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Encouraging Prefabricated Housing

Admin September 18, 2026

Driven by both policy support and industrial practice, China has transformed prefabricated housing (modular construction/prefab construction) from a concept into a widely applied building model globally, playing a crucial role in areas such as affordable housing and the renovation of dilapidated and old buildings.

I. Policy Support: Top-Level Design Clarifies Development Direction

The State Council's "15th Five-Year Plan for Urban Renewal" provides a policy framework for the application of prefabricated housing. It requires the promotion of prefabricated decoration and age-friendly and barrier-free renovations in newly built and renovated residential projects, as well as the development of digital home construction. Regarding the renovation of dilapidated and old buildings, the plan explicitly supports the original-site reconstruction and self-initiated renewal models, emphasizing the improvement of housing quality through sustainable operations. Due to its short construction period and controllable quality, prefabricated housing has become the preferred option for affordable housing construction and the renovation of dilapidated and old buildings. For example, a certain affordable housing project in Shenzhen used 6,028 concrete modules for assembly, reducing the construction period from 2.5 - 3 years to 1 year and cutting on-site labor by about 50%, demonstrating the effectiveness of policy implementation.

II. Industrial Practice: Concurrent Technological Upgrades and Market Expansion

China's export volume of prefabricated houses continues to grow. In the first four months of 2024, the export value through Shenzhen ports reached 1.68 billion yuan, a year-on-year increase of 19.6%, with products covering more than 150 countries and regions. Modular construction, through factory prefabrication and on-site assembly, shortens the construction period by more than 60% and offers advantages such as being eco-friendly and cost-effective. At the technological level, intelligent production lines achieve millimeter-level positioning of each steel bar, and automated three-dimensional warehouses ensure component precision. In terms of application, overseas projects such as a senior living apartment in the UK and a hotel in Papua New Guinea, as well as domestic affordable housing projects, have all verified its cross-regional adaptability.

III. Challenges and Future: Standardizing the Market and Promoting Collaborative Innovation

Despite rapid development, prefabricated housing still faces issues such as quality risks, cost and flexibility, and industry collaboration. Some small factories produce products with rough workmanship, and unprofessional construction teams lead to problems like water leakage at joints and component deviations. Transportation and hoisting processes may drive up overall costs, and custom mold-making for户型 (floor plan) modifications adds to expenses. There is also a disconnect among design, production, and construction parties, along with a shortage of skilled workers. In the future, it is necessary to achieve the industrial goal of "building houses like making cars" by improving technical standards, strengthening full-process quality control, and promoting the development of new productive forces in intelligent construction. According to predictions, the global market size for modular construction will exceed 142.8 billion US dollars by 2030. China is expected to further consolidate its global leading position by standardizing the market and enhancing collaboration efficiency.