Accelerating Housing Development in Canada: Insights into Homeowner Willingness and Capability to Adopt New Housing Solutions

Executive Summary

The ongoing housing crisis in Canada has left many families struggling to find affordable and accessible living solutions. This report explores key factors influencing homeowners' willingness and ability to adopt housing innovations, such as Accessory Dwelling Units (ADUs), middle housing, prefabricated and modular homes, and community bonds. Understanding these adoption factors is essential for tackling the difficulties brought about by the housing crisis.

Our survey, spanning over 4,900 homeowners nationwide, reveals strategic insights for accelerating innovation adoption in Canada through a comprehensive analysis of demographics, innovation-specific barriers, motivational drivers, and social perceptions.

This study focuses on two distinct homeowner segments: those with high willingness and capability to adopt innovations (referred to as “High Potential Adopters”) and those with high capability but low willingness to adopt innovations (referred to as “Capable Yet Unconvinced Adopters”). For each group, we identify the critical factors that either promote or hinder innovation adoption, enabling innovators to understand their target markets better, refine their value propositions, and effectively address homeowners' primary concerns and motivations.

The following is a concise summary of the primary findings for each housing innovation, highlighting the main demographics and perceived barriers and drivers for each of the two evaluated segments.

• Accessory Dwelling Units (ADUs): Middle-aged and high-income individuals, as well as those living in British Columbia and Ontario, are more likely to be High Potential Adopters of ADUs. This segment’s interest is driven by motivations such as rental income opportunities and sustainability, but they face challenges related to social perceptions and regulatory barriers. In contrast, Capable Yet Unconvinced Adopters often include older, high-income residents, especially from Alberta and the Prairies, who hesitate due to knowledge gaps around regulations. 
• Middle Housing: South Asian men from 31 to 40 years old and earning between $70,000 and $100,000 are most likely to be High Potential Adopters for middle housing, mainly located in Ontario and British Columbia. This group is motivated by lifestyle alignment and financial benefits but faces social objections, such as concerns about how neighbors might perceive changes to the community. These objections often stem from misconceptions or stigma associated with increasing density, even in ways that preserve neighborhood character. Capable Yet Unconvinced Adopters are more likely to be older, higher-income individuals with extended families, who often lack sufficient knowledge about relevant regulations. 
• Prefabricated (Prefab) and Modular Housing: Women, individuals earning between $70,000 and $130,000, and those living in Ontario and Quebec are the groups that show higher potential for adopting prefabricated or modular housing. However, these traits are not necessarily tied together—the High Potential Adopters could include women across a range of income levels or higher-income individuals of any gender in these provinces. This group requires clearer communication on the financial returns of such investments to overcome concerns about perceived lower returns. Capable Yet Unconvinced Adopters, typically higher-income men, require additional advantages beyond quality assurances to endorse this type of housing innovation.
• Community Bonds: Middle-aged individuals, those earning $130,000 or more, and residents of British Columbia, particularly from Arab or Black communities, are more likely to be High Potential Adopters of community bonds. These groups are driven by the alignment of investment opportunities with personal and community-oriented goals, but they face limitations in available investment options. The Capable Yet Unconvinced group includes both younger and older higher-income individuals in Alberta and the Prairies, who may find financial incentives an insufficient reason to adopt this housing type.