Expert Reactions: What $54 Million in Prefab Funding Means for Australia’s Housing Future
The Federal Government’s recent announcement by Ed Husic MP of a $54 million investment into modular and prefabricated housing marks a long-overdue acknowledgement of the role prefab could play in addressing Australia’s escalating housing crisis.
But as the dust settles and a federal election is called shortly after, important questions remain:
- How will the funding be distributed across states and territories with vastly different infrastructure readiness?
- What portion will go toward manufacturing equipment, workforce training, supply chain development or certification?
- Most importantly, what measurable outcomes will this investment yield?
Prefabrication is not new to Australia. For decades, it has existed in parallel to traditional building methods—frequently perceived as niche, often misunderstood, and too rarely championed at scale.
Globally, prefab and modular approaches have proven capable of delivering housing faster, with lower environmental impact, and with consistent quality.
As Australia sets its sights on delivering 1.2 million new homes by 2029, the question is no longer about prefab’s viability—it’s whether we’re willing to do what it takes to fully realise its potential.
Prefab Projects spoke to industry leaders to unpack the impact, opportunities, and risks of this government commitment.
Rob Stokes, Chair of Faith Housing Australia
“The Federal Government’s investment in bringing modular and prefab manufacturing to scale could bring faster construction times, enhanced quality control, improved sustainability and lower costs.”
While exact details of how the $54 million will be spent are not yet clear, a targeted investment could make a big difference in bringing modular to scale.
John Engeler, CEO Shelter NSW; Chair, National Shelter
“The Commonwealth committing over $50M to this demonstrates a willingness to ‘light the way forward’ for doing whatever it takes to make a difference in how we deliver much-needed housing locally.
We need more supply—quality, cost-effective, and efficient housing—delivered on the ground, literally, as soon as possible.
‘Modern Methods of Construction’ (MMC) will be a game-changer in terms of productivity. The Commonwealth supporting this directly shows leadership, policy awareness, and good old-fashioned pragmatic problem solving.”
Adam Haddow, National President Elect, Australian Institute of Architects
“If we’re to realise the potential of prefabrication—particularly in energy-efficient, sustainable, and affordable housing—governments must commit to procurement models that support design and infrastructure investment.
Chasing the lowest upfront price is short-sighted.
The first homes will be expensive as private industry recoups R&D and factory investment. It will be the 1,000th home where economies of scale kick in. But we’ll never reach the 1,000th without first investing in the 999 before it.”
Elizabeth Carpenter, Managing Principal at fjcstudio; NSW Chapter President, AIA
“The $54 million federal investment in housing manufacturing is a positive step, but ultimately insufficient to address the scale of Australia’s housing crisis.
Prefab is a critical enabler for the 1.2 million homes target, but $54M barely scratches the surface of what’s required for infrastructure, workforce development, and innovation.
To unlock prefab’s potential, we need policy alignment, more funding, local manufacturing capacity, and a customer-first, quality-driven approach.
I just returned from Melbourne—visiting fast-growing suburbs. The workmanship was extremely poor. Prefab, with its quality-controlled processes, can do better.”
Annalise Knight, GM at Brother Nature
“It’s encouraging to see the government recognising prefab’s role in solving the housing crisis.
Prefab can deliver homes faster, at higher quality, and more sustainably—but only when backed by meaningful investment and included in large-scale public initiatives.
This funding is a step toward unlocking potential, but it needs to translate into structural change—not just isolated pilot projects.”
Nick Hewson, Director and Founder at Arboralis
“I welcome the government’s prefab funding announcement, but $54 million is a small amount relative to the industry’s scale and challenges.
The national certification scheme is a good start, but should be mandatory, not voluntary, to ensure high quality.
Government has a key role in stimulating demand and ensuring a pipeline. But right now, we see good ideas at senior levels get lost during delivery. We need joined-up thinking across departments and tiers of government.”
Simon McCarthy, Principal Structural DfMA, Systemised Design Group
“Beyond policy, the real question is: how does $54 million translate into physical homes?
If funding is divided between states, it won’t even cover costs for manufacturing equipment and training.
We hope to see the funds support standardised, adaptable housing designs for public housing—unlocking scalability, repeatability, and cost efficiency.
Without that, there’s a risk that isolated spending gets consumed by overheads rather than outcomes.
Sharing funds must also mean sharing knowledge.”
Jerry Tyrrell, Architect and Founder of BuildingTools
“We keep talking instead of solving.
18,000 homes is less than 2% of what’s needed.
Let’s streamline certification into a single ‘whole of home’ product delivered by the AAC / AIBS / Councils. Let’s bulldoze the roadblocks—including dishonest, lazy union practices and bureaucratic red tape.
Incentivise developers. Profit doesn’t have to be evil—it can serve the community.”
Helen Kuo, Principal at FK
“A national certification process is critical to advancing offsite construction.
Manufacturers need a consistent national framework to sustain output and investment.
Standardising regulatory approvals and certification will unlock scalability and certainty, encouraging broader participation from the industry.”
Joshua Wheeler, Director at MGS Architects
“We’re excited to explore prefab more deeply, now that the government has put funding behind its commitments.
Our focus is on low- to mid-rise housing, particularly in regional areas, where design quality, speed, and cost certainty are all crucial.
This funding could catalyse real innovation—if used strategically.”
Cameron Kaufman, Circular Economy Specialist at Coreo
“Prefab can help us build homes faster—but it won’t solve the root causes of the housing crisis.
We need to address structural issues like tax incentives for landlords, lack of vacancy penalties, and housing being treated as an investment asset.
Australia doesn’t just need more dwellings—we need to ensure they’re lived in.”
