Housing industrialization and modularization have gained traction as responses to two pressing challenges in the construction sector: the chronic shortage of affordable housing and the substantial environmental footprint of conventional building methods. Yet prevailing modular housing models in Europe remain constrained by dependence on global supply chains, production concentrated in large industrial operators, and insufficient adaptation to local material and territorial conditions. This article presents a state-of-the-art review of modular timber housing in Europe, examining technological typologies, market structures, and national regulatory frameworks. The methodology integrates a systematic literature and market review, a comparative country analysis, and an embedded case study. Findings indicate that the viability of modular timber housing depends not only on material performance but on its embeddedness in coherent industrial systems, business strategies, and regulatory contexts. Against this backdrop, the VICHO project is introduced as a case study exploring an open, proximity-based industrialization model that valorizes local poplar timber in southern Europe, in alignment with circular bioeconomy principles and the New European Bauhaus.
Vergara-Muñoz et al. (Tue,) studied this question.