The partnership has the potential to make a meaningful contribution to several of the most pressing challenges facing Australian households and the housing sector.

 

News Summary

· Australia projected to face ~375,000 home shortfall. Off-site construction can reduce build timelines 20-40% while addressing most challenging construction challenges.

· LG has partnered Greater Homes to launch a pilot combining modular housing and LG Home Energy Management System (HEMS) to address quality and accessible housing supply and rising energy costs in Australia.

· US proof-of-concept trials demonstrated 9-11% seasonal energy savings, and increased up to ~35% when integrated with solar and battery systems. The pilot will validate results under Australian conditions during 2026.

 

SYDNEY & MELBOURNE, 12 May 2026 - LG Electronics Australia and Greater Homes today announced a strategic partnership designed to address some of Australia’s most urgent challenges: quality and accessible housing supply and rising household energy costs.

Australia is currently tracking below the 1.2 million homes targeted under the National Housing Accord[1] over the five years from July 2024 to June 2029. Approximately 174,200 dwellings were completed in FY2025[2] against an estimated annual requirement of around 240,000 homes[3]. Current projections indicate a shortfall of approximately 375,000[4] dwellings over the Accord period.

At the same time, construction costs remain 40–45% above pre-pandemic levels[5], insolvencies continue across the building sector[6], and mortgage repayments now represent close to 50% of median household income[7], with rental costs consuming approximately one-third of income nationally.

“At CES 2026 we shared a clear ambition: innovation only matters when it delivers meaningful, everyday benefits,” said Dan Lim, Managing Director at LG Electronics Australia. “Our vision of AI called Affectionate Intelligence which is about developing AI that adapts to people’s routines, preferences and environments to make daily life simpler and more efficient. Through connected devices and platforms, we are building a responsive home eco system where appliances and services work together to automate tasks, optimise energy use and provide personalised experiences. This partnership is an important step in bringing that vision to life here in Australia, extending AI beyond the screen and into the everyday spaces where Australians live and interact every day.”

A Scalable Delivery Model Within a $11.8 Billion Sector

Greater Homes operates within Australia’s USD 11.8 billion modular and offsite construction market[8], which currently represents approximately 8%[9] of total national building activity, according to Urban Land Institute Melbourne. Industry research indicates offsite construction models can reduce build timelines by 20–40%, with production cycles typically ranging from 10–16 weeks compared with traditional 12–18-month programs[10].

At scale, modular systems can deliver 20–30% construction cost efficiencies, significantly reduce site risk exposure, and minimise material waste through controlled factory environments[11]. Greater Homes’ model focuses on National Construction Code (NCC) compliant quality-driven modular construction targeting 7-star energy rating performance under the Nationwide House Energy Rating Scheme (NatHERS), built with over 80% recyclable or reusable materials at end of life, and designed to support developers seeking improved delivery certainty, faster project turnover and reduced holding costs.

“Australia’s housing challenge is not just about supply volume — it’s about delivery certainty and feasibility,” said Bob Angley, Founding Partner at Greater Homes. “We believe combining factory-based construction with integrated AI energy optimisation allows us to tackle both build speed and long-term household affordability at the same time. This pilot is about proving that scalability and quality can coexist by creating something genuinely new in the Australian market.”

Integrating Energy Intelligence at Build Stage

As part of the pilot, LG will integrate its Home Energy Management System (HEMS) via Homey Pro into selected Greater Homes developments. The system is designed to optimise appliance energy usage through AI-driven modelling, helping households manage consumption more effectively.

“The companies bring together complementary capabilities in precision-built modular housing, integrated home energy management systems (HEMS) and deep product engineering and integration capability across the full appliance and energy ecosystem. Greater Homes and LG Electronics have combined skills and strengths to run a pilot program during 2026 designed to validate how the integrated system performs across different Australian zones, and measure energy self-sufficiency, bill reduction and peak demand contribution under real conditions.” said Ray Hwang, VP of B2B Capability Enhancement Division at LG Electronics Korea.

In US proof-of-concept trials run in 2024 and 2025, LG’s HEMS demonstrated average seasonal savings out of households’ total electricity expenses of 9–11% on major loads such as air conditioning and water heating. When integrated with solar photovoltaic systems and battery storage, savings reached up to approximately 35%.

Results in Australia are hard to forecast given results vary by land type, location, project volume, specification, climate, household usage patterns, grid tariff structures, and regulatory settings influencing outcomes. The Australian pilot will validate performance under local conditions.

“The housing conversation often stops at construction cost,” said Angley. “But long-term affordability is increasingly driven by energy performance. By embedding our experience with Affectionate Intelligence, appliances connectivity, and energy intelligence at build stage, we can help future residents better manage consumption from day one - not retrofit later.”

Energy Pressures and Regional Impact

Energy affordability remains a growing concern with one in seven Australian households experiencing some form of energy poverty. Residential electricity prices in some regions, including South Australia, have reached between $0.40 to $0.43 per kilowatt-hour. Battery installations continue to grow nationally, with over 236,000 installations[12] recorded in the first half of the expanded Cheaper Home Batteries Program (often referred to as the national battery program).

 

Factor	South Australia	Queensland	New South Wales	Victoria
Electricity Cost	$0.40 – $0.43 per kWh (highest)	~$0.30 per kWh (mid)	$0.26 - $0.37 per kWh (mid-high)	$0.25-$0.32 per kWh (lowest)
Solar Penetration	~55% (highest)	~53% (2nd)	#45% (3rd)	~35%
Grid Status	Price volatile; 70%+ renewable	Administered Pricing	Administered Pricing	Moderate; stable
Climate Demand	Cooling dominant	Extreme cooling peaks	Balanced hear/cool	Balanced; winter heating
Battery Uptake	Strong	Strong	Highest national	Second highest

 

Sources: Australian Energy Regulator - Electricity Q4 2025, Australian Energy Council Solar Report Q2 2025, Australian Energy Market Commission Residential Electricity Price Trends 2025

 

“We are seeing rapid adoption of rooftop solar and battery systems across Australia,” added Angley. “The missing layer is intelligent coordination ensuring appliances, solar and storage work together automatically, which is precisely LG’s expertise. This pilot allows us to test that orchestration in real housing developments.”

Pilot Objective

The pilot will assess whether combining factory-based housing delivery with embedded energy optimisation can improve project feasibility for developers while reducing ongoing energy exposure for residents.

Based on market analysis, four regions have been identified as priorities for the pilot. We anticipate initial build activities, commissioning, data collection, and preliminary result stages will be performed during 2026. Findings from the pilot will inform potential broader deployment across future developments, subject to performance validation.

“Individually, both Greater Homes and LG are strong businesses with compelling products. Together, we believe the combination of scalable factory built housing and integrated energy technology creates something new in the Australian market: a housing solution designed from the ground up for speed, quality sustainability and liveability. The pilot will test this proposition.” said Justin Hun Kim, Director of B2B New Business Development at LG Electronics Korea.

A Contribution for a Better Life

Australia’s housing and cost-of-living challenges are complex and multi-layered, requiring collaboration across industry, developers, builders, communities, and governments. While no single initiative can resolve structural supply and affordability pressures, practical innovation can help inform new pathways forward.

Greater Homes and LG Electronics Australia see the pilot as an opportunity to contribute to the broader conversation around housing delivery and long-term household resilience.

“We recognise the scale of the challenge facing Australia” said Bob Angley, Founding Partner at Greater Homes. “We’re not aiming for a universal solution but rather to test whether a more integrated approach, combining offsite construction methodology, energy intelligence and appliances-devices integration, can support better outcomes. If it demonstrates measurable improvements, we hope it can add constructively to discussions across industry and policymakers.”

Angley added that the partnership reflects a belief that housing delivery and household energy performance should be considered together.

“Speed, certainty and long-term performance are all part of the equation,” he said. “We’re encouraged by the opportunity to explore how innovation across both companies can work in concert.”

At it’s core, this pilot is a continuation of LG’s vision shared earlier this year on the global stage at CES 2026. “When innovation and technology are not layered on top of life, but thoughtfully embedded into it, our purpose becomes a reality. When homes are more responsive, more connected and more considerate of the pressures families face, that’s when Life’s Good becomes real.” said Gemma Lemieux, Marketing Director at LG Electronics Australia. “This partnership reflects how we are evolving from devices to intelligent ecosystems. From individual products to orchestrated experiences. It’s another example of how LG Electronics continues to turn vision into action, here in Australia. And it’s incredibly energising to see the ideas we introduced on the global stage now taking tangible form locally. That’s how we build trust in innovation, and that is the principle guiding this partnership and the direction we continue to pursue.”

 

 

Notes to the Editor:

Please view the media kit for visual assets.

Sources:

1. National Housing Supply and Affordability Council, State of the Housing System 2025

2. Housing | Federal Budget 2025–26

3. Housing Australia Future Fund

4. Social Housing Accelerator

5. Cheaper Home Batteries Program

6. NSW Peak Demand Reduction Scheme

7. NSW Low and Mid-Rise Housing Policy

8. Small-scale installation postcode data - Clean Energy Regulator (CER)

9. Australian Energy Market Commission, Residential Electricity Price Trends 2025

10. Australian Energy Regulator, 2025–26 Safety Net Price Determination

11. Clean Energy Council, Solar Report Q1 2025

12. RLB Australia, Market Intelligence Q4 2025

13. IMARC Group, Australia Modular Construction Market 2025–2033

14. Expert Market Research, Australia Modular Construction Market 2025–2035

15. Urban Land Institute Melbourne, Why Modular Construction Still Isn’t Solving Australia’s Housing Crisis

16. Solar Energy Facts and Statistics

17. Six Months of the Cheaper Home Batteries Program

 

About LG Electronics

LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 75,000. LG’s four Companies – Home Appliance Solution, Media Entertainment Solution, Vehicle Solution and Eco Solution – combined for global revenue of over KRW 88 trillion in 2024. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, automotive components and solutions, and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.  

About Greater Homes

Greater Homes is revolutionizing Australian housing by providing an innovative perspective on modern living, aiming to deliver innovative, cost effective, and environmentally friendly modular homes that meet Australian’s demands. By focusing on affordable quality, delivering a home that looks, feels and performs like a premium architecturally designed build, with the speed and efficiency advantages that come from factory-controlled manufacturing. Every home is designed to be replicated, scaled, and re-arranged to suit a range of applications; from secondary dwellings and holiday accommodation to multi-unit developments and community housing.

 

Media Contacts:

For further information, please contact auscomms@lge.com or the contact listed below.

Paula Restrepo
Senior Communications Manager
LG Electronics Australia & New Zealand
M. +61 458.302.745
E. Paula.Restrepo@lge.com

 

Sophie Liu
Communications Specialist
LG Electronics Australia & New Zealand
E. Sophie.Liu@lge.com