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Instead of waiting for governments to tackle the housing crisis, the architecture, engineering and construction community should be telling them what needs to be done, says Arash Shahi, CEO of AECO Innovation Lab which aims to solve problems in housing and other industries.

“I really want to emphasize the fact that, as an industry, to come together we don’t have to sit back and listen to what government thinks we should do,” he told leaders from government, research and the construction industry who gathered recently at York University.

“We should go out and actually inform what the government needs to do. The private sector is at the table and we are ready to help the government move forward. We need folks within the government who are willing to get out of their comfort zone and test new ideas and be innovative.”

Shahi spoke at an event to celebrate five years of innovation in housing and property technology by AECO. The program featured a panel discussion on housing, a look back at how the venture started, along with milestones and initiatives achieved, and highlights of what’s on tap for the future.

He outlined how the business, which was started five years ago with roughly $1 million from family and friends, now has about $40 million in equity across its portfolio and is focused on the future.

While governments come up with regulations, he said they are often not based on a lot of data, “and then we are stuck as an industry, trying to go on. With AECO we actually want to be that change. We want to solve those problems. We can only do that if we come together.”

Mark Anderson, director of business development at AECO, outlined several ventures launched by AECO, including One Ontario, a not-for-profit research organization focused on solving housing challenges by identifying systemic barriers and advocates for streamlined approvals.

One Ontario works to make planning and permitting faster, more transparent and easier to navigate for all stakeholders.

Trax.co, which was originally launched as My Building Code, is another initiative that digitized various construction codes for building officials, contractors, architects and developers.

Anderson said it has been impactful as it offers AI-powered searchability and reduces time spent decoding compliance requirements and supports.

Another initiative known as 3DRBi provides virtual code compliance and construction review services to rural, remote and First Nations communities using 360-degree cameras and digital inspection platforms, eliminating the need for inspectors to travel to a construction site.

Anderson said AECO met with the First Nations National Building Officers Association and learned remote communities often do not have building inspections, so structures often don’t get built to code. 3DRBi addresses the delays and safety risks caused by limited inspection capacity.

Yet another platform is LandLogic, which makes complex property data simpler for realtors, developers and property owners so they can save time and money when making decisions.

AECO also developed AECORN, a real estate brokerage that is powered by a custom-built platform that provides clients with the insights and tools needed to make decisions about property transactions, and DEVNEX, a new venture with a suite of solutions for all stages of building.

Shahi said AECO has managed to align its work with what governments have identified as priorities, but it is time for the next step which is launching a venture fund that will raise $5 million to help early-stage, industry-focused products that are focused on innovation within the housing sector.

AECO will continue work as a consulting service that connects the dots and helps the startups, but the venture fund will focus on how to make scalable, investable products.

Shahi said there is often no money available for startups and for a venture to be successful it has to show traction. These are two problems AECO wants to solve the via the venture fund.

A big difference is that – unlike conventional funds – AECO will build the startups. Supported ventures will receive hands-on operational support, technical guidance and access to pilot projects.

A selected startup will receive a cheque at inception, often at a valuation between $1 and $2 million.

According to AECO, the opportunity is clear upon review of the current challenges facing the industry.

17�Թ��� must build four million homes by 2031, AECO states, and permitting delays add eight to 14 per cent to construction costs. Meanwhile, construction productivity is at a 30-year low.

Shahi told the audience government policy is great but, from what he’s seen, it often is inadequate to move the industry forward, whereas the industry itself could actually move the needle.

“The way we can get the private sector behind this is to show where the money is. The private sector needs to know, ‘How do they make money?’ and the way they make money is going to a fund.”