Last week, the Canadian federal government announced that it will be developing a catalog of pre-approved housing designs in order to accelerate the delivery of new homes.

This is not a new idea. A similar approach was taken after the Second World War in order to quickly house veterans returning home. But in this current iteration, the catalog is expected to be focused on missing middle housing such as small multiplexes and student housing, and then later on higher-density construction.

We have also spoken about this idea before in the context of ADUs in Los Angeles. And at that time, I wrote that the way to encourage more of something is to reduce friction. I continue to believe that this is the case, and so I do think that pre-approved designs are a positive thing, especially for smaller projects.

However, it's important to keep in mind that this is not the biggest barrier to new housing supply. The problem is not that developers and builders are all sitting around thinking "if only I had a design for a 5-unit multiplex." The problem is that they're sitting around thinking "if only I could make some money building a 5-unit multiplex."

So while reducing the barriers to entry is a good thing, the really important question for the designs in this upcoming catalog is: Can developers actually make any money building them? Because if the answer is no, it doesn't matter that they're pre-approved and ready to go. They won't be built.

Hopefully somebody is thinking about this because it will take some work. Every market is different. What works in one place, may not work in another. On top of this, what works today, may not work tomorrow.

Last week, the Canadian federal government announced that it will be developing a catalog of pre-approved housing designs in order to accelerate the delivery of new homes.

This is not a new idea. A similar approach was taken after the Second World War in order to quickly house veterans returning home. But in this current iteration, the catalog is expected to be focused on missing middle housing such as small multiplexes and student housing, and then later on higher-density construction.

We have also spoken about this idea before in the context of ADUs in Los Angeles. And at that time, I wrote that the way to encourage more of something is to reduce friction. I continue to believe that this is the case, and so I do think that pre-approved designs are a positive thing, especially for smaller projects.

However, it's important to keep in mind that this is not the biggest barrier to new housing supply. The problem is not that developers and builders are all sitting around thinking "if only I had a design for a 5-unit multiplex." The problem is that they're sitting around thinking "if only I could make some money building a 5-unit multiplex."

So while reducing the barriers to entry is a good thing, the really important question for the designs in this upcoming catalog is: Can developers actually make any money building them? Because if the answer is no, it doesn't matter that they're pre-approved and ready to go. They won't be built.

Hopefully somebody is thinking about this because it will take some work. Every market is different. What works in one place, may not work in another. On top of this, what works today, may not work tomorrow.