In a province that lost over 8,000 affordable housing units between 2016 and 2021, New Brunswick is turning to modular construction as a fast and scalable solution to a worsening housing crunch.
To change public perceptions about what modular homes can offer, the New Brunswick Housing Corporation recently launched a campaign aimed at challenging outdated assumptions that these builds are low-quality or temporary. With financial backing from both provincial and federal governments, the initiative is part of a wider effort to bring modular housing into the mainstream.
One clear endorsement of the approach comes from Ironwood Manufactured Homes in Woodstock, which received $2.5 million in repayable loans to fund the expansion of its operations into a factory ten times its current size. According to Ironwood owner Mark Gaddas, the new facility will enable the company to move into multi-residential construction and maintain up to 15 homes under construction at any given time.
“We strictly build custom modular houses right now,” Gaddas told CTV News. “The new facility will give us the capacity to get into multi-residential… We’ll have anywhere from ten to fifteen houses under construction at all times.”
The federal government has also thrown its support behind the sector. Prime Minister Mark Carney has pledged $25 billion in financing for prefabricated home builders and plans to bulk-order modular units to stabilize demand. Gaddas sees the value in that strategy, even if modular homes won’t solve everything overnight.
“It’s not the silver bullet to the housing crisis,” he said to CTV. “It’s part of the solution… What we can offer is speed.”
Modular construction gets faster and smarter
What makes modular housing so attractive right now isn’t just speed, though that is a major draw. It’s the entire building process. Instead of waiting on-site for better weather or subcontractors, modular homes are built indoors in a tightly controlled factory environment.
In Ironwood’s current plant, crews are able to complete a home in about a week. During a recent build, drywall was being installed just three days in, a step that would typically take weeks to reach in traditional construction.
“That’s one of the reasons why we can speed things up over time,” said Gaddas.
The company’s future facility will add more automation, from lumber-cutting saws to nail-installing machines. Gaddas said they’ve been studying operations in Sweden, where robots are used to assemble modular housing components with minimal human input.
“The automation that they have is much further ahead than where we are,” he said. “You have robots essentially building all the compartments of the houses that we’re talking about.”
Barriers to scale remain
Despite its advantages, modular housing still represents only a small slice of Canada’s residential construction market.
That may change, but key barriers remain, among them, high upfront capital costs, inconsistent regulations and difficulty securing financing. Building the industry to scale also requires predictable demand, something experts say the government could play a stronger role in fostering.
“Creating that sustainable demand is a role that the government can play,” Brandon Searle, Director of Innovation and Operations at the Off-site Construction Research Centre at the University of New Brunswick told CTV. He notes that the model is often faster, more precise and less wasteful than conventional construction, but rarely cheaper.
That speed advantage, however, may be reason enough to invest. “You build faster, with fewer workers, less waste,” he said.
Local builders already proving the model
In Bouctouche, Kent Homes is also demonstrating how modular can meet real housing needs, quickly. The company recently completed a 10-unit apartment complex and two duplexes in three New Brunswick communities, 14 new affordable homes delivered on time and on budget.
Built indoors in a factory, Kent’s homes avoid weather delays and minimize material waste, helping keep projects on schedule. The assembly-line approach also allows the company to deploy its workforce more efficiently while maintaining consistent quality.
A tiny home community takes shape
In Fredericton, New Brunswick, a transformative housing initiative is redefining the path from homelessness to hope. The 12 Neighbours initiative, founded by former software engineer Marcel LeBrun, has constructed a community of 96 fully equipped tiny homes, each featuring a kitchen, bathroom, and private entrance. Built at a remarkable pace of one home per week, the final unit was completed on April 18, 2024 .
This innovative model offers rent at just 30% of a resident’s income, providing affordability for individuals transitioning out of homelessness. The community extends beyond housing, incorporating a social enterprise hub that includes a café, print shop and construction workshop. These initiatives not only provide employment opportunities but also foster a sense of purpose and belonging among residents.
The 12 Neighbours community exemplifies how modular construction can be leveraged to create holistic solutions to the housing crisis, particularly for vulnerable populations.
The initiative shows how modular and off-site construction can be part of more holistic responses to the housing crisis, particularly for vulnerable populations.
The challenge of building at scale
While modular housing presents a promising solution to Canada’s housing shortage, scaling these projects faces significant hurdles. Kevin Lee, CEO of the Canadian Home Builders’ Association (CHBA), told CTV that the industry’s reliance on traditional construction methods is partly due to established regulatory and financial systems that favor conventional models. He notes, "At the municipal level, you cannot build the same house from city to city to city. Every city has different bylaws, zoning requirements, and interpretations of the exact same provincial building code."
These inconsistencies create a fragmented landscape that complicates the widespread adoption of modular housing. Despite the technological advancements and capacity available, navigating the complex web of local regulations remains a significant barrier to efficient and scalable implementation.
Could floating homes be next?
While modular housing takes off on land, other housing alternatives are being floated, literally. In our recent feature "Floating homes turn into nightmare for homebuyers", we explored the rising interest in water-based living as a response to land shortages and urban sprawl.
But while the appeal is obvious — no land needed, potential for sustainable energy integration — the reality has proven difficult. Many floating home owners in Ontario, for instance, have run into unclear zoning laws, regulatory crackdowns and logistical challenges around water and sewage infrastructure. For now, the idea remains more curiosity than solution.
Still, it’s a reminder of how broad and creative the housing conversation has become, and why modular solutions that can scale today may deserve the most attention.
Redefining how we house Canadians
Canada’s housing crisis won’t be solved by any one method. But what’s happening in New Brunswick shows how modular housing can make a real, immediate difference when governments, businesses and communities align.
The technology exists. The capacity is growing. And as more builders like Ironwood and Kent Homes scale up, and community-first projects like 12 Neighbours gain momentum, there’s a clear path forward.
Modular homes may not be a silver bullet, but in a housing emergency, speed, flexibility and efficiency count for a lot.
Sources
1. CTV News: ‘What we can offer is speed’: Modular housing business owner on tackling supply (June 5, 2025)
2. Global News: Fredericton tiny home community providing housing, opportunity (April 20, 2024)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
