ACT Government Explores Modular Housing to Meet 2030 Home Target
The ACT government is exploring the use of modular and prefabricated homes for public housing to assist in developing the local home manufacturing industry. This initiative is part of the government's strategy to meet its goal of enabling 30,000 new homes in the territory by 2030.
Housing Targets and Current Status
The ACT government's target of 30,000 new homes by 2030 has been described as "a pipe dream" by the Master Builders Association. Planning Minister Chris Steel acknowledged that the government fell approximately 100 dwellings short of its first-year target of 4,200 new homes but affirmed efforts to achieve the overall goal.
Modular and Prefabricated Housing as a Solution
Modular and prefabricated housing and components are increasingly viewed as potential solutions to Australia's housing challenges. These homes are constructed off-site in factories and then transported for assembly at their final location, often providing a quicker and potentially more cost-effective housing option.
However, industry stakeholders indicate that significant changes in planning, regulation, and finance rules are necessary for modular and prefabricated housing to become an affordable and scalable solution.
Industry Perspectives
Geoff McGinley, whose modular housing business, Adapt Homes, originated from his personal search for an affordable housing solution, views manufactured houses as a future direction for building in Australia. His company produces movable tiny houses, ranging from 14 to 40 square meters, which can be combined or stacked. Mr. McGinley stated that the primary constraint is the planning process, which can take three to four times longer than the construction itself.
Andrew Copley, CEO of AJC Modular, agrees that regulatory changes are required to address housing demand. His company manufactures modular granny flats and homes using Australian-made structurally-insulated panels, citing benefits in cost, assembly speed, energy efficiency, and waste reduction. Mr. Copley noted high demand, leading to the establishment of a second factory in Brisbane. He identified design approval and certification processes as major obstacles, describing them as "red tape" despite the use of pre-engineered designs. He suggested adopting an American industry model where factory inspections and adherence to criteria lead to automatic approvals.
Industry Group Concerns and Recommendations
Anna Neelagama, CEO of Master Builders ACT, expressed skepticism regarding the 30,000-home target. She stated that approximately 4,700 homes would need to be built annually to meet the goal, attributing current challenges to regulatory burdens. The industry group has called for a faster planning system, investment in critical construction trades, and a delay in implementing changes from the National Construction Code 2022. While supporting modern construction methods for their potential to reduce build times by up to 50% and costs by approximately 20%, Ms. Neelagama raised questions concerning compliance, certification, and quality checks for non-site-based construction methods.
ACT Government's Approach
Planning Minister Chris Steel confirmed that the government is seeking solutions for integrating more modular and prefabricated homes into Canberra. The government intends to collaborate with the Commonwealth, utilizing funding to pilot this housing type in public housing, aiming to encourage private sector adoption.
Minister Steel highlighted that addressing the challenges associated with modular housing necessitates a comprehensive shift in approach across multiple government levels and within the industry. This includes adapting planning and building systems to accommodate factory-built components and engaging with financial institutions to restructure loans supporting such housing.
Transportation costs for modular housing, particularly from interstate, were noted as a significant factor. However, the Minister suggested that government procurement standards for public housing could be used to support local suppliers and scale up the industry.
Focus on Missing Middle Housing
The government continues its focus on "missing middle" housing, which includes terraces, townhouses, duplexes, and low-rise apartment buildings in areas currently zoned for standalone houses. A "Canberra housing pattern book" is planned, which will feature a set of pre-approved designs for accelerated planning pathways, potentially including prefabricated or modular housing options.
Minister Steel expressed confidence that the government's housing target can be achieved through a combination of planning changes and land release strategies. He indicated that regulatory and zoning changes are underway, with further reforms expected.