Manufactured Homes

Are Modular Homes Really Cheaper than A Traditional Home?

Is it true that a modular home costs less than a traditionally built home? Modular homes are built inside a factory setting, which creates numerous advantages that general contractors building on site do not have. The assembly-line production process favors lower prices for materials such as lumber, siding, windows, sheet rock and appliances. Because these manufacturers buy in quantity they pay far less and pass this savings onto their builders.

The hourly rate is typically lower in a modular factory, $15 per hour or less compared to sub-contractors which average over $30 per hour. Modular companies are organized differently and utilize their time more efficiently. There are no rainy days in a modular home plant. There are no wind storms, vandalism and theft to worry about.

A modular home is more durable as it is built with precise specifications long before it ever reaches the job site. In fact, many sources believe that modular houses are stronger than traditionally built homes because they have upwards of 30% more lumber, which makes for stronger frames. Modular units arrive at their destination by truck 90% completed. A 2,000 square foot modular home will typically have four units delivered. Assembly only takes a few days compared to months with a stick built home.

Now for the bad news, yes it is true the price of a modular home can be 10% to 20% less compared to having a traditional home constructed. But the transportation costs can eat away at your savings if you’re not careful. If a modular home factory is located near your property, (within 150 miles or less) then chances are you’re going to have low transportation costs. On the other hand if your property is located 250 miles or more from the modular factory you could pay a lot more. The cost of transporting your dream home will determine if you save a lot of money or not. So, always keep this in mind when shopping for a modular home. Try to focus on manufacturers in your back yard first before you venture out of your area or into another state.

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