Federal funding targets modular housing across Canada’s Atlantic region

The Canadian government has announced a new round of federal funding aimed at accelerating housing delivery across Atlantic Canada by supporting the uptake of modular and prefabricated construction methods. (main image: Build Canada Homes launch at Caivan in 2025. Credit image: Caivan.)

Speaking in Fredericton on January 29, the Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), confirmed that nearly CAD $13 million (AUD $14.6 million) will be invested across 28 projects focused on modernising how homes are built in the region.

The funding is being delivered through ACOA and targets builders, suppliers, manufacturers, and trades seeking to adopt faster, factory-based construction approaches as part of the federal Build Canada Homes agenda, which aims to increase housing supply in regions facing capacity constraints.

“We’re investing nearly $13 million across Atlantic Canada to modernise how homes are built, including $1.8 million here at the University of New Brunswick,” Fraser said. “This funding helps builders and manufacturers test modular and prefabricated construction, reduce delays, and bring housing projects to completion more quickly.”

University of New Brunswick supports offsite construction research
A key component of the announcement is a CAD $1.8 million (AUD $2.0 million) investment in two projects at the University of New Brunswick’s Off-site Construction Research Centre. The funding will support small and medium-sized construction businesses to trial new building techniques, improve productivity, and integrate modular and prefabricated systems into their delivery models.

David Myles, Member of Parliament for Fredericton–Oromocto, said the research centre plays a practical role in strengthening the regional housing supply chain.

“The work underway at the University of New Brunswick’s Off-site Construction Research Centre is helping advance modern homebuilding across the region,” Myles said. “These investments are supporting local businesses to test new ideas, adopt advanced construction methods, and improve productivity.”

Modular housing positioned as supply chain reform
The funding forms part of the Regional Homebuilding Innovation Initiative (RHII), a time-limited CAD $50 million (AUD $56 million) national program running from 2024 to March 2026 and delivered through Canada’s regional development agencies.

In Atlantic Canada, ACOA is administering CAD $3.9 million (AUD $4.4 million) under RHII to support investments in modular, panelised, factory-built, and energy-efficient housing systems. Eligible activities include scaling offsite manufacturing capacity, upgrading equipment, and commercialising new construction technologies.

Federal officials said modular and prefabricated construction is being positioned as a structural response to labour shortages, productivity constraints, and housing delivery timelines across the region.

Find the Atlantic Canada Opportunities Agency HERE