Prefab and modular construction could help boost housing affordability, HIA says

The Housing Industry Association (HIA) has highlighted the potential for prefab and modular construction to help improve housing affordability and address capacity issues in the building industry.

Speaking at a government roundtable on the barriers and opportunities for prefab housing, HIA Managing Director Jocelyn Martin said, “The use of prefab and modular construction can help to improve the capacity issues the industry is currently facing.”

Participants at the roundtable, hosted by Minister Ed Husic in Melbourne, recognised that there were still a number of barriers preventing prefab and modular construction from reaching its potential.

“Addressing gaps in the National Construction Code is critical, as is a clearer understanding of the chain of custody in the manufacturing and building process, financing and business models and insurance,” Ms Martin said.

She also noted that a better understanding of terminology was needed, as there are many options for construction, from modular floor and wall panels through to fully completed homes.

“Often people see prefab and modular as being an inferior housing option, but there are a range of builders doing some beautiful work, producing amazing homes. In addition, the use of modular components has the potential to improve energy efficiency and apply innovative manufacturing techniques,” Ms Martin said.

The HIA’s comments come as housing affordability continues to be a major issue for many Australians, with rising interest rates and high construction costs putting pressure on the market.

The roundtable discussed the potential for prefab and modular construction to help address these challenges by improving efficiency, reducing waste and allowing for faster completion times.