Modular homes are popping up in regional Victoria with more residents set to move into the innovative new-builds. The state government says it’s ramping up the delivery of modular homes that are built in a factory and transported throughout Victoria where housing needs are greatest.
More than 350 modular homes are slated to be delivered by mid-2028, the Victorian housing minister Nick Staikos said. Already more than 70 modular homes have been delivered to regional parts of the state, while another 136 are under construction.
“Labor is embracing innovative, cutting-edge housing models,” Staikos said Wednesday when visiting a Modularity by Rendine factory in Geelong, spruiking support for such local businesses to produce homes to be trucked to communities in need.
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“These modular homes are built off-site at factories like this in Geelong and brought to where they’re needed most in regional Victoria – faster than ever before.”
The technology, he said, can provide “safe modern housing solutions that can move with demand”.
The factory built homes can be fast-tracked to areas in need. · Modularity/CEBIC
A similar approach is also being embraced by Tasmania as a way of tackling the housing crisis in the state. Some 280 pre-fabricated homes have already been constructed, with hundreds more on the way as part of a plan to make housing more affordable and more accessible to residents.
Under a newly announced Modular Housing Finance Guarantee Scheme, the state will act as guarantor for 30 per cent of the cost of modular homes during the building phase, with the government on Wednesday opening a consultation period for the program. It means the Liberal state government will guarantee construction loans while homes are being built off-site, where limited collateral has historically restricted lending.
“Modular homes can be built in months, not years, and this reform ensures financing keeps pace with that innovation,” Premier Jeremy Rockliff said.
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The state’s treasurer Eric Abetz argued the program will help new homebuyers who might want to opt for the modern style, quick built dwelling.
“By addressing the financing gap, the initiative will accelerate housing supply, lower upfront costs, and improve access for first-home buyers,” he said.
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In May, retail giant Wesfarmers, the owner of brands including Bunnings and Kmart, announced a new joint venture to build a manufacturing facility capable of pumping out more than 2,000 apartment per year.
If all goes according to plan, the newly build factory, which has the backing of the WA state government, will produce apartments 20 per cent more cheaply than traditional construction methods and take about half the amount of time to build. They will then be trucked to their final destination.
The project is taking inspiration from similar efforts in Europe, where companies and governments have embraced modern manufacturing technology to expedite more cost effective housing, the CEO of the new project, Dale Connor, previously told Yahoo Finance.
“We’ve been certainly spending time in places like Northern Europe, the Netherlands, Germany, England, Finland, where you see this technology – this connection between highly automated factory producing precast concrete elements … and operating models digitally that enable a kit of parts and that precast to come together and be assembled on site,” he said.
The WA Labor government has thrown its support behind the overall vision of modular housing, earmarking $48 million to establish and expand manufacturing facilities to produce large-scale prefabrication homes.
“By investing in innovative ways of building, we will not only accelerate the construction of medium-and-high-density housing in WA, but potentially help deliver major infrastructure projects,” Premier Roger Cook said.
Also in May, the federal government announced a new $39 million trial as it turns to flat-pack style building components in the search for new solutions to the housing shortage.
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