California's 2025 wildfires destroyed over 17,000 homes, worsening an existing housing shortage of about two million units. Displaced residents strain rental and resale markets, while demand shifts away from fire-prone areas. Prefabricated and modular homes offer faster, more affordable, and fire-resistant alternatives, reducing construction time by up to 50%. State programs expedite prefab housing approvals, aiding wildfire recovery despite ongoing financing and supply challenges.