Australia is facing a severe housing crisis driven by both a shortage of homes and structural challenges within the construction sector, including labour shortages, rising costs, and regulatory barriers. While housing affordability and rental stress continue to worsen, this report argues that increasing supply alone will not solve the problem. Instead, it proposes an integrated Volumetric Modular Construction and Build-to-Rent (VMC-BTR) model, which combines faster, factory-built housing with professionally managed long-term rental developments. The report highlights the model’s potential to improve housing delivery, affordability, and productivity, but concludes that significant policy, planning, finance, and regulatory reforms are needed to overcome current barriers and enable large-scale adoption in Australia.
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