Portuguese 
After losing demand for quarantine housing during the pandemic, Chinese manufacturers transformed their production lines into prefabricated house factories for export, with units produced in under a month and designs aimed at tourism and international housing.
Chinese factories that previously manufactured worker accommodations and quarantine modules have shifted to producing prefabricated homes in just 15 to 25 days. This transition occurred as the end of health restrictions and a real estate crisis in China reduced the demand for the products that had supported these companies.
This transformation has helped spark a billion-dollar industry. Chinese exports of prefabricated buildings rose from $1.7 billion in 2020 to $4.3 billion by 2025, with sales to the United States, Southeast Asia, Australia, and Western Europe.
Reuters reported the results of this industrial shift in a piece published on September 17, 2026, illustrating how simple metal structures have been replaced by capsule homes, foldable cabins, and constructions tailored for the international market.
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Factory opened in 2022 lost its main buyers and had to completely change its product
The story of Hebei Shengtai Integrating Housing, located in Hengshui in northern China, illustrates how the industry had to respond to the disappearance of part of its market.
The company began operations in 2022, at a time when the Chinese real estate sector was already struggling. A few months later, the government lifted health restrictions that had sustained demand for temporary housing and quarantine units.
The result was a significant drop in demand for the products the factory had been established to produce.
Sun Guangqing, the person responsible for production and developing the company’s models, identified foreign buyers as a viable alternative to keep the business running.
The factory began offering capsule homes and foldable cabins aimed primarily at tourism and vacation properties. Other Chinese manufacturers followed a similar path, replacing part of their production of temporary structures with higher-quality residential units.
Houses are ready in 15 to 25 days and can reach foreign buyers in up to three months
The speed of production has made these buildings appealing to international buyers.
At Hebei Shengtai Integrating Housing, a residential unit can be produced in 15 to 25 days. The company also handles international deliveries that can occur within three months.
This is possible because a significant portion of the construction takes place inside the factory before the structure arrives at the site where it will be installed.
Instead of raising walls and assembling the main components directly on-site, manufacturers produce modules that concentrate a significant part of the house’s structure.
These units primarily use metal structures, thermal insulation panels, doors, windows, and industrial components. They are not predominantly made of wood.
The advantage lies in the ability to organize production in stages, manufacture components in series, and prepare units for transport.
However, the manufacturing time does not necessarily represent the time needed to make a home ready for occupancy. Transportation, site preparation, and final installation are different stages from industrial production.
From simple homes below 6,800 yuan to sophisticated cabins above 100,000 yuan
The variety of products has also grown with the shift to the international market.
In Weifang, in eastern China, Qingdao Jingcheng Metal Technology sells factory-produced residential units aimed at different buyer profiles.
The simplest models, resembling containers, have factory prices below 6,800 yuan, approximately US$1,000, before shipping costs.
At the other end are the A-frame foldable cabins, with expandable structures, which can exceed 100,000 yuan.
Some buyers also request units equipped with furniture, water heaters, air conditioning units, and other appliances.
The company uses equipment from Chinese manufacturers, including Hisense and Haier, to fulfill some of these orders.
Reuters, the international news agency, also identified an important factor for the prices of these homes: the proximity between material suppliers and the factories responsible for assembly.
In Weifang, steel structures, insulation panels, doors, and windows are found in the region itself. The port of Qingdao is about two hours away.
This industrial concentration reduces the need to source components from distant regions and facilitates the organization of production destined for export.
More than a thousand factories compete for buyers, with some earning only 1,000 yuan per house
The growth of exports does not mean that all Chinese manufacturers are making a lot of money.
The industry faces intense competition for orders, especially since more than a thousand prefabricated homes factories operate in China. Hengshui alone has about 30 establishments in this sector.
The competition has led to a significant reduction in prices for some models.
At Hebei Shengtai Integrating Housing, the price of an expandable home with two foldable parts has dropped by more than half, falling below 20,000 yuan.
With this reduction, the profit achieved by the company now represents only 1,000 to 2,000 yuan per unit sold.
The situation is even tighter at other establishments. Pang Hufeng, operations manager at Hebei Shengshuo Metal Products, reported earnings of only a few hundred yuan per unit.
The company also started off primarily serving the Chinese market but has shifted approximately 80% of its sales to foreign buyers.
Manufacturers are worried about the sustainability of this competition. Sun Guangqing believes that more than a third of factories in the sector may cease operations in the coming years.
This is a businessperson’s expectation, not a confirmed closure.
Low factory price doesn’t mean ready-to-live housing at the same cost in Brazil
For Brazilian consumers, the prices presented by Chinese companies necessitate an important distinction.
A unit advertised for less than 6,800 yuan does not necessarily represent an installed and ready-to-live home in Brazil.
The factory price may exclude expenses such as international transport, import duties, site relocation, and handling of the structure during installation.
There may also be costs for foundation, water and electricity connections, lot preparation, and construction licensing.
These expenses need to be factored in before comparing the price of an imported home to the cost of conventional construction.
For Brazilian manufacturers, the Chinese advance highlights the importance of large-scale production and proximity between suppliers of metal structures, panels, doors, and other components.
For companies interested in importing the units, the main concern is determining how much it will cost to make each structure usable at the final destination, not just how much will be paid to the manufacturer.
The growth of Chinese exports shows that factory-produced homes have found buyers in different markets, especially for tourism and vacation properties.
At the same time, the decline in profits reveals the other side of this expansion: producing quickly and selling cheaply does not ensure the survival of a factory when many competitors are vying for the same customers.
Would you buy a prefabricated home from China if the final price, including shipping and installation, were lower than that of a traditional construction? Share your thoughts in the comments.
