Canadians open to modular and shared ownership, but builders cite financing, cost and labour barriers

# What the report measured

A Meridian Credit Union Housing Attainability Report surveyed 1,500 Canadians and 250 construction industry members. It looked at consumer preferences for housing types and ownership models, and at builders' capacity to deliver more affordable options.

# What consumers say

Many Canadians are open to alternatives to traditional single-family ownership. The report found that 62% of Canadians would consider non-traditional housing such as modular, prefabricated or tiny homes, and 50% specifically view those formats as a realistic path to owning a home. Cost is the main driver: 89% of consumers said purchase price matters and 84% cited monthly carrying costs.

Younger cohorts are adjusting expectations and looking for shared or staged routes into ownership. The survey found 78% of Gen Z believe buying on their own is out of reach. Among people in their 20s, 26% are exploring co-ownership with friends or family and 29% are looking at rent-to-own arrangements. Roughly 30% of Canadians in their 20s expect family help for a down payment.

# What builders report

Builders see demand shifting but say producing lower-cost homes is becoming harder. The construction-community responses show:

• 79% of builders think there is a mismatch between what the industry builds and what Canadians need.
• 63% identified securing project financing as a major challenge.
• 62% cited rising material costs.
• 52% pointed to economic uncertainty as a problem.

Nearly half of construction businesses said they have seen increased client interest in unconventional or prefabricated housing, but translating that interest into projects is constrained by cost and capital.

# Labour and scale issues

Skilled-trades shortages are widespread: 78% of construction businesses reported shortages overall, and among firms with 100 or more employees the rate rose to 94%. That suggests labour constraints affect both small and larger firms and can limit the industry's ability to scale alternative housing production.

# Where the gaps form

• Financing gap: builders need better access to project financing to take on alternative or lower-margin builds.
• Cost gap: high construction and materials costs make starter homes uneconomical for many builders.
• Labour gap: lack of skilled trades slows construction and raises labour costs, challenging larger projects and factory-based production models.

# What Meridian recommends

Meridian's take is that improving attainability will require more project financing options, policies and programs that support alternative housing models, and measures to expand the skilled-trades workforce. The organization calls for collaboration among governments, lenders and the construction industry to make those changes practical.

# Practical implications for readers

• Buyers: Expect growing availability of co-ownership, rent-to-own and offsite-built options, but timelines depend on builders securing financing and skilled labour.
• Builders and lenders: Consider partnering to create financing structures that fit modular and low-margin starter projects, and invest in workforce recruitment and retention.
• Policymakers: Targeted supports for project financing and trades training could help convert consumer interest into completed supply.

The report presents consumer willingness to change how they own homes alongside clear operational hurdles for builders. If those financing, cost and labour issues are addressed, alternatives like modular homes and shared ownership could play a larger role in improving housing attainability.