Prefab or Pass? Canada’s Big Housing Experiment

⚡ Toronto Says It’s Speeding Up Housing Approvals

• The development review division, created in 2024, combines 400+ staff to streamline approvals for all types of projects, including residential, commercial, and industrial.

• Toronto says it has cut wait times on major applications by 80%, and approved 46,000 homes last year.

• The city introduced new digital tools that allow cross-department reviews to happen simultaneously, reducing bottlenecks.

• Despite the condo market slowdown, application volumes are up 46% year-over-year, as developers rush to prep future projects for when the market rebounds.

• However, many of these approved projects aren’t moving to the construction stage, as the building permit pipeline is drying up.

Why It Matters: With financing and market uncertainty still lingering, many cancelled condo projects are being flipped into rentals. Approvals may be moving faster, but if shovels aren’t hitting the ground, it won’t fix the housing crisis.

🏗️ Will You Live in a Prefab? The $26B Bet to Fix Canada’s Housing Crisis

• The federal government is launching Build Canada Homes, a $26B initiative to double construction rates to 500,000 new homes per year.

• Prefab homes are built in factories and assembled quickly on-site, often within a week, and promise lower emissions, more cost certainty, and faster timelines.

• Despite technical advantages, prefab still carries a stigma. Many Canadians associate it with cheap, unattractive housing or temporary worker sites.

• Developers argue modern prefab homes are high-quality, customizable, and ideal for seniors, students, and affordable housing.

• Sweden’s success offers a model with over 80% of its single-family homes being prefab, thanks to a similar government-driven push.

Why It Matters: Housing affordability depends on speed, scale, and cost. Prefab delivers all three, but public perception, red tape, and fragmented regulation could stall momentum. If Canada’s prefab moment fails to take off, the country may fall further behind its housing goals..

🙅🏼‍♂️ Developers Want Foreign Buyers Back

• Top developers (Westbank, Amacon, Beedie, etc.) want the federal government to lift the foreign buyer ban and foreign buyer tax.

• They say the market is crashing: housing starts are down 50%, layoffs are rising, and they can’t pre-sell enough units to fund new builds without foreign buyers.

• Premier David Eby says, “We are not going back,” blaming foreign investment for pricing out locals, inflating land values, and leaving condos empty.

• Housing Minister Christine Boyle says, “We’re done with the Wild West.” She’s still working with developers but won’t reverse affordability gains.

• The federal government echoed the stance, saying the ban keeps homes for Canadians.

Why This Matters: This is a watershed moment in Canada’s housing narrative. Developers are warning of stagnation, but governments are signaling a structural shift away from speculative capital. _(source) 

📜 Toronto Cracks Down on Renovictions

• As of last Thursday, landlords must hire a licensed architect or engineer to confirm that the unit must be vacated for renovations.

• They then have 7 days to apply for a $700 Rental Renovation Licence after issuing an N13 notice.

• If the expert confirms the unit needs to be empty, landlords must offer one of two options:

  • Temporary housing at a similar rent or monthly rent-gap payments for tenants who plan to return.

  • Severance pay equal to 3 months of rent-gap payments for those who don’t return.

• All tenants must also get a one-time moving allowance:

  • $1,500 for studios or one-bedrooms

  • $2,500 for a two-bedroom or larger

• The city’s building department will review renovation permits.

• Landlords who break the rules can be fined up to $100,000.

Why This Matters: The new rules require landlords to cover tenants’ relocation costs, offer renovated units at the same rent, and pay thousands in severance if tenants don’t return. Critics warn this could push mom-and-pop landlords out of the market, leaving corporate landlords to dominate._(source) 

🤔 WTF of the Week: Canada’s Brain Drain

According to a recent stat, Canada’s best and brightest are leaving for higher-paying salaries.

70% of U.S. visa applicants from Canada are managers, engineers, tech pros, and doctors.

We train them, and the United States hires them.

Brain drain is real — and we’re not even in the race.

🛠 Our Trusted Providers

Tired of dealing with riff-raff service providers in real estate? These are our Trusted Providers, handpicked by Urban 411 so you can leave the guesswork at the door.

Zown

Empowering Canadian home buyers with innovative solutions.
Zown is reshaping the home-buying journey with offering 1.5% cash back on purchases. Their growing realtor network also enables licensed agents to unlock additional income while providing unmatched value to homebuyers.
👉 See Zown’s Offering

Atena Construction Group

Turn your backyard into an income stream & increase your property value
With over 30 years of experience in the GTA, Atena Construction specializes in building laneway and garden suites—helping homeowners unlock new income streams and boost their property's value. 👉 Learn More About Atena Construction

Cardinal Law

The law firm for real estate investors in Ontario
Virtual, paperless, and secure for stress-free REI and private lending deals. Urban 411 members get a free corporate structure review, free will & estate plan review, plus 10% off any related work. 👉 Learn More About Cardinal Law

LandingLift

Elevate your real estate listings with affordable, done-for-you landing pages.
LandingLift creates stunning, fully customized websites that turn your listings into powerful sales tools. Utilizing AI-powered content and expert design, they deliver high-quality landing pages optimized for both SEO and mobile devices.
👉 Get 40% off your first order

HomeAbroad

Your One-Stop Solution for Canadian Investments in U.S. Real Estate
Unlock the U.S. property market with HomeAbroad’s 30-year fixed-rate mortgages, tailored specifically for Canadian investors! With no need for a U.S. credit history, you can qualify based on the property’s income rather than personal income or assets. Start your U.S. investment journey with ease. 👉 Get a Free Mortgage Rate Quote Now

👉 Missed last week's 411? View it here​
👋 Follow us on Instagram for daily news bites!