Modular vs Conventional Homes

While modular homes are not new, experts are forecasting they will claim a larger market share in the future. Since modular homes are becoming more popular, what do builders need to know about working with prefab homes vs. conventional homes?

Why Consumers Are Choosing Modular Homes

Compared with a new construction home, modular homes have a cheaper price point. These homes are constructed in a factory by skilled workers who are using precision equipment, then transported to the site and assembled. Economies of scale mean that prefab builders can offer lower price points to home buyers.

While most builders offer a variety of prefabricated styles, home buyers can design their own home as well. Builders use computer-aided design (CAD) to develop plans. Once the buyer gives their approval and building permits have been obtained, the construction can begin.

Since these homes are manufactured indoors, workers do not have to wait for good weather. This means a faster build and better quality control since the environment is protected.

In terms of the overall time frame, a modular home can be built and fully assembled on site in one to two months, depending on the manufacturer’s schedule. The prefab home can be as simple or complex as your taste and budget allow. Once a prefab home is assembled on site, it looks no different than any other new construction home, minus exterior styling. A stick-built home takes approximately six months to go up.

Throughout the construction project, builders are checking the quality of the prefab home just as they would a stick-built home. This attention to detail makes prefab homes equivalent to new construction homes in terms of quality.

For consumers interested in energy-efficiency, modular homes offer green advantages. Their factory assembly reduces the environmental impact compared with an onsite build. There’s less construction waste, and the homes often feature a tighter envelope than conventional homes, which reduces air leaks within the home. Air leaks drive up your utility bills and increase your energy footprint.

Taken together, all of these variables make modular an attractive option to home buyers who are looking to build their dream home. Homeowners considering a home addition may also be interested in modular vs. new construction. A modular addition can be designed off site, then transported and attached to the existing home.

Disadvantages of Modular Homes

While modular homes have many attractive advantages, they are not the right choice for every consumer.

Since modular homes are transported to the construction site on highways, the modular units cannot exceed certain height and width limitations. While you may combine several modules together to create a large home, this is still a limitation compared with stick-build projects. Homeowners who want a large home with an estate look and feel are better served with a conventional home.

If clients like to alter the scope or fiddle with the design of a conventional home, it is doable. The same cannot be said for modular. Since modular homes are designed and built in the factory, it’s extremely difficult to make changes once the plans are set. Clients who have difficulty making their minds should stick with stick-built.

Integrating Modular Homes Into Your Contracting Business

Now that you understand the consumer appeal of modular homes as well as some of their drawbacks, consider whether you’d like to offer prefab construction to clients. Since this share of the market is projected to grow, it could be a way to boost your business and get in early, while the market in your area is still new. By the time competitors wise up, you’ll have a reputation for excellent service with prefab, making it challenging for new contractors to break in.

If you decide to offer prefab services, you’ll need to learn best practices for putting modular homes together. To create a tight envelope, the modules must be connected in a specific way. Since sheetrock may develop stress cracks in transit, you’ll need to fix any issues on site as part of the assembly. After the raw package is assembled, finish work varies. Your crew may install flooring and siding, or these may have been put on at the factory.

The question of whether to add modular homes to your contractor business is one that only you can answer. By understanding a bit about what these homes offer consumers and how they alter the workflow for you and your crew, you can be informed and offer the best possible services and value.

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