On January 9, 2025, the governments of Canada and Quebec announced a new housing project to commit to the rapid construction of 500 prefabricated multi-unit homes by 2026. This milestone, part of the Programme d’Habitation Abordable Québec (PHAQ), leverages prefabricated housing technologies to meet urgent housing needs.
Addressing Housing Challenges with Prefabrication
The initiative aligns with broader efforts to combat challenges like rising construction costs and labour shortages, which have negatively impacted traditional housing development. Prefabricated housing provides a cost-efficient solution, typically 10 to 25% cheaper than conventional construction methods, while also reducing build times by 30 to 50%. This project aims to take advantage of the adaptability of these technologies.
Canada-Quebec Government Investment
The units will be constructed under the Canada-Quebec Agreement as part of the Housing Accelerator Fund (HAF). The federal and provincial governments are jointly investing nearly $2 billion in the HAF, to create 8,000 social and affordable housing units across Quebec, with 500 units using advanced prefabrication techniques.
Innovative Design and Implementation
This prefabrication initiative goes beyond basic construction. The multi-unit buildings, featuring 24 to 36 units across two or three storeys, will incorporate bachelor, one-bedroom, and two-bedroom layouts, allowing flexibility to address regional housing needs. Rents will adhere to affordability thresholds set by the Société d’habitation du Québec (SHQ) under the PHAQ.
Selected projects will undergo a streamlined delivery process, with construction set to begin following the design phase, factory production, and on-site assembly. Medium-density housing will offer practical solutions for urban and suburban areas where space optimization is crucial.
Flexibility in Delivery
To further enhance project efficiency, the PHAQ has introduced adjustments aimed at simplifying requirements and expediting approval timelines. These changes will enable co-operatives, housing non-profits, and private-sector businesses to participate in designing and constructing prefabricated units. A full list of modifications is available on the PHAQ website, alongside detailed submission guidelines for interested organizations.
Broader Implications of Prefabricated Housing
Quebec’s push for prefabrication is part of a growing trend in Canada, where the industry’s annual revenue has exceeded $3.8 billion. Prefabrication optimizes labour use, potentially reducing workforce needs by up to 50%, which is a vital advantage during labour shortages. However, logistical challenges, including transportation of prefabricated modules, need careful management.
Prefabricated housing’s modular approach aligns with innovation-driven government strategies, such as the Housing Accelerator Fund, creating scalable, affordable solutions while addressing construction bottlenecks. These types of homes could potentially shape future housing development. However, complex and varying regulations across provinces and municipalities can create barriers to the standardization and approval of prefabricated constructions.
Submission Deadlines and Next Steps
The call for project submissions is open until March 12, 2025. Eligible entities, including co-operatives, housing non-profits, and private-sector businesses, are invited to submit their proposals through the Société d’habitation du Québec (SHQ) website. Following the submission deadline, a selection process will identify qualified applicants. Subsequently, there will be a networking period for the selected applicants and consortia to collaborate. The development phase will involve designing the multi-unit housing models, followed by factory production and on-site construction, with the goal of delivering the units by 2026.
By integrating prefabricated housing into its affordable housing strategy, Quebec is looking at different, innovative approaches, making the outcomes of this initiative valuable to follow.