Pre-Fabulous: Cost and Environmental Savings With Prefabrication

by | Oct 8, 2025

Recent research by MDPI compares environmental and cost performance between prefabricated and traditional building systems.

Recent research by MDPI compares environmental and cost performance between prefabricated and traditional building systems. It finds that prefabrication can significantly reduce emissions, energy use and costs when properly scaled, but material and transport costs remain major variables.

KEY DATA POINTS:

  • Prefabricated systems reduce greenhouse emissions, energy use, resource scarcity impacts compared to conventional methods. 
  • Prefabricated building cost is approximately 30% less than conventional construction across many metrics. 
  • Material costs represent more than 50% of total costs in prefabricated systems. 
  • Performance depends heavily on local labor/material/transport costs.
  • Prefabrication rate (percentage of prefabrication usage) is a key factor shaping cost reduction. 

SOURCE: “Impacts of Prefabrication in the Building Construction Industry,” MDPI // mdpi.com/2673-8392/3/1/3?

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  • Construction Executive

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