From Bunnings pods to smart homes what comes next for modular housing

Australia’s modular housing sector is beginning to shift, but the change is not coming from construction. (main image: An 8-metre Elsewhere Pods modular studio installed in Bicheno, Tasmania.)

It is coming from retail.

Bunnings’ decision to sell Elsewhere Pods through a fixed-price, online model places a prefabricated building inside a mainstream consumer purchasing system. Customers are not engaging a builder or navigating a bespoke process. They are selecting a defined product with known specifications, delivery conditions and installation pathways.

Reported enquiry volumes reaching into the hundreds per day suggest a clear signal. Consumers are prepared to engage with modular housing when it is structured as a retail product.

That acceptance establishes a baseline.

The question now is what happens when the product moves beyond simplified backyard studios into fully integrated modular homes.

Trusted brands enter the frame

This is where Samsung and LG begin to matter.

Both companies are entering modular housing from a position that most construction firms do not have — they are already embedded in the home. Appliances, air conditioning systems, televisions and connected devices form part of everyday use. Consumers understand how these brands operate and, importantly, trust them to deliver working products.

That familiarity changes the starting point.

Samsung’s Smart Modular Home, presented at IFA 2025, reflects a systems-led strategy developed alongside Samsung C&T. The home integrates energy systems, HVAC, security and appliances through a unified platform, positioning the dwelling as a coordinated environment.

LG’s Smart Cottage takes a more contained approach. Offered in defined configurations and available for direct purchase, it aligns more closely with a consumer product model. The emphasis is on usability, with integrated appliances and controlled upgrade pathways delivered through a limited set of options.

Both approaches rely on offsite manufacturing, but their significance in this context is different.

They bring modular housing into a brand ecosystem that consumers already recognise.

Where the gap begins to appear

The products gaining traction in Australia today are intentionally constrained.

Elsewhere Pods reduced its offering to a limited set of designs that avoid planning triggers, simplify installation and remove uncertainty for both the customer and the retailer. That constraint is what allows the product to function within a retail environment.

Samsung and LG are introducing a different level of coordination.

Integrated energy systems, automation platforms and connected devices expand the scope of what the home does, but they also expand the number of decisions required to deliver it. Specification, installation and ongoing operation become more involved.

This creates a structural tension.

Retail relies on clarity. Fixed pricing, defined outcomes and minimal variation.
Smart modular homes introduce variables that do not easily fit that model.

Brand trust as the bridge

This is where brand becomes critical.

Consumers may not fully understand how an integrated smart home operates, but they understand Samsung and LG. That familiarity reduces perceived risk in a way that traditional construction brands often cannot.

In effect, these companies are not just selling modular homes. They are packaging complexity inside a trusted consumer framework.

That has implications for how the next stage of modular housing is adopted.

If a customer is willing to purchase a backyard studio through Bunnings because the process is clear, they may be willing to step into a more advanced product if the provider is already part of their daily environment.

The shift is subtle but important.

The decision moves from evaluating a construction system to selecting a brand-led product.

A question of sequencing, not demand

The current market suggests two trajectories developing at different speeds.

At one end, simplified modular products are being refined to meet retail requirements, prioritising ease of purchase and predictable delivery. At the other, global manufacturers are developing integrated housing systems that expand what a modular home can do.

Brand trust may be the link between them.

It does not remove complexity, but it can make it acceptable.

For now, the industry is not lacking demand.

It is working through how far a modular product can evolve — and who is best placed to carry consumers with it.