The Government in Tasmania is banking on modular housing to ease the state’s housing crunch, promising to expand its ModHomes Program and roll out an extra 200 homes if re-elected. The pitch is simple: quicker builds, lower costs, and local jobs—wrapped into one off-site solution.
Premier Jeremy Rockliff says it’s about building smarter. “We are working on getting Tasmanians more homes sooner,” he said. “This approach makes better use of available land while avoiding weather delays and keeping projects on track.” His government’s ModHomes scheme has already put hundreds of prefabricated homes into the community, and the new announcement would take that number even higher.
Modular housing isn’t new, but its appeal is growing. Units are manufactured off-site in around six weeks and can be completed on location in just over three months—half the time of a conventional build. They’re also cheaper, coming in at roughly 70 per cent of the cost of a traditional home. That matters when supply shortages and rising prices are pushing ownership and rentals further out of reach for many Tasmanians.
Beyond speed and cost, Rockliff is positioning this as a jobs plan too. The government says the expanded rollout will boost local employment and provide training opportunities in the construction sector. To support that, it’s promising to extend the payroll tax rebate for apprentices—an incentive aimed at encouraging employers to take on more young tradies.
“By working smarter to allow smaller, more affordable homes, we can get more roofs over the heads of Tasmanians who need them,” said Rockliff. He took a swipe at his political opponents, saying that while “Labor and the Greens argue”, his government has been focused on “better healthcare, more housing, and responsible cost-of-living relief.”
The property sector appears to be on board. The Property Council of Australia’s Tasmanian Executive Director, Rebecca Ellston, praised the move, calling it an opportunity to tackle housing affordability with new ideas. “Modular and prefabricated housing offers an opportunity to address housing affordability while bringing fresh innovation to the construction sector,” she said.
Ellston believes scaling up modular construction can deliver faster outcomes without sacrificing quality. “These homes can be delivered faster, to consistently high standards, and with strong sustainability and safety credentials.” She said the government’s pledge could give the private sector the confidence to invest more deeply in this area.
The announcement comes at a time when Tasmania’s housing market is under pressure. A combination of population growth, limited supply, and sluggish build rates has driven up costs and led to growing waitlists for social housing. By expanding a program that cuts down both time and expense, the government is hoping to ease those pressures—while keeping construction activity ticking along in regional and urban areas alike.
It’s also a bet on prefabrication becoming a mainstream part of the housing conversation in Australia. While still a relatively niche corner of the sector nationally, modular homes are finding traction in states where housing shortages are acute. Their promise of precision manufacturing, reduced waste, and lower environmental impact adds another layer to their appeal.
For now, the Liberal Government is asking voters to see this as practical problem-solving: a targeted approach that addresses housing need, job creation, and cost efficiency all at once. “Let’s get on with it and finish the job, for Tasmania,” Rockliff said.
How far this promise cuts through with voters will depend on whether the public sees modular housing as more than just a stopgap—and whether the broader market can keep up with growing expectations.
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