Toronto-based incubator DMZ has received $3.5 million from the federal government to establish the Centre for Housing Innovation (CHI), a new hub that will provide a training program and a housing-focused accelerator.
The funding, which comes from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), aims to establish CHI as a central hub with two cornerstone initiatives: the Accelerator for Housing Solutions and the Training Program for Housing and Manufacturing Innovation.
DMZ said in a statement that CHI will unite innovators, developers, contractors, and municipalities to drive the development and commercialization of housing technology. The incubator has partnered with GroundBreak Ventures, the non-profit CivicAction, and federally-funded advanced manufacturing innovation cluster NGen to help scale companies and upskill industry professionals through the two CHI programs.
According to FedDev Ontario, the Accelerator for Housing Solutions, will provide participating entrepreneurs with access to industry experts, resources, and mentorship, as well as the opportunity to develop and pilot solutions to housing supply challenges in real-world settings.
“Startups bring agility and a fresh perspective, capable of experimenting in ways that established players often can’t,” DMZ executive director Abdullah Snobar said in a statement. “By empowering these entrepreneurs and providing them with the resources to lead, we can drive meaningful change in the housing space.”
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Meanwhile, the Training Program for Housing and Manufacturing Innovation will focus on teaching sustainable design, regulatory compliance, and advanced manufacturing techniques to manufacturers, developers, and contractors.
Canada has faced significant housing supply and affordability challenges in recent years which have made homeownership and even simple housing security increasingly unattainable for many Canadians. According to a November 2024 Habitat for Humanity report, “59 percent of Canadians—including 75 percent of renters—are sacrificing other basic needs such as food, clothing, living essentials, and education to afford rent or mortgage payments.”
The Canada Mortgage and Housing Corporation has predicted that Canada needs to build an additional 3.5 million more homes between 2022 and 2030 to restore affordability to the Canadian housing market. The federal government made housing a priority in the 2024 budget, committing $8.5 billion to build 3.87 million homes by 2031.
Some tech companies with housing-focused solutions have been scrutinized for being ineffective, or even allegedly contributing to rising rent costs. This week, British Columbia launched a short-term rental registry with annual fees to crack down on “speculators” operating on platforms like Airbnb and Vrbo, with the ultimate aim of increasing housing supply.
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Sherif El Tawil, DMZ’s senior director of programs and global operations, told BetaKit in an email statement that CHI has an evaluation and due diligence process to ensure its participating startups do “not make the problem worse.”
“Our cohorts will focus on productivity within the Canadian housing ecosystem, with special consideration given to solutions that improve sustainability and affordability, along with providing a nationwide impact at scale.” El Tawil said. “While it’s true that, in every industry, some may misuse technology, the answer isn’t to shy away from innovation.”
“We need to ensure the design and implementation of those technologies are done thoughtfully, and do not perpetuate existing biases.” El Tawil added.
Founded in 2010, DMZ is the startup incubator of Toronto Metropolitan University, formerly known as Ryerson University. The organization offers startups mentorship, coaching, legal support, and assistance with global expansion. DMZ claims it has supported more than 1,800 startups in raising $2.78 billion in capital to date.
UPDATE (01/21/2025): This article has been updated with commentary from DMZ senior director of programs and global operations Sherif El Tawil.
Feature image courtesy DMZ via LinkedIn.