A new report calls for a coordinated “Modern Methods of Construction at Scale” program to tackle Australia’s housing shortage while supporting Net Zero goals.
Australia faces a dual challenge: there are currently too few homes, and construction of new housing is costly and emissions-intensive. The report finds that prefabricated and modular construction, along with emerging technologies such as 3D printing, can deliver homes faster, more affordably and with lower emissions, but only if supported by targeted policy action.
Supported by an APPI Policy Challenge Grant, the research team, led by Dr Ehsan Noroozinejad from Western Sydney University, interviewed and surveyed a broad array of stakeholders across government, industry, community housing, non-government organisations and researchers to identify practical steps for scaling the adoption of Modern Methods of Construction. The report highlights that while recent initiatives such as the NSW Housing Pattern Book and modular home showcases mark important progress, additional measures are needed to achieve widespread impact.
Drawing on international experience, the report highlights how governments can make industrialised housing easier to approve, finance and insure. Case studies from the United Kingdom, Sweden, Canada, Germany, New Zealand and the United States offer proven models that Australia can adapt to move quickly from pilot projects to reliable, large-scale delivery.
The authors outline opportunities to make approvals more predictable, strengthen assurance for lenders and councils and use public procurement to create a dependable pipeline for manufacturers. It also showcases options for aligning finance and approvals to reward faster delivery and expanding skills training and public engagement to build capability and trust. Taken together, these practical measures have the potential to boost regional manufacturing, delivering thousands more affordable and energy-efficient homes each year.
“Modern Methods of Construction offer a real opportunity to build better homes faster,” Dr Noroozinejad said. “With the right policies and targeted support, they can help deliver faster, more predictable and lower-emission housing at scale across New South Wales and the country.”
“This research is a powerful demonstration of the APPI Policy Challenge Grant program, bringing together university researchers, industry, community and government to outline practical solutions to some of our most pressing policy problems in Australia. The report provides practical opportunities for governments across Australia to ramp up housing supply while reducing Net Zero emissions,” said Jordan Ward, Head of Economic Policy at APPI.
