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Worthing Council is considering a deal with BoKlok, owned by Ikea and construction company Skanska, to build up to 162 homes in the seaside town.
BoKlok's homes are factory-built and priced after calculating how much owners can afford after the cost of living is taken into account.
It says it is expanding in the UK.
It appears to be the first development by BoKlok in the UK after a scheme in Tyneside was launched in 2007 and appears to mark a new push into the UK.
BoKlok's website says: "We are expanding in the UK and are looking for land.
"Do you have a vacant plot that could accommodate a new sustainable neighbourhood?"