This study investigates how housing can become more affordable and environmentally sustainable by applying circularity principles through mass-customized prefabricated construction. The study proposes that, by using mass-customized concepts and practices and offering buyers interior choices that suit their needs, homes can be made more affordable and sustainable. Sustainability would be achieved through circularity and waste reduction. The discussion of the underlying topic uses a nonreactive desk research methodology. The review of scientific articles and studies covered the following issues: (i) the definition of circularity in housing, (ii) the mass-customized concept in building, and (iii) 3D printing prefabricated home construction. The second stage of evaluating the Affordable Prefab Home project involves examining customized internal modular partitions and prefabricated exterior wall designs. In the discussion, the research identified several barriers to the efficient mass customization of prefabricated housing in the construction industry. Conclusions highlight the importance of adopting mass-customized prefabricated concepts in residential construction.