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Australia's ambitious housing targets could be threatened due to a shortage of tradesmen but the industry has an innovative plan to get construction back on track.
Labor has pledged to build 1.2 million new homes over the next five years but an extra 90,000 construction workers are needed in the next three months to meet that target.
The construction industry has labelled the situation "desperate".
"Every single builder at the moment is saying to me we need more people," Master Builders Australia chief executive Denita Wawn told 9News.
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"And because we don't have enough people we're seeing delays."
A new approach being trialled by developers could see housing supply fast-tracked.
Modular housing, such as pre-fabricated homes, are built quicker and often cheaper as they require less labour than standard bricks and mortar homes.
Following the lead of Scandinavian countries as well as in Japan and Germany, housing giant Mirvac is trialling the technology in Australia.
"We've been able to reduce the construction of those homes to be water tight within 12 weeks," Mirvac chief executive of development Stuart Penklis said.
The construction of modular housing is also not exposed to supply chain shortages, including disruptions due to severe weather events, said Penklis.
Minister for Industry and Science Ed Husic said governments for the first time were working together "to take a serious look" at modular housing.
"Other countries have got their act together on modular housing and are seeing great jobs and great new homes – we want to be able to do that right here on shore," Husic said.
State and federal governments are aiming to eliminate red tape and regulations surrounding construction and finance under new modelling set to be announced mid this year.
