Real Estate Guides - Pros And Cons Of Modular Homes

Considering that real estate prices have been rising steadily over the past decade, affordable housing options are becoming much more prominent. Due to their price-to-quality ratio, modular homes fit the bill perfectly.

Current data shows that the global market size for these homes was $84 billion in 2023, and experts anticipate the market will be valued at over $131 billion by 2030.

So, why are they so special?

One word - convenience.

A modular home is built from factory-made components and then assembled on a permanent foundation, drastically reducing the construction time and costs. Like other permanent homes, modular structures have to meet the local guidelines, as well as the Department of Housing and Urban Development standards.

While all that sounds fine and dandy, is this type of home a good investment?

Join us as we explore the pros and cons of modular homes to gain a full understanding of these types of structures and whether they’re the right choice for your family. 

How are modular homes constructed?

Before evaluating the pros and cons of modular homes, let’s first take a look at how they’re constructed.

As described earlier, a modular home’s components are assembled in a factory and delivered to the home site. The modules (basically three-dimensional boxes) are then assembled by the builders on the foundation at the site. 

Because the components are built in the factory, everything is assembled under optimal conditions, from the temperature to the humidity. Thus, you can always expect a consistent level of quality from the build.

Plus, a traditional home may take seven months to build, while modular construction moves quicker. Depending on the level of customization and weather conditions, a modular home can be built in as little as three months.

Pros and cons of modular homes to consider

Even though a modular home looks great on paper, there are some downsides. To decide if such construction is worth your time and money, take into account the pros and cons of modular homes. 

Pros of modular homes

As we already mentioned, the biggest advantage of this type of construction is the fact it’s a lot more affordable than a traditional home. 

How much affordable?

A modular home costs around 20% less than a traditional one. This may not seem like a lot, but considering the average price of a house in Florida is around $400k at the moment, you will save $80k - almost enough to buy a brand-new Porsche. 

Moreover, a modular home can also be constructed 60% faster, saving you valuable time. 

Another advantage of this type of construction, especially when compared to mobile homes, is that they’re highly customizable. Depending on the builder, you can customize certain aspects to suit your needs better. For instance, you can choose different layouts, finishes, and styles. In other words, you can opt for a basic home or a luxury one if you prefer more panache.

You’ll be surprised, but along with the affordability, modular structures can withstand environmental threats like hurricanes and floods a lot better than traditional homes, making them perfect for areas like Florida. 

Cons of modular homes

Sure, they’re more affordable and weather-resistant, but in order to get a complete picture, you have to consider both the pros and cons of modular homes. 

When purchasing a modular home, you also need to factor in the costs of the land and the foundation. With a traditional house, these are included in the price, but here, they’re separate. Thus, expect to pay around $20k for a plot of land and the foundation in the Sunshine State.

You also have to think about how you’ll finance the home. When purchasing an existing home, you can rely on a home loan. But if you’re building a modular home, you’ll have to take out a construction loan instead of a mortgage. Depending on the company, this may not be such a con, as some modular home companies offer lending programs and financing - but it needs to be mentioned. 

Also, while heavily customizable, you may not be able to get all the features you want. This means you’ll have to check out the offers from plenty of different companies until you find one that fits your needs.

The last disadvantage has more to do with most people’s perception of modular homes rather than the home itself. Many people confuse manufactured or mobile homes with modular ones. As such, if you’re looking to sell your home in the future, you might have trouble finding a customer - that is, until the perception changes, which is bound to happen sooner or later. 

Are modular homes worth it?

Whether a modular home is worth your money is completely personal. 

Some homeowners would rather find a vintage home or browse through existing ones until they find the right match. Others are excited by the prospect of working with a builder in specifying a home they conjured up in their imagination. 

However, aside from personal preference, affordability and the eco-friendly nature of a modular home are hard to ignore. 

Should you inspect a modular home?

Absolutely!

Just because most of the components are assembled in the factory doesn’t mean you shouldn’t ensure the home is built properly. A new construction inspection is still recommended as it can make certain the home meets all code requirements, that all the systems are operational, and that you got what you paid for. 

Look to the future

Modular homes may not be for everyone, but the benefits are undeniable - especially if you’re looking for an environmentally friendly home at a reasonable price. Considering the current and projected increase in market size, modular homes may become the default type of home in the US, so this is your chance to get in while the market is still relatively fresh.

If you’re in the process of building or purchasing an older modular home, you can protect your investment through a home inspection. The best company for the job is Guardian Angel Inspections. The majority of active real estate agents in Palm Beach County work exclusively with us due to our expertise, professionalism, and reliability, and so can you!

Inspect a modular home - call 561-512-7854 or fill out our contact form to book an inspection.