[PSG Page] 1.11.1 Business Model Innovation for Unlocking Modern Methods of Construction in Social and Affordable Housing Supply

Australia’s social and affordable housing crisis demands faster, more sustainable delivery solutions. Modern Methods of Construction (MMC)—which shift construction activities off‑site and integrate advanced technologies—offer strong potential to improve productivity and delivery outcomes. However, MMC uptake remains limited. This project applies a business‑model perspective to examine MMC adoption by mapping current delivery contexts, identifying key barriers, and developing context‑responsive business model innovation strategies. The findings will provide industry and government with practical pathways to strengthen MMC uptake and support Australia’s housing delivery targets.

Objectives

The project’s aim will be achieved through three objectives:

1. Map the business-as-usual: Map how social and affordable housing MMC projects currently operate, including strategies, processes and organisational practices of key stakeholders under the business-as-usual model.
2. Identify business model barriers: Identify challenges within the business-as-usual practices that constrain the uptake of MCC in social and affordable housing supply.
3. Develop business model innovation strategies: Formulate strategies for innovating the business model that address identified challenges and enable broader uptake of MMC in social and affordable housing supply.