Prefabricated construction (PC) has attracted wide spread attention as a model of sustainable development for the construction industry of the future. Although the PC has many advantages, it is still at an initial stage in China. Based on the current conditions in China, this study focuses on the interrelationships of factors affecting PC promotion. Firstly, through a comprehensive review of relevant literatures and expert recommendations, 5 factors were identified: policy factor, technical factor, management factor, market factor and cost factor. Next, the data were collected through a questionnaire survey, and the questionnaire data were processed using SPSS 24.0 and AMOS 22.0. The overall relationships of each factor were quantitatively analyzed with Structural Equation Modeling (SEM). The results show that the policy factor plays a dominant role, while the management factor and market factors are also significant. This study also provides decision makers with relevant information about the factors involved, which will be helpful in devising appropriate strategies for the wider adoption of PC.