From factory to front door: plan to deliver homes faster in NSW
Media Release Sunday, 21 June 2026
The Minns Labor Government is turbocharging the way homes are built in NSW, unlocking the potential of Modern Methods of Construction (MMC) to deliver more high-quality homes, faster.
The 2026-27 NSW Budget will invest in a world-class facility to harness cutting-edge prefabrication, modular construction and digital technologies to produce high-quality housing faster, helping cut construction times, ease cost pressures and strengthen NSW’s building supply chain.
Modern Methods of Construction Innovation Facility
A two-stage competitive tender process will open in coming weeks, inviting experienced local and international MMC operators to partner with the NSW Government to develop and deliver prefabricated components and modular housing at scale.
Successful proponents will need to demonstrate commercial readiness, technical capability and a proven track record delivering a range of building types, including medium-density housing.
A key focus will be the ability to deliver medium-density homes from the NSW Government Pattern Book designs – creating a faster, more consistent pathway to get more homes built.
Successful proponents could also provide components for a range of government projects, including schools and hospitals.
The program is part of a broader reform agenda to remove barriers to construction, support industry to deliver collaborative and innovative housing solutions, as well as foster a greater focus on MMC in government procurement.
The investment builds on the Minns Labor Government’s landmark reforms under the Building Bill 2026, which for the first time will formally recognise prefabricated buildings in law and integrate MMC into the approvals system.
More funding for a modern building system
To deliver these changes, the NSW Government is investing $32.3 million over the next four years to modernise the building approvals system, integrate it into the NSW Planning Portal and pilot AI tools to speed up licence application processing.
This includes $1.6 million to establish a new regulatory framework and introduce a national certification system for MMC, giving industry the confidence to invest and helping unlock faster, smarter construction across NSW.
The Government has heard industry calls for greater research and collaboration to enhance innovative building practices.
To fast-track this, on 29 June, the Government will open the Housing Innovation in Construction Fund and the Housing Innovation Network Grants Program – a $4 million investment to strengthen the local MMC sector.
The Housing Innovation in Construction Fund will provide grants of between $20,000 and $150,000 to support commercially established manufacturers to assess and adapt MMC for use in mid and high‑rise housing.
The Housing Innovation Network Grants Program will deliver grants of up to $250,000 to help small-to-medium enterprises learn more about the MMC sector as well as collaborate and pilot innovative housing products like digital tools, building materials and service innovations.
The Government can also announce we are reforming procurement to open up more opportunities for MMC projects in NSW. Tom Gellibrand, as Infrastructure Coordinator General, will develop guidance to enable NSW Government procurement to better incorporate Modern Methods of Construction (MMC) products, using the Government’s purchasing power to help grow a strong and sustainable MMC industry.
Housing under the Minns Labor Government
Housing is the number one cost-of-living concern facing NSW families today and as a result, we have more people leaving our state than coming in. On coming to office, forecasts showed NSW would build just 36,000 homes a year over the next 5 years.
Since then, the Minns Labor Government has introduced the most comprehensive set of reforms to housing in a generation, including the biggest set of rezonings in Australia’s history, including the Transport Oriented Development program, the Low and Mid-Rise Housing policy and the Housing Delivery Authority.
Last year, the Government overhauled the state’s planning legislation with the Planning System Reforms Act 2025.
Housing approvals are up 13.5 per cent this year compared to the previous 12 months and planning approvals are now 30 per cent faster.
Combined with our record $6.6 billion investment in 8,400 new social housing and world-leading Pre-sale Finance Guarantee, NSW recently recorded its highest number of homes under construction in seven years, leading the nation with more than 79,300 homes currently being built.
The Minns Labor Government is building better communities, with more homes close to transport and infrastructure so people can live in the communities they choose.
Expressions of Interest will open in the coming weeks.
Premier of New South Wales Chris Minns said:
“Housing is one of the biggest challenges facing our state, and we are pulling every lever to build more homes, faster.
“The way we build homes has barely changed for generations – but the housing pressures facing NSW demand new thinking, new technology and new solutions.
“That’s why we are backing modern methods of construction that can deliver high-quality homes faster, reduce construction times and help take pressure off costs.”
Treasurer Daniel Mookhey said:
“This is smart economic policy. We’re not just funding homes, we’re building a new industry and the skilled jobs that come with it.
“By anchoring this facility in NSW, we’re driving productivity in our local construction industry, rather than sending money, skills and workers interstate and overseas.”
Minister for Planning and Public Spaces Paul Scully said:
“Planning reform only gets you so far if the construction industry can’t keep up. This investment helps to bridge that gap.
“By linking the facility to the Government Architect’s Pattern Book, we’re creating a direct pipeline from design through to approval and construction of new homes.
“Supporting the expansion of modern methods of construction will help improve construction industry productivity and that means homes will be built faster and to a consistent, quality standard.”
Minister for Housing Rose Jackson said:
“Too many people across NSW are being locked out of finding a home they can genuinely afford, and that’s simply not good enough and we are doing everything in our power to change it.
“Modern construction methods are a genuine game-changer for housing supply and this investment will ensure we deliver more quality homes at scale, including the social and affordable homes our communities desperately need.”
Minister for Building Anoulack Chanthivong said:
“This isn’t just about building more homes; it’s about building them better, faster and cheaper. Prefabrication means greater precision, enhanced quality controls and fewer defects built into houses where people want to live.
“NSW is setting the benchmark for modern methods of construction in Australia. This new facility, coupled with our nation-leading reforms and exciting industry grant opportunities, are exactly what industry have called for and put us at the front of the pack.”
