Pros & Cons of Prefab Homes

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By Tobias Roberts

Rise Writer

Jun 8,

There are essentially two different options on the table if you're thinking of taking on the challenge of building your own home. First, building from the ground up as a "stick-built" home, and second, ordering a prefabricated, or modular home to be assembled on site. There are both pros and cons to opting for prefab homes. Knowing these pros and cons can help potential homeowners decide what will best fit their budget, their circumstances, and the long-term livability of the home. We'll take a closer look at several of the pros and cons of prefab homes below. 

Table of Contents

1. Benefit #1: Affordability
2. Benefit #2: Energy Efficiency
3. Benefit #3: Relatively Fast Construction Process and No Waste
4. Drawback #1: Transportation and Assembly Factors
5. Drawback #2: You Have to Buy the Land
6. Drawback #3: Utility Hook Up and Other Hidden Costs

Framing on the Shop Floor. Photo Credit: Phoenix Haus

Benefit #1: Affordability

A home built on-site, known as a "stick-built" home, is usually about twice as expensive as prefabricated homes. On-site construction generally wastes much more materials that go into the building of the house. Considering that over 500 million tons of construction and demolition debris are generated annually in the United States alone, finding ways to cut back on that waste is good for the environment and your wallet. 

Besides being cheaper because of more efficient use of materials, prefab homes cut costs because they need fewer construction laborers on-site to help assemble the house. 

Completed Goldenrod House. Photo Credit: Solsken Ecocor

Benefit #2: Energy Efficiency

Secondly, prefab homes can save you money during the years you live in these homes because their designs generally have energy efficiency in mind. Because a prefab house's individual parts adhere to strict design guidelines, the seams in these homes are usually airtight. This standardized air-tightness helps to avoid leaks and airflows that can increase the energetic and economic cost of heating and cooling your home.

Tenaya Modern Cottage. Photo Credit: Dvele

As more and more consumers begin to search for ecological and sustainable home features, prefab home architects and contractors are designing several home models that incorporate everything from solar panels to wind turbines to rainwater catchment systems. 

Plant Prefab Palo Alto Home. Photo Credit: Plant Prefab

Benefit #3: Relatively Fast Construction Process and No Waste

The pieces of a prefab home, be it modular prefab or panelized prefab, are assembled off-site. So, the actual time needed to attach the parts on-site is considerably shorter than the time required to build a regular stick-built home. If you have a tight timeline and want to get into your new home on time, prefab homes are usually the quickest type of new home construction available to homeowners. 

In addition, prefab homes are built in a factory setting, which means no on-site material waste. In the factory, whatever is leftover from an individual home's construction can be reused on another manufactured home.

Deltec Ridgeline Model with Solar Panels. Photo Credit: Deltec

Drawback #1: Transportation and Assembly Factors

Depending on where you live, the cost of transporting the different parts of your future home can become expensive. If you live "off the beaten path," transportation companies might very well charge you a hefty fee to get all the parts of your home to the construction site. 

It is important to note that if you haven't hired a contractor with experience assembling the specific model of prefab home you've chosen, you always run the risk of faulty assembly. This could lead to joint failure, leaks, and other issues. If your contractor doesn't have the correct equipment on hand, the different modules or panels of the prefab home run the risk of being damaged during the delivery and assembly process. 

TimberCab Kitchen. Photo Credit: FabCab

Drawback #2: You Have to Buy the Land

One of the nice things about buying an existing home is that you're purchasing the land it sits on as well, in addition to the surrounding yard. All of this is incorporated into the negotiated price for purchase. Many people might spend long periods of time searching for the most affordable prefab home model only to find later that the cost of land in the area where they wanted to put their home will add another $50,000 or more to the final purchase price. 

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It's essential to thoroughly research the land price for the location in which you plan to put your prefab home. And it is imperative to make sure that there are no restrictions on putting up a prefab or modular home in that particular zoning district. 

Drawback #3: Utility Hook Up and Other Hidden Costs

When searching the web for the most affordable prefab homes, it can be encouraging to find a quality, 1,500 square foot home offered with a base price of between $60,000 - $120,000. However, most companies that offer these types of houses don't include several other costs that will significantly increase the final price tag of your home. We've already mentioned the cost of the land itself. But, you'll have to factor in the additional cost of hooking your home up to utilities, including electricity, sewer, municipal water, etc. 

Prefab Home. Photo Credit: Canada Prefab

If you don't want to go through the hassle of doing all of this by yourself, it's a good idea to find a prefab home company that includes these hookups into the price of your home. Be sure to research what exactly is included in the price offered by the modular home company. Several companies offer "bare" prefab homes, which you will have to finish yourself. In contrast, other companies offer move-in-ready homes. 

Disclaimer: This article does not constitute a product endorsement however Rise does reserve the right to recommend relevant products based on the articles content to provide a more comprehensive experience for the reader.

Last Modified: -07-16T14:13:54+

Article by:

Tobias Roberts

Tobias runs an agroecology farm and a natural building collective in the mountains of El Salvador. He specializes in earthen construction methods and uses permaculture design methods to integrate structures into the sustainability of the landscape.

Prefabricated homes, also known as modular, prefab or offsite-built homes, have gained popularity in recent years as an alternative to traditional site-built houses. These homes are constructed off-site in a controlled factory environment and then transported to the desired location for assembly. While prefabricated homes offer numerous benefits, there are some limitations that you should be aware of to make sure prefab is right for you.

In this article, we will delve into the benefits and limitations of prefabricated homes including cost, construction time, and customisation options.

Benefits of Prefabricated Homes

Cost Savings
Prefabricated homes can be more cost-effective compared to traditional site-built houses. The controlled manufacturing process allows for efficient use of materials and reduces waste, making the building process more environmentally friendly as well. Additionally, bulk purchasing of materials by the manufacturer often leads to lower prices, translating into savings for homeowners. There are also secondary cost savings if you are planning a renovation or knock-down rebuild. Prefabricating means you can stay in your existing home for longer before you need to demolish because most of the construction work is done off-site. This translates to savings in accommodating you and your family while you build.

Faster Construction Time
Prefabricated homes can be assembled much more quickly than conventional houses. Since the components are manufactured in a factory setting, there are no weather delays, and various tasks can be carried out simultaneously. This streamlined process can significantly reduce construction time, allowing homeowners to move in sooner. LAROS have assembled pre-fabricated envelopes in as little as 2 days.

Enhanced Quality Control
Prefabricated homes undergo rigorous quality control measures during the manufacturing process. Skilled workers and advanced technology ensure precise construction and adherence to building codes and standards, which is of particular importance when you are building with passive house design principles. This results in a higher level of quality compared to site-built homes.

Energy Efficiency
Many prefabricated homes are designed with energy efficiency in mind. The controlled environment of the factory allows for precise insulation installation, sealing, and efficient HVAC systems. This can lead to lower energy consumption and reduced utility bills in the long run. Wind and rain on site mean that many energy efficiency measures are difficult to implement on-site &#; such as insulating and sealing with membranes. In the controlled environment of a factory setting these measures are much easier to implement. You don&#;t have to worry about your membrane catching the wind like a sail while you install it!

Limitations of Prefabricated Homes

Limited Customisation
Prefabricated homes often come with pre-designed floor plans and limited customisation options. While some manufacturers offer a range of design choices, homeowners may have fewer opportunities to tailor the home to their specific preferences compared to site-built construction. However, customisation options are expanding as the industry evolves.

This is why it is so important to choose a manufacturer that works on a project-by-project basis, working to unique requests of each home-owner and their architect to provide an individual solution to suit each specific build. LAROS prefabricated panels are built to size for each build on a case-by-case basis, with custom sizing available.

Transportation Costs
Moving prefabricated modules to the building site incurs transportation costs. For remote or hard-to-reach locations, Transportation costs may be substantially less than the costs of mobilising all the trades required for a site build.

Upfront Design Considerations
Prefabrication requires detailed manufacturing designs early in the process to enable accurate construction detailing. LAROS works with clients, architects, engineers, designers, interior designer, builders, certifiers and any other relevant building professionals from day 1, so be prepared to make decisions about your build much earlier in the process than you might be used to for a traditional build.

Site preparation
Because prefabricated homes are made to tight tolerances with high quality, site preparation such as access, foundations and slabs are crucial to ensuring a smooth installation process. LAROS works with clients and builders to ensure the site is prepared to the right specifications prior to install so there are no surprises on the day the cranes and trucks arrive on site.

In conclusion, prefabricated homes offer several advantages, such as cost savings, faster construction time, enhanced quality control, and energy efficiency. However, they also come with limitations, including limited customisation options, transportation costs, upfront design considerations and site preparation. It&#;s important for potential homeowners to weigh these pros and cons carefully, considering their specific needs, preferences, and budget.

With careful planning, research, and engagement with reputable manufacturers, prefabricated homes can provide a viable and attractive option for those seeking a cost-effective, efficient, and quality-built housing solution.

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