NSW Embraces AI to Tackle Housing Shortage

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Artificial intelligence is being introduced into New South Wales’ construction sector to help accelerate housing development, reduce costs, and address the state’s persistent housing shortage.

Construction firm Chandolin Construction has partnered with Cuby Technologies on a series of pilot projects that utilise AI systems to streamline the building process. These projects involve the use of mobile micro-factories that produce key housing components such as steel frames, insulated panels, and service cores, which are then transported to building sites for assembly using QR-coded instructions.

The companies aim to use this technology to deliver between 200 and 300 homes next year, with plans for broader expansion into large-scale housing developments.

According to Sarah Dimitrievski, Director at Chandolin Construction, the shift from traditional on-site construction to a controlled manufacturing process reduces the time, cost, and workforce needed. “We can deliver homes within 30 to 60 days at costs up to one-third lower than conventional builds,” she said.

Dimitrievski also emphasised the durability and energy efficiency of the AI-manufactured materials. The components are engineered to resist fire, mould, rot, and pests, while also offering customisation options to meet regional housing preferences through pre-approved design modules.

The Housing Industry Association’s Chief Economist, Tim Reardon, noted that artificial intelligence may help reduce the regulatory and administrative burden in the construction industry. “There’s increasing time and cost involved in navigating red tape during the homebuilding process,” Reardon said. “AI offers significant opportunities in areas such as engineering and planning.”

Reardon clarified that the technology is unlikely to displace skilled tradespeople. Instead, it may shift employment away from administrative functions and toward more productive, on-site roles.

“This development could result in more homes being built and more Australians employed in home construction,” Reardon said. “It’s not about AI taking jobs, it’s about evolving how work is done. People who understand how to use AI will lead the way.”

The introduction of AI into housing construction aligns with broader efforts to ease supply constraints across the state, particularly in areas facing labour shortages or elevated material costs.

With continued development and adoption, this technology could play a key role in reshaping how homes are built in Australia.