Canada Is Building the System Around Modular Construction

Modular construction is gaining momentum across Canada—not only through new projects, but through changes to the systems that support how housing is financed, approved and delivered.

Canada’s 2026 federal budget proposes several investments intended to expand modern construction methods:

• $300 million over three years, beginning in 2028–29, to expand industrial capacity

• New funding to develop common standards and update national building codes

• $100 million for municipal e-permitting and AI-assisted application reviews

• Efforts to better align approval processes for prefabricated homes across provinces

These measures are still proposed and largely future-dated, but the direction is important. Governments are recognizing that faster factory production must be supported by clearer standards, more consistent approvals and modern permitting systems.

Alberta is already showing what wider modular adoption could look like.

Attainable Homes Calgary is developing a six-storey modular building in Sunnyside that will provide 198 apartments. The City of Calgary says the broader partnership is working toward the capacity to deliver 500 homes annually and 3,000 homes over the next decade.

This is an important shift from using modular construction for an individual pilot project to creating a repeatable housing pipeline. For builders, the opportunity is not simply to choose between conventional and modular construction. It is to combine local development experience with an additional production channel.

A modular partner can complete much of the building indoors while the builder continues managing:

• Land and development

• Municipal approvals

• Site preparation and foundations

• Servicing and civil work

• Installation and project completion

The factory does not replace the builder. It expands what the builder can deliver.

As larger modular manufacturers increase capacity, the right partnership will depend on more than factory size. Builders need a system that fits the housing type, site, market and project schedule.

At 42TECH Homes, our focus is helping builders deliver market-value fourplexes, eight-plexes, infills and townhomes through coordinated indoor construction.

The next phase of modular housing will not be defined by one faster building. It will be built through repeatable designs, clearer approvals and long-term partnerships that keep builders, sites and factories moving together.