What Is a Modular Home?

Modular homes are prefabricated housing units consisting of sections or modules built in a factory and then transported to the construction site for assembly. At the construction site, they are installed on permanent foundations and pieced together by professional installers to form a complete home. 

This article explores how modular houses work, looks at the pros and cons and reviews the costs and answers some of your most pressing questions about them. 

How Do Modular Homes Work?

Modular homes are made in a controlled factory environment, where skilled craftspeople design and construct individual modules that form sections of the house, such as walls, ceilings and floors. Each module is designed and constructed according to the specifications of the home plan. The modules are then transported to the build site, assembled and connected by a builder. The builder also completes the finishing touches, such as plumbing, electrical, roofing, siding, flooring and landscaping. The final result is a fully functional and aesthetically pleasing home. Modular homes must comply with the same building codes and regulations as site-built homes and undergo rigorous inspections throughout the process.

What Do Modular Homes Cost?

The cost of a modular home depends on factors such as the home's size, design, features, location and builder. However, modular homes generally cost less than site-built homes per square foot because they benefit from economies of scale, reduced labor and material waste and lower financing costs. According to buildsteel.org, the average price of a modular home in the U.S. is $50 to $100 per square foot, meaning a 2,000-square-foot modular home would cost between $100,000 and $200,000. Homeowners can achieve significant cost savings by choosing a modular home.

Are Modular Homes Worth It?

Modular homes are worth it if you are looking for a high-quality, affordable, energy-efficient, customizable home that can be built faster than a site-built one. They offer customization and low labor costs, resulting in less waste. However, there may be limited design options, zoning restrictions and stigma from home buyers or lenders.  

Do Modular Homes Appreciate in Value?

Given that your house is an asset, you might wonder – do modular homes appreciate? Modular homes appreciate similarly to site-built homes as long as they are well-maintained and located in desirable areas. The value of a modular home depends on the quality of construction, the home's design and features, the condition of the home and its components, the market demand and supply for similar homes in the area and the overall economic conditions.

How Long Does a Modular Home Last?

Modular homes last as long as site-built homes, which is typically around 50 to 100 years or more, if properly constructed and maintained. The lifespan of a modular home depends on factors such as the quality of materials and craftsmanship used in building it, the level of care and upkeep given to it by its owners, exposure to the elements and impact of natural disasters.

How Much Does it Cost to Build a Modular Home?

If you’re looking to get started, you’re going to want to find out what modular homes cost. The cost of building a modular home varies depending on factors such as the size, design, features, location and builder of the home. However, modular homes generally cost less than site-built homes per square foot because they benefit from economies of scale, reduced labor and material waste and lower financing costs. According to buildsteel.org, the average cost to build a modular home in the U.S. is $50 to $100 per square foot, meaning a 2,000-square-foot modular home would cost between $100,000 and $200,000.

Why Modular Homes Are a Good Investment

Are modular homes worth it? Modular homes can be a good investment for many reasons.

Eco-Friendly

Modular homes use less energy and resources during construction and operation, and they can incorporate green features such as solar panels, insulation and energy-efficient appliances.

Shorter Construction Time

Modular homes can be built in weeks or months, compared to several months or years for site-built homes. You can move into your new home sooner and save on interim housing costs.

Moveable

Unlike site-built homes that are permanently fixed to a foundation, modular homes can be relocated to another site if needed or desired, as long as they meet the local zoning and building requirements of the home site.

Lower Risk of Damage

Modular homes are less vulnerable to weather-related delays or damages during construction due to being fabricated indoors in a controlled environment.

Adaptable to Different Climatic Conditions

Modular homes can be designed with different roof shapes, window sizes, insulation levels and ventilation systems that optimize their performance and comfort in various climates.

What Are the Downsides of Investing in a Modular Home?

While modular homes have many advantages over traditional homes, they also have some drawbacks that potential buyers should consider before purchasing.

Reduced Resell Value

Some home buyers and lenders still consider modular homes inferior or less desirable than traditional homes because of their stigma as mobile or trailer homes. This factor makes them tend to have lower resell value.

Lifespan

While modular homes are designed to withstand transportation and assembly, they may not be as durable as traditional homes when it comes to weather, fire, pests and natural disasters. 

Land Restrictions

Certain locations may have restrictions on the type and design of properties that may be built. Some jurisdictions may outrightly refuse the building of modular homes.

Mortgage Restrictions

Although there are many mortgage lenders that would be willing to finance a modular home, you'll want to double check that's the case with your mortgage provider.

Modular vs. Traditional vs. Mobile Homes: What's the Difference?

Modular homes are built in a factory setting, where individual modules are constructed off-site and then transported to the desired location for assembly. These homes are known for their quick construction process and flexibility, as they can be customized to meet the specific needs and preferences of homeowners. Additionally, modular homes are often more energy-efficient and environmentally friendly than traditional homes.

Traditional homes, on the other hand, are built on-site using traditional construction methods. These homes have a more permanent and solid structure, typically made of materials such as wood, brick, or concrete. Traditional homes offer a sense of stability and permanence, and homeowners have the freedom to customize and modify their homes as they see fit. However, the construction process for traditional homes can be lengthy and costly compared to modular homes.

Mobile homes, also known as manufactured homes, are built in a factory and then transported to a designated mobile home park or private property. These homes are typically more affordable and have the advantage of mobility, as they can be relocated to different locations if desired. Mobile homes are regulated by specific building codes and safety standards.

Overall, the choice between modular, traditional, or mobile homes depends on individual preferences, budget, and needs.

Consider Going Modular

Compared to traditional homes, modular homes are a modern and flexible option that offers numerous benefits. They are environmentally friendly, can be built quickly, are movable and withstand damage and different climates. However, you must consider potential drawbacks, such as a lower resale value, shorter lifespan and possible land restrictions. 

If you are interested in buying a modular home, research reputable manufacturers and builders and consider your specific needs and goals. With careful planning and the right team, you can find a modular home that fits your lifestyle, needs and budget. Start your journey today toward owning your dream home today.

Frequently Asked Questions