The global housing crisis has led to 1.6 billion people living in inadequate or unaffordable housing, with traditional construction methods facing challenges like high costs, limited scalability, and lack of innovation. This research reviews modular construction’s history and evolution, focusing on its benefits like increased efficiency, quality, and sustainability. It also discusses challenges like design complexity, higher costs, and additional permits. Modular construction has the potential to create sustainable communities, incorporating features like shared spaces, green areas, and community facilities. Emerging technologies like Lean Modular Construction, 3D printing, and prefabrication are transforming the industry. The study also examines the role of government policies in promoting modular construction trends.