Parliament of Victoria | Legislative Council | Adjournment
12 August 2026
David ETTERSHANK (Western Metropolitan Region):
My adjournment matter is for the Minister for Housing, Building and Precincts.
Shortage of housing supply is at the core of our housing crisis. Victoria is not meeting its target under the National Housing Accord of 60,000 homes per year; only 43,000 homes of the 56,000 approved in 2024–25 have actually been completed. Contributing factors include rising construction costs and workforce shortages, courtesy, at least in part, of the ill-advised data centre boom.
If we are serious about tackling our housing crisis we need a paradigm shift. Modular and prefabricated housing offers a way to build high-quality homes faster, reducing labour requirements and construction waste. The Productivity Commission estimates that modern methods of construction can reduce costs by up to 20 per cent and can build housing up to 50 per cent faster than traditional homes.
With the effects of climate change accelerating rapidly, we also need to find ways to reduce the construction industry’s significant emissions. Modular hemp construction has been identified as a promising alternative for affordable low-emission housing. Hemp grows rapidly, absorbs carbon while growing and, uniquely, continues to store significant amounts of carbon when used as a building material.
A typical family home made of hemp sequesters around 50 tonnes of CO2, whereas a conventional brick veneer home of the same size generates around 200 tonnes.
The Victorian inquiry into the industrial hemp industry stressed the need for government support for industry development, processing infrastructure and reducing red tape.
Queensland is going modular to address housing shortages ahead of the 2032 Olympic Games, while the Australian Building Codes Board is developing a national certification pathway for prefabs.
Victoria is currently lagging, but could be a leader in low-emission prefab construction. The action I seek is for the minister to provide an update on what Victoria is doing to boost modular housing and to use low-carbon materials such as hemp.
[Awaiting response]
