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Home ยป Build ยป Modular or Stick-Built Homes: Comparing Costs

Modular or Stick-Built Homes: Comparing Costs

Close shot of stacks of coins on black table.

As home construction labor and material costs continue to rise โ€“ and those costs are reflected in new home prices โ€“ affordable options in many markets can be slim pickings.

Enter modular homes. Once considered the red-headed stepchild of housing, these factory-built designs are enjoying new popularity as cost-effective, customizable, quality new home options. In the past five years alone, the modular or pre-fabricated housing market has grown by 8.5 percent, making it an $11 billion industry.

So just how much can a homebuyer expect to save by opting for a modular home compared to a stick-built house?

Modular Construction Estimates

โ€œTypically, a modular home costs 10 to 20 percent less than a stick-built home, which is so called because itโ€™s built out of sticks or lumber,โ€ said Karen Gardner, who tracks and writes about real estate finance, in a recent blog. โ€œA conventional stick-built, non-luxury home costs about $150 to $250 per square foot. A modular home can range from $50 per square foot up to $250 for some luxury houses.โ€

As with any type of construction, costs are highly variable based on finish out and design. One expert estimates that an average modular home will cost in the range of $110 per square foot. But, add on designer finishes and upgrades, and your cost could be closer to $220 per foot. Keep in mind that youโ€™ll have other expenses such as the land cost, landscaping, site work, and utility set up.

Faster Construction Time

Because their pre-fab components are built in an enclosed, controlled environment, modular home construction isnโ€™t affected by weather delays or delays in scheduling contractors. That means less construction time โ€“ and less cost. Plus, inspections are handled at the factory throughout the building process, another time-saver over scheduling inspections at a build site.

When the fabricated components are delivered to the property, wiring, insulation, plumbing, windows, and doors are already installed, minimizing the on-site finish work needed.

A modular home can be ready to occupy in under four months, compared to six months or longer for a site-built home, according to a recent blog by Sparrowbush, NY homebuilders Martell Homes.

If you are looking for a more affordable new home option, or need to be in your new home quickly, a modular home could be a great option. Todayโ€™s manufacturers offer almost limitless options for styles, floor plans and finishes.

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Sue Durio

Freelance writer and marketer Sue Durio has been writing about construction, design and related products for more than 18 years.

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