Is it cheaper to buy a modular home or build?

In most cases, modular homes are less expensive than building a house, mainly because there’s less labor involved. Builders build the home in a factory and install it on the site when it’s mostly built. But, of course, any additions or unique features can increase the cost, which might be more than a traditionally built home.

Do modular homes appreciate in value?

Modular homes are often seen as a wise financial investment because they can appreciate much like traditional, stick-built homes. These are unlike mobile homes, which usually depreciate in value, giving homeowners less money than they spent when buying the home.

Are modular homes worth the investment?

Modular homes typically appreciate in value over time, so they can be a good investment. The money you invest in the home with your down payment and subsequent mortgage payments will earn you more equity in the house. You can walk away with capital gains when selling a modular home in the right area and at the right time. Like selling any home, you're at the mercy of the market. But if you sell during a seller's market, you'll have a higher chance of earning capital gains.

Modular Home Prices: What To Expect When Buying

Author:

Sam Hawrylack

Sep 11, 2024

•

4-minute read

Modern modular home exterior, potentially depicting a contemporary prefab home design.

Modular home prices vary considerably with the location and features of a particular modular house. However, because a modular home is a type of prefab home that’s built in a factory in multiple pieces before being transported to a construction site for assembly, the cost is typically lower than that of a traditional home.

This reduced baseline cost makes it easier to afford the floor plan and features you want in a home.

The factors that will typically have the biggest impact on the total cost of a modular home are its square footage and the type of building materials you use.

How Much Are Modular Homes?

The question of how much a modular home costs will depend largely on the home’s location, size and design, although $80 to $160 per square foot is the standard range. The average price to construct a modular home is $270,000. For customization and additional features, you can likely plan to pay $10 – $150 per square foot.

The price also varies based on the accessibility of the area where the home is to be delivered and put together. Other factors that affect pricing can include:

Customization
Land preparation
Utility connections
Driveway and walkway needs
Landscaping

If you assemble a modular home on land that’s not prepared for it, you’ll pay extra to level and prepare the ground. You may also pay fees for permits to clear the land and build the house there.

If you’re on a budget, consider keeping any special features or upgrades to a minimum. You can always add to the home in the future. You’ll still have a house to live in and call your own even if you need to pad your bank account a bit before enhancing the home’s features.

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Average Cost Of A Modular Home By Square Foot

Angi differentiates a modular home’s base price from its total cost, which includes installation. The typical cost per square foot without installation falls in the $50 to $100 range – a significant discount.

To illustrate the costs per square foot, we’ve used the median cost from the typical ranges: $75 per square foot without installation, and $120 per square foot with installation.

Square Footage	Base Model Cost	With Installation
1,000	$75,000	$120,000
1,500	$112,500	$180,000
2,000	$150,000	$240,000
2,500	$187,500	$300,000

Keep in mind that including add-ons or opting for a customized modular home will increase these costs.

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