Prefab Home. What Is It?

Mobile homes, manufactured homes, and modular homes – all these structure types fall into one category of housing called prefabricated homes (or prefabs). These homes are manufactured in an off-site factory, moved to a lot of land and assembled on the homeowner’s property. For many, prefab homes are a fast and affordable option to build sustainable housing.

The U.S. Prefabricated Buildings Market is Estimated at $20.2 Billion in 2021.

Types Of Prefab Homes

The word “prefab” refers to how and where the home was constructed, which means there are multiple types of prefab homes you can consider:

• Modular homes are constructed from factory-made pieces and can feature customizable floor plans. The main difference between modular and manufactured homes is that the former are affixed to permanent foundations and cannot be moved from the foundation once assembled.
• Manufactured homes also known by the term “mobile homes” are built and transported in complete sections before being assembled on the home site. Manufactured homes must adhere to strict building codes laid out by the U.S. Department of Housing and Urban Development (HUD).
• Kit homes are similar to modular homes but can be assembled by the homeowners themselves.

All these homes must meet all the same construction requirements that a traditional frame-built home would meet.

How Prefab Homes Are Built

Unlike stick-built single-family homes that are constructed on site, prefab homes are built in a climate-controlled factory setting. Stick-built homes rely on good weather for completion. They’re exposed to that weather until they’re completed, and rain or snow can warp wood and drywall.

The construction setting also provides plenty of other time-saving benefits. Prefabs are mainly constructed inside a building facility, away from potential delays and using production line efficiencies. But prefabricated homes do have some pitfalls.

What Is The Average Price Of A Prefab Home?

Although the price of prefab homes can vary widely, they are among the cheapest ways to build a house, 10% – 25% cheaper than traditional homes. Modular homes are the most expensive and luxurious form of prehab housing, although they are still 10% – 20% cheaper to build than standard housing.

The reason for this is simple. Building prefabs in an offsite factory allows the to do multiple things – from buying mass-produced materials in bulk to having carpenters, plumbers and electricians on site – which allows to keep construction time short and costs low.

But remember that the price tag of a prefab home does not factor in all upfront costs, as you will also need to purchase the land for the home. Additional costs may include landscaping, driveways and more.

Should You Buy a Prefab Home?

Prefabricated homes can be an affordable option if you’re looking to get your first home. It’s cheaper to construct than a full custom build, but you may pay more if you’re looking for something specific.

Depending on the type of prefab home, there are a number of companies making architectural, luxurious, and large prefab homes that can rival any custom-built home.

If you are considering  this type of property, you should work with a real estate agent and lender who have experience buying and selling them: know what type of prefab home you’re buying, if you own the land or not.

Finally, every company for both manufactured (prefabricated) or modular homes will have different options to review. There is typically some level of customization available, whether it’s adding square footage or changing the layout. In addition, certain home models also allow to choose from different floor plan configurations. This includes adding flex spaces, bedrooms or choosing a specific primary bedroom layout.

Pros and cons of prefabs

Prefabricated homes and modular homes are designed by professionals and built with specified quality standards, repeated over a vast number of structures.

Pros

1. They’re cheaper. A prefabricated home usually costs less than a traditional one, both to build and to purchase.
2. They’re easier to maintain. The parts can be replaced than construction details in a conventional home.
3. They’re faster to build and less disruptive to neighbors. Being built in a factory eliminates much of a construction site’s noise and mess.

Cons

1. They’re not available everywhere. Transporting prefabricated components has historically limited these homes to areas with a high volume of trucking routes.
2. They’re limited to customize. Some buyers might prefer the ability to highly personalize their home’s design.
3. They might not be in the condition you expect. Because it’s largely built offsite, the quality of a home’s construction can be difficult to verify until it’s ready for occupancy. In some cases, a buyer should inspect modular units at the factory.