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Briefing
Factory-built housing: spare capacity and a slow planning phase
- Industrialised housebuilding
- Planning phase
- Supply chain collaboration
One in five new homes comes from a factory, yet the factories use less than half their capacity. Roland Berger therefore does not see capacity as a bottleneck. TNO points to the planning phase, in which municipality, client and builder work one after another and clients keep asking for bespoke designs.
This briefing has not been updated for more than three months. Check the figures against the source before you use them.
Compiled with AI from public sources, with the source for every figure. Key figures labelled Checked have been compared with the source by a person. How that works
Key figures
- 21.2%of new homes built in 2025 were prefabricated, against about 10 per cent five years earlier.Roland BergerNot yet checked
- ~45%of the estimated capacity of almost 35,000 homes a year is expected to be used in 2026.Roland BergerNot yet checked
- 30 to 40%prefab share of new build by 2030 at the current pace; the prefab builders themselves are aiming for about 50 per cent.Roland BergerNot yet checked
- 8builders of factory homes had type approval at the end of 2025, which removes the technical check from the permit process.Ministerie van Volkshuisvesting en Ruimtelijke OrdeningNot yet checked
What the sources say
On 12 February 2026 Roland Berger published the second edition of its Prefab Homes Radar, compiled in collaboration with the Dutch Ministry of the Interior and Kingdom Relations. The figures come from an online survey of 42 active producers of prefabricated homes and from interviews with seven large players, which together built about 35 per cent of the prefab homes. In 2025, 14,700 prefab homes were added, 21.2 per cent of all new-build homes, against about 10 per cent five years earlier. Prefab output grew by 8 per cent while total housebuilding stayed level. For 2026 the producers expect more than 19,000 homes, but from 2018 to 2025 they delivered on average about 82 per cent of their own forecast. Correcting for that, Roland Berger arrives at 16,100 homes, about 45 per cent of an estimated capacity of almost 35,000. According to the report, extra shifts could add some 30,000 more. The firm concludes that production capacity is not a bottleneck for the market as a whole. At the current pace the prefab share will reach 30 to 40 per cent by 2030, below the 50 per cent the producers themselves support. One large player says in the report that prefab needs to be involved early in the design, because key choices are often made too early for prefab still to be the best option.
TNO set out to find where the delay does lie, and on 19 February 2026 published a study based on sixteen in-depth interviews with, among others, municipalities, a province, the ministry, developers, building quality inspectors, software companies and housing associations, supplemented by validation interviews and literature. The researchers point to the long and unpredictable planning phase before construction. They describe nine interconnected bottlenecks. Respondents give priority to slow policymaking and lead times at municipalities, which according to TNO often stem from a shortage of staff and expertise; to unstructured public participation and objection procedures; to a difficult business case; and to a siloed process in which each phase follows the previous one. According to TNO, clients still often ask for fully bespoke designs and set out their requirements in technical terms, whereas builders of standardised housing concepts need functional requirements. Municipalities and concept builders rarely work together on a product vision, and local rules differ from one municipality to the next. So every project gets its own adjustments, ends up resembling traditional construction and produces no learning curve. The market works widely with BIM; many municipalities do not, which makes it harder to exchange data. TNO also calls scaling up a question of culture for clients and builders.
Central government is steering at the same point. In its State of Public Housing report of 8 December 2025, the Ministry of Housing and Spatial Planning (VRO) describes the Innovation and Scaling-up of Housebuilding programme, which focuses on standardisation. Eight builders of factory homes have a recognised quality certificate, which means the technical construction work no longer needs a separate permit or notification. With the Green Metropolitan Region Arnhem-Nijmegen and Rotterdam, the ministry is working on a digital fast lane for permits for industrially built homes, and since 1 July 2025 every province has had a regional acceleration table. On 29 January 2026 eleven parties, including the provinces of Noord-Holland and Flevoland, the ministry, the Nieuw Hollandse Bouwstroom, four municipalities, two housing associations and an area developer, signed the Afsprakenbrief Opschalen Industriële Bouwstroom, a letter of agreement on scaling up a steady pipeline of industrially built homes. These parties link industrial construction to sites for about 6,000 homes as early as the design, development and permit phase. The goal on the horizon is about half of all new build by 2030; a first evaluation is planned for the autumn of 2026.
How solid is this? That the share of factory-built homes is growing is a multi-year series. What is new is that two independent studies from February 2026 place the brake outside the factory, in the planning phase and in the way clients, municipalities and builders work together. TNO relies on sixteen interviews and Roland Berger on a survey of producers. The agreements between central government and the regions have only just begun and have not yet been evaluated, so how widely the picture holds remains to be seen.
For the leadership team
The factories can deliver more than is being ordered, and the researchers locate the delay in the phase before construction. For housing associations, developers, municipalities and builders, the question is who in a project can decide early enough on a standard design, and whether their own organisation already specifies functional requirements or is still used to prescribing technical details.
Sources
- TNO · Tim van Ee and Irfan PottacholaVersnellen van de planfase bij woningbouwprojecten: een studie naar knelpunten en oplossingsrichtingen
Opschaling van conceptueel en industrieel bouwen vereist ook een cultuurverandering.
- Roland Berger · Sameer Mehta and Paulo SallaPrefab homes radar 2025
- Ministerie van Volkshuisvesting en Ruimtelijke OrdeningAfsprakenbrief: woningbouw sneller, goedkoper en duurzamer via industrieel bouwen
Daarmee bedoelen ze: continuïteit en zekerheid dat er woningen gebouwd blijven worden in een hoog tempo.
- Ministerie van Volkshuisvesting en Ruimtelijke OrdeningStaat van de Volkshuisvesting 2025
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Academic research
- University of York · Brookfield et al.Barriers to delivering low carbon housing through offsite construction and biobased building materials in the UK
- Virginia Tech · Nur et al.Expanding Housing-Production Capacity in Appalachia: Participatory Pathways for Industrialized Off-Site Construction (IOC)
- Tampere University · Franssila et al.Delivery-system misfit and role reconfiguration in industrialised timber construction: a phase-sensitive analysis of a turnkey project
- Leeds Trinity University · Nwachukwu et al.Systemic misalignment and the collapse of category 1 MMC firms in the UK housing sector
- Concordia University · Rostamiasl et al.Policy and Regulatory Barriers and Mitigation Strategies for Modular Offsite Construction (MOC) Adoption
Academic articles on the same phenomenon, no more than a year old at the last search, from universities in Europe and North America, found through the open database OpenAlex. These articles count towards the publications per month; the text and key figures above are based on the sources. How we choose the articles.
How this briefing has been updated
Title now describes the topics; previously “The housing factory runs at half capacity, and the brake is applied before the building site” (AI)
Added 5 articles from universities in Europe and North America (via OpenAlex). (AI)
First draft based on Roland Berger, TNO and the Ministry of Housing and Spatial Planning (VRO). The growing prefab share is a multi-year series; that the brake lies in the planning phase and the supply chain comes from two studies from February 2026. The pipeline agreements have not yet been evaluated. (AI)