lack of industry standards – Modular construction is still evolving, and the absence of standardized practices can lead to inconsistencies and inefficiencies.
Financing challenges – Securing funding for modular projects can be difficult due to unfamiliarity with the method and perceived risks.
Perception issues – Some stakeholders may view modular construction as less durable or high-quality compared to traditional methods, which can hinder its adoption.
Despite these hurdles, the momentum is growing, and the push for systemic changes to fully realize its potential is underway. Currently, the federal government is actively supporting modular construction, offering funding and loans to encourage its adoption. For instance, $500 million in loans have been earmarked for apartment builders using modular construction techniques, given its growing reputation as a faster, more cost-effective, and environmentally friendly way to build homes.
Typical assembly process
A modular building is a prefabricated structure composed of repeated sections known as modules. Permanent Modular Construction (PMC) buildings are produced in a controlled environment and can be constructed from wood, steel, or concrete. Modular components are usually assembled indoors on assembly lines. The construction of these modules typically takes between ten days and three months. Modules can be integrated into site-built projects or stand alone, and they can be delivered with mechanical, electrical, and plumbing (MEP) systems, fixtures, and interior finishes.
Installation of the prefabricated sections is generally carried out using a crane. The modules can be arranged side-by-side, end-to-end, or stacked, allowing for various configurations and styles. Once placed, the modules are joined together using inter-module connections, which link the individual modules to form the complete building structure.
Visit https://assemblycorp.ca/ for more information.
