The New South Wales government is moving to overhaul the way homes are built, launching a tender to partner with construction companies on a new modular housing factory designed to “turbocharge” the delivery of new homes across the state. The proposed Modern Methods of Construction Innovation Facility would manufacture prefabricated housing modules and components off‑site, allowing homes to be assembled faster and at significantly lower cost.
The announcement comes ahead of the 2026 state budget, though no funding figure has yet been attached. Planning Minister Paul Scully said the initiative is aimed squarely at tackling one of the biggest barriers to increasing housing supply the soaring cost of construction. According to Scully, modern construction methods could slash build times by up to 20 per cent and costs by as much as 50 per cent, offering a major boost to the state’s housing pipeline.
Under the model, large sections of rooms would be built in a dedicated facility before being transported to development sites across NSW. Premier Chris Minns said the industry has relied on the same building methods for generations, and it is time for a shift toward innovation that can deliver homes more efficiently.
The government is now seeking private‑sector partners to help establish one or more of these advanced construction facilities, signalling a long‑term commitment to modular building as a key solution to the state’s housing shortage.
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