Growing demand for modular homes has prompted the NSW government to "turbocharge" its response to the housing availability crisis.
And it could be lucrative for the Hunter Region, says Property Council Hunter and Central Coast regional director Stephen Crowe.
With traditional methods of housing construction now considered too slow, the government has invested $6.6 billion into social housing through the Modern Methods of Construction (MMC) program, which allows standardised building components to be created offsite and then assembled rapidly onsite.
Prebuilt modular homes were built at Gateshead, Toronto, Belmont South and Windale in 2025 in a trial aimed at boosting the state's social housing stocks by using non-traditional housing construction methods.
The government then established a new regulatory framework and certification system for MMC, formally recognising prefabricated buildings in NSW law and integrating MMC into the planning approvals system.
And this week it introduced the Modern Methods of Construction Industry Expansion Program (MMCIEP) and is inviting businesses with expertise in advanced manufacturing, prefabrication and modular construction to produce prefabricated building components or large-scale modular housing in NSW.
Expressions of interest are now open and Mr Crowe is encouraging Hunter Region businesses to apply. He believes the region's manufacturing capability, industrial land, logistics infrastructure and skilled workers make it an ideal location for future MMC investment.
"The Hunter has spent generations building the infrastructure, energy and materials that have powered the state's economy," Mr Crowe said.
"Modern construction gives us an opportunity to apply that same expertise to one of NSW's biggest challenges - delivering more homes, faster.
"As our economy continues to evolve, we should be looking for opportunities to build on what the Hunter already does well. We have the workforce, we have the industrial know-how, and we have the transport infrastructure needed to support advanced manufacturing at scale."
Mr Crowe said the Port of Newcastle, which is "already diversifying its operations", could play an important role.
"There is a real opportunity to establish supply chains that bring materials into the region, support local manufacturing and distribute finished products across NSW and beyond," he said.
"The Hunter has always adapted and evolved. This is another opportunity for local businesses to be part of the region's next chapter and help shape how homes are built across NSW."
Business Hunter chief executive officer Bob Hawes also recognised the possibilities for future MMC investment in the Hunter.
"We already have a number of businesses in the region involved in manufacturing modular homes or supplying components, and there is certainly scope for growth," he told the Newcastle Herald.
"The University of Newcastle has recognised the opportunity and has been focusing on modular construction research and innovation.
"There is also an opportunity for modular housing to be used to provide worker housing in renewable energy construction zones that could be repurposed or even relocated for future residential use in regional towns and centres.
"There is no doubt there is capability within local industry to establish or scale-up operations in modular housing, and with changes in public perception about the style of this type of housing and growing acceptance of it as an affordable, sustainable alternative, there will be greater opportunity for manufacturers to diversify into this market."
A Port of Newcastle spokesperson said the Hunter had the industrial capability, skilled workforce and integrated transport network needed to support modern manufacturing at scale.
"Port of Newcastle is central to connecting those industries with domestic and international supply chains," the spokesperson said.
"The Port is a critical link in those supply chains, connecting businesses with the materials they need and helping get products to market.
"We continue to invest in the infrastructure and capability that will support economic diversification and create new trade opportunities for the Hunter into the future."
