Building companies say branching out into prefabricated homes could make housing more affordable.
New Zealand's largest home building company, G. J. Gardner Homes, says it is considering building prefab houses.
Construction company Fletcher Building is also considering factory-producing homes.
Fletcher Building's general manager of investor relations and capital markets, Philip King, says the biggest saving with prefab homes would be in labour, which can be up to 20 percent of building costs.
However, he says setting up the factories to build the homes may cost too much to make it worthwhile.
Mr King says uneven building sections and extreme weather conditions can make using prefabricated homes in this country difficult.