As housing affordability remains a challenge for millions of Canadians amid the heightened cost of living, a new survey suggests many are open to alternative options like modular homes if it means getting easier access to the real estate market.
The survey report was released Tuesday from Meridian Credit Union, which asked 1,500 Canadian consumers as well as a national panel of 250 construction industry owners, operators and executives between May 13 and June 8, 2026, about their outlook on the housing market.
More than three-quarters (77 per cent) of consumers said housing attainability is a critical issue for Canada’s future, and nearly two-thirds (62 per cent) said they would consider non-traditional housing options such as modular, prefabricated or tiny homes for getting into home ownership.
Modular or prefabricated homes are houses or other permanent shelters that get built in factories either as individual sections or components. Those homes and are shipped to customers to be assembled relatively quickly and at a lower cost than building a home on site from scratch.
Purchasing a home that is prefabricated or modular can mean a lower purchase price for consumers, and more affordable mortgage options compared to traditional homes that may have cost more to build.
Younger survey participants may be more inclined to consider these options, with 87 per cent of Millennials and 81 per cent of Gen Z reporting ongoing stress relating to housing costs.
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“Canadians are showing us that homeownership is no longer one-size-fits-all,” said Jay-Ann Gilfoy, president and CEO of Meridian Credit Union in the report.
“From co-ownership arrangements to modular housing and rent-to-own models, people are adapting to today’s realities and looking for new ways to achieve their housing goals. The challenge is ensuring those options are supported by the financing, supply and partnerships needed to make them viable.”
This comes after the federal government announced last year that it was providing funding and federal land to add 540 modular homes in Downsview Park in Toronto. The government said at the time that at least 40 per cent of those homes would be affordable and the development would provide studios and one- to three-bedroom homes.
Even though the survey suggests there is heightened demand for these alternative housing options, businesses say they are struggling to meet that demand.
Among the group of construction industry participants in the survey, nearly two-thirds (63 per cent) said they are struggling to secure financing for projects because of rising costs for materials combined with general economic uncertainty.
Even if ideal financing was available and materials were relatively cheap, 78 per cent of construction firms and 94 per cent of enterprise level employers said a shortage of skilled trades people will still delay these projects from starting.
Forty-one per cent of builders also said that because there is a dwindling pool of skilled trades talent, the cost of available labour has skyrocketed.
Among the multiple types of construction related jobs businesses said they were having a tough time filling, 28 per cent said construction labourers were the hardest roles to fill, while 18 per cent said it was carpenters or framers.
“While builders want to build, many are facing a market where rising costs, financing pressures and reduced buyer confidence make it difficult to advance new projects,” said Jason Teal, vice president of business banking at Meridian in the report.
“To create more attainable housing, we need an environment where development is economically viable and where aspiring homeowners have the confidence and means to enter the market.”
– with a file from Global News’ Isaac Callan
© 2026 Global News, a division of Corus Entertainment Inc.
