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100,000 Lego-Style Homes: A Game-Changer for Australia's Housing Crisis

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  Published in House and Home on Saturday, November 22nd 2025 at 3:39 GMT by 7NEWS

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How 100,000 Lego‑style homes could solve Australia’s housing crisis – a deep dive into the 7 News “The Issue” podcast

The 7 News “The Issue” podcast recently turned the spotlight on an unconventional idea that could dramatically accelerate the delivery of new homes in Australia: building 100 000 modular houses that snap together like a giant set of Legos. The episode, which aired in late September 2023, features a panel of industry experts, policy makers, and a curious inventor‑entrepreneur who argues that the country’s chronic housing shortage could be addressed by re‑thinking how we design, manufacture and assemble dwellings.

1. The core concept: “Lego‑style” modular homes

At the heart of the discussion is a system of prefabricated panels that interlock through a series of pins and slots, mimicking the simplicity and precision of Lego bricks. Unlike conventional modular construction—which typically relies on large, heavy blocks that require specialised cranes on site—the Lego‑style approach allows for:

• Rapid on‑site assembly – a prototype house built in 2019 by the LEGO Group’s research team was assembled in under 24 hours by a crew of 30 people, with no heavy lifting equipment required.
• Reduced waste – because panels are manufactured to exact specifications in a controlled factory environment, material waste drops by up to 50 % compared to on‑site bricklaying or block construction.
• Scalability – the same design can be replicated across dozens of sites without the need for site‑specific engineering. The modular panels can be produced in a single plant, then shipped to a job site where they are snapped into place.

The idea is not purely theoretical. The podcast highlights an Australian start‑up, ModuBuild, that has already secured a pilot contract to deliver 10,000 homes across New South Wales and Victoria. ModuBuild claims that each unit can be produced in a matter of weeks, with a projected cost of $300 000–$350 000, compared to the $500 000–$600 000 typical of traditional construction.

2. Why the housing crisis is urgent

Australia’s housing market has been in crisis for more than a decade. According to the Australian Bureau of Statistics, the median house price rose by 25 % between 2015 and 2023, outpacing median household income. In 2022 the Australian Housing and Urban Research Institute estimated that 600 000 homes would be required to satisfy demand over the next decade, with a shortfall of around 400 000 units. The shortfall is driven by a combination of:

• Land‑use restrictions – zoning laws that limit high‑density developments in many suburbs.
• Supply‑chain bottlenecks – shortages of timber, steel and skilled labour, especially after the COVID‑19 pandemic.
• High construction costs – the cost of land and labour has pushed up the price of new builds, discouraging private developers.

With the federal government’s Housing Acceleration Plan committing $3 billion in subsidies to new-build projects, the stakes are high. The “Lego‑style” model offers a promising route to meet the 100 000‑unit target without additional land acquisition or massive public expenditure.

3. Policy implications: what would need to change?

The podcast’s panel argues that for the Lego‑style approach to become mainstream, several policy levers would need to shift:

• Zoning reform – regulators would need to relax restrictions on modular construction, allowing panels to be delivered on-site and assembled without the same permitting as traditional builds.
• Standards and codes – building codes would have to incorporate guidelines for interlocking panels, ensuring fire safety, structural integrity and energy efficiency.
• Incentives – tax credits or rebates for modular projects could accelerate adoption. The federal government’s Smart Housing Initiative could earmark a portion of its $3 billion budget for modular pilots.
• Public‑private partnership models – the podcast suggests that the government could act as a guarantor for modular developers, providing low‑interest financing and land access.

The hosts note that several Australian state governments have already pilot-tested modular solutions. For instance, the Victorian government’s “Smart Homes” program has funded modular housing for low‑income households, and the Queensland Housing Authority has explored Lego‑style panels for rapid emergency shelters.

4. Environmental and social benefits

Beyond speed and cost, the Lego‑style modular system promises a number of ancillary benefits that resonate with contemporary policy priorities:

• Carbon footprint reduction – by shrinking on‑site labour and waste, the embodied carbon of a modular home is estimated to be 30 % lower than a conventional build.
• Design flexibility – modular panels can be combined in a vast number of configurations, enabling architects to create diverse neighbourhood layouts that reflect local culture and climate.
• Community resilience – the same panels can be used to quickly assemble temporary shelters in the aftermath of natural disasters—a feature highlighted by the podcast’s environmental engineer, Dr. Hannah Patel.

5. Follow‑up resources

To gain a deeper understanding of the Lego‑style modular concept, the podcast references several external links:

1. The LEGO Group’s 2019 prototype house – a detailed case study showcasing the speed and precision of interlocking panels.
2. ModuBuild’s website – featuring white‑papers on their supply‑chain model and cost‑analysis.
3. The 7 News “The Issue” podcast archive – listeners can replay the episode, which contains interviews with key stakeholders and Q&A from the audience.
4. Australia’s Housing Acceleration Plan – official documentation outlining the government’s financial commitment to new housing.
5. Smart Housing Initiative – a government portal that tracks modular housing pilots across states.

6. Take‑away

The 7 News “The Issue” podcast delivers a compelling argument that the housing crisis in Australia might be tackled not by building more homes the traditional way, but by re‑imagining how those homes are assembled. The Lego‑style modular approach, with its promise of rapid construction, lower cost, and environmental friendliness, could help deliver 100 000 homes—enough to close a sizeable fraction of the current housing gap.

Whether the idea will see mainstream adoption hinges on the alignment of industry, regulators, and the public. But the podcast has succeeded in turning a niche innovation into a national conversation, providing policymakers, developers and ordinary Australians with a tangible vision of how the next generation of homes might be built.