Canada addresses housing crisis with mass timber and new financing models

New research and financial initiatives are targeting Canada’s housing crisis through sustainable construction and improved financing models for non-profit providers.

A study by Perkins&Will proposes a scalable, prefabricated modular mass timber system designed to accelerate the delivery of high-quality, low-carbon homes. By utilizing a rationalized structural grid and off-site manufacturing, the system aims to streamline design and assembly while supporting Canada’s climate commitments and utilizing domestic natural resources.

To address the financial barriers facing non-profit housing developers, Nesting Ground has introduced an Affordable Housing Guarantee Pool (AGHP). This shared, unfunded guarantee facility provides a backstop for construction cost overruns, offering security to lenders and helping projects unlock financing. The initiative has already secured $20 million, with TAF committing $5 million to help scale the model across the country. The AGHP is intended to work alongside Canada Mortgage and Housing Corporation (CMHC) benefits to de-risk projects that meet affordability and zero-carbon goals.