From using natural caves as shelter to building tall skyscrapers, the character of human habitation has evolved tremendously. Experts on human evolution theorize that the shift from hunting-gathering lifestyle to intensive agriculture led to the emergence of permanent settlements. The establishment of villages, towns, cities, and metropolises is a result of this evolution. Though this evolution has increased the comfort of human lives, it has resulted in indiscriminate exploitation of natural resources.

Almost all major metropolitan cities of the world suffer from problems of population explosion, pollution, shrinking urban space, and lack of hygiene and sanitation facilities, etc. As a result, a new trend is being witnessed wherein there is an increasing preference for sustainable alternative to conventional housing. The concept of capsule houses has emerged due to this trend.