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{{propApi.successMessage}} {{region}} Change locationPrefabricated and modular building
Prefabricated and modular building
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Modular housing involves the use of prefabricated components that are constructed off-site in a home build. There is a lot of attention on prefabricated construction's role in solving the Australian housing crisis.
Affordability, compliance and its relationship with employment are all hot topics. HIA is leading our industry’s engagement with government with our members in mind as this new frontier of construction takes hold in Australia.
Prefabrication of both structural and non-structural components is already common and accepted for use in applications like wall systems, trusses and frames. Modular parts are larger in scale than what is utilised in other types of prefabricated construction. These can include whole rooms or sections of homes that can be transported and pieced together on-site. Prefabricated building also encompasses the use of smaller components that are produced off-site like staircases and kitchens.
“When we talk about prefab, we’re talking about something that’s not occurring on-site,” says Shane Keating, HIA Executive Director – Building Policy. “For example, rooms and bathroom pods that can be combined into a whole.”
This has the potential to scale up processes and productivity for larger companies. Volume builders and others whose efficiencies are subject to trade availability can benefit from a manufacturing sector that produces things quickly at speed and volume. The existing systems and new systems for walls, floors, even whole rooms have the potential to get houses built quicker, cheaper, and more effectively.
HIA's priorities
Modern Methods of Construction (MCC) and prefabricated building have the potential to transform the Australian residential building industry over the coming years. As a result, HIA has devised clear strategies to ensure success via government change, increased awareness and support, industry transformation and innovation. These are the opportunities we have identified that will protect our members and streamline its integration into more traditional modes of construction:
Planning system and building regulation reforms:
- Update building codes and standards to better accommodate prefabrication.
- Streamline planning and approval processes for modular and offsite construction.
- Review product conformity and certification pathways to ensure faster, high quality and safe products.
Education and Government support:
- Invest in workforce upskilling and education for prefab and modular construction methods
- Provide financial incentives and funding and procurement for prefabrication projects.
Chain of responsibility, financial and contractual:
- Strengthen supply chains for prefabrication materials and components.
- Investigate barriers associated with contracts, progress payments, licencing and insurance.
Innovation:
- R&D to advance prefab technology and efficiency.
- Promote the benefits of prefab and modular housing.
Driving national reform of prefab regulation
HIA supports greater use of modular and prefabricated construction to boost productivity, cut delays, and help meet Australia’s housing needs. A major barrier to growth is inconsistent regulation, so HIA continues to push for simple, nationally aligned rules.
HIA backs the development of a voluntary, low-cost national certification scheme for MMC manufacturers which is practical, avoids duplication, and works with the existing NCC rather than adding new layers of compliance.
Across multiple submissions, HIA has called on governments to streamline approvals, clarify definitions, and create sensible pathways for off-site manufacturing. Its focus is building confidence in MMC while keeping regulation efficient, consistent, and innovation-friendly.
Modern Methods of Construction (MMC)
The prefab conversation explained
Drawing on firsthand stories from builders, suppliers and HIA experts, this feature explores how modular and prefab construction is helping teams build faster, improve quality control and reduce waste. It also looks at the real-world challenges like planning delays, approval processes and education gaps.
Industry players working with prefab say the biggest barriers aren’t quality or compliance, but misconceptions about how these homes are built. Learn how these methods can shape the pathway to addressing Australia’s housing needs.
Barriers to modular and prefab construction
This report outlines HIA’s work to identify and remove regulatory barriers holding back prefabricated and modular housing in Australia. Drawing on industry consultation, research and international examples, it examines how planning systems, codes and approvals designed for traditional construction can limit off-site methods.
We investigate why regulatory ambiguity creates delays, uncertainty and cost for builders and manufacturers, and how clearer frameworks, certification pathways and NCC reforms could unlock productivity gains and support wider adoption of prefab and modular construction.
Jamie Durie hosts Future House on Channel 9.
Jamie Durie's Future House show: what's next
Jamie Durie is using innovative modular and prefabricated construction methods to cut waste, reduce transport, and speed up the build of his sustainable luxury home. His new show Future House explores the potential of this new frontier of residential building and how it could revolutionise the industry and build Australian homes for every budget. HIA's Simon Croft appears on Season 2 of the program to discuss what's needed to make this a reality.
The groundbreaking series covers real-world families and the way they're utilising off-site fabrication to enable easier integration of eco-features like solar, geothermal systems, and recycled materials. His project shows how modular methods can deliver high-end, low-impact homes that are both efficient and environmentally responsible. Watch the series on the 9Now platform.
HIA's modular home for charity
The HIA Charitable Foundation has partnered with TR Homes to deliver the first HIA Charitable Foundation Modular Home in Western Australia. TR Homes is generously contributing its expertise, workforce, and resources, with additional support from suppliers donating materials for the build.
Once completed, the modular home will be sold and transported to a regional WA location. Proceeds from the home sale will assist mental health charity Beyond Blue and contribute to ongoing medical research into silicosis.
HIA’s industry initiatives
Explore our advocacy, reporting and research on the most pressing issues facing the Australian residential building sector.
One House, One Approval
A refreshed and simplified pathway to deliver one approval for the construction of a single house on a block of land zoned for housing.
Taxation's major impact on housing
HIA engaged the Centre for International Economics (the CIE) to undertake a review of taxes, fees and charges on new housing and apartments.
Missing Middle Housing Report
We must explore gentle density housing solutions including more townhouses, micro-lot houses and triplexes in existing populated areas. Review the report.
HIA Planning Blueprint Scorecard
HIA's Planning Blueprint Scorecard grades the planning system of each state and outlines key areas of improvement to achieve the Accord target of 1.2 million homes.
All Hands on Deck: Construction workforce requirements report
Trade shortages loom as a major threat to the Housing Accord’s target of building 1.2 million homes over the next five years.
Pre-fab and modular construction
HIA's final report identifies the regulatory barriers for off-site construction in housing. These barriers can be time consuming and costly, resulting in inconsistent outcomes for industry and consumers.
Ban on engineered stone
Our expert guidance on how to understand the engineered stone ban and minimise the health risks of silicosis. Learn more about how we’ve helped the industry deal with this huge regulatory change.
The changing voice of the construction industry
The construction industry has become more culturally and linguistically diverse. However, the industry is still lagging other industry sectors when it comes to attracting skilled migrants.
NCC 2022 changes
We’ve been working hard for our members to minimise the outcome of NCC 2022 changes that have impacted the residential building industry. Explore the latest changes and updates to the National Construction Code.