What I Learned From Speaking to Hundreds of Western Australians and Manufacturers About Prefab Homes

I just returned from the WA Tiny Home Expo after four packed days of conversations with hundreds of people, manufacturers of prefab homes and engineers. It was the best pulse check I’ve had on where Western Australia stands on housing, regulation, and how people view prefab homes as an alternative to traditional housing. It was also very hot.

WA Has Some of the Most Relaxed Housing Regulations in Australia

Everyone knows Australia has a housing shortage. What’s less known is just how aggressively Western Australia is trying to fix it. Here's how:

• Tiny homes on wheels can now be placed in your backyard for 24 months, with the option to extend indefinitely (for now).*

• Granny flats under 70 m² can now be built without a DA, even in smaller blocks. *

*Now, there are some conditions to still keep in mind so make sure to read the regulations that I've linked above.

These changes are huge and I realised most people were not aware of them. Simply put, they remove the biggest friction points for everyday homeowners, investors, and accommodation operators who want a bit more space or accommodation for guests.

But this also raises an obvious question: If it's easier to put a granny flat or tiny home on wheels in your backyard, who’s actually building these homes?

The Bottleneck in WA: Not Enough Builders and Tradies

Tradies in Perth are booked out for months, sometimes years. They’ll usually prioritise bigger, more lucrative contracts over a single granny flat, cabin or even a house.

As one engineer at the expo put it:

“WA needs 5,000 new homes a year just to keep up. Australia only has 2,500 builders. Even if every builder in Australia built two homes each in WA, we’d only just keep up—and that’s never going to happen. Prefab is the only way.”

And he’s probably right.

Western Australians Are Turning to Prefab Out of Necessity (and Now Preference)

Prefab homes, homes built completely or partially offsite, solve WA’s builder shortage because you’re not reliant on local tradies. Factories can produce consistent, predictable builds regardless of shortages or weather.

Prefab is an umbrealla term which includes:

• Tiny homes on wheels (fully built offsite)

• Modular homes (built in sections, installed onsite)

• Manufactured homes (delivered as a complete unit)

Many visitors at the expo told me they weren’t turning to prefab out of trendiness, they were turning to it because it was the only realistic option. Especially for people who live further out and simply cannot get local builders.

But the more they learn about prefab, the more they start choosing it on merit.

Here’s why.

The Pros and Cons of Prefab in Western Australia

WA is a harsh-climate state. People want homes that are durable, energy-efficient and able to handle heat, wind, and coastal conditions.

Many still picture old mining dongas, shipping containers, or flimsy sheds when they hear “prefab.”
But that’s outdated. Globally—especially in harsh-climate countries like Sweden—prefab is the dominant construction method.

Let’s break it down.

The Pros

1. Cost Savings (20–60%)

Prefab homes avoid the usual money-burners:

• inflated tradie rates

• weather delays

• blown-out timelines

• unpredictable material shortages

When was the last time you heard someone say their traditional home was built on time, on budget, and to the quality promised? Exactly.

2. Faster Timelines (90 Days–6 Months)

Many factories run like car manufacturers:

• controlled environments

• standardised processes

• no rain delays

As a result, a granny flat or tiny home can often be delivered within 90 days, while full modular homes are often done in about 6 months.

That being said, because of increased demand, prefab home builders are also facing increasingly longer lead times.

3. Quality Can Be Higher

This one surprises people. Prefab homes are:

• engineered

• standardised

• replicated across many builds

• not as prone to human error

Unlike traditional builds, every screw, panel and cable is exactly where it should be, because it has been installed that way hundreds of times.

Insulation is also much better. Many prefab builders are innovative by nature and adhere to more typical European standards when it comes to insulation, which matter a lot in WA where keeping heat out is just as important as keeping cold out.

4. Approvals Are Often Easier

Prefab homes frequently qualify for CDC approvals instead of DA approvals, meaning:

• no dealing with council politics

• faster certification

• fewer unknowns

And as mentioned, WA is particularly favourable right now. That's not to say councils won't come knocking or you will have to still deal with the bureaucracy, that's an unavoidable part of home ownership!

5. Easy to Maintain and Update

Prefab homes are like cars, you know:

• where everything runs

• how the structure is assembled

• what can be replaced or upgraded

Standardisation = fewer surprises.

The Cons

1. Manufacturer Quality Varies

Just like any industry, some builders are exceptional and others are still ironing out the kinks.
Research matters.

2. Metal-on-Metal Design Issues

Some prefab construction methods layer multiple metal components, which can:

• expand/contract at different rates

• stress joints over time

• reflect heat into neighbouring areas

I wouldn’t be surprised if WA eventually regulates some of these issues due to heat concerns.

3. Longevity Is Still a Question Mark (in Australia)

Prefab has decades of proven performance overseas, but Australia is still early in the cycle.
The truth is: lifespan depends entirely on materials and engineering quality, just like traditional builds. The majority of the manufacturers in Australia simply haven't been around long enough to share stats on the longevity of their installed homes. The mitigating factor is that they often use materials and products that have stood the time.

4. Limited Customisation

You can customise a prefab home, but not every detail.

Standardisation is what keeps quality high and timelines predictable. Over-customise, and you lose the very benefits prefab offers.

In summary:

The Process: How to Get a Prefab Home in WA

Relaxed regulations don’t mean you can skip due diligence.

Some councils are progressive. Others… will test your patience. And if your home is a permanent structure (not on wheels), you still need to consider:

• bushfire attack level (BAL)

• setbacks from neighbours

• energy ratings

• site conditions

Step 1: Speak to an Engineering Firm

Sounds intimidating, but lots specialise in prefab approvals.
They’ll tell you exactly what you can and cannot do on your land.

Paying for this upfront saves:

• council disputes

• expensive redesigns

• non-compliant builds

• sleepless nights

This is required whether you build prefab or traditional.

Step 2: Choose Your Prefab Home and manufacturers

Once constraints are clear, you can select:

• tiny home on wheels

• modular home

• manufactured home

• granny flat

And tailor it to your site and lifestyle.

Step 3: Prepare Approvals (If Needed)

In WA, many small prefab structures don’t need a DA.
Manufacturers often handle this for you, but you should still stay informed.
It’s your home, after all.

How to Find Prefab Home Builders in Western Australia

There are:

• local WA manufacturers

• interstate manufacturers that ship to WA

• national prefab studios that specialise in remote installs

I’m reviewing many of them now, and I’m happy to recommend reputable ones.

Just flick me an email and I’ll send over options that match your budget, site, and use-case. Reviews will be published soon.