Reviewing Modular Construction In 2025
A year in review – where modular construction went in 2025.
It’s no surprise or secret that due to its many benefits and highlights, modular construction is moving at a rapid pace, and it sure did move at a rapid pace last year. It made its mark last year, and it’s continuing to make its mark around the globe, becoming a more efficient and popular type of construction. As Tasbuilt’s specialty, we’re always excited to see just where modular has been over the past year.
Here’s three major milestones that modular construction reached in 2025.
Government support helped modular construction move forward
In 2025, modular construction gained stronger backing at a national level, with government funding directed toward expanding modular housing programs and improving approval processes. This support focused on reducing red tape and creating clearer pathways for prefabricated homes, helping modular construction become a more practical and reliable option for delivering housing across Australia.
In particular, Tasmania expanded its ModHomes program, committing to deliver an additional 200 modular homes across the state. This program uses off‑site manufactured modules to speed delivery, reduce costs and help meet local housing needs more efficiently
States began using modular homes as a real housing solution
Throughout 2025, several state governments moved beyond trials and began delivering modular homes as part of their housing strategies. Programs were expanded to address housing shortages, particularly in regional areas, and finance options were adjusted to better support modular builds. These steps showed growing confidence in modular construction as a long-term solution, not just a temporary response.
Financing for modular homes became more straightforward
One of the most significant changes in 2025 was how modular builds were treated by lenders. Major banks began updating their lending structures to better align with off-site construction methods, allowing finance to progress more smoothly during the build process. This reduced uncertainty for buyers and made modular builds more accessible to everyday Australians and Australian businesses.
If this is where modular went in 2025, then we can not wait to see where it goes in 2026. Here’s to another great year of creating quality and sustainable modular buildings.
