A finished modular home constructed by Saltair Modular. Picture: Saltair
As Australia struggles to keep up with its housing target of 1.2 million homes by 2029, a lot of talk has been on modular construction as a way of addressing the housing crisis.
But what are the benefits from a homebuilding perspective and are there any limitations you should be aware of?
BENEFITS OF MODULAR
Sometimes called “Lego housing”, prefabricated modular housing comes with many benefits due to its unique build process.
The workflow usually involves the design occurring upfront before the modules are constructed in a factory “while site preparation occurs in parallel,” says HIA chief executive Industry and Policy Simon Croft.
“Once the modules are delivered, installation and finishing on site can be completed in a matter of weeks,” he says. “For many projects, this approach can reduce the total build time by several months compared to a traditional onsite build, though timelines still vary depending on design complexity, approvals, and site conditions.”
Inside the Saltair factory where modular homes are constructed. Picture: Saltair Modular
The process also allows for better cost predictability and better quality control due to the factory processes used, he says.
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“The parallel workflow of off site fabrication plus on-site preparation reduces the time a project is exposed to weather, subcontractor shortages and other scheduling risks,” he says. “Many modular homes also perform well in energy efficiency due to precise fabrication.”
A modular home being installed on site by Saltair Modular. Picture: Saltair/ Sam Cook
SITE CONSIDERATIONS
Croft says it’s important to understand local planning requirements before executing any plans as local councils can vary when it comes to the way they assess prefabricated homes.
“They should also confirm whether the site’s soil conditions, slope, or environmental overlays will require additional engineering or foundations,” he says.
Saltair marketing lead Billie Higgins says while most of the fundamental site and planning considerations are the same as a traditional build, there are a few additional considerations worth keeping in mind when it comes to modular.
The interior of a modular home constructed by Saltair Modular. Picture: Saltair
“From a planning perspective, we always advise clients to confirm land use, height and setback controls and to be aware of flood, bushfire or slope constraints,” she says. “On the site side, access is critical. We assess road widths, overhead power lines, turning areas and crane set up space in detail, particularly for infill, regional or steep sites.
“The good news is that modular is often the best answer for those ‘too hard’ blocks. Because the bulk of the work is done offsite, we can turn challenging or remote sites into viable, high-quality projects.”
Award-winning “Three Sisters” project by Blok Modular.
LIMITATIONS
Being able to deliver the modules of the home is key when it comes to modular construction, says Croft, which means transport dimensions “can limit spans, roof shapes, or highly customised architectural features.”
“While modular is increasingly flexible, some very large or highly irregular designs remain better suited to onsite construction,” he says. “In some cases, matching additions or future extensions can also be more complex.”
Such constraints mean “very complex geometries need to be carefully designed,” says Higgins.
“Decisions are typically locked in earlier, which is positive for program but gives less scope for late design changes,” she says.
Warren Horneman with his modular home in Wonoona in Wollongong's northern suburbs. Picture: John Appleyard
HOW HAS MODULAR EVOLVED?
While modular has been around since the 1800s in Australia, the past 20 years have seen a “step-change”, with design evolving from “basic, boxlike structures to highly resolved, architecturally considered buildings” that many people wouldn’t realise were modular, Higgins says.
“Today, modular can be fabricated to look exactly like a traditional build, or it can express a very contemporary, modern aesthetic,” she says.
Modular has recently been pitched as a way of filling our housing shortage. Picture: Brendan Radke
HOW MUCH DOES MODULAR COST?
Like any type of build, the costs of modular vary depending on the size, location and level of customisation you are after.
“Modular can offer savings due to efficiencies in fabrication and time,” Croft says. “However, transport and cranage can offset some of those gains. In many parts of Australia, modular homes sit broadly comparable to mid-range project built homes, though highly customised modular designs can approach the cost of bespoke on site builds.”
The cost of cranage and transport needs to be taken into account. Picture: Kevin Farmer
CHOOSING A MODULAR COMPANY
With several modular companies available in Australia, it’s important to research carefully.
“Homeowners should check the company’s licensing, track record, warranty arrangements, and whether they offer end-to-end project management including approvals, transport, and installation,” Croft says. “It’s also important to understand what is included in their pricing, how variations are handled, and whether their designs can be adapted to meet local planning rules.”
Transport dimensions can affect what’s possible on a site. Picture: Kevin Farmer
Lending is another important consideration that could impact which company you go with, says Higgins.
“While finance markets are catching up quickly, some lenders are still building their familiarity with modular, which is why partnering with an experienced, proven provider is so important,” she says. “We are one of only five builders nationally to be named as an Approved Manufacturer for Commbank’s prefabricated home loan policy.”
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