A plan for modular homes could be prefab for NSW
The Minns government’s decision to partner with a private manufacturer of prefabricated or modular housing to boost construction and establish NSW as a housing production hub is a welcome reform.
NSW absolutely has a dire need for new housing. But it falls far short of housing targets for numerous reasons, some of which are beyond the government’s control, including housing and construction costs and labor shortages.
Premier Chris Minns deserves praise for the way he identified and sought to solve the province’s housing supply crisis. But NSW remains some 100,000 behind the 377,000 target set for 2029 under the National Housing Deal.
If delivered as promised, prefab reforms could fundamentally change the way homes are built in NSW. They will grow cheaper and faster, but they will also require the construction industry to keep up with demand. The changes, anticipated ahead of Tuesday’s state budget, are intended to help close the gap.
Minns said one of the government’s concerns is that there may not be enough construction workers available in the future, in part because so many people are retiring. “We’re really concerned that the slow pace of building and construction in NSW could slow even further as these people leave the workforce, and we have to think creatively about where homes are built in the future,” he said.
While governments in Australia are more interested in expanding the use of prefabricated or modular housing, NSW is in a better position to use this technology. That’s thanks in part to last November’s decision to allow architect-designed Pattern Book homes to develop more sustainable and affordable low- and mid-rise homes.
The Modern Construction Innovation Methods Facility, a prefabricated manufacturing centre, can also be used to deliver a range of public infrastructure, including schools and hospitals.
From early colonial settlers to the post-war building boom, prefabricated and modular housing has a long history in Australia. But it fell out of favor as suburban brick cladding became the Australian dream, and it continued to fall out of favor as the family home also became an investment.
Modern prefabricated buildings can now offer higher quality than traditional homes, but they still account for less than 5 percent of new construction.
Alongside the housing crisis, climate change is also putting an increasing number of people’s homes at risk. Advocates tout prefabricated or modular homes as possible solutions to both the housing and climate crises; It also offers the opportunity to build climate-resistant, energy-efficient houses on a large scale, quickly and cheaply.
No dollar value was attached to the government’s proposal. Planning Minister Paul Scully said they were looking for private sector help and the sweetener could be an equity position, land, education or something else.
The Minns government’s decision on modest prefabricated modular housing joins a number of sensible moves. But many more reforms are needed to overcome the crisis that has put homeownership beyond the reach of many.
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