Australia’s housing market is grappling with a severe shortage exacerbated by rapid population growth, economic pressures and underinvestment in housing infrastructure, in addition to other complexities that plague the housing market such as inflation and rising interest rates This crisis has driven up housing prices and rental costs, creating significant barriers to affordable housing for many Australians. Government and industry leaders are implementing a range of initiatives and regulatory measures designed to alleviate the shortage, by investing in prefabricated and modular housing, and updating the National Construction Code to ensure future buildings offer improved safety and sustainability.

The Housing Crisis Unveiled

The Australian housing market faces a dramatic supply-demand imbalance. The national vacancy rate has plummeted to an unprecedented low of 0.7%, with some cities like Perth and Adelaide seeing rates as low as 0.3%. Factors contributing to this crisis include rising construction costs, labour shortages, and a slowdown in building approvals. This situation has created a highly competitive market, making it increasingly difficult for both renters and buyers to secure suitable housing.

To combat this housing crisis, the Australian government has set a bold target to construct 1.2 million new homes over the next five years. This ambitious plan is designed to bridge the housing supply gap and potentially enhance affordability. Key initiatives that could aid in this strategy include promoting prefabricated and modular housing, updating the National Construction Code (NCC), and advancing decarbonisation efforts within the construction sector.

Prefabricated and Modular Housing

Prefabricated and modular housing presents a viable to traditional housing construction methods by leveraging advanced manufacturing techniques and efficient supply chains. These methods are designed to enable the production of high-quality homes more quickly and cost-effectively.

Standards Australia’s national Prefabricated Building committee is currently drafting an Australian Standard and a terms and definitions Handbook for prefabricated building and modern methods of construction. Standards Australia   is collaborating with the Australian Building Code Board (ABCB) and Building 4.0 CRC to identify what is needed for building policy in this space. As modern construction methods evolve rapidly, Standards Australia strives to keep pace with innovation in the built environment.

National Construction Code (NCC) 2025

The forthcoming National Construction Code (NCC) 2025 represents a critical development in addressing certain housing challenges. The updated NCC will set forth revised requirements for safety, health, amenity, accessibility, and sustainability in buildings. This comprehensive review ensures that the code remains aligned with current industry needs and best practices.

Standards Australia works closely with the ABCB to ensure referenced Australian Standard® brand standards align to the requirements of the National Construction Code.

Decarbonising the Construction Sector

Aligned with Australia’s net zero emissions goals, efforts are underway to decarbonise the construction sector. The Commonwealth’s Net Zero Built Environment Sector Plan (BESP) is being developed to outline a clear pathway for reducing emissions in the built environment by 2050. This plan emphasises improving energy efficiency, promoting fuel-switching, and reducing embodied emissions in construction materials.

Standards Australia supports these initiatives as is evident in recent updates and new standards that have been published. These include:

• AS 5375:2024, PVC pipes and fittings: This world-first standard was developed so that Australian PVC pipes and fittings are designed with sustainability in mind, and ensuring they are free from harmful substances and safe for drinking water. Their contribution to environmental preservation is highlighted by their durable lifespan of up to 100 years and their recyclability, supporting a circular economy by being recyclable up to 10 times without compromising on quality.
• AS 5204:2023 – Fibre-reinforced polymer bars: FRP bars offer a promising solution for reinforcing concrete elements like beams, columns, slabs, pavements and foundations, contributing to a net-zero infrastructure.
• Revisions to AS 3972:2010 General Purpose and Blended Cements, AS 3700 Masonry, and AS 4773.1 & AS 4773.2 Masonry in Small Buildings as part of the decarbonisation journey.

“Australia’s housing market faces significant challenges, but strategic initiatives and regulatory advancements contribute towards a resolution. By promoting prefabricated and modular housing, updating the National Construction Code, and focusing on decarbonisation, the industry is making strides to address the housing shortage,” Standards Australia chief operating officer Kareen Riley-Takos.

“Adhering to relevant standards ensures that these efforts are effective, sustainable, and beneficial for all Australians. Continued collaboration between government, industry stakeholders, and regulatory bodies will be crucial in achieving these ambitious goals, in the hopes of transitioning towards a stable and affordable housing market for the future.”

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