How to build 180k new homes a year

Mindful Builder

Last year the federal government set a goal of building 1.2million new homes in the next five years. This doesn’t count renovations or extensions, it’s just brand-new construction projects. Breaking it down that means 180 thousand homes each year, about 60 thousand more than the current output.

It’s a huge ask considering the construction industry is already struggling to keep up with demand, but it could be possible with the right strategy and mindset. We don’t have all the answers but we want to share our thoughts on this, our concerns, and our predictions for how things will play out.

Prefabrication as the Solution:

Our number one strategy for tackling this challenge is to embrace prefabrication, as it can be a lot quicker and more consistent. Prefabrication involves creating components of a building off-site in a factory and then assembling them on-site. This method not only speeds up the construction process but also ensures quality, precision, and durability in the final built structures. For this to happen though, the government will need to invest heavily into the factories that produce these homes and upskilling tradies for this approach.

Growing the Workforce:

Whatever strategy we use, we won't be able to meet this increased demand if we don’t have enough boots on the ground, so it’s crucial for us to encourage more people into the industry. There are a lot of different ways to do this and it’s best to do multiple at once, so we go over some of our favourite:

1. Overhaul apprenticeships: The current structure of apprenticeships is outdated, and they don’t properly equip people for the modern construction industry. The low pay of apprenticeships is another barrier, so we need to make apprenticeships more flexible. Why not have part-time apprenticeships or offer more online learning?

2. Diversify the workforce: Currently only 2% of people working on construction sites are women. This is a huge untapped potential and something that needs to be fixed. Not only does this increase the workforce but it brings fresh, unique perspectives to the field.

3. Defeat the Stigma: Breaking the stigma associated with trades being less intellectually demanding and promoting them as professional and rewarding career pathways is essential for attracting more talent into the industry.

Overcoming Regulatory Hurdles:

The final hurdle we talk about is the planning department. Outdated regulations and bureaucracy are responsible for so much time lost in construction. There is no way we can construct 180,000 homes annually without significant efforts to remove red tape and streamline the process.

Building 180 thousand homes a year is a daunting task but it’s one our industry can achieve if we stay open to change and innovation. Most importantly, we must avoid short-term thinking and quick fixes that will set us up for more problems in the future. We’d love to hear what you think about our points in this episode, or if you have any different ideas on how to tackle things.

LINKS:

Sanctum Homes: www.yoursanctum.com.au/

Carland Constructions: www.carlandconstructions.com/