The City of Toronto is increasing the supply of new affordable housing across Toronto. As part of the HousingTO 2020-2030 Action Plan, the City committed to create 1,000 new modular homes in Toronto. The Modular Housing Initiative is an innovative way to build small-scale infill housing that provides people experiencing homelessness with safe homes and appropriate supports to help them achieve housing stability.

Modular housing, which is essentially prefabricated housing, is built off-site in a factory and transported to the site for assembly. City Council approved the construction of the first 250 modular homes on City-owned sites in 2020 and 2021. Since then, the City has completed 216 modular homes.