At present, the socialist economy with Chinese characteristics continues to develop and the process of urbanization is rapidly advancing. The construction industry plays an important role in the development of the national economy and the process of urbanization. However, the traditional construction industry has high energy consumption and large pollution, which has brought huge pressure on the ecological environment and is not conducive to the sustainable development of the industry. The transformation and upgrading of the construction industry are an inevitable trend in the development of the industry. Prefabricated building, as a new structure, is a typical green building. This article introduces the development status of prefabricated buildings, and analyzes the influencing factors of their construction costs. The article uses survey method, literature research method, comparative research method, and empirical research method to introduce the development status of prefabricated buildings, and analyzes the factors affecting its construction costs, and concludes that national policies, technologies, and management affect prefabricated building costs. Based on this, we propose countermeasures and suggestions: strengthen macro-control, improve laws and regulations and standards; focus on training professional and technical personnel, improve the level of industry production management; scientific arrangement, strengthen management, improve industrial operations, and conduct empirical analysis.