Builders Chase Productivity Gains

Under the surface of the housing debate, a quiet revolution is under way in the building sector.

New-generation firms like Buildlab in Victoria and Avia Homes in Queensland are importing ideas from the United States and leaning heavily on technology, data and standardised product to close the productivity gap.

Instead of treating every home as a one-off custom project, these builders pre-plan repeatable designs and deliver them in systematic stages, often for entire communities.

That allows them to bulk-buy materials, streamline trades and cut build times, reducing the period buyers are paying rent and a construction loan at the same time.

Fixed-price quotes that once took hours can now be turned around in minutes using custom software.

The Productivity Commission has noted that housing construction productivity has fallen sharply over the past three decades, even as the broader economy became almost 50 per cent more productive.

Companies that can reverse that trend are scaling quickly, attracting staff and partnering with major developers.

For policymakers and investors, the message is that innovation in how we build is just as important as how much we build.