How Much Does a Prefab Home Cost? (2023 Price Guide)
Owning a home is a dream come true for most people. This is because being a homeowner comes with an additional sense of security since there is no fear of getting evicted or missing out on rent payments.
The high cost of building and buying a home, however, deters most people and locks them out of the real estate market. This is because building materials are expensive and constructing a house takes a long time. Luckily, prefab houses are easier to put together.
In this article, we’ll talk about prefab homes, how much they cost, and why they are a great idea.
What Is a Prefab Home?
Prefab homes are manufactured piece by piece in an off-site factory, transported, and assembled at the homeowner’s site. These homes have grown in popularity as they are a more sustainable and affordable housing option and can easily be assembled to fit your desired home design.
There are several types of prefab homes, depending on how they were constructed. They include the following:
Modular homes: These homes are constructed from factory-made pieces and are customized according to the floor plans.
Manufactured homes: Also referred to as mobile homes since they are built entirely in the factory and transported to the building site as a complete house. The main difference between modular homes and manufactured homes is that modular homes are transported in sections, while manufactured homes are transported whole.
Kit homes: Similar to modular homes since they are assembled from pre-cut factory pieces, but homeowners can assemble them on their own.
Importance of Prefab Homes
Constructing a prefabricated house is much cheaper than creating a site-built home. Manufacturers tend to purchase the materials in bulk, making them more affordable. In most cases, the construction is optimized, which leads to additional savings.
Prefab homes are also built in a shorter time, thus reducing the amount of time you’ll need to pay for labor. The low construction cost is the main reason most people prefer prefab homes.
Prefab offers a wide choice of designs since the pieces can be customized to fit a particular floor plan. There are also countless designs to choose from. Depending on your local building code, you can modify the plan to build any design you want. Unlike traditionally constructed homes, it’s also easier to change the design of a prefab house after it has been built.
Prefabricated houses also require fewer materials to construct than traditional homes, and the leftover materials are used to build other pieces. If a modular home is dismantled, the prefab pieces can be used to construct another house or in another project. The technology discourages wastage, thus creating a positive environmental impact.
Constructing a prefab home takes about 30% of the time required to build a house from scratch at a site. This is mainly because the construction work is mostly done at the factory.
How Much Do Prefab Homes Cost?
The price of a prefab home depends on what type it is. Constructing or buying a prefab home is one of the cheapest ways to become a homeowner in the current real estate market. Most prefab homes are around 20% cheaper than site-built homes. Building prefab homes in a factory is cheaper since construction materials and labor costs are evenly distributed across the board.
On average, a prefab home of between 800 and 1,500 square feet can cost anywhere between $40,000 to $113,000, while a single-story fabricated modular home costs around $76,500. It’s vital to remember that the prefab cost does not include all the other additional costs involved. You will need to purchase the land for the building site and pay permits and hookup fees.
The price of constructing a prefab home may also depend on your location, the size of the house, amenities, and the type of building materials used. Luckily they are several financing methods available.
Additional Costs to Anticipate
Although prefab homes are way easier and cheaper to construct, they require regular maintenance, and this comes at an additional cost. Maintaining these homes regularly helps to ensure they last for years to come. Some maintenance tips include the following:
- Check the roof regularly, because leaks and water damage can quickly cost a lot of money.
- Check your gutter system regularly to ensure that it doesn’t get clogged. Clogged gutters can lead to leaks and thus higher maintenance costs.
- Make sure your prefab home is properly insulated. Heating and cooling costs can quickly skyrocket without adequate insulation.
- Inspect your plumbing systems and promptly repair any leaks from pipes to avoid water damage.
Despite having a lot of benefits, prefab homes also have some disadvantages, and you need to consider them before deciding to begin construction. Some of them include the rules and regulations you need to meet before you can get a permit. It’s also challenging to set up all the necessary utilities in the house, and this can cost a fair bit extra.
The initial costs can also be pretty high and must be paid upfront before you can build the house. However, the benefits of owning a prefabricated home far outweigh the cons. Prefab homes are a quick and affordable way to build your own home.
Featured Image Credit: Dragoncello, Shutterstock