Are prefabricated homes the answer to Australia’s housing crisis?

“Australians are feeling the squeeze and, for some, no amount of belt-tightening will be enough to save them from mortgage stress,” he stated. 

Since the Reserve Bank of Australia (RBA) launched its rate rise cycle in May, Mr Doubinski cited data from SQM, which showed that distressed home sales have “sharply risen” by 15 per cent.

“[The] continual run of interest rate hikes is driving many to sell their homes at a loss as they fall behind with higher loan repayments. 

“I shudder to think how many Australians, who have worked hard to achieve home ownership, will be forced to sell or hand their homes over to the banks in six months’ time with the double-whammy of falling house prices leaving many with years of debt,” he commented. 

But it’s not just investors feeling the pain from current market conditions, as Mr Doubinski highlighted that there are concerning figures showing it’s getting harder for the common Australian family to get by. 

He cited a recent survey by the Australian National University, which found that 25.1 per cent, or one in four people, are struggling to make ends meet as high inflation erodes the purchasing power of take-home pay and reduces the value of savings.

Alarmingly, this is the highest percentage of financial stress among Australians during the COVID-19 pandemic and almost as high as pre-pandemic levels. 

To ease the financial stress felt by home owners and property investors, Mr Doubinski recommended Aussies look for ways to earn passive income, such as renting out a prefabricated home, which could be added to their property.

Prefabricated homes, or prefabs, are dwelling types that — as the name implies — are prefabricated buildings manufactured off-site in advance. Typically, these buildings are in standard sections that can be easily shipped and assembled. 

According to Mr Doubinski, home owners and rural landowners can rent out prefabs, which can be used for granny flats, home offices, or temporary site accommodation for emergencies. 

While the rental income you receive from tenants renting out the prefab will vary depending on the size of the secondary dwelling and the rental prices in the local market, he said that “even $150 per week of passive income could make the difference to keeping your home”. 

Aside from providing a more affordable option for renters who are doing it tough in today’s tight rental market, he raised that a portable granny flat can be a financial lifeline, as property owners can opt to live in their own backyards and rent out their principal residence for a considerably higher amount. 

“This would really boost your income and not only let you keep your house, but also leave you with some extra cash in hand,” Mr Doubinski stated.