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More than 50 years ago, the federal government established one to "investigate modern housing techniques" to boost Australia's "large, unsatisfied demand for housing". It published a 114-page report in 1974, describing, in minute detail, the benefits and challenges of shifting housing construction in Australia to a production line. Prefab housing, short for prefabricated housing, refers to homes that are manufactured off-site in a factory, in sections (also called modules) and then transported to their final location for assembly. The obvious benefits of building prefab homes are that they're constructed under cover without the worry of weather disruptions, use robots and machines for speed, and are built in bulk to drive down material costs. The report argued modern techniques were key to solving the housing crisis and urged national standards to boost prefab housing, criticising the slow productivity gains in construction. Five decades later, pre-fabricated housing remains the subject of taskforces and reports, rather than a mainstream building method. According to prefabAUS — the peak body for Australia's off-site construction industry — it makes up just 8 per cent of construction. Australia's Productivity Commission chair Danielle Wood echoed the words of the 1974 report — almost to the letter — just a few weeks ago in the commission's latest report on housing, which found productivity in the sector had declined 12 per cent over the past three decades. It said prefab and modular were "unlikely to be a silver bullet for housing construction productivity" because of varying rules and approvals processes across state and local governments. But there are signs that's changing. In 2024, the federal government launched a $900 million productivity fund for states and territories to remove barriers to modern building techniques, such as prefabricated and modular homes, while also announcing funding for a voluntary certification scheme and a national reform program to create new regulations. The Australian Building Codes Board has also released a compliance handbook and consulted on a product registration scheme. Former NSW building commissioner David Chandler said the $900 million fund was a start but he was adamant the industry needed much more, including a national standards instead of different versions of the National Construction Code in every state. Rachel Clayton reports.
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