NorthStar Development’s new modular rental building in Prince Rupert may be a sign of what’s to come for housing in Canada. The five-storey Estrella project, made up of 40 energy-efficient factory-built units, was assembled in just five days after being transported from a manufacturing plant in Winkler, Manitoba.
Unlike traditional builds, these volumetric units arrive nearly finished, some with Murphy beds and other furnishings already installed. The project is one of the first in Canada to align with the federal government’s new $25 billion loan and $1 billion equity plan to support modular construction and address the national housing shortage.
But challenges persist. Financing modular projects is difficult under existing models, as banks and lenders usually release funds in stages, while factory production requires large upfront payments. Varying provincial building codes also make it hard to scale modular construction nationally.
NorthStar managed to move forward thanks to BC Builds, a provincial program that offers low-interest loans for housing on public land. Twenty percent of the Estrella’s units will be rented below market.
Experts say wider adoption will require policy changes, financing reforms, and public education on the benefits of modern modular homes.
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