Cost Efficiency and Scalability of Modular Construction: A Systematic and Bibliometric Review of Its Role in Addressing Housing Shortages

This systematic and bibliometric review examines the cost efficiency and scalability of modular construction as a response to the structural housing shortage in the United States. The review was conducted and reported in accordance with the PRISMA 2020 guidelines. Peer-reviewed and gray literature published between 2000 and 2024 were systematically identified from Web of Science, Scopus, PubMed, and specialized construction databases, with additional institutional reports retrieved from major U.S. housing and policy organizations. Bibliometric analysis was performed to map publication trends, intellectual structure, and thematic evolution, while a subset of eligible studies meeting predefined inclusion criteria was used for in-depth synthesis of cost and scalability outcomes. The evidence indicates that modular construction delivers consistent project-level benefits in the U.S. context, including direct cost savings ranging from 10% to 35% and schedule reductions of 20% to 50% relative to conventional construction. Additional gains are observed in labor productivity, quality control, and lifecycle cost performance. However, scalability remains constrained by structural factors, including regulatory fragmentation across states, misalignment of construction financing models with factory-based production, and limited geographic distribution of manufacturing capacity. The findings suggest that modular construction is not inherently limited by technological feasibility but by institutional conditions that shape its adoption. Policy interventions particularly regulatory harmonization, financing reform, and strategic public procurement are critical to enabling large-scale deployment. This review contributes a U.S.-focused synthesis of evidence and identifies actionable pathways for scaling modular construction to address persistent housing supply deficits.