By Katie Flannery | Published Feb 7, 2023 1:48 PM
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Building a modular home is considered more cost-effective than constructing a traditional stick-built, or site-built, home. They come in a wide variety of styles, such as tiny home, ranch, townhouse, cottage, log cabin, duplex, Cape Cod, French country, modern, and many more. Since modular homes are constructed in a factory before being delivered to the installation site, modular home cost is less expensive than the cost for standard homes that are constructed on-site by the best home builders. According to Angi and HomeAdvisor, modular home prices range from $180,000 to $360,000, with many homeowners spending $270,000 on average nationally. The final manufactured home cost depends on square footage, the number of bedrooms, the installation location, the materials used, the floor plan, and any additional customizations, such as siding or flooring upgrades. The average price of a modular home runs from $80 to $160 per square foot for a basic house that includes site preparation, the base unit, delivery, installation, and finishing. Some construction companies will charge extra for delivery, installation, and customizations, so it’s important that homeowners check with their contractor to avoid any surprise charges. Adding a shed, porch, or garage to the home can increase the overall installation price by $2,500 to $28,000 or more. Compared to traditionally built custom homes, which can range in price from $350,000 to more than $1 million, manufactured homes cost considerably less.
Homeowners budgeting for modular housing prices should keep in mind that the base pricing for modular homes usually includes delivery and installation by a team of professionals and a crane. The total price typically includes site preparation, permit fees, foundation building, utility construction, installation, and the buttoning-up process, which involves completing all on-site work and performing other finishing tasks. Homeowners will want to check with their building contractor to confirm what is included in the pricing contract. Manufacturers can build 90 percent of a modular home in 1 to 2 months at the factory and then deliver the sections to the installation site. The building contractor will prepare the land where the modular home will stand, connect the sections securely to the foundation, hook up the utilities, and complete the finishing touches. This guide will explore the important factors that influence the cost of modular homes; traditionally built homes vs. modular homes vs. mobile homes; additional costs and considerations that can affect new modular home prices; the benefits of building a prefab home; and some frequently asked questions about modular homes and the building and installation process.
A traditional, or stick-built home, is built on-site. The name “stick-built” comes from the practice of building homes out of wood and a frame that is constructed of 2-foot by 4-foot “sticks.”
Original mobile homes of the early and mid-1900s were similar to modern campers or trailers, in the sense that they could be hooked up to a vehicle and moved to a different location. The National Mobile Home Construction and Safety Act of 1974 and the HUD Manufactured Home Construction and Safety Standards of 1976 set safety guidelines for the best mobile home manufacturers, which resulted in mobile homes being more permanent structures.
A modular home, sometimes called a prefabricated or manufactured home, is built off-site at a factory location, transported to the permanent housing area, and connected and secured on-site. Modular homes are transported in sections, assembled and affixed to a permanent foundation, and resemble traditionally built homes.
While many homeowners spend $270,000 on average for the cost of a modular home, modular home prices can vary from the national average due to several factors. These can include square footage, number of stories, number of bedrooms, type and brand of modular home, land clearing and preparation, foundation installation, delivery charges, local labor pricing, utility construction, building permit fees, and local sales tax.
The cost of manufactured homes are largely dependent on the square footage, as manufactured home prices increase as the square footage of the home increases. Homeowners can expect to pay between $80 and $160 per square foot for a base price for a modular home. When consulting with a contractor, it’s important for the homeowner to ask what is included with the base price and if transportation, assembly, installation, and delivery is included or if those are calculated as additional charges.
Modular homes are available as 1-, 2-, and even 3-story buildings. Multi-story modular homes take longer to install, since they come in several different pieces that need to be connected. Below are manufactured homes prices per number of stories.
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Since the cost of prefab homes is based on square footage, the price will increase the more bedrooms and bathrooms a home has. Not including installation, A 2-bedroom, 1-bathroom manufactured home typically costs between $40,000 and $140,000, while a 4-bedroom, 2-bathroom home runs from $80,000 to $250,000—these prices are for the home only and do not include installation. Below are the average prices of modular homes with various bedroom and bathroom configurations, including installation.
Just like traditional stick-built homes, modular homes are available in a variety of styles and designs. The cost per square foot is usually similar from style to style. Some of the most common modular home types are tiny home, townhouse, cottage, log cabin, and duplex. Each of these styles is discussed in more detail in a section below.
Depending on the brand, floor plan, square footage, and additional customizations, the cost of modular home installation can fluctuate from the national average. Many brands include modular homes with prices on their website, but below are some of the most common modular home brands and their average pricing.
It’s recommended that homeowners double-check with the modular home manufacturer of their choice to see if they help prepare the land, hook up utilities, and acquire the required building permits. Other important questions to ask include whether their pricing covers delivery and installation fees and what the cost is for additional customizations.
Many modular home installation sites need to be cleared and prepped in anticipation of delivery and assembly. Some of the most common preparation activities include removal of trees, plants, rocks, and debris; ground leveling and grading; and land excavation. The average price for land clearing and preparation is approximately $2,750, depending on the square footage and current condition of the land.
Modular homes need a foundation to accommodate access to electrical wiring, plumbing, and HVAC ductwork. Foundation installation runs about $8,500, or between $7 to $30 per square foot, depending on the size of the home, foundation type, and location. A basement foundation can cost from $20,000 to $30,000, and the price to install a crawl space begins at $6,000. Below are the different types of modular home foundations and the average installation cost.
The average price for modular home delivery ranges from $5 to $10 per square foot. Depending on the number of sections, the size of the home, and the transportation distance, delivery charges can run from $3,000 to $12,000. Delivery prices typically include transportation costs, a team to set up the modules and attach them to the foundation, and a crane for moving the sections into place. The cost of delivery usually does not include the cost to set up manufactured home utilities or any finishing touches.
Installation costs usually include the price of labor, but homeowners are advised to check with their contractor to confirm. It’s common for labor prices to be much more expensive in densely populated urban areas with a higher cost of living than in rural areas of the country.
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Installing utility lines for electrical, plumbing, and heating and cooling units in a modular home costs from $2,500 to $25,000. The overall total depends on the project scope and location. Modular homes in rural areas may need a water well, septic tank, and solar power, if desired. Below are common utility construction projects and the average price ranges.
Permit costs and fees to prep the land and build a modular home range from $500 to $5,000, depending on the geographic location and size of the home. Some common permits and fees that may be required are a building permit, pre-plan preview, mechanical permits, fees for soil testing, driveway construction permit, and a certificate of occupancy. Homeowners will want to double-check their local requirements to avoid surprise permit costs and other fees.
Even the price of the cheapest modular homes can increase due to the addition of sales tax. Sales tax for a modular home typically runs from $5,000 to $10,000, or a total of 5 percent to 7 percent of the total cost of the home. Tax rates vary not only from state to state but also city to city. The best modular home manufacturers or contractors will be able to answer any sales tax questions.
When budgeting for modular home prices, homeowners will discover additional price factors and considerations that can change modular homes pricing. These can include prefabricated versus custom modular home costs, additional customizations, and landscaping.
A standard modular home is designed by the manufacturer and typically has few configuration options. Customizing a modular home will increase the total building cost. Homeowners can expect to pay between $80 and $160 per square foot or from $180,000 to $360,000 for a base model prefab home, while a custom modular home can run from $100 to $250 per square foot for a base model and between $130 to $310 per square foot including installation. Below are some average price ranges for common modular home sizes.
Depending on the type of modular home, some homeowners choose to include some custom additions in the building project, among them a shed, basement, deck, or a 2-car garage. Contingent on the type of add-on and whether they’re attached to the house or not, they can range in price from $2,500 to $30,000 or more. Below are the average prices for each type of customization.
In preparation for a modular home installation, the existing trees and vegetation commonly need to be cleared. Some modular home contractors will provide basic landscaping as part of their installation services, but many do not. Homeowners will need to hire a local landscaping company to plant flowers, shrubs, trees, and grass. Landscaping around a new modular home costs about $3,200 on average, although it could be as expensive as $16,000.
Modular homes are available in a range of styles and design choices. Homeowners can choose the style that they prefer and what works for their budget. Some of the most common types of modular homes are tiny home, townhouse, cottage, log cabin, and duplex.
A modular tiny home typically ranges from 100 to 400 square feet, but it’s not unusual for them to be 500 square feet. A modular tiny home can be built on a steel frame with wheels to move it from place to place, or on a permanent foundation, depending on the size of the home and the location. Homeowners should expect to pay between $20,000 and $50,000, with the national average at $35,000.
It’s common for a modular townhouse to measure between 900 and 1,500 square feet and have two floors. The average price range is $45,000 to $113,000, with many homeowners spending $79,000. If the townhouse is larger than 1,500 square feet or has more than two stories, the pricing can increase.
Most modular cottages cost from $50,000 to $150,000, with the average price at $100,000. Cottages are usually between 1,000 and 2,000 square feet, and many people think of them as smaller than a single-family dwelling.
Modular log cabins are commonly sold as kit homes for a homeowner to construct on their own. Delivered in pieces to the installation site, a modular log cabin can cost from $25,000 to $250,000, with the national average at $138,000.
A modular duplex can be constructed as a side-by-side single- or double-story home. They typically range from 1,800 and 3,000 in square footage, and the price can range from $90,000 to $225,000, depending on the size. Many homeowners spend about $158,000 on a modular duplex home.
The benefits of building a modular home include a lower construction cost compared to the cost to build a traditional house, high durability, energy efficiency, ease of customizations, short construction time, and a high resale value. Modular homes come in various sizes, designs, floor plans, and styles to fit the needs of any homeowner.
Homeowners can expect to pay about 10 percent to 20 percent less for a modular home. The average cost per square foot to build a modular home ranges from $80 to $160, compared to $100 to $200 for a traditionally built home.
Residents of states that frequently see tropical storms, hurricanes, or tornados will be happy to know that modular homes typically fare well in extreme weather conditions featuring strong winds. In addition to their higher durability, the cost for a hurricane-proof modular home is typically lower than that of a traditional home with hurricane-proof features like shutters.
Modular homes usually have lower heating and cooling bills than traditional homes. This is due to their solid modular construction, which also means they’re not exposed to moisture during construction, leading to better air quality inside the home.
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From adding a driveway or a garage to changing the window locations, a modular home can be customized to meet the needs of the homeowner. A custom build is an option if the standard modular home floor plans don’t work for a homeowner and their family.
Move-in time for a modular home can take as little as 2 to 6 months, which is about 30 percent to 60 percent faster than for a standard stick-built home.
Modular homes are made with quality materials, and many homeowners will install high-end finishes, design with desirable open floor plans, and build with green eco-friendly modular home standards. Modular homes have a much higher resale value than mobile homes.
If a homeowner has extensive construction experience, they can have success with assembling and installing mail-order modular kit homes. Kit homes include all the needed materials and provide detailed instructions to make it a DIY-friendly project. Some kits also add foundation and roofing materials, as well as the required hardware to make the process easier. Homeowners are advised to consider that putting together a modular home is a complex project that involves construction knowledge and experience. Overseeing and being in charge of the construction, assembly, and installation of a modular home takes many hours of labor and planning time and can quickly become a full-time job. The possibility of making a mistake that can cost thousands to remedy is enough for many homeowners to leave the construction of a modular home to the pros. Not only can an experienced modular home contractor construct, assemble, and install the home quickly and efficiently, they can also prepare the land, manage the site, follow all local building codes, pull permits, manage subcontractors, and recognize potential issues and solve them.
Budgeting for modular home prices can be an overwhelming task, especially considering all the extra costs that can cause the project total to increase significantly. Below are some tips to save money when it comes to the cost of manufactured homes installed in your area.
Asking a modular home professional or manufacturer the right questions can help save money and avoid miscommunication. By asking the following questions, homeowners can get a clear picture regarding modular home prices and the construction and installation process.
Before selecting a modular home builder or manufacturer, homeowners will want to have all the available information regarding modular home prices and the construction process. Below are some frequently asked questions about modular homes.
The cost of a modular home ranges from $80 to $160 per square foot, or from $180,000 to $360,000, with many homeowners spending approximately $270,000.
Modular homes hold on to their value as well as traditionally built homes.
According to the Federal Emergency Management Agency (FEMA), modular homes are solidly built and can withstand powerful storms like hurricanes. Since modular homes need to handle being moved and transported to the installation site, many manufacturers abide by higher construction standards.
Modular homes can last from 30 to 100 years, on average, depending on the construction materials and the level of home maintenance.
Depending on the location and the needs of the homeowner, a variety of foundation types can be appropriate for a modular home, such as a basement, crawl space, pier and beam, or a stilt and piling foundation if the home is located in a storm-prone area.
Modular homes are energy-efficient and well insulated. Since these types of homes can be customized, green eco-friendly options are available to further keep the heating and cooling bills low.
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