Enter modular homes—a game changer in the construction industry. Offering not just affordability but also speed, quality, and sustainability, modular homes are poised to revolutionise how Australia tackles its housing challenges.

While modular homes have been around for decades,- advancements in factory technology and innovative design have now made modern modular a distinct alternative to traditional construction. This modern approach leverages prefabricated modules built off-site in controlled environments, which are then assembled on location.

Thanks to these advancements, modern modular not only accelerates project timelines but also ensures consistent quality and reduces environmental impact, making it especially effective for addressing social and affordable housing needs.

And modular construction has captured the attention of the federal government, with Housing Minister Ed Husic focusing on reducing regulatory barriers and leveraging advanced manufacturing to meet housing goals, including building 1.2 million new homes by 2029.

Bruce Nicholson, CEO of Fleetwood, a leading Australian-owned player in the modular construction industry, says he is energised by the idea of revolutionising Australia’s residential construction industry.

“Modular construction gets people into homes up to twice as fast,” he says, emphasising the importance of speed in addressing the urgent housing needs, particularly in urban areas where demand far exceeds supply. The ability to construct homes quickly is essential for programs like HAFF and NHAF, which aim to deliver affordable housing at scale.

But speed isn’t the only advantage. Modular construction also offers significant productivity gains. “Because the building happens in a factory, there’s no such thing as a rain day, and our teams can be more productive,” Nicholson says.

The controlled environment of factory production reduces construction time and costs, which can be crucial for social housing projects.

“Factory production enables almost complete product to be shipped to remote areas where trades and materials can be scarce – and they are cost competitive or may even be cheaper than traditional building methods,” he says.

These savings are not just theoretical. The cost efficiency of modular homes translates into lower prices for homeowners, making them an attractive option for low-income families, seniors, and others who might struggle to afford traditional building methods “There’s also potential for lower holding costs and capital because of the faster build times,” Nicholson says.

This makes modular homes particularly appealing to community housing providers (CHPs), who are integral to the success of HAFF and NHAF by ensuring that affordable housing reaches those most in need.

Sustainability is another significant advantage of modular construction, which aligns with the broader goals of both HAFF and NHAF. “Modern Modular is more sustainable, using less material and creating up to 80 per cent less waste,” Nicholson says.

The scalability and flexibility of modular construction make it ideal for addressing housing needs across diverse locations, from urban centres to remote communities.

Nicholson highlights Fleetwood’s success with the Osprey Village project in Port Hedland, Western Australia—a partnership with the Housing Authority and Royalties for Regions that delivered 293 dwellings in a region where demand far exceeded supply.

“This project was part of the state government’s initiative to address the shortage of affordable housing in regional areas,” he says. Such projects demonstrate how modular construction can play a pivotal role in fulfilling the objectives of HAFF and NHAF, particularly in areas where traditional construction methods may be less feasible.

Looking ahead, Nicholson sees enormous potential for the growth of modular construction in Australia. “There’s so much potential for modular construction to grow, especially in addressing the national housing shortage.”

Damien Crough, executive chairman of prefabAUS, the nation’s peak body for prefabricated construction, shares Nicholson’s optimism.

“Modular homes offer a fast, efficient, and sustainable solution to Australia’s housing challenges,” Crough says.

“The trends are moving more towards modular construction because of the speed and the benefit of speed.”

Traditional construction can take 12 months or more, whereas modular manufacturers complete projects in just 12 to 16 weeks.

Two primary methods define modular construction: volumetric and panelised. Volumetric modular involves delivering a fully finished house on-site. “A fully finished house that arrives on the back of a truck,” Crough says.

However, in densely populated urban areas, access constraints often necessitate panelised construction, where pre-fabricated wall panels are assembled on-site. “We’re seeing growth in panelised construction or kit of parts,” he says.

Additionally, buildings are designed for disassembly and reuse, contributing to a more sustainable urban environment—a critical consideration for HAFF and NHAF projects, which must balance affordability with long-term sustainability.

Crough says modular construction is not a threat to the broader construction industry.

“Prefabrication is an enabler to the construction sector,” he says, stressing the importance of collaboration between sectors to meet the growing demand for housing. “We need to work collaboratively to meet demand,” he says, highlighting the role of CHPs in making modular housing a viable solution for low-income and disadvantaged Australians.

As Australia’s population continues to grow, the pressure on the construction industry will only intensify.

“The construction industry is at capacity, and things are getting harder,” Crough says. Modular construction offers a viable path forward, providing affordable, sustainable, and high-performing homes.

To find out more, please visit Fleetwood.