How Modern Methods of Construction can help solve Canada’s housing crisis

By Stephanie Shewchuk
RBC Thought Leadership
May 6, 2026
Category: Wood, Paper & Green Building
Region: Canada

Modern Methods of Construction (MMC) refers to innovative homebuilding approaches to improve the efficiency, sustainability and quality of construction. It includes of off-site construction, including 3D volumetric modules, 2D panels and pre-fabricated components, as well as innovative on-site approaches, such as robotics and digital tools. It can help build homes up to 50% faster and 40% cheaper than traditional methods. Yet current conditions actively prevent adoption at scale—leaving Canada’s housing crisis unresolved. MMC currently makes up 7.5% of the Canadian construction market. Forecasts show it’s set to grow at a compounded annual growth rate of 5% by 2029. Deploying these new methods could meaningfully contribute towards Canada’s housing needs. Raising MMC ‘s contribution to 15% of annual supply needs (about 72,000 units a year), would require developing dozens of new factories at current production capacities. 

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