by Alicia Gutierrez Brown
What if the solution to Australia’s housing shortage was already sitting in its underutilised forestry residues?
The Australian Forest and Wood Innovations (AFWI) Centre for Sustainable Futures is investing in a new project to transform under-utilised timber by-products into innovative, low-cost building systems for small homes and multifunctional structures.
Researchers at the University of Queensland are leading the initiative, with Associate Professor Joe Gattas heading the project titled Bio-based Construction Systems for Small-Footprint Dwellings and Multifunctional Outbuildings. The research aims to tackle growing housing affordability pressures while creating new opportunities for Australia’s forestry sector, unlocking new value from Australia’s wood fibre while helping address the nation’s housing affordability challenge.
The four-year initiative will develop two novel construction systems: a roundwood framing system using small-diameter logs with minimal processing, and a bio-based structural sandwich panel system made from engineered wood products such as particleboard, fibreboard, and plywood.
Together, these systems will enable the production of affordable, prefabricated buildings ranging from tiny homes and granny flats to sheds, carports, and hybrid ‘liveable sheds' that combine storage or utility space with living areas.
Demand for small-footprint dwellings is expanding rapidly across Australia, driven by housing affordability pressures, planning reforms, and increased demand for flexible living solutions. More than 10,500 secondary dwellings are estimated to be built nationally each year, alongside a substantial market for small-scale outbuildings and light industrial structures.
Despite this growth, current housing options remain dominated by steel-framed and imported systems, narrowing material diversity. The new project aims to introduce alternative building systems that are cost-effective, adaptable, and suited to a wider range of users, from homeowners to regional builders and DIY markets. These systems leverage locally sourced and manufactured materials to strengthen supply chain resilience and support sovereign capability.
Dr Gattas said this project is about creating “practical, scalable alternatives.”
“We’re developing building systems that are not only low-cost and adaptable, but also make better use of the resources we already have. The project represents a significant innovation opportunity by connecting under-utilised forestry resources with emerging construction market needs.”
Australia’s forestry industry produces significant volumes of low-value materials, including small-diameter logs, processing residues, and non-structural timber. These resources are often not fully utilised or directed toward short-lived applications.
This project seeks to change that by transforming these materials into high-value structural components for construction.
Under conservative adoption scenarios, the new systems could generate demand for 61,000 cubic metres of timber fibre annually, representing an estimated $57 million market opportunity, while supporting regional economies and avoiding displacement of traditional timber markets.
The project will develop and test prototypes across multiple sites in Queensland and New South Wales, tailoring designs to local conditions and material availability.
Importantly, the systems are designed for off-site prefabrication or DIY flat-pack assembly, rapid deployment in disaster-affected areas, and for use in remote and regional communities.
The research will also map regulatory pathways across different building types – from DIY tiny homes through to prefabricated secondary dwellings – helping expand market access for timber-based systems. Beyond affordability and flexibility, the project contributes to Australia’s transition to a circular bioeconomy. By redirecting timber by-products into durable building materials, the systems could store approximately 50,000 tonnes of CO₂ annually.
Professor Mark Brown, Director of the AFWI Centre for Sustainable Futures housed at the University of the Sunshine Coast, said the project is a strong example of the type of innovation AFWI is investing in, connecting underused wood fibre with real-world construction needs.
“It aligns directly with our focus on maximising value from existing resources, developing new timber products, and supporting a more sustainable, carbon-friendly building sector,” Professor Brown said.
Australian Forest and Wood Innovations (AFWI) is a national research and innovation institute valued up to $200m, backed by a Commonwealth Government investment of $100m.
This new project builds on earlier work through the NSW Decarbonisation Innovation Hub, which demonstrated a prototype temporary house made almost entirely from bio-based building products available from local manufacturers. The AFWI Centre for Sustainable Futures project will leverage the prior learnings, insights, and widespread community interest to ensure project feasibility within a four-year timeline.
Editor’s note:
Australian Forest and Wood Innovations (AFWI) is a national research and innovation institute valued up to $200m, backed by a Commonwealth Government investment of $100m. AFWI includes three research centres hosted by the University of the Sunshine Coast (AFWI Centre for Sustainable Futures), the University of Tasmania, and the University of Melbourne. The Bio-based Construction Systems for Small-Footprint Dwellings and Multifunctional Outbuildings project is funded through the AFWI Centre for Sustainable Futures.
Project snapshot
• Project Title: Bio-based Construction Systems for Small-Footprint Dwellings and Multifunctional Outbuildings
• Program: Australian Forest and Wood Innovations (AFWI) Centre for Sustainable Futures
• Lead Organisation: University of Queensland
• Project Lead: Associate Professor Joseph Gattas
• Duration: 4 years
