A housing manufacturing hub could revolutionise home building in Australia's most expensive market.
The NSW government says its upcoming state budget, to be delivered on Tuesday, will include funding to establish a partnership with a private manufacturer to supply pre-fabricated or modular housing.
The planned Modern Methods of Construction Innovation Facility will be aimed at producing high-quality housing, reducing build times and cutting costs.
Industry groups have cautiously welcomed the plan, saying it is an important piece of the housing supply puzzle but one that needs to be matched by action to remove other barriers to building.
Community Housing Industry Association NSW chief Luke Achterstraat said modular housing had an important role to play but warned there was no single solution to the state's housing crisis.
