New budget measures include AI tools and pre-fab hub to tackle housing crisis
The Minns government will launch an east coast housing manufacturing hub that could help fundamentally change the way homes are built in NSW, using prefabricated materials to speed up construction.
The government will announce on Sunday that a key budget measure will be to partner with a private manufacturer to help build a facility that will significantly expand the use of prefabricated or modular housing in a bid to turbocharge construction.
A key focus of the facility will be to deliver medium-density residential developments based on existing model book designs; The government hopes this will create a faster and more consistent way for more homes to be built.
The prefabricated manufacturing center can also be used to supply parts for a range of public infrastructure, including schools and hospitals.
Governments across Australia have become more interested in expanding the use of prefabricated or modular housing as high costs, labor shortages and construction delays hinder ambitious national housing deal targets. Federal Housing Minister Clare O’Neil announced last month a $40 million trial of prefabrication systems.
Traditional homes take more than a year from approval to completion. Australian Bureau of Statistics dataModular experts say more homes can be built more affordably, faster and with less disruption.
The NSW government has introduced a series of ambitious planning reforms since coming to power but has struggled to turn housing supply figures around, partly due to feasibility challenges holding back development.
But it is arguably better placed than other jurisdictions to reap the benefits of prefabricated homes due to its decision to launch architect-designed Pattern Book homes last year.
Less expensive than those used in traditional new construction, the designs offer low- and mid-rise structures such as semi-rise residences, terrace residences and larger four- to six-storey apartment buildings. Homeowners and developers who use them are offered rapid approval.
Treasurer Daniel Mookhey said developing the model book was a prerequisite for investment in the prefabrication centre. He said the government realized it would be necessary to get creative to solve the problem and was optimistic about the prospects of establishing a market in NSW.
“The moment you have standard designs is the moment you start thinking about how to build a modular, advanced manufacturing industry,” he said.
“From our perspective, we believe more needs to be built here in NSW, whether it’s buses, trains, new homes for people.
“These aren’t chip boxes, these are great places to live, so we’re optimistic about that. We want to see what more we can do to help anchor a market for that on the east coast and how we can help the private sector that comes after us to be able to implement these designs as well.”
Although the government has allocated resources from the budget for the tender, it will not release this money without a tender in order to protect its commercial interests.
However, a two-stage tender process will begin in the coming weeks for experienced local and international prefab operators to partner with the government for the development and delivery of the facility.
“We are excited about the prospects that modular housing offers as a fundamental form of productivity in the construction industry,” Mookhey said.
“The fact that you are installing a property indoors means you are not exposed to weather risks, for example, which means you can complete it much more quickly.”
Prefabricated and modular technology is widely used in countries such as Sweden, but in NSW it is largely used for smaller single-dwelling homes. Experts have long advocated for greater integration into the existing planning system; The government says it will do this by integrating modern construction methods into the approval system.
The budget will also include $32.3 million over four years to modernize the building approval system, integrate it into the NSW Planning Portal and pilot AI tools to speed up the license application process. An additional $1.6 million will be spent to create a new regulatory framework and create a national certification system.
Premier Chris Minns said housing was “one of the biggest challenges facing our state and we are making every effort to build more homes, faster.”
“The way we build homes has remained virtually unchanged for generations, but the housing pressures facing NSW require new thinking, new technology and new solutions.”
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