Context At present, the construction industry is severely constrained by supply and labour issues arising from the pandemic. Government and industry are working to resolve these matters. In the medium term, WA must resolve its historical, structural challenges by resource sector investment cycles. The construction phase of these cycles drives rapid increases in demand for housing and dramatic price inflation, particularly in regional areas, followed by collapsing demand and property price deflation as construction winds down and projects enter their operational phase. This is destabilising for regional housing markets and economies and leaves many investors holding assets with negative equity for sustained periods. It also limits housing supply available to workers and businesses in other industries like tourism, hindering the diversification and growth of regional economies. The challenge is to meet cyclical demand for worker accommodation without undermining other economic sectors and local property markets. Rationale The traditional approach to building houses onsite out of bricks, timber and steel is being superseded as factory-built solutions are emerging and offer greater efficiency and sustainability. 1. Resort style villages targeting rental demand and comprised of modular homes and community amenities, such as childcare, meeting facilities, shared kitchens, swimming pools and fitness centres. These units can be built at factories across the State and trucked to sites zoned for caravan parks to offer tailored solutions suited to local requirements, fast mobilisation and the potential for demobilisation as demand ebbs. 2. Prefabricated panel (flat pack) constructed accommodation designed in Perth and manufactured regionally can be deployed quickly and in various configurations to address spikes in demand and local requirements for affordable, worker and tourist accommodation and community amenities. 3. Models from other countries where the land developer is also the builder, constructing a pattern of homes at pace and at a lower cost. The first two approaches address the labour and rapid deployment limitations of traditional, onsite housing construction methods, delivering more quickly, with lower construction costs, reduced labour, minimal construction footprints, lower costs of living through improved heating and cooling performance, high fire ratings (BAL), improved cyclone ratings, a fraction of the construction waste and substantially lower embodied energy and carbon. These qualities offer a useful complement to the traditional housing sector across regional WA. In respect of the third option, homes are built from the same template on a rolling process to minimise waste and create housing at speed. Mitigating against the ‘sameness’ of housing in this construction model, is a focus on landscaping and surrounds. A demonstration program designed to assist builders, consumers and tradespeople with understanding this emerging future would greatly assist WA to transition to more affordable, faster, cheaper to run and greener housing stock. Any such program would need to address the following elements: • Industry constructed demonstration homes in high traffic areas at entry points to rapidly growing suburban areas. • Digital billboards tracking – (1) cost to build, (2) time to build (3) cost of living and (4) green performance (an aggregate indicator encompassing embodied energy, carbon and circularity). • Government commitment to cover construction costs should the homes not sell. Whatever the approach, change of this magnitude will require a whole of industry effort, including the major builders, modular and flatpack housing providers, the Master Builders Association, the Housing Industry Association and State and Commonwealth planning and land development agencies. An effective solution will provide for the ongoing health of the traditional housing sector and the quality of new communities established using alternative business models.
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