For individuals seeking affordable housing units, prefabricated homes serve as a modern alternative to traditional and expensive site-built ones. These units are constructed in parts in a factory and later assembled on the site. Depending on the parts used and units manufactured, prefab homes can be of different types. Modular homes and kit homes are the popular, affordable options among homeowners. So, knowing the factors that affect their prices can help one make informed purchasing decisions.
Area and size
Like traditional houses, prefab homes’ cost mainly depends on their square footage and size. Choosing to build a bigger house will naturally increase its price. So, when considering purchasing a prefab home, one can start by planning the budget and the area needed for the house. Among the modern prefab options, modular homes are generally bigger than kit homes and, therefore, costlier. But even the individual prices of these home units will vary based on their sizes.
Number of rooms
The more rooms—especially bedrooms and bathrooms—one adds to their modular or kit homes, the higher their prices will be. Generally, kit homes and modular homes with two to three bedrooms are popular among homeowners. Also, provided other factors fit into the place, one can easily get a modular home with two bedrooms for under $200k.
Floor plan and customizations
A great benefit of prefab homes over stick-built houses is that they offer a great opportunity for customization. One can opt for standard layouts or request customizations to meet their preferences and requirements in interior layout, flooring, and exterior designs. But it is important to note that with prefab homes, complex customization choices can drive up the prices.
Materials used
For both modular and kit homes, the materials that go into building them can significantly impact their costs. Materials that offer more durability and safety to the house—such as steel frames and concrete—will naturally cost more. Additionally, for wooden elements (like flooring or even walls in the case of some kit homes), choosing options such as bamboo and reclaimed wood can increase the price of the house.
Additional modules
Including extra units or modules in a modular house—such as a garage, a basement, or a shed—will also increase the unit’s price. Plus, the materials that one chooses for these modules will also influence the final price.
Location
Even though prefab homes are assembled and not constructed on the site, one must still acquire land and lay the foundation for the unit beforehand. The location from where one purchases the land will ultimately influence the overall budget for the house. Moreover, remote areas may incur high transportation expenses for delivering the modular components, as well as potential challenges in finding skilled labor for assembling the units. Since these factors influence the final price, it is advised to evaluate the feasibility of transporting the materials to one’s chosen location before finalizing it.
Connections to utility services
All homes, whether prefab or traditional, must be connected to basic utility services like electricity and water. Prefab homes in locations where there is difficulty in accessing such facilities may result in high costs to establish such connections.
Permits
Irrespective of the construction method, building permits are mandatory for every permanent structure. Permits for prefab homes ensure that the house complies with local building codes. But, the associated costs for permits may vary depending on the region. On the other hand, inspections are conducted to ensure that the mechanical components of a modular or kit home are functional and energy efficient. So, when planning a budget, homebuyers must consider permit fees and inspection costs.
On-site installation labor
One must also consider the labor costs for assembling and installing the components of a modular home. Some modular home companies also offer installation services, which may be more budget-friendly than hiring a separate professional for the task. For kit homes, one may not necessarily have to worry about this cost, as the assembly of most of those units can be done by the homeowner.
Top options for modular homes under $200k
1. Rio from Clayton Homes
This is a 1,475 sq. ft. modular home from Clayton Homes, with three bedrooms and two bathrooms. The house includes several elements and amenities, such as a coffee bar and walk-in closets. Despite this loaded layout, the unit has a starting price of just around $100,000.
2. Danbury Ranch Modular Home from Next Modular
With an area of 1,652 sq. ft., the Danbury Ranch Modular Home from Next Modular comprises three bedrooms and three bathrooms. Without transportation and assembly, the house costs around $194,000.
3. Evergreen Ranch Modular Home from Next Modular
This housing unit comprises three bedrooms and two bathrooms. With an area of around 1,680 sq. ft., the dwelling costs around $190,000.
Top brands for kit homes under $10k
1. Arlanda XL from Allwood
The unit has an area of around 227 sq. ft. and is designed like a classic log cabin. The unit mainly uses Nordic spruce wood for the elements, costing around $9,000.
2. Florida model from EZLogStructures
With an area of 140 sq. ft., the Florida model kit house from EZLogStructures costs only around $6,000. A great advantage of this unit is that it is available with interlocking structures, which are easy for DIY assembling.