Because we performed proper due diligence of the land beforehand, we identified a rock ledge that would have cost a few extra thousand dollars to dig through. Instead, we just moved the home to a slightly different location, allowing us to avoid the hassle altogether. Since we want extra space for storage and the option to add more living space in the future, we went for a full basement instead of a crawl space. Placing the modular home on a crawl space would have been equally sound structurally and only half the price, but the utility of a full basement is a worthy investment.
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Building a modular home is considered more cost-effective than constructing a traditional stick-built, or site-built, home. According to Jeremy Nova, national modular home expert and co-founder of Studio Shed, “As supply chain and construction delays continue to challenge the construction industry, prefab architecture has become a more popular option, offering turnkey, ready-to-install solutions for residential construction in less time and often less of an expense, while still allowing high customization for every project.” Modular home costs are typically 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 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.
It’s a good idea to check with the building contractor to confirm what is included in the pricing contract. This guide will explore the important factors that influence the cost of modular homes; traditionally built homes vs. mobile homes, manufactured homes, and modular 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.
So what is a modular home? A modular home, sometimes called a prefabricated or manufactured home, is built off-site at a factory location, transported to the permanent housing area in sections, and assembled, connected to utilities, and secured on-site. “Factory-based manufacturing under one roof streamlines production and allows customizable production at scale, while avoiding supply chain, labor shortage, and inflation challenges typically faced by general contractors and local design-build firms,” Nova adds.
While $270,000 is the average cost of a modular home, the answer to the question, “How much does a modular home cost?” can vary due to several factors including 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.
Homeowners can expect to pay between $80 and $160 per square foot for a base price for a modular home. When consulting with modular home builders, it’s important to ask what is included with the base price and if transportation, assembly, installation, and delivery are separate charges.
Modular homes are available as 1-, 2-, and even 3-story buildings. Multistory modular homes take longer to install since they come in several different pieces that need to be connected. Below are manufactured home prices per number of stories.
Number of StoriesPrefab Modular Home CostCustom Modular Home Cost1$40,000 to $113,000$96,000 to $276,0002$75,000 to $188,000$180,000 to $575,0003$150,000 to $263,000$375,000 to $800,000Think a modular home is right for you?
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The cost of prefab homes will increase the more bedrooms and bathrooms a home has. Not including installation, A 2-bedroom, 1-bathroom manufactured home typically costs between $65,000 and $225,000 after installation, while a 4-bedroom, 2-bathroom home runs from $130,000 to $380,000. Below are the average prices of modular homes with various bedroom and bathroom configurations, including installation.
Photo: bobvila.comMany brands include modular homes with prices on their website, but below are some of the best modular home manufacturers and their average pricing.
It’s ideal to double-check with the modular home manufacturer to see if it includes land preparation, utility hookup, and permit acquisition in its services. Other important questions include whether its pricing covers delivery and installation fees and the cost of additional customizations.
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. Land clearing and preparation costs $2,750 on average, 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 $6,000 to $20,000, depending on the size of the home, foundation type, and location. A basement foundation can cost from $25,000 to $80,000, and the price to install a crawl space begins at $6,000. Below are the types of modular home foundations and the average installation cost.
Foundation TypeCost (Per Square Foot)Average Cost (Including Installation)Pier and beam$7 to $11$3,000 to $8,000Crawl space$7 to $14$6,300 to $16,300Stilts and pilings$11 to $19$12,000 to $30,000Basement$33 to $47$20,000 to $29,000The average price for modular home delivery ranges from $5 to $10 per square foot, or $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. It does not typically include utility setup or any finishing touches.
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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.
Modular Home Utility ProjectAverage Price RangeElectrical panel$1,400 to $2,800Electrical wiring$6,000 to $22,500Gas line installation$500 to $2,000HVAC installation$5,000 to $11,000Plumbing installation$2,300 to $5,200Septic system installation$3,500 to $10,000 or moreSewer line installation and connection$1,500 to $10,000 or moreWater main installation$500 to $2,500Well drilling$3,000 to $15,000Permit 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. 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, which typically runs from $5,000 to $15,000, or a total of 5 percent to 7 percent of the total cost of the home. Tax rates vary from state to state and city to city. The best modular home manufacturers or contractors will be able to answer any sales tax questions.
Photo: istockphoto.comDuring the budgeting process, homeowners may discover additional factors that can change modular homes pricing. These can include prefabricated versus custom modular home costs, additional customizations, and landscaping.
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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 materials and between $130 to $310 per square foot including installation. Below are some average price ranges for common modular home sizes.
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Square Footage of Custom Modular HomeAverage Price Range (Materials and Labor)1,000 square feet$130,000 to $310,0001,500 square feet$195,000 to $465,0002,000 square feet$260,000 to $620,0002,500 square feet$325,000 to $775,000Some 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.
Customization TypeAverage Price Basement$18,000 to $30,000Deck$7,700Shed$2,500Two-car garage$28,000Some 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.
Type of HomeAverage Cost (Materials and Labor)Cottage$50,000 to $150,000Duplex$90,000 to $225,000Log cabin$25,000 to $250,000Tiny home$20,000 to $50,000Townhouse$45,000 to $113,000Most 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.
A modular duplex can be constructed as a side-by-side single- or double-story home. They typically range from $90,000 to $225,000, depending on the size.
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 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. The best tiny-home builders charge between $20,000 and $50,000, with the national average at $35,000.
The average price range for a modular townhouse is $45,000 to $113,000, with many homeowners spending $79,000. If the townhouse has more than two stories, the pricing can increase.
Photo: istockphoto.comAccording to Nova, “Prefab construction at scale results in affordable solutions for homeowners and meaningful reductions in waste and degradation of the environment.” Other 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 customization, short construction time, and a high resale value. Modular homes come in various sizes, designs, floor plans, and styles to fit the needs of many homeowners.
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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 mobile homes having 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.
From adding a driveway or a garage to changing the window locations, modular home designs 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.
According to Nova, “Prefabricated modular homes allow builders to start projects faster and deliver on time.” Move-in time for a modular home can take as little as 1 to 4 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. Modular home kits 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.
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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.
Photo: istockphoto.comFor many, paying for a modular home out of pocket isn’t feasible. In terms of modular home financing, it may be worth looking into the best home equity loans from providers such as U.S. Bank and Flagstar Bank to help with financing.
Asking a modular home professional or manufacturer the right questions can help save money and avoid miscommunication. By asking some important 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.
Sources: Angi, HomeAdvisor, HomeGuide
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