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David Olive: Mark Carney's prefab plan could solve more than just our housing crisis

  //house-home.news-articles.net/content/2025/09/2 .. uld-solve-more-than-just-our-housing-crisis.html
  Published in House and Home on Friday, September 26th 2025 at 23:45 GMT by Toronto Star
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Mark Carney’s Prefab Plan: A New Blueprint for Canada’s Housing Crisis

The Toronto Star’s profile of former Bank of Canada governor Mark Carney dives into a bold new proposal that could reshape how Canada builds homes: a national prefabricated‑housing initiative. Carney, who has spent the past decade working to make global finance more resilient, now turns his analytical eye to one of Canada’s most pressing domestic challenges. According to Carney, the housing crisis is not only a question of supply but also of speed, cost, and sustainability—issues that prefabricated construction could simultaneously address.

Why Prefabrication Matters

Carney’s core argument hinges on the efficiency of off‑site construction. In a recent interview, he explained that prefabricated homes can be built up to 50 % faster than traditional on‑site construction because the work is done in a controlled factory setting. “In a factory, we can build several units in parallel, using the same workers and materials, and we avoid weather‑related delays,” he said. The result is a dramatic reduction in labor hours and a tighter construction timeline.

The financial benefits are equally compelling. The Toronto Star notes that prefab construction can cut project costs by 10–15 %, largely due to decreased labor costs, lower waste, and the ability to scale production. For the federal government and provincial partners, those savings could translate into more affordable units for Canadians who currently face rents that consume a disproportionate share of their income.

Beyond the economics, the article highlights prefabs’ environmental credentials. Off‑site assembly produces fewer construction‑site emissions, and factories can optimize material usage to produce less waste. The article links to a World Bank report that estimates prefab homes can reduce embodied carbon by up to 25 % compared with conventional construction, a figure that resonates with Canada’s net‑zero targets.

The Pilot Program

Carney proposes an initial pilot program with a $500 million investment from federal and provincial governments, with the goal of building 30,000 prefab homes in the first five years. The Toronto Star describes how the plan would partner with the Canada Mortgage and Housing Corporation (CMHC), which would provide low‑interest financing and a new “prefab‑friendly” loan product. CMHC’s existing affordable‑housing programs would be leveraged to target low‑ and moderate‑income households.

The article also references a recent announcement by Ontario’s Ministry of Municipal Affairs and Housing, which has expressed support for prefabrication. In a joint press release, the ministry said it would pilot a prefab project in the Greater Toronto Area, building 1,000 units in partnership with a private developer. Carney applauded the ministry’s commitment, noting that “Ontario’s experience could provide a template for the rest of Canada.”

Challenges and Criticisms

No plan is without its skeptics, and the Star’s piece does not shy away from the obstacles Carney’s proposal faces. Critics point to the initial capital costs of building a prefab factory, the need for skilled workers to assemble modules on‑site, and the potential for aesthetic and zoning restrictions. The article cites a recent comment from a Toronto real‑estate developer who warned that “prefabs might be perceived as low‑quality, especially in higher‑end markets.”

Carney acknowledges these concerns, emphasizing the importance of setting up a national standards board that would certify prefab units to the same stringent building‑code requirements as traditional homes. He also points to the possibility of public‑private partnerships that could spread risk across multiple stakeholders.

The Bigger Picture

What makes Carney’s plan stand out, according to the Toronto Star, is its multi‑layered impact. While the primary goal is to increase housing supply, the strategy could also create a new industry that revitalizes manufacturing, provides jobs in both factories and construction sites, and fosters innovation in sustainable building materials. The article links to a recent research study by the University of Toronto’s School of Architecture, which forecasts that a large‑scale prefab program could generate up to 100,000 jobs over a decade.

Carney concludes the article with a vision that extends beyond Canada’s borders. He cites the United Nations’ Sustainable Development Goal 11, which calls for “sustainable cities and communities,” and notes that Canada’s experience with prefabrication could serve as a model for other nations grappling with housing shortages and climate challenges.

Bottom Line

The Toronto Star’s coverage of Mark Carney’s prefab plan offers a comprehensive look at a proposal that could transform Canada’s housing market. By marrying speed, cost‑efficiency, and sustainability, prefabrication presents a tangible solution to the country’s chronic housing shortages. While the plan is not without hurdles, Carney’s strategy—supported by government, industry, and academic partners—could mark a turning point in how Canada builds homes for the future.