Monday, December 15, 2025
Calgary’s rapid growth is creating a pressing housing challenge that affects everyone from first-time buyers to long-term residents. As of December 2025, the city faces a shortage of around 42,000 housing units, despite efforts to ramp up construction. Over 84,000 people are currently in housing need, a figure projected to exceed 100,000 by 2026 if trends continue. The population is booming, with more than 110,000 new residents expected between 2023 and 2028, straining resources and pushing home prices upward. In November 2025, home sales fell 13.6% year-over-year, while inventory surged 28%, indicating a market that’s stabilizing but still far from balanced. Rental vacancy rates are forecasted to rise to nearly 6% in 2025 before declining through 2027 as new supply enters the market, but this temporary relief won’t fully address the deeper crisis.
These statistics highlight a city at a crossroads: demand outpaces supply, leading to higher costs and limited options. Traditional construction methods, where crews build everything directly on-site, often exacerbate the problem with delays from Alberta’s unpredictable weather—think heavy snow, hailstorms, and sub-zero temperatures that halt work for days or weeks. Labor shortages are another hurdle, with projections estimating an 85,000-worker gap in Alberta by 2033. This is where modular and prefabricated (prefab) construction steps in as a game-changer. By shifting most of the building process to controlled factory environments, these methods can accelerate timelines by 20-50%, reduce costs by up to 20%, and deliver high-quality homes that fit seamlessly into urban settings.
Infill housing—redeveloping existing lots in mature neighborhoods to add density—is particularly well-suited to modular approaches. It allows Calgary to grow inward, preserving green spaces and reducing infrastructure strain. As we approach 2026, PwC’s Emerging Trends in Real Estate report positions Calgary as Canada’s top real estate market, driven by resilient supply chains, innovative building techniques like prefab, and supportive policies. This comprehensive guide, updated with the latest data as of December 2025, will break down modular and prefab in simple terms, explain their fit for Calgary’s infill needs, detail benefits and challenges, showcase real examples, cover costs and incentives, and look ahead to 2026 trends and projections. Whether you’re planning a build, investing in rentals, or just interested in housing solutions, this article provides clear, practical insights.
What Are Modular and Prefab Homes? A Simple Breakdown
To understand why modular and prefab are gaining traction, let’s clarify what they mean without the jargon.
Modular homes are constructed in large, box-like sections called modules. Each module is built entirely in a factory—think walls, floors, electrical systems, plumbing, and even interior finishes like paint and countertops. These sections are then transported by truck to the site, where cranes lift them into place on a prepared foundation. The assembly process connects everything seamlessly, often in just a few days. It’s efficient because the factory environment allows for precise work without interruptions from weather or site constraints.
Prefab, or prefabricated, is a broader term that encompasses modular but also includes other off-site methods. For instance, panelized prefab involves creating flat components like wall panels or roof trusses in a factory, which are then shipped and assembled on-site like a kit. Ready-to-move (RTM) homes take it further, building nearly the entire structure in one piece for delivery. In all cases, the key is shifting labor indoors, where conditions are controlled and tools are advanced.
In Calgary and across Alberta, builders like ATCO Structures, NRB Modular Solutions, Jandel Homes, Built Prefab, Modern Modular, and Linwood Custom Homes are at the forefront. These homes comply with local building codes and can be fully customized, from basic layouts to luxury features. Unlike older stereotypes of prefab as temporary or low-quality, today’s versions use durable materials that handle Alberta’s climate extremes, including high-efficiency insulation for cold winters and reinforced structures for hail-prone summers.
One added layer is the role of technology in modern factories. Computer-aided design (CAD) and robotic assembly ensure accuracy down to the millimeter, reducing errors that plague traditional sites. This precision not only speeds up production but also enhances energy performance, making homes more airtight and efficient.
Calgary’s Infill Housing Crisis: Why Modular Is the Perfect Fix
Calgary’s housing crisis isn’t new, but it’s intensifying. The total rental vacancy rate jumped from 1.4% in 2023 to 4.6% in 2024, thanks to a surge in new purpose-built rentals, but forecasts show it stabilizing around 3-5.8% through 2026 as supply catches up slightly. Home prices are expected to rise modestly in 2026, with national averages declining 1.4% in 2025 before increasing 3.2% to $698,622 in 2026. In Calgary specifically, 2025 saw over 26,000 home sales—20% above long-term averages—and CREB forecasts stabilization rather than explosive growth, with balanced conditions persisting. Yet, affordability remains a hurdle, with 17-18% of households needing lower-cost options—a rate that’s doubled since 1991.
Infill housing addresses this by maximizing existing land in neighborhoods like Bowness, Killarney, Mount Pleasant, Forest Lawn, and downtown. It involves replacing outdated single-family homes with denser options like duplexes, row homes, or small multi-family buildings on standard lots (e.g., 50×120 feet). The city’s Municipal Development Plan targets 33% of growth in developed areas by 2039, promoting sustainability and community vitality. However, traditional methods falter here: Narrow streets limit equipment access, prolonged construction disrupts residents, and weather/extreme events like hail (causing billions in damage recently) add risks.
Modular and prefab excel in this context. By completing 70-90% of work off-site, they minimize on-site time to just assembly, reducing neighborhood impact. Cranes handle tight spaces efficiently, and indoor production avoids Calgary’s seasonal delays. City initiatives like the Infill Fast Track program expedite permits for “missing middle” housing—mid-density options like triplexes that bridge singles and high-rises. This approach not only speeds up supply but also supports affordability, as quicker builds lower holding costs for developers.
Moreover, modular helps with Calgary’s unique climate challenges. Factories can incorporate resilient features like hail-resistant roofing or enhanced insulation from the start, ensuring homes withstand local extremes without on-site retrofits. This proactive design reduces long-term maintenance and insurance costs, making infill more viable in hail-prone areas.
Top Benefits: Speed, Savings, Quality, and Sustainability
The advantages of modular and prefab go beyond basics, offering tangible improvements for Calgary’s context.
1. Lightning-Fast Timelines (20-50% Faster)
In traditional builds, sequential steps mean delays compound—pour foundation, frame, wire, etc. Modular allows parallel processes: Factory modules while site prep occurs. Industry reports confirm 20-50% faster completion, crucial for Calgary’s short building season. For infill, this translates to less time with construction zones, easing traffic and neighbor complaints.
2. Cost Predictability (10-20% Savings)
Volatile material prices and labor overtime plague site builds. Factories lock in costs with bulk purchases and efficient assembly, cutting waste to under 5%. In a market where 2026 prices may rise 1-3%, this stability helps developers pass savings to buyers or renters.
3. Superior Quality and Durability
Advanced factory tools like robotics ensure consistency, with better seals against air leaks—reducing energy bills by 30% in cold climates. Transport testing adds strength, ideal for Alberta’s seismic and wind loads. Quality checks at each stage minimize defects.
4. Eco-Friendly Wins
Lower emissions (22% less), minimal site disturbance, and sustainable materials like mass timber align with Calgary’s green goals. Net-zero features, such as HRV ventilation and solar integration, are easier to install factory-side.
5. Customization for Infill
Design flexibility allows tailored fits for odd lots, with options for legal suites or multi-generational spaces. This boosts rental yields in high-demand areas.
Additionally, modular enhances worker safety by moving hazardous tasks indoors, away from heights or weather exposure. This addresses labor shortages by attracting talent with stable factory jobs.
Compared to traditional construction, modular reduces environmental impact through less on-site machinery and waste, while delivering comparable or superior longevity—often 50+ years with proper maintenance.
Real-World Examples in Calgary and Alberta
Calgary’s modular scene is active, with projects demonstrating practicality.
The ATCO Structures and Attainable Homes partnership at 1007 6 Ave SW is a prime case: 56 modules craned into a six-storey, 84-unit affordable apartment in August 2025, after three months in ATCO’s Calgary factory. Occupancy is slated for January 2026, showcasing speed for urgent needs. A similar Sunnyside project is planned.
VIVA Homes by ATCO demoed a 4-plex on an infill lot—two 3-bed townhomes over two 1-beds—in 48 days total. Pilots in Forest Lawn and Arbour Lake extend to suburbs.
Promise Robotics’ 2025 Calgary factory uses AI for 1 million sq ft annually, partnering with Mattamy for varied homes. NRB and Triple M focus on multi-family and workforce housing.
SEED Homes adds philanthropy, donating homes globally. Keystone’s 201-unit modular apartment scales up. These vary from luxury to affordable, proving versatility.
Challenges and Considerations
Challenges exist: Financing requires adaptation, with some lenders demanding higher down payments. Logistics like permits for transport and crane costs ($10K-20K/day) add planning. Perceptions linger, but education helps. Zoning supports infill, but flood zones limit basements. Productivity issues like skills gaps persist.
Costs, Incentives, and ROI for 2026
Pricing: $150-300/sq ft, often lower overall. Incentives: HAF ($4B for 100K homes), Build Canada Homes ($13B for prefab). CMHC grants ($5K), CEIP (10%). ROI: Quick rentals, rising values.
What to Expect in 2026: Trends and Projections
Modular market grows 6.7% CAGR, $2.5B in Canada. Trends: Multi-unit takeoff, industrialization, A+ efficiency, compact designs. Tech advances, sustainability focus, mass timber. Policy: 4K+ units on public land. Calgary leads with agility.
Community benefits: More diverse housing fosters inclusive neighborhoods, supporting economic growth.
Is Modular Right for Your Calgary Project?
For efficient, green infill—yes. It tackles shortages head-on.
Local experts can help customize. Good Earth Builders, with 23+ years and 846 projects, specializes in sustainable infill like duplexes. Planting 10 trees per job, they integrate modular for quality.
📞Contact Good Earth Builders for a consult.
