Encouraging the construction of modular houses is a great strategy for Canada, writes Peter Watson.
Modular homes are gaining popularity, based on scores of reasons.
Many would characterize Canada’s housing market in two ways: expensive — and for many, unaffordable — and there’s a stronger demand for housing than the limited supply, and that also pushes prices higher.
We have a shortage of housing, and as people continue to immigrate to Canada, they will need accommodation too.
Housing should be a major objective as our country continues to grow.
House construction can be slow, and weather can add extra time to the building process.
Plus, in our modern world of improved technology and efficiency, building a house one at a time seems severely outdated.
There are many additional reasons why modular houses should be encouraged as a solution to the current housing shortage.
There are economic advantages. Factory jobs where they are built will employ many. Canadian companies can also supply various parts that are needed.
Canada has an abundance of available lumber and for several years, the United States has hurt our softwood lumber business with tariffs.
Selling more Canadian lumber to Canadian modular house builders eliminates the constant noise caused by the U.S. in our lumber industry.
Stopping and starting lumber production business because of the constantly changing policy imposed by our neighbour causes a tricky and challenging business environment.
Having a sound long-term plan to supply lumber to Canadian efforts will be an improvement — that’s for sure.
Lack of affordable housing is a world issue and not just for us. Exporting by ship would be a low-cost option.
There are many reasons why modular houses will grow to a significant reality in Canada.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com.
