Member for Barwon Roy Butler will return to from overseas study tour with an idea he will push modular and panelised homes as a cost effective way to increase housing supply.

Mr Butler is embarking on his Commonwealth Parliamentary Study tour that will take him to Asia, Europe, and North America. He has examined topics ranging from agriculture and aquaculture to freight loading, trade, and manufacturing.

He landed in Singapore on April 9 before going on to Thailand and is now in Italy.

He has met with various government and non-government groups, including visiting the Parliaments in Malaysia and Canada to understand better how other parliaments operate and meet with members of parliament.

Butler with Dr Ismail in Kuala Lumpur. Image: Supplied,

But the independent MP made a particular note of his meetings in Malaysia relating to housing affordability where he with Dr Suraya Ismail, Director of Research at the Khazanah Research Institute in Kuala Lumpur.

"As in Australia, the price of housing against normal incomes has made home ownership out of reach for most people. Social Housing and affordable housing is scarce. Made worse by cost of living pressures and wages that have not kept up with the CPI" Mr Butler said.

"Some attempts to move public housing to private ownership has resulted in costs of ownership overwhelming the new owners. You might remember it’s something we tried in the last Parliament in NSW.".

He explained after talking with Dr Ismail he became convinced of a solution he had been mulling for some time – modular and panelised home construction, built off site and then transported to the home site.

With a panelised building system, the structural components of a home (walls, roof and floor systems) are constructed in a factory and delivered to the jobsite where it is and finished just like a stick-built home.

Modular homes are built almost entirely in a factory. The house is constructed in separate box-like modules—complete with attached walls, floor, ceiling, wiring, plumbing and interior fixtures—which are transported and put tgether onsite. This is typically a more affordable option to panelized building.

"I have met with companies that are doing this in Australia and met with the planning Minister Paul Scully to progress the pattern planning aspect" Mr Butler said.

"This could hurt the hip pocket of developers and large building companies, so expect them to resist".

Panelised home. Image: Harvest Homes.

House prices have risen across Australia over the decade to 2023 – with prices across many parts of NSW doubling.

 A median-income household can afford less than 40% of homes sold across Australia.

Mr Butler will return to Australia on April 28 with Canada the last stop on his tour.