Build faster, cheaper: CEDA & Urbis report urges greater use of modern construction methods amidst housing crisis

A new report from the Committee for Economic Development of Australia (CEDA), produced in partnership with Urbis, has found that scaling and adapting modern methods of construction (MMC) could be a key to unlocking Australia’s housing supply and easing the nation’s worsening housing shortage.

Built Different: Modern Methods of Construction found MMC could cut construction times by 20 to 50 per cent and reduce costs by around 20 per cent when implemented at scale. MMC includes prefabrication, off-site manufacturing, modular or volumetric building, 3D printing, robotics, and AI integration processes.

CEDA Head of Research Danika Adams said Australia must not only build more, but build differently, to meet our housing needs.

“The National Housing Accord target of 1.2 million new dwellings by 2029 is ambitious, and current progress is falling short.”

The report found the speed at which new dwellings can be delivered is a critical constraint on supply. It found productivity has also deteriorated, with dwellings built per construction worker falling 40 per cent since the 1970s.

Build times have increased by 40 per cent since the pandemic, and construction costs have surged 88 per cent since 2014–15.

“Modular construction is currently used for less than 5 per cent of new Australian homes. Given housing supply is constrained by how slow and expensive it has become to build, modern methods of construction offer a practical way to improve that.”

“Traditional construction is not keeping up. These methods already exist, they work, and the challenge now is scaling.”

“We know this is a system-wide challenge, which means it also needs a system-wide response. To scale modern methods of construction, we need better alignment across planning, regulation, procurement, finance and the supply chain so industry has the confidence to invest and deliver at scale,” said Clinton Ostwald, Partner at Urbis.

CEDA and Urbis are calling on state governments to lead this adoption, examine and update regulatory frameworks around MMC and consider how this scaling could benefit regional and social housing. Particularly at a time where housing and productivity both remain in the spotlight following ambitious Federal and State Budgets.

Ms Adams said while the benefits are clear, the report identifies barriers to implementation including fragmented regulation, inconsistent standards, financial constraints and workforce capability gaps.

“This is not a silver bullet, but with coordinated policy and united support from industry and government it is a tangible, scalable and evidence based way to build more homes, faster and at lower cost,” said Ms Adams.

CEDA and Urbis encourage governments to treat MMC as a central tool for unlocking housing supply at a time of critical national need.

CEDA Head of Research, Danika Adams and Urbis Partner, Clinton Ostwald are available for further comment and interviews. 

CEDA MEDIA CONTACT
Henry Madden
Media relations manager
E: henry.madden@ceda.com.au
M: 0436 379 688 

URBIS MEDIA CONTACT
Melissa Kehagias
Senior Communications Consultant
E: mkehagias@urbis.com.au
M: 0421 524 236

About URBIS

Urbis is a multidisciplinary urban consultancy bringing transformation to cities and communities around the world. From inspiration to implementation, our team of more than 900 consultants and specialists create communities and places that address the complex needs of society.

Our approach to liveability extends beyond the build environment and involves sustainable, ethical, commercial, social and natural elements to deliver future-focused housing and precincts solutions.