This isn't really true unless you are equating the US with "the west".
There are many German and Dutch companies that make high-end pre-fabricated houses and walls that sell not only locally, but abroad.
Many factors contribute to the purchasing decisions of quality pre-fabricated housing materials, of which price is only one (and probably isn't even a factor at the high-end).
I would imagine that insurance companies have much more influence over government regulation of building codes than construction crews do. After all, insurance companies are the ones that have to pay out if the house doesn't hold up.
It's State governments that cover residential construction issues. All of them have laws and limitations and in fact have an pooled insurance fund (paid for by contractor license fees etc...)
There are many German and Dutch companies that make high-end pre-fabricated houses and walls that sell not only locally, but abroad.
Many factors contribute to the purchasing decisions of quality pre-fabricated housing materials, of which price is only one (and probably isn't even a factor at the high-end).