Modern construction methods can play a crucial role in increasing the supply of housing

Representatives from the building and construction sector, nonprofit community housing sector, and key government personnel came together this week to discuss the opportunities for advanced manufacturing and modern methods of construction (MMC) in addressing the housing shortage and assisting in achieving future housing supply targets as Queensland's population grows exponentially.

Q Shelter and The APP Group held a Roundtable in Brisbane to explore the immense possibilities of MMC in future housing provision.

“We know that the State Government’s target for new dwellings in Queensland is one million new homes by 2044, which requires the construction industry to deliver around 50,000 homes annually. Since Covid, the industry average has been closer to 32,500 homes. So clearly, over the next 20 years, there will be a gap between the construction capacity and the target. In our opinion, this is where the huge opportunity lies for things like advanced and new construction methods to play a greater role over time."

Under the Queensland Government's Infrastructure Productivity and Workforce Action Plan, Queensland has already committed to incorporating modular construction or other forms of MMC in half of government infrastructure projects by 2030.

Queensland is also the first state or territory to initiate a government-led response to MMC in housing with its volumetric modular housing program.

Topics explored at this weeks roundtable include the role of State and Federal governments in facilitating the MMC industry’s development, including a secure pipeline of social housing and key worker housing to stimulate industry growth. Up to 600 volumetric modular homes are expected to be under contract or delivered via the Queensland Government’s QBuild modular housing program by the end of this year.

“Whilst important in terms of supply, it’s not the Department or Housing’s job alone to subsidise the MMC industry’s development at this early stage. We’d like to see other parts of government, state and federal, play a greater role too, including manufacturing and innovation focussed agencies, who can invest in and support the transition to new construction methods.”

Recently, the federal government announced a focus on advanced manufacturing and backed that up with a $900m commitment to a new Productivity Fund to assist in slashing red tape in housing construction. It is understood areas of focus could include streamlining commercial planning and zoning and removing barriers to the uptake of MMC.

The surge in demand for housing assistance is unprecedented across the country, and vulnerable people are residing in public spaces or other temporary arrangements while they are assisted in searching for a longer-term solution.  In the face of this pressing need, Q Shelter and other industry partners, such as Master Builders Queensland, believe there has never been a more critical time to be bold and push the limits of new technologies and innovation in housing delivery.

Policymakers nationwide are currently considering incentives, pilot projects, and demonstration sites as initial proof of concept to validate what is possible with MMC and housing. This could include support for procurement and supply chain pathways to incorporate prefabricated building components and further investment in regional manufacturing hubs, which can drive jobs, diversity of workforce, and local economic activity.

The Australian Building Codes Board has also just released its MMC regulatory handbook. The handbook has been developed to increase the understanding and effectiveness of existing building standards and regulations and to respond to government and industry requests for guidance on achieving NCC compliance in buildings that use MMC.

In March 2024, Building Ministers from around the country acknowledged the significant potential of MMC to help address Australia’s housing supply shortfall. Ministers discussed the opportunities presented by recent developments in advanced manufacturing, supply chain and building techniques that could facilitate the delivery of more new homes using MMC.

From this week's discussions, it's clear that the case to invest in these new approaches is right now to ensure MMC is an integral and valuable part of the overall housing construction system of the future.