The Real Estate Encyclopedia & Blog

Modular Construction

by | Feb 6, 2026

In real estate and construction, modular refers to a building system in which dwellings or other improvements are created through the on site assembly of prefabricated component parts, known as modules. These modules are mass produced in a factory setting away from the building site and then transported for installation.

Modular construction allows for greater efficiency, quality control, and reduced construction time compared to traditional building methods. Once assembled, modular structures are typically indistinguishable from site built construction and are subject to the same building codes and zoning regulations as conventional improvements.