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The European Economic and Social Committee (EESC) is urging the EU to invest in the industrial capacity behind prefabricated and offsite construction, arguing that these methods could help expand housing supply and improve productivity. It is a policy recommendation, not a promise that modular homes will automatically be cheaper or faster to build. The EESC says any push to scale these methods must also protect long-term quality, workers’ rights and the public interest.
What the EESC is asking the EU to do
In its opinion, Making Housing Affordable – Increasing Modern Methods of Construction and Lowering Costs (TEN/889), the EESC calls for targeted investment in manufacturing capacity so prefabrication and offsite systems can be produced at scale. The opinion was requested by the Irish Presidency of the Council of the EU, with John Comer as rapporteur and Thomas Kattnig as co-rapporteur. The EESC adopted it in section on 4 September 2026 and in plenary on 23–24 September 2026, where it passed by 197 votes to 2, with 3 abstentions. The EESC opinion summary sets out its proposals.
The case for action is set against housing pressures and a slowdown in building activity. The EESC reports that EU house prices rose by more than 60.5% since 2013, rents increased by 28.8% between 2010 and 2025, and the housing-cost-overburden rate averaged 8.2% in 2024. It also reports that EU building permits fell by 25% between 2021 and 2024. These figures are reported by the EESC; its news release does not identify the underlying dataset for the house-price figure. The committee’s release frames modern construction as one possible response to pressure on both supply and affordability.
What counts as modern construction methods?
The EESC uses the term for a family of industrialised approaches, including modular, prefabricated and offsite construction. The terms overlap, but are not interchangeable: modular building is one form of industrialised construction; prefabrication and offsite production describe the broader practice of making components away from the building site. The methods can include factory manufacturing as well as techniques used on site. They are not a single technology or standard product.
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A research example from the European Commission’s Joint Research Centre shows how one system can be designed for circular use. Its REUSE project developed and tested a full-scale modular building system using engineered timber panels, with connections intended to support assembly, disassembly and component reuse. The prototype was dismantled, reconfigured and tested again. That is evidence about a research prototype, not a guarantee that every commercial modular building can be reused in the same way. The JRC project page also notes that regulatory and market barriers remain relevant to reuse across multiple cycles.
How these methods might affect housing costs and construction
The EESC argues that construction’s relatively low productivity growth and fragmented supply chains make investment in manufacturing capacity important. Producing components in controlled settings and coordinating work across factory and site could support shorter build times, more consistent quality control, higher capacity and productivity, and potentially lower total costs. Those are expected sector-level benefits, not guaranteed outcomes on an individual project.
Offsite construction can also change how much work happens on site and how materials are handled. A BUILD UP summary of a BPIE report presents estimates of 20–60% shorter construction times and 10–15% less construction waste for offsite construction. The figures are study estimates summarized by BUILD UP, not results that can be assumed for every project. The summary page also reports potential residential price reductions of up to 30% in France and 22% in Germany. Those estimates are specific to the studies summarized and should not be applied to all EU countries, buildings or methods.
Whether a particular project saves money depends on more than the price of factory-made components. The total needs to account for factory investment, transport, financing, design, scale, local labour, planning rules and market conditions. For that reason, faster assembly at the site does not by itself prove a lower total project cost or a more affordable home.
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What investment and safeguards the opinion proposes
The EESC’s proposal is not simply to buy more modular units. It calls for a broader industrial and social policy response, including clearer standards, less fragmented rules, system certification and monitoring. It also calls for a central funding mechanism to help small and medium-sized enterprises (SMEs) invest in digitalisation.
- Build industrial capacity: support the manufacturing base needed to produce prefabricated and offsite systems at scale.
- Coordinate rules and assurance: develop standards, certification and monitoring while addressing fragmented regulation.
- Support SMEs’ digitalisation: establish funding that can help smaller firms adopt digital tools.
- Plan for the workforce: map skills and anticipate future needs as production methods change.
- Protect workers and consumers: use digitalisation not only to manage projects but also to support labour-rights enforcement, job quality, working conditions and consumer interests.
The committee stresses that modern methods must maintain the long-term quality and value of traditionally built homes. A system that is quick to assemble but does not perform well over its life would not meet that test. The EESC says Member States, the European Commission, the Housing Alliance and other stakeholders all have roles, while recognising that housing remains primarily a Member State competence.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the EU’s Affordable Housing Plan means
The European Commission’s Affordable Housing Plan identifies boosting housing supply and mobilising investment as two of its four pillars. Its European Strategy for Housing Construction promotes offsite and modular construction, alongside digitalisation, as ways to increase resource efficiency and reduce building costs. The plan page also describes a proposed Pan-European Investment Platform and other housing measures. The Commission’s plan page describes the wider policy setting.
The EESC opinion is advisory: it expresses the committee’s view and recommendations. It is not binding EU law, and the recommendation itself does not mean that all proposed measures have been implemented or that public investment has already reduced housing costs.
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How to assess the approach on a real project
There is no universal winner between industrialised methods and conventional on-site construction. A useful comparison should look at the whole project rather than headline assembly time alone:
- Time: compare the full programme, including design, approvals, factory production, transport and site work.
- Total cost: include factory investment, logistics, financing and any costs associated with local requirements.
- Quality and durability: assess quality assurance during production and the building’s expected long-term performance.
- Workforce: consider the skills required, job quality and working conditions across both factory and site operations.
- Approvals: check how certification, standards and local regulation apply to the proposed system.
- Materials and future use: compare waste, repairability, adaptability and whether components can realistically be reused.
- Project type: distinguish new housing from renovation, where site constraints and the scope of work may differ.
The institutional sources cited here do not provide a like-for-like dataset across all EU countries that answers these questions for every project. BUILD UP’s estimates can indicate possible gains, but a project-specific decision still requires evidence matched to its design, location, scale and delivery conditions.
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