Modular and Prefabricated Construction: Assessing Productivity Gains and Sustainability Outcomes in Urban Housing Projects

Abstract

Modular and prefabricated construction technology has received more attention as the demand for sustainable and affordable urban homes has increased. These methods offer significant opportunities for improvements in productivity, sustainability, and cost-effectiveness. This paper presents a systematic review of twenty-seven peer-reviewed high-quality journals, aiming to assess how prefabrication can cut construction waste, speed up project delivery, and affect housing availability. The review synthesises empirical evidence from various geographical and economic settings, following a strict selection process. The findings show that prefabrication can lower construction waste by 40 to 70%, reduce project delivery time by 15 to 45%, and cut construction costs by up to 30%, thereby making housing more affordable. In addition, combining prefabricated strategies allows for scalable and repeatable design models that fit into high-density urban areas. This improves environmental performance and worker safety. Results indicate that the modular and prefabricated systems tend to deliver on shorter construction times, less wastage of material, and cost management as opposed to the traditional system. These benefits however come in different magnitudes according to the context and type of project. The research also focuses on how this building technique promotes the principles of a circular economy by means of reusing the components and minimising the effects of its lifecycle. In general, both modular and prefabricated construction have a good chance of enhancing the outcomes of the housing projects, but it is still required to be repeatedly empirically proven.  However, there are barriers. These include high initial costs, a bureaucratic regulatory environment, and fragmented supply chains, especially in developing markets. Notably, the review contributes to the field by mapping the evolution of modular construction research, identifying critical knowledge gaps, and proposing a structured framework for evaluating productivity and sustainability outcomes in housing projects. These insights provide a valuable reference for researchers, policymakers, and practitioners seeking to enhance sustainable construction practices and advance the circular economy agenda within the built environment.