Factory-built is becoming a solution to home costsBelieve it or not, there is an affordable alternative to today’s high-priced single family home. Even in our current inflated marketplace, the homeownership dream is being kept alive for many who think they simply cannot afford to purchase their own home. They should seriously consider the tremendous benefits of modular housing.
First, let’s not get confused or scared off by that term-modular housing-without really understanding what it means. The most significant influence on the price of the more commonly known “site built” home comes down to the very difficult to control costs of independent and often expensive builders and specialty subcontractors. The main difference between such a home being completely built on-site and a modular home is the key.
Modular homes are almost completely built in a controlled factory setting under strict guidelines before delivery to the site, thus resulting in better quality and cost control. All such factory construction must comply with the International Building Code.
Increased reliance on factory production has resulted in major changes in the efficiency of housing construction. Indeed, modular home builders are not the only ones relying on factory construction in an effort to keep costs down. Even on-site builders are routinely using prefabricated wall panels, pre-hung doors and windows, pre-assembled stairs, roof trusses and cabinets. Other advantages of factory construction include reduced building and financing costs, more efficient management of inventory, and the ability to better control the quality and performance of building products.
Almost all homes built in California today include some factory-produced components. Yet, only modular home builders are utilizing the controlled factory setting to maximize nearly every aspect of construction, while significantly minimizing the need for subcontractors once the prebuilt home reaches the site.
One only needs to look at a building industry analysis of single-family residential construction costs over the last decade to see the difference. For the nine year period from 2001 to 2009, the cost of a site-built home averaged $200 per square foot. During the same period, a modular home’s cost averaged $120 per square foot – $80 per square foot lower. As an example, that translates into a cost savings of over $128,000 for the construction cost of a 1,600 square foot home. Once land and often reduced financing and building fees are equated, it gives many people-who otherwise would not even consider it-the ability to purchase their own home.
All too often, the word “affordable” is construed to mean low-income. With today’s quality modular housing, nothing is further from the truth. Local authorities are consistently pleased with the increased ownership opportunities that modular housing brings to their communities, because any home-site built or modular-must still comply with all local design and building codes.
Unfortunately, some traditional builders and real estate agents utilize rumor and innuendo to keep buyers away from modular housing, while sometimes they just don’t know any better. Why? Well, it may be obvious, but traditional builders construct site-built homes and thus don’t make any money from modular housing. Real estate agents often aren’t aware of the quality of workmanship and strict codes that govern modular housing construction. As well, real estate salespeople normally receive a commission on the sales price of a home and the lower cost of modular housing is of lesser benefit to their pocketbook.
However, the modular alternative is of benefit to not only the homebuyer, but also to the community. The burden is heavy on local government to increase the availability of quality and affordable homes in their areas. Local authorities also struggle with the need to decrease the number of unkempt empty lots and blighted areas that decrease property values and the overall attractiveness of the community. The modular housing choice continues to successfully address both issues.
A home is probably the most important purchase many people will make in their lifetime. Anyone who has ever shopped for a major investment knows how important, yet confusing, it can be to maximize their purchase while staying within a budget. Shopping for the right house to turn into a dream home is no different. Today’s modular home is an investment in the future, at an affordable price. By building equity rather than pouring money down the rent drain, more people can achieve the investment and tax advantages that only come with owning their own home.
For additional information, click here.
Apr 23, 2010
