Why timber may hold the key to affordable housing
Timber construction can save up to 20 per cent on material and labour costs. Could this be a solution to help Australia’s housing affordability crisis? Industry stalwart Robert Pradolin thinks so.
The former general manager of Frasers Property Australia, Pradolin says he is on a “quest for housing for all- rich or poor”.
With a background in both domestic and commercial building, Pradolin thinks timber construction could support the private sector to deliver more social and affordable housing. But it will take careful planning and implementation, he says.
“We are 200,000 dwellings short in the social housing sector, which represents an investment of more than $100 billion. Governments do not have the funds to do this alone. They need to engage the private sector,” he says.
Pradolin points to analysis by SGS Economics, which finds every dollar invested in the right kinds of public, social and affordable housing delivers $7 through savings in health, welfare and justice, productivity improvements and reduced demand for social housing services.
Pradolin says we need to view affordable, public and social housing as “key economic infrastructure” – just like privately-funded roads, tunnels, hospitals and schools.
“Along with assistance from federal, state and local governments, such recognition will start to mobilise private capital and change the dynamics allowing institutional players to invest in large-scale rental housing which needs to include social and affordable housing.”
A light weight timber building of five to six storey can be significantly cheaper to build than its concrete and steel counterpart, and Pradolin thinks this material could be a central plank in any housing affordability strategy, particularly in Australia’s middle and outer suburbs.
Pradolin was the registered builder on Australia’s first five-storey timber residential apartment building, The Green in Melbourne’s Parkville. This was constructed using materials and labour traditionally used in the domestic sector.
Pradolin makes an important distinction between this project which used a light weight timber structure and others constructed with cross-laminated timber.
“CLT buildings are faster to construct than equivalent concrete buildings, but present similar labour and material costs. The savings are found in the condensed construction schedule and the savings in interest and holding costs,” he says.
“Using light weight timber for the internal structure of a mid-rise apartment building results in a lower cost of construction than using concrete. And by using skilled domestic labour trained to work at heights, we can save around 20 per cent on material and labour costs.”
Pradolin says any long-term solution to provide social and affordable housing will take “decades to deliver.”
“But we need to start now, as the long-term additional budgets costs of not providing such housing will run into the billions.
“Our challenge is to upskill the domestic sector to build medium rise timber apartments safely, efficiently and more affordably for the average Australian,” he concludes.
Discover the benefits of working with wood at WoodSolutions.