Modular and manufactured homes have been used as interchangeable terms for specific types of housing and the construction process required for them. However, there are some specific differences between these terms that affect things like price point, appraisal, and how long the construction process actually takes. Here’s a breakdown of the differences between a modular and manufactured home.
What are Modular Homes and Manufactured Homes?
Modular Homes:
Modular homes are built in a factory setting and built in sections or “modules.” These modules are then transported to the building site, where they are assembled and permanently affixed to a pre-prepared foundation. These homes are permanent once placed on the foundation and cannot be moved. Modular homes adhere to both state and local regulations just like a site-built home would.
Price: Around $180,000-$360,000 according to Bankrate.
Manufactured Homes:
Commonly referred to as mobile homes before the 1970s, manufactured homes are also assembled and developed in a factory. Except, they are constructed on their own chassis. They can be placed on a permanent or temporary foundation. Manufactured homes are often found in “mobile home” communities or on private land. Unlike modular homes, manufactured homes can be relocated, although this can be a complex and costly process. Manufactured homes must adhere to HUD standards. While manufactured homes do have to adhere to some state and local laws, they do not adhere to the same building codes and regulations as manufactured or site-built homes.
Price: $75,000-$170,000 according to the United States Census Bureau.
Buyer’s Guide to Manufactured Homes
| Manufactured Homes | Modular Homes | |
| Construction Time | 2-4 Months | 3-4 Months |
| Customization Options | Limited | High (within factory limits) |
| Ability to Build Equity | Usually manufactured homes lose value | Comparable to stick-built. Will increasingly gain value |
| Regulatory Requirements | HUD regulations | State and local building codes |
| Foundation Type | Temporary or permanent (chassis-based) | Permanent (concrete slab, etc.) |
Pros and Cons of Modular Homes
Modular homes can be a great option for those looking for a faster construction process and one that is more environmentally friendly. There are some drawbacks though.
Pros:
- Customization Options: While not fully customizable like a site-built home. Most modular homes offer a high degree of customization. Buyers can often choose from a variety of floor plans, finishes, and features, to truly make their home feel like one of a kind.
- Cost-effective vs. Stick-built Options: Generally speaking, stick-built homes cost more than modular homes. For one, when you buy a stick-built home, you are often buying the land as well. Second, the construction process costs more because it is longer and can be affected by weather.
- Greener Construction Process: Modular home construction often produces less waste and can even recycle materials from one project to another. Factories can better manage resources, reducing waste and energy use that stick-built homes would use.
- Faster Construction: Most stick-built homes take at least 9 months for construction if not a full year for a house to be built. Modular homes take a considerably shorter time span of 3-4months. Even if there are delays, you would still be months away from a traditionally built home time frame.
- Quality Control: Building homes in a factory setting allows for stricter quality control measures. Each module is inspected throughout the construction process and is again inspected when delivered and put together on the foundation. Modular homes are just as safe as site-built homes!
Cons:
- Land Not Included: The price of a modular home does not also include the price of the land.
- Not Fully Customizable: While you do have a lot of customization options, you do not have the same options as you would with a truly stick-built home.
- Transport and Assembly Costs: You’ll also want to account for the cost of transportation and assembly, as these may be separate costs not included in the construction price.
Pros and Cons of Manufactured Homes
Pros:
- Affordable: Manufactured homes are generally cheaper that both site-built homes and modular built homes. You can buy them in smaller sizes that also have all the amenities you could need.
- Fast Construction Process: Manufactured homes, even larger ones, can be built and delivered in a couple of months. Some can even delivered in a matter of weeks, not months, if most of the home is already built.
- Can be Moved: Manufactured homes can be moved even after being placed because they sit on a chassis. If you believe that you will want to eventually move your home, this could be an option for you.
Cons:
- Limited Financial Options: There are not as many financial options available for buying a manufactured home versus a modular or site-built home.
- Doesn’t Appreciate Like Other Options: Generally speaking, manufactured homes do not increase in value as time goes on. However, if you own the land that your manufactured home is on, this is somewhat negated by the value of that land.
- Land Not Included: Again, like with modular homes, the land your manufactured home will sit on is not included in the price of the home. You’ll need to factor in this cost along with the cost of transportation and delivery.
Considering a Modular or Manufactured Home?
You don’t have to go through this process alone. 360Connect can help. Just fill out our 1-2 minute form for either a modular home or manufactured one and we’ll contact you to verify your information and needs. From there, you can sit back and relax as up to 5 suppliers reach out to you with quotes about homes.