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The average cost to build a modular home is around $270,000, and most modular homes total between $180,000 and $360,000. Of course, this price varies significantly by location, and the price tends to follow the cost of living in the area. There are quite a few other factors at play that can affect your pricing, including the following:
Number of bedrooms and bathrooms
Site preparation, including land clearing and leveling
Type of foundation
Utility connections
Cost of building permits
Modular homes can be a great investment, especially for those who find the prices of stick-built real estate too high. Modular homes are usually much more affordable because they’re mass-manufactured and then assembled on-site or delivered mostly assembled. If they’re installed properly and by professionals, they can last for between 50 and 100 years, potentially making them an outstanding investment.
Yes, you will need a building permit for modular homes in most municipalities throughout the country. In some areas, modular homes are classified as mobile homes, and in others, they’re classified as standard homes, but in either case, you will need a building permit to construct or install one on your property. You can expect the permits to cost somewhere between $500 and $5,000, depending on your location and the size of your house. You might require additional permits for plumbing, electrical, and gas connections, but these should match what you’d pay for a stick-built home.
Modular homes can go up or down in value depending on a few factors. In areas where real estate is appreciating, the value of modular homes is likely to increase, and vice versa. Additionally, the value of modular homes depends partially on the area. In cities where every other home is stick-built, modular homes might be considered a functional obsolescence, in which case they could be less desirable and go down in value. In either case, though, modular homes can still be a good investment, especially since they provide housing at a lower upfront cost.
It usually takes around four to six months to build and install a modular home, although your timeline could go up to around eight months if there are delays in the manufacturing or permitting process. Heavy site preparation and foundation pouring can extend that timeline if you need them, as can customizations you want for your modular home. Your modular home company should be able to provide an estimate for the construction timeline before you sign any contracts or agree to any work.
Similar to Modular Homes
What Do Modular Homes Cost?
Modular homes cost between 10 and 20 percent less than comparable stick-built homes. For a ranch home that might cost $250,000, you can get a new modular home for $211,638, saving you $38,362.
Just as the homes near your neighborhood have different amenities and prices, so too do modular homes. A pricing factor unique to modular homes is the travel distance between the home's construction factory and your homesite, though the freight charge is minimal. Consider these price factors for a three-bedroom, two-bathroom 1,780-square-foot ranch house:
- Land: $15,000
- Base home price: $93.000
- Customizations: $32,000
- Site Preparation: $6,500
- Foundations: $22,250
- Taxes, fees and freight: $10,906
- Button-up work (connections, travel repairs, interior finishing): $17,000
- On-site construction: $10,000
- Utilities hookups: $3,000
- Permits: $1,982
What are Modular Homes?
Let's get this out of the way immediately: a modular home is not a recreational vehicle.
A modular home does not sit on wheels. It goes nowhere. It is a less expensive way to build the home of your dreams than having a house built stick by stick on site.
Modular homes are factory-built homes crafted using the benefits of assembly line manufacturing and the craftsmanship of individually built homes. Rather than order one kitchen sink, a modular home builder orders 100 kitchen sinks, gaining deep discounts for volume. Storing all the building materials at a factory not only saves money, it protects everything, increases efficiency, and reduces labor costs.
Modular homes are planned, designed, cut, laid out and assembled in a large indoor space. Weather does not delay work; materials are at ideal working temperatures year-round.
Advantages of Modular Homes
Sure, a modular home is 10 to 20 percent less expensive than a stick-built home built on your property, but is it better or stronger?
Since the materials are warehoused and can allow a manufacturer to turn out new homes weekly, more money can be spent on better quality materials while still gaining bulk discounts. Substandard raw materials can be weeded out, rather than worked into a home.
Every home is inspected at every stage of construction in the factory, before third-party inspectors see the finished product.
Modular homes often have to travel in pieces for hundreds of miles. They are built solidly to withstand the road trip, so they can easily withstand the occasional windy day once in place on your site.