Modular Momentum: How Off-Site Construction is Reshaping the GTA’s Housing Pipeline

RIISE
Nov 8
3 min read

In the Greater Toronto Area (GTA), the triple threat of the housing crisis, persistent labour shortages, and escalating, volatile costs is forcing developers and contractors to rethink how we build—not just what we build. The old paradigm of 100% on-site, stick-built construction is proving too slow and too risky.

The solution rapidly gaining momentum is off-site modular construction. For a market with intensely high demand and tight timelines, this manufacturing approach is becoming the critical lever for innovation.

What is Modular Construction? A Factory-Built Advantage

Modular construction, also known as prefabrication or factory-built housing, is a methodology where up to 80% of a building is constructed indoors in a controlled factory environment. These prefabricated elements come in two main types:

Volumetric Modules: Entire rooms, or sections of rooms (complete with plumbing, wiring, insulation, and finishes), are built as three-dimensional 'boxes' (e.g., the 33-unit Coxwell Avenue modular project).
Panelized Systems: Two-dimensional wall, floor, and roof panels are manufactured off-site and assembled on location (e.g., the mass timber panel system used at 1120 Ossington).

These finished components are then transported to the site and assembled by crane, often in a matter of days or weeks, dramatically reducing the timeline for the critical structural phase.

Why It Matters Now in the GTA: Speed, Quality, and Cost Control

Modular construction is no longer a niche concept; it's a strategic necessity driven by current market realities:

⚡️ Schedule Certainty: Modular can cut overall construction time by 30% to 50%. With the construction largely done indoors, work is immune to Toronto’s weather, avoiding the costly delays of rain, snow, or extreme heat. This speed is vital for meeting aggressive municipal and federal housing targets.
🛠 Tighter Quality Control: Building components in a climate-controlled factory environment using precise tools and standardized processes results in a much higher quality build with fewer defects and less material waste (up to 50% less waste).
💸 Potential Cost Savings: While initial factory setup costs can be high, the savings come from efficiency: reduced on-site labour hours, less material theft, and tighter control over material consumption. For large-scale, repeatable projects like affordable housing, these efficiencies significantly improve project viability.

Case in Point: Toronto’s Modular Momentum

The momentum is evident in major Toronto projects:

Affordable Housing Initiative: The City of Toronto has already completed over 200 units through its Modular Housing Initiative at sites like 11 Macey Ave and 321 Dovercourt Rd, proving the speed and efficacy of the model for supportive housing.
Federal Investment: The recently announced Build Canada Homes agency is launching its first project in the GTA at Arbo Downsview, planning to deliver 540 new homes using modular, prefabricated, and mass timber methods, with a mandate for affordability and speed.
Innovative Materials: Projects like the mass timber, panelized supportive housing at 1120 Ossington demonstrated how a structure could be completed in just 17 days, achieving high performance standards that exceed traditional builds.

Challenges & Considerations: The Roadblocks to Scale

Despite the benefits, challenges remain, requiring expertise to navigate:

Land-Use and Zoning Barriers: While reforms are happening, existing zoning codes and inspection processes are still heavily geared toward traditional construction, creating administrative delays for modular components.
Transportation Logistics: Moving massive, pre-finished modules through Toronto’s dense urban core requires highly complex logistical planning, including securing special permits and coordinating site access and crane time.
Financing Hurdles: Traditional construction financing is phased by on-site milestones. Modular requires significant upfront financing to pay the factory before the modules arrive on-site, a structure many lenders are still adjusting to.
Scaling Supply: Canada needs more specialized modular manufacturing facilities to truly meet the volume required.

How RIISE is Leveraging Modular Thinking

At RIISE, we understand that modular is not a product; it’s a process. We integrate modular thinking into our workflow from the very start:

Early Design Integration: We advise clients during the Pre-Construction / Planning phase on modular-friendly design, ensuring layouts are optimized for manufacturing and transport, eliminating costly last-minute adjustments.
Logistics & Site Coordination: We coordinate the "two factories"—the factory where the modules are built and the construction site—managing scheduling, just-in-time delivery, and assembly to ensure the off-site speed is not wasted on-site.
Supplier Vetting: We connect clients with the right local and national modular fabricators who meet our standards for quality and can handle Toronto's high-rise or mid-density needs.

Conclusion

Modular isn’t a silver bullet—but for developers, planners, and construction managers in the GTA, it represents a real lever for innovation. As housing demand remains high, schedule pressure intense, and cost escalation persistent, embracing off-site methods may be the difference between a project that thrives and one that stalls.