Offsite manufacturing (OSM); Transforming construction through innovation

As New Zealand’s largest housing provider, Kāinga Ora has a government mandate to lead change. That means we must be at the forefront of innovation and progressive action to build more homes.

Offsite manufacturing (OSM) is a construction method we are increasing across our build programme to provide more quality homes at a faster rate, and with the best outcomes for people and whānau, communities, and the construction industry.

Transforming construction through innovation; our offsite manufacturing plan, sets out the action we are taking to realise the benefits of OSM, and take a leadership role in helping to solve New Zealand’s housing challenges.

Download Transforming construction through innovation; our offsite manufacturing plan [PDF, 1.8 MB]

OSM explained

Offsite manufacturing (OSM) is the construction of buildings and components of buildings offsite in a factory, which are then transported to the sites where they are needed.

The adaptability of OSM means this build method tackles some of the major challenges facing the residential construction sector, such as speed-to-market, cost, sustainability, health and safety, and skills and materials shortages. It can help deliver more homes effectively, affordably and sustainably.

Importantly, OSM homes meet quality and sustainability thresholds expected of a traditional build in New Zealand, including Healthy Homes standards and the New Zealand Green Building Council’s 6 Homestar ratings.

Our OSM vision   

We are committed to improving the speed, cost, efficiency and quality of residential construction in New Zealand, starting with our own performance. 

Though we are in the early stages of scaling up our use of OSM to compliment traditional builds in our developments around the country, about 15% of our builds currently in design or construction utilise OSM techniques. 

Between 2019 to 2021, Kāinga Ora doubled the number of homes delivered using a range of different OSM solutions. For the duration of our public housing plan, we aim to increase the number of OSM solutions we use by 20% year on year across all our portfolios including public and urban development housing.

Our vision is to be one of the sparks that helps ignite modernisation of house construction in New Zealand. Through our increased use of OSM and strong partnerships throughout the construction industry, we will help the New Zealand OSM sector continue to develop capacity and capability to provide more homes at scale.

OSM suppliers

If you are an OSM supplier with build capacity and are interested in working with us, we want to hear from you. Please email CCO@kaingaora.govt.nz.

Read more about our OSM work

• Offsite manufactured housing delivering in Rotorua
• Ramping up offsite manufactured builds
• Pushing innovation at Busby Street
• More homes for Maraenui, with more on the way
• Transforming construction through innovation; our offsite manufacturing plan
• Bathroom pods: an OSM way to build better homes faster