The challenge
Why Production Capacity Is Stuck
Housing delivery is slowed by systemic inefficiencies, regulatory bottlenecks, fragmented project teams, and weak knowledge transfer. Increasing capacity means improving the whole system, not one construction step.
85% projects exceed budget
28% average cost overrun
<1% construction revenue invested in R&D
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The challenge · Evidence brief
Why Production Capacity Is Stuck
The brief frames the constraint as a system problem: inefficiency, regulation, fragmentation, limited knowledge transfer, and low investment in innovation reinforce one another.
85% of construction projects go over budget
28% average reported cost overrun
31% come within 10% of budget
24,000+ residential construction businesses in BC
<1% of industry revenue invested in R&D globally
50,490 BC housing starts recorded in 2023
65,000 annual starts identified as needed
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Demand and affordability
$250K Approximate income required to buy a home in Vancouver
1% Rental vacancy rate sustained for over a decade
26,000+ People experiencing homelessness in BC
2.2M Projected BC population growth by 2046
3.1M Homes Canada needs to add by 2030
100,000 Units BC needs under construction simultaneously
Workforce and regulation
229,000 People employed in BC construction
38,000 Workers expected to retire within a decade
60% Labour productivity increase identified as necessary
161 Municipal regulatory environments
27 Regional districts
200+ First Nations with development codes
Systemic barriers
Short-term focus Project delivery leaves little room for long-term innovation
Slow feedback loops Problems can emerge years into a housing project
Bottlenecks Accelerating one stage can strain another
Financial pressure Borrowing and construction costs constrain development
What the evidence means
The brief argues that increasing capacity requires coordinated change across the housing ecosystem, not optimization of one step.
Evidence details
2025 Housing Mission Brief, pp. 4–6
The approach
Mission-Driven Innovation
Mission-driven innovation brings industries, communities, and leaders together around a shared outcome. DIGITAL uses technology, collaboration, and experimentation to develop solutions that can scale.
Open evidence brief ↗
The approach · Evidence brief
Mission-Driven Innovation
Mission-Driven Innovation is presented as a digital-first, collaborative framework for generating, testing, refining, and scaling responses to complex housing challenges.
Shared challenge
Align around the housing outcome.
Cross-sector collaboration
Unite industries, communities, and leaders.
Test and refine
Move back and forth as evidence emerges.
Scalable solutions
Turn learning into wider impact.
↺ Evidence creates feedback between stages.
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Mission goals
Increase production Keep pace with unprecedented housing demand
Deploy technology Optimize and expedite construction
Expand the workforce Support long-term careers and economic growth
Stimulate local economies Invest strategically in construction and design
Protect priorities Treat affordability and sustainability as non-negotiable
Program components
HGI Lab and Network Open collaboration and experimentation
Innovation Design Workshops Turn bold ideas into practical solutions
Mission Innovation Projects Test methods that address production barriers
Mission project pillars
Digital Design Modular, regulatory-ready housing designs
Digital Production & Logistics An efficient, interconnected supply chain
Catalysts Rapid responses to pressure points through workshops and testing
What the evidence means
The process is explicitly non-linear: insights can send teams back to earlier stages before a solution is ready to scale.
Evidence details
2025 Housing Mission Brief, pp. 4–5
The engine of the program
How HGI Works
The Housing Growth Innovation Lab creates a neutral place for organizations to test ideas, share evidence, and turn housing challenges into practical projects and adoption pathways.
4 regional groups
+1 Indigenous-focused group
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The engine of the program · Evidence brief
How HGI Works
The HGI Lab and Network is a neutral, secure collaboration space designed to connect sectors, share knowledge, support regional participation, and enable open innovation.
HGI Lab Neutral collaboration space
Building sector connections Public, private, academic, and global organizations
Knowledge sharing hub Workshops, research, insights, and program updates
Regional reach Four BC economic regions
Open innovation External partnerships for an SME-dominated sector
Lower Mainland/Southwest Northern BC Interior BC Vancouver Island/Coast Indigenous-focused group
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Workshop model
Launched May 2024 Practical, collaborative housing sessions
Diverse participation Contributions from multiple industries
Expanding networks Partnerships extending beyond housing
AI-powered innovation Tools used to accelerate design and solution development
Shared learnings Insights intended to support sector improvement
Building momentum Feedback helps generate proposals and projects
HGI benefits identified in the brief
Local economies Strengthen communities and connected industries
Job opportunities Advance construction careers through innovation and reskilling
BC companies Support local housing and technology businesses
Digital supply chains Improve production coordination and efficiency
New housing stock Support communities facing growing demand
What the evidence means
The Lab combines a province-wide regional structure with a dedicated Indigenous-focused group.
Evidence details
2025 Housing Mission Brief, pp. 15–16
The system
End-to-End Housing Production
The framework follows a home from market demand and due diligence through design, construction, operation, and end of life. It helps teams see where one decision affects the rest of the housing system.
8 phases
Demand → Due diligence → Design → Procurement → Construction → Commissioning → Operations → End of life
Open evidence brief ↗
The system · Evidence brief
End-to-End Housing Production
The framework maps a home across eight phases so teams can identify systemic improvements and understand how decisions in one phase affect the broader housing ecosystem.
Market demand
Am I needed?
Demand analysis
Due diligence
Am I feasible?
Green light for development
9 supporting activities
Design & engineering
How am I designed?
Permit applications
4 supporting activities
Pre-construction & procurement
How am I built?
Green light for construction
7 supporting activities
Construction
Am I built safely, on time, on budget?
Completed construction
9 supporting activities
Post-construction & commissioning
How am I ready to be used?
Occupancy
9 supporting activities
Maintenance & operations
Am I cared for?
Upkeep, compliance, management
End of life
What comes next?
Renovation, reuse, or demolition
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What the framework enables
Map the full journey See housing production as one connected system
Identify improvements Locate opportunities across phases
Prioritize projects Focus effort on critical interventions
Allocate resources Direct capacity with greater precision
Improve communication Use a standardized industry framework
Trace decisions Understand impacts on the broader ecosystem
What the evidence means
The framework standardizes communication from market demand through operation and end of life.
Evidence details
2025 Housing Mission Brief, pp. 11–12