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This was once considered cheap and shabby, but could now solve the problem…

Modular homes could be the innovative solution to the growing housing crisis in Australia’s rural areas, according to industry experts.

Speaking at the Regional Australia Institute (RAI) national summit on Wednesday, RAI senior economist Diwa Hopkins said housing for rural workers was a top priority.

National crisis

More than 166,000 people moved to the regions during the last census, according to previous RAI reports obtained by ACM. said – a number that the housing supply cannot keep pace with.

According to the state government, there are currently 20,000 jobs advertised for the NSW region.

Meanwhile, Victoria needs an additional 83,400 workers by 2025 to meet regional labour demand, the government said.

Timber and modular homes could be a solution for the Australian regions. Image by Passive Places

According to Ms Hopkins, the vacancy rate for rental properties in regional local government areas is lower than in cities.

In NSW, 80 of the 86 regional government areas had high rental vacancy rates in 2021, and according to Ms Hopkins, this has changed little in subsequent years.

This figure was extended to all local government areas in regional Victoria, 32 of 45 in regional Queensland and 18 of 21 in regional Tasmania.

In some areas, the vacancy rate is only 0.16 percent, according to RAI.

Housing All Australians director Robert Pradolin said the housing shortage was being felt across the country.

“This is a real tragedy happening in this country,” said Mr Pradolin.

Another challenge was construction deficiencies and rising material costs.

However, panelists said that the “courage” of the private housing sector could bring solutions into view.

Build smarter, not harder

In Australia, prefab housing is often seen as a cheap and poor solution, but companies operating in the sector say it could be key to housing essential workers and low-income earners.

Nick Lane is the founder of Passive Place, which creates affordable and sustainable homes through modular construction.

He said the company’s homes could be made into different shapes, creating customized homes without the cost and energy consumption of traditional construction.

They are also much cheaper than traditional construction methods. In fact, unfinished “click” homes can be purchased for as little as $250,000.

“I’m thinking about solutions that don’t require a change in government policy,” Lane said.

Lane, who markets the homes to essential workers, said prefab homes are better received in small towns than in large industrial areas.

“People know that these are workers, nurses, teachers and construction workers in their community,” he said.

This has made communities feel like they are “part of the solution” when it comes to providing more housing rather than struggling to find housing for the many workers, he said.

Diversification of the workforce

Prefabricated homes also help to overcome the shortage of building materials in rural Australia.

Mr Lane works in communities where up to 20 percent of construction workers will retire in the next five years – a problem he believes needs to be addressed.

Prefabricated homes require rigorous quality testing and building certification, but construction does not require the same level of expertise as traditional buildings.

Artist’s depiction of a Nestd village. Image by Nestd

Greg Muller, chairman of modular village developer Nestd, said the recognition of this solution was important because it would take 30 to 40 years to stabilise housing numbers in Australia’s rural areas.

“Every housing project will take many years to be realized, and where there is a need today, it will only resolve itself in a few years,” he said.

Attractive living option

Nestd creates entire villages of prefabricated houses and acquires land for social and affordable housing.

The focus of the design is a “beautiful aesthetic” so that the houses look like normal houses from their facades, said Mr Muller.

“It’s important that we recognise that people living in social housing are just like everyone else, they may just be in a difficult situation,” he said.

High-quality design and community facilities in modular housing developments have helped improve social housing residents’ self-esteem and improve their mental health, Mr Muller said.

By Olivia

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