A Bold Step Towards Faster, Smarter Building

Western Australia has launched a major push to modernise its home building industry, unveiling a $50 million Housing Innovation Fund (HIF) designed to fast-track new technologies and manufacturing capability in housing construction.

Premier Roger Cook says the initiative, part of the government’s Made in WA plan, is about more than just numbers, it’s about ensuring that every Western Australian has a home.

“Western Australia’s economy is the strongest in the nation, but our growing population has put pressure on our housing market,” Cook said.
“My government is working hard every day to ensure every Western Australian has a home. By supporting new construction methods, we’ll deliver a steady stream of affordable housing that’s built faster and smarter.”

Backing Modern Construction Methods

At the heart of the new fund is a competitive grants program offering up to $5 million per project, targeted at Western Australian businesses adopting prefabricated, modular, or automated building systems.

These grants will require a 50% co-contribution from applicants and are aimed at strengthening the local manufacturing ecosystem, helping firms scale up and bring new technologies to market.

The second stage, to open in early 2026, will introduce low-interest loans to support ongoing investment in advanced housing manufacturing.

Together, these two stages form a blueprint for transforming how homes are built in WA, speeding up delivery, improving quality, and supporting the state’s broader goals for affordability and sustainability.

Building Homes, Building Industry

Deputy Premier and Treasurer Rita Saffioti said the Housing Innovation Fund would deliver tangible change across the construction supply chain.

“The Fund will support builders and manufacturers to embrace modern methods of construction and improve productivity across the industry,” Saffioti said.
“Innovation in housing construction can not only cut build times and costs but helps future-proof the industry so it can continue to meet demand.”

The Cook Government has already invested more than $5.8 billion in housing and homelessness measures since 2021. The HIF builds on that commitment, focusing on capacity, skills, and the manufacturing base required to keep up with housing demand.

For many in the industry, this represents a timely intervention. Labour shortages, material delays, and rising costs have made it increasingly difficult to deliver homes at the scale WA requires. Prefabrication and modular construction offer a practical solution, allowing much of the build to occur in controlled environments, reducing delays and waste.

Strengthening Local Manufacturing

Manufacturing Minister Amber-Jade Sanderson said WA was well placed to lead the nation in adopting new construction technologies.

“Western Australia has the skills, innovation, and manufacturing know-how to lead the nation in modern methods of construction,” Sanderson said.
“The Housing Innovation Fund will help local manufacturers scale up and bring new building technologies to market. By supporting businesses to adopt prefabrication, modular systems, and advanced automation, we’re strengthening local supply chains and creating high-value manufacturing jobs right here in WA.”

This alignment between housing and manufacturing policy underscores a shift in how governments are thinking about the sector. Rather than relying solely on traditional site-built homes, policymakers are backing a hybrid approach, where manufacturing, technology, and housing policy intersect to create a more resilient supply chain.

Delivering for the Community

For Housing and Works Minister John Carey, the focus is on outcomes that put more Western Australians into homes.

“Whether it’s the purchase of Fraser Suites for social and affordable housing or rolling out new modular products through Keystart, we are thinking outside the box to deliver more supply,” Carey said.
“This Fund is a powerful demonstration of our government’s commitment to partnering with industry to support more Western Australians into secure housing.”

The numbers tell a strong story. In the last financial year, 22,600 new homes were built across Western Australia, up 25.1 per cent, the strongest growth in the nation. Yet with ongoing population growth, migration, and affordability pressures, the demand for new housing remains intense.

The government hopes that initiatives like the HIF will not only keep the pipeline flowing but also create smarter, more efficient models of delivery that can be scaled and replicated across regional areas.

Why This Matters for Builders and Suppliers

For WA builders, the message is clear, the next era of housing construction will be built on innovation.

The Fund opens new opportunities for collaboration between builders, manufacturers, and suppliers, particularly those already experimenting with offsite construction, robotics, or automation.

Prefabricated and modular systems have already demonstrated success in other states. In Victoria and New South Wales, modular housing programs have been used to deliver social and regional housing faster than traditional methods, while reducing environmental impact.

In Western Australia, the opportunity extends beyond public housing. The HIF is expected to drive adoption across the private sector as well, from residential developers to construction firms looking to reduce overheads and deliver homes more efficiently.

Industry Collaboration is Key

The success of the Housing Innovation Fund will depend on strong collaboration between government, builders, and manufacturers.

The Cook Government has positioned the HIF as part of a broader strategy to future-proof WA’s housing industry making it more productive, more sustainable, and better able to respond to changing economic conditions.

For industry players, this means engaging early. With up to $5 million in grants available, the Fund is expected to attract partnerships between builders, prefab specialists, technology firms, and regional manufacturers.

Submissions that demonstrate both innovation and scalability, particularly those with local job creation benefits are likely to be well positioned.

The Good Builder’s Take

At The Good Builder, we see this as a significant and positive step forward.

It’s a rare policy that simultaneously tackles three major challenges: housing supply, industry productivity, and manufacturing resilience.

For years, builders have been calling for a more modern and coordinated approach to housing delivery. The HIF answers that call. By incentivising new technologies and rewarding innovation, it has the potential to reshape not only how homes are built in Western Australia, but how the industry defines quality and value.

If executed well, the Housing Innovation Fund could become a model for the rest of Australia,  demonstrating that when government and industry work together, housing policy can be both practical and transformative.

For more details or to apply:
Visit the Department of Energy and Economic Diversification: Housing Innovation Fund

Author: TGB Editorial