The New Wave of Modular Construction: What Investors Should Know

Real estate investors are always looking for ways to build faster, reduce risk, and control costs. One of the most exciting developments in construction over the past few years—especially in Canada—is modular building. Once associated with simple trailers or low-end homes, today’s modular construction has evolved into a sophisticated, efficient, and scalable solution for new housing supply.

But what does this mean for real estate investors?

What Is Modular Construction?

Modular construction involves manufacturing large sections (or “modules”) of a building off-site in a controlled factory setting. These modules are then delivered to the construction site and assembled into a finished home or building.

Unlike traditional construction, which is heavily weather-dependent and prone to delays, modular builds allow for simultaneous site preparation and structural assembly—speeding up the process significantly.

Why Investors Should Pay Attention

1. Faster Project Timelines

   Modular builds can be completed in 30–50% less time than traditional builds. This allows investors to get properties to market faster, reducing holding costs and accelerating cash flow.

   
   

2. Cost Control

   Since much of the work happens in a factory setting, there’s greater predictability in materials and labor costs. This limits the risk of budget overruns due to delays, weather, or subcontractor issues.

   
   

3. Sustainability

   Modular homes often produce less construction waste and use energy-efficient materials, aligning with growing tenant demand for green housing.

   
   

4. Design Flexibility

   From laneway houses to multi-unit developments, modular units can be customized to fit a wide range of investor strategies.

   
   

Challenges to Consider

• Municipal Approvals: Some municipalities are still catching up to modular zoning and permit requirements.

  
  

• Logistics: Transporting modules to urban areas or remote sites requires planning and coordination.

  
  

• Lender Awareness: Some banks are less familiar with modular financing—though this is changing.

  
  

Where It Works Best

Modular construction is ideal for:

• Laneway and garden suites

• Secondary dwelling units (SDUs)

• Small multifamily buildings

• Infill development in dense urban cores

  
  

In places like Toronto and Hamilton, where space is tight and timelines are critical, modular housing can offer a strategic advantage.

Final Thoughts

Modular construction is no longer just a niche method—it’s a scalable solution for investors who want speed, efficiency, and sustainability. As demand for affordable housing grows across Canada, the ability to deliver high-quality builds quickly could become a major competitive edge.

At Greenell Capital, we help investors navigate new construction trends and align them with financing, zoning, and rental demand. If you’re considering building or adding units to your portfolio, modular is worth a serious look.