Over the last decade, many major cities have experienced a housing crisis to keep pace with patterns of urban population growth. Housing continues to face many challenges such as land use, regulatory issues, and environmental issues. In recent years, new housing research has also revealed that prefabricated housing could indirectly be a solution to environmental issues, as the housing sector has observed an increase in demand for eco-friendly housing solutions. However, while prefabricated housing can be a solution to issues of environmental concerns, it still needs more research to explore its influence on social sustainability. Therefore, this opinion paper investigates how socially sustainable communities could be feasible and practicable through prefabricated housing. In this opinion paper, the social sustainability principles in relation to prefabricated housing was analysed to show situations that can be complex with the benefits and challenges as well. The main objective of this study was to find the potential of prefabricated housing to promote social sustainability, with proper analysis of this housing influence on the key elements of community, diversity as well as adaptability. A survey based on the aspect of social sustainability of prefabricated housing was conducted to collect various perspectives that may influence the future trend in the housing sector, hence making necessary steps towards socially sustainable prefabricated housing solutions. The survey findings highlight the social element of prefabricated households, which refers to how accessible as well as adaptable the prefabricated homes are in terms of targets, build and social group, encouraging dwellers’ interaction and participation, which facilitates the implementation of a sense of belonging and social cohesion among societies.