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P.E.I. hoping to attract company to manufacture modular homes for the province

CHARLOTTETOWN — The P.E.I. government says its plan to address the province's housing shortage includes finding a company to manufacture modular homes on the Island.
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The P.E.I. government announced today that part of its plan to address the province's housing shortage is finding a company to build a modular home manufacturing plant on the Island.The Prince Edward Island legislature in Charlottetown on Sept. 25, 2003. THE CANADIAN PRESS/Andrew Vaughan

CHARLOTTETOWN — The P.E.I. government says its plan to address the province's housing shortage includes finding a company to manufacture modular homes on the Island.

The government announced Monday it is prepared to offer financial incentives to bidders willing to move quickly to fast track housing starts. Those incentives include the possible use of government land for a fabrication plant.

"Modular construction presents an opportunity to quickly and efficiently create new housing stock," Housing Minister Rob Lantz said in a statement. "We will continue to work with industry and across government to facilitate innovative approaches to housing solutions." 

Modular home manufacturers are being asked to submit proposals no later than June 6, and all bids must include a commitment to dedicate the majority of production to the local market for five years.

Under the terms of the government's offer, a modular home is defined as a house that is built off-site, usually in an indoor factory, and then shipped in sections to its destination property, where the modules are assembled on a permanent foundation. As well, it must be built to meet the standards of the National Building Code.

Like other provinces, Prince Edward Island is dealing with a housing crisis exacerbated by labour shortages, increased construction costs and stubbornly high interest rates. As well, the province's population has grown by 14 per cent in the past five years, the highest growth rate in Canada.

"P.E.I.’s housing starts are no longer keeping up with the growth in the number of households as they have historically done," the government says in a document that explains its request for expressions of interest.

"Other issues negatively impacting housing supply include expanded construction timelines ... sometimes lengthy permit processes, the use of properties for short-term rentals and changing family structures."

Meanwhile, the Island's population is expected to keep growing as the government seeks to attract more people to offset an aging population and significant shortages of skills and labour.

Recent forecasts suggest P.E.I.’s population — now 176,000 — could reach 200,000 by 2030.

In February, the province released a five-year housing strategy that includes 20 initiatives aimed at ensuring all residents have access to adequate, affordable housing. The "Building Together" strategy says the province needs an average of 2,000 more homes to be built annually to accommodate population growth.

While employment in the Island's construction industry is at a record high, the workforce has to expand to meet housing demands, the document says.

Among other things, the strategy calls for: increasing the supply of affordable rental housing through a combination of acquisitions and new construction; reducing the number of residents who spend more than 30 per cent of their before-tax income on housing; providing support to first-time homebuyers; increasing the number of supportive housing units; and working to end chronic homelessness. 

This report by The Canadian Press was first published May 6, 2024.

The Canadian Press