Prime Minister Mark Carney tours a modular home under construction by Caivan Homes in Ottawa on Sept. 14.Justin Tang/The Canadian Press

The new federal agency, Build Canada Homes, is betting that modular homes built in sections in factories will help fix the housing crisis. The idea has great promise, but the plan needs to be more ambitious to have substantial impact.

In October, Build Canada Homes announced it is looking for partners to build 540 modular homes in Toronto’s Downsview neighbourhood. It’s part of a plan to add 4,000 factory-built homes on six federally owned sites, with potential to add more later.

Modular housing can shave months off the time it takes to build houses and apartments, as the sections can be built at the same time as the foundation is being prepared at the housing site. Factory-built modules can also be cheaper, as production is somewhat standardized and it’s easier to control for quality. The modules need to be small enough that they are able to be transported by truck and assembled on site using cranes.

Canadian........

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