Australia’s Housing Crisis Needs 240,000 Homes a Year, Craig McDermott and CJAM Group Are Building Them Off-Site
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Many analysts agree on the scale of the challenge. Australia’s National Housing Accord committed to 1.2 million new homes over five years from mid-2024, requiring approximately 240,000 completions annually. In the 12 months to September 2025, the country delivered well below the annual pace required, leaving a shortfall that could become more difficult to close if delivery levels remain below target. Many of the challenges appear to be structural in nature: labour shortages, rising material costs, council approval timelines measured in years rather than months, and a construction methodology that has remained largely unchanged for decades.
Governments at various levels have introduced a range of measures, including incentives, planning reforms, and infrastructure investments aimed at supporting housing supply. However, some industry participants argue that underlying supply constraints remain significant. Building a standard residential dwelling on a traditional site in Australia still takes, on average, nine to twelve months from slab to handover — assuming trades are available, weather cooperates and materials arrive on schedule.
Craig McDermott, the founder of southeast Queensland–based development company CJAM Group, is not waiting for the system to catch up. He is building around it.
“You can fast-track approvals all you want,” Craig McDermott says. “But if it still takes nine months to build a house on a site with three wet weeks and a labour shortage, you haven’t solved anything. One approach is shifting more construction activity off-site and into controlled manufacturing environments.”
CJAM Group’s model centres on production-facility construction. Homes built indoors in a factory-style environment, completed within six to eight weeks, then transported to site for installation. The company has launched its own building division, Next Level Australia, to execute the model, and reports a pipeline spanning multiple southeast Queensland markets including active projects in Toowoomba and Hervey Bay.
The approach aligns with what is already working at scale elsewhere. In Sweden, approximately 84 percent of detached homes incorporate prefabricated elements. According to Lindbäcks Bygg, the company produces more than 25,000 square feet of turnkey housing per week from a single factory. Closer to home, Productivity Commission modelling has found that prefabricated and modular construction can reduce costs by up to 20 percent and halve build times compared to traditional methods. Advocates argue that the economic benefits have been demonstrated in a range of projects.
Craig’s approach is grounded in infrastructure already in place: CJAM Group has built the operational capacity needed to support off-site housing delivery. Craig McDermott founded CJAM Group in 2019 and began with a single 13-lot subdivision, using the project to establish the company’s operational systems, supplier relationships and construction processes before taking on larger volume. It was a deliberate decision to build the foundation before building at scale and it is an approach that has defined CJAM Group’s trajectory since.
The company targets the $650,000 to $1 million price bracket. New homes designed for owner-occupiers and investors in regional Queensland. Craig McDermott chose this segment not because it was the most lucrative on a per-unit basis, but because it is where the housing shortfall is most acute and where reliable delivery matters most to the people buying.
“The conversation about housing supply is dominated by Sydney and Melbourne,” Craig McDermott says. “But the affordability crisis is hitting regional markets just as hard. People are moving to southeast Queensland and finding there’s nothing to buy. We’re building for that demand.”
A less disciplined operator might have proceeded with the build — the approval was secured, the site was ready and the margin on paper was attractive. Craig McDermott recognised that the Ballina units, priced between $1.75 million and $2 million, sat outside CJAM Group’s core competency. He took the return and redeployed the capital into what the company does best.
“We put offers in on two other projects the same week we sold,” Craig McDermott says. “We’ve got plenty to get on with.”
For Craig McDermott, the decision appears to reflect a broader focus on keeping CJAM Group’s work aligned with the company’s operational capacity and delivery model. He is not chasing an opportunistic margin. CJAM Group is being built around consistent, repeatable delivery at a defined price point, with an emphasis on operational discipline for lenders, partners and buyers.
Interest in the sector appears to be growing, positioning Craig McDermott to broaden the company’s capital base as the pipeline expands. The regulatory environment is moving in the same direction: the Australian Building Codes Board is developing a national voluntary certification scheme for prefabricated construction manufacturers, and NSW has proposed sweeping reforms to create a single statewide approval pathway for modular housing. For operators who have already built the infrastructure, several market factors may be creating a more favorable environment.
According to the company, the production-facility model offers three advantages compared with some traditional construction approaches: weather-proof construction timelines, parallel trade workflows that compress delivery from months to weeks, and reduced dependency on the scarce on-site labour that is the single largest constraint on housing delivery across the country. In a market where the Housing Industry Association has identified a shortfall of more than 83,000 tradespeople, efficiencies of this kind may carry greater weight than they would in a less constrained labour environment.
Craig McDermott is building CJAM Group for the long term. Not to flip, not to over-leverage, not to chase headlines. He is building a company focused on increasing housing accessibility and improving delivery timelines in undersupplied markets. The housing shortfall will not be solved by planning reform alone. Some industry observers believe progress will depend on companies that can deliver projects efficiently and at scale. CJAM Group aims to position itself among those providers.
The information provided in this article is for general informational and educational purposes only. It is not intended as financial advice. Readers should not rely solely on the content of this article and are encouraged to seek professional advice tailored to their specific circumstances. We disclaim any liability for any loss or damage arising directly or indirectly from the use of, or reliance on, the information presented.
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