As Australia struggles to build the homes it needs, governments are grappling with how to increase supply and ease affordability.
Prefabricated or modular homes have been touted as a possible solution to both crises, with the possibility of building climate-resilient, energy-efficient homes at scale, quickly and cheaply. With the side effect of creating less greenhouse gas emissions and waste in the process.
“You’re seeing amazing, beautiful, architecturally designed [modular] homes that are being delivered all around the country now,” says Damien Crough, the co-founder of peak industry body prefabAus.
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Despite its potential, the hype around prefab is yet to materialise, and it’s not just public perception holding the industry back. From planning to regulation and finance — everything is designed around building onsite, according to Damien Crough from prefabAus.
“A builder goes to a site where the bank has security over that asset, and the builder is building stage by stage and getting paid as they add value.”
It is also harder to get a mortgage for modular homes. While the rules vary from state to state, someone wanting to buy a modular home can typically only get access to a small deposit of around 5 to 10 per cent. That means the manufacturer needs to have the capital to fund the production of the home.