Prefab Around the Globe

In the United States, the Northeast has been the biggest adopter of modern prefab because of the area's lack of land, shorter building season and higher cost of labor. Because of environmental advances (see sidebar) and the high cost of real estate, California has also become a player in the prefab market. Since Hurricane Katrina and the housing slump, the South has also increased its number of prefabricated houses. Many of these are low-cost housing, but some manufacturers have added environmental benefits, like energy efficiency, which increases their value. Plus, these prefabricated houses get positive reviews for aesthetics, durability -- including wind rating of a 150 mph -- and price over the infamous FEMA trailers.

prefab home 1967
John G. Zimmerman/Time Life Pictures/Getty Images
A prefab home on Block Island, R.I., circa 1967

Environmental Benefits
Prefab houses have gained popularity as "green" alternatives to stick-built houses. Assembly-line production cuts down on the waste of materials and reduces the weather-induced mold that can plague on-site home construction. Additionally, Earth-friendly materials like solar panels and bamboo floors are less costly when purchased in bulk. Most traditional builders cannot afford to store the inventory, but prefab manufacturers can. And innovations like walls made of tree-saving compressed straw panels, which are flexible and thus more earthquake-resistant, are factory-produced. Finally, because of HUD controls and strict local building codes, factory-built houses typically meet a higher level of energy efficiency than stick-built construction does.

European countries have embraced prefab housing because of land constraints. Companies in England and Germany use cranes to set modular units atop pre-existing buildings. In Sweden, hip home furnisher Ikea has expanded into the homebuilding business. Appealing to a workforce that cannot afford to live in the higher-priced cities, Ikea has sold thousands of its Live Smart ("BoKlok") apartments.

In space-deprived Japan, car maker Toyota has expanded into home-building. Just as its auto assembly plants have gotten a reputation for efficiency, so have its modular housing production centers. And because the housing is made under the strict confines of its factories, Toyota can market it as durable and sturdy enough to endure earthquakes, which are common in Japan.

For more information on prefab housing and related topics, check out the links on the next page.