A lack of tradies could put Australia’s gutsy housing targets in jeopardy.

The Labor government pledged to build 1.2 million homes in the next five years, but in order to meet that goal an extra 90,000 construction workers are required in the next three months.

The situation has been called “desperate” by the construction industry, who are feeling the crunch of understaffing.

Master Builders chief executive Denita Wawn said every single builder was telling her they needed more people.

“Because we don’t have enough people, we’re seeing delays,” Ms Wawn told 9News.

To combat the looming crisis, developers are trialling a new approach from the likes of Japan, Scandinavia and Germany.

Housing giant Mirvac is introducing the concept of modular housing to Australia, a feat able to reduce the construction of homes to be watertight within 12 weeks.

The construction of the housing is also not exposed to supply chain shortages, including disruptions from Australia’s characteristic weather events.

Minister for Industry and Science Ed Husic said for the first time, governments 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,” Mr Husic said.

State and federal governments are aiming to scrap regulations and barriers to construction and finance under new modelling, set to be announced later in the year.



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