Modular housing represents an opportunity for the mass provision of housing of an appropriate standard, implemented sustainably. We analyzed the theoretical basis of this type of housing for refugee populations. We identified several generations of housing provision, from tented camps to container settlements, and ultimately to units resembling traditional housing estates. The latter is feasible due to technological advancements. Our research contributes to the implementation of the principles of the New European Bauhaus initiative, which underpins the European Green Deal policy on space design. Using the Research through Design (RtD) method within the framework of a settlement project for the Ukrainian population migrating from war zones (Modular Refugees Settlement Project “ProModSe”), we tested the suitability of these principles in extreme and critical war-related situations. The most important criteria were speed of implementation, the prospect of long-term residence, and ensuring safety. We analyzed the social, environmental, and aesthetic–functional aspects, comparing them with existing practices in the design of settlements for displaced persons, modular settlements, and quality standards in residential environments. The results demonstrate, at multiple scales, the critical interdependence of sustainable development, aesthetics and functionality, and community creation. We emphasize the need to include security as an essential fourth axis within the New European Bauhaus concept. This study contributes to addressing the complex housing problem for refugee populations. The generalizations formulated based on empirical research complement the knowledge of housing and the functioning of the sociotechnological system.