Monday, September 30, 2019

Modular Home Business: The Advantages And Disadvantages

The only constant is change, which means industries are always evolving and the housing building is no exception. The rising popularity of modular homes lately has proved that the building industry is capable of ‘thinking outside the box’ or rather thinking within the box.

Modular homes are gaining popularity, as they are not only quick and cost-effective to construct and build, but energy efficient and a greener option too. It’s little wonder new homeowners are choosing modular homes over traditional houses in the United States. This makes for a great business idea to invest in, as the demand for modular homes continues to increase.

Many builders are migrating to offering modular homes or businesses as opposed to onsite building practices because the advantages far outweigh the disadvantages, now is the time to explore this method of building further.

The Modular Home Industry

Despite contrary belief, modular buildings are not manufactured, mobile or recreational homes that are portable. The home is simply built offsite and transported to the site and placed on foundations making them a permanent structure. Everything else stays the same for builders except for needing commercial liability insurance in the factory and onsite.

The entire process is up to 50% quicker as the efficiency of building homes in a factory far outweighs the complications an onsite build could cause. The customization and styling can be adapted easily, and any size and style of home can be accommodated.

The Advantages

There are many advantages to building modular homes instead of traditional houses, namely;
       Onsite delays are minimized due to weather conditions not affecting building
       Factory-built, minimizing the wait for foundations to be laid first
       Modular homes don’t depreciate faster than their counterparts
       Customization freedom
       Modular buildings can accommodate business or commercial purposes easily
       Modular buildings are permanent structures, they are not seen as mobile homes
       Modular buildings can be built on basements or crawl spaces
       Modular homes and buildings are sustainable and eco-friendly
       Faster completion scope, easy and quick to build due to smart design software used by engineers and architects
       Modular buildings are built to withstand severe weather conditions including winds of up to 175 mph
       Modular buildings do not have design limitations, any style and aesthetic can be accommodated
       Building inspections are performed in the factory when the building is transported to the site
       Modular buildings can be expanded after completion

The Disadvantages

There are fewer disadvantages to modular buildings than advantages, such as;
       More specific rules, guidelines and building codes that must be adhered to when compared to traditional home building
       Plumbing, electricity, and ductwork are an added expense that the homeowner must be informed about
       Consumers and property developers are still afraid of the modular home industry and are reluctant to get involved at first
With so many advantages to building modular homes or businesses, the property market is bound to be flooded with modular buildings in the near future. The added bonus of sustainability makes the move from building traditional homes to modular ones a no-brainer.

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Tom Hardiman said...

Plumbing, electricity, and ductwork are added expenses? Don't most site built homes also have this expense?

Harris - Finish Werks said...

Tom, you are correct. Please note that the author informed us that "electricity" is extra. Show me a place in America where electricity is free, and I'll move there. Tomorrow. Meanwhile, ALL builders must wire mechanical systems and appliances, install custom light fixtures and connect the home to the local power utility. This ain't free for anybody.

Anonymous said...

There are a lot of advantages to building a modular however the BRAND negative outweighs the advantages for many as a mindset rather than a fact. The Disadvantages need to include the cost of transportation and setup cost, cranes and setup crews aren't cheap.

I have built both, prefer modular, because the shortages of skilled labor in site built homes have a higher burden on any project in terms of "time is money". Given real estate is local site built homes under 1500 Sf in my area are selling for $198 per SF, yet homes over 1600 SF drop to $155 per SF and drop even further when the SF exceed 2000. Cost doesn't equal market and homes under 1500 SF are in high demand, as such modular and manufactured homes have an advantage in that market space. Here in Southeast Virginia homes over 1700 SF almost have to be site built because cost exceeds the market in modular. Custom modular being the exception.

Not an expert just an opinion based on experience as an appraiser more so than a builder.