You’re probably hearing a lot of buzz in the construction industry lately about the modular home trend. Since the beginning of the 2020 pandemic, the demand for modular homes has accelerated across the country. This type of construction has gained popularity over traditional single family homes because of its affordability and quick turnaround.

Brief History

Modular construction is not new. It has been around since the early 1900s when prospectors and their families quickly constructed homes during the Gold Rush in California. Modular structures are also known as kit houses, pre-cut houses, ready-cut houses, mail order homes, or catalog homes. Regardless of the name, they remained popular into the first half of the 20th century.

Downsizing Trend

Modular building is best known for its ability to reduce construction costs by improving production.

As project timelines are getting longer for traditional buildings – in some cities as much as eight years to complete planning, acquire approvals and permits, and complete construction – it’s becoming harder to deny that modular construction is a strong alternative. 

Dwelling of the Future

Modular building is especially popular among forward-thinking millennials, governments, investors, manufacturers, developers and builders who believe that the dwelling of the future is not only affordable, but also sustainable and relocatable. It can be thought of as a housing alternative for forward thinking individuals who are mindful about their environmental impact.

But before you jump on the modular home bandwagon, it is important that you have a clear understanding of its advantages as well as the risks and constraints.

The Advantages & Disadvantages of Owning a Modular Home

Definition of Terms

Prefab vs Modular 
Modular buildings and the modular construction process are a part of the prefab building family. Modular buildings are prefabricated into almost completed modules, or volumetric sections of a building. 

Single vs Volumetric 
Sometimes the entire building is only one, single module, meaning it is almost completely assembled in a factory and then transported by commercial truck trailers to its destination.

Volumetric modular construction is a type of prefabricated building where factory-finished and prefabricated modules are stacked and joined on-site to form a complete building. Think of this as LEGO-style building. Almost everything is done at the factory and the only thing that’s left to do is to interconnect or bolt together the completed modules on location. 

Volumetric Modular Residential Building in a modern urban setting.

Inside a modular home manufacturing facility

Modern, Minimalist and Modular Rural Residence

Modular Building ADVANTAGES

1. Safe and Budget-Friendly 

Traditional builds often suffer delays that individually add up to severely affect the timeline. These builds are plagued with wasted labor costs, unexpected price increases and expensive changes to plans or deliveries.

The factory-controlled modular building process generates less waste, creates fewer site disturbances and allows for tighter construction timelines. When building in a factory, waste is eliminated by recycling materials, controlling inventory and protecting building materials. The controlled environment means that the end result and projections are more controlled as well.

2. Reusable

Modular buildings can often be disassembled and the modules relocated or refurbished for new use. In a world where supply chains are constrained and lead times materials are ever increasing, it is very helpful to reduce the demand for raw materials and minimize the amount of energy expended during construction.

3. Energy-Efficient

Modular buildings maximize energy efficiency through a variety of methods such as recycling materials, using LED lighting and installing solar panels. You save money on your energy bills and may even be producing enough clean energy to put back into the energy grid.

4. Faster Turnaround

Construction of modular buildings can occur at the same time as the site and foundation work. Parallel work streams mean that projects can be completed 30% to 50% sooner than traditional construction. And since 60 to 90% of the building construction is completed inside a factory, production does not suffer weather delays. Buildings are occupied sooner, creating a faster return on investment.

5. Built to Code 

Modular buildings are built to meet or exceed the same building codes and standards as site-built structures, and the same architect-specified materials used in conventionally constructed buildings are used in modular construction projects – wood, concrete and steel.

Modular Building DISADVANTAGES

1. Limited Design

Traditional, custom-built construction involves developing design and engineering plans and requires a diverse team of architects, engineers and contractors. Building prefabricated structures is a front-loaded design process. Depending on the company you choose to buy a modular home from, you could be stuck with a limited amount of material options and home layout options. Your home may have less flexibility to customize the design than you anticipated. 

2. Reduced Resale Value

Modular homes are generally perceived to be of lower quality, which makes them extremely difficult to resell. Modular buildings have historically been associated with mass housing, being poorly made and not built to last.

Today, the modern modular structure is trying to revamp how the market views these homes. It may take a few more years before modular homes are considered equal, if not superior, to custom-built homes in North America. It’s ironic that homes in most subdivisions are not completely custom. Instead they are merely a combination of a few floor plans, exterior facades and interior finish options.

3. Difficult to Finance

Lastly, modular homes need to be built with a corresponding finance plan. Modular financing will differ from the mortgage plan associated with traditional homes. Banks are generally not as familiar with the process of ordering modular homes and that most payments are required to be made upfront. Banks have been known to deny credit and clients have had to look at various financial options to purchase modular homes.

Source: Designing Buildings Wiki: Modular Buildings

In Conclusion

It’s clear that despite its disadvantages, there are compelling opportunities in modular construction. With more cutting edge and modern designs, streamlined fabrication processes, factory-controlled quality, and efficient use of labor and materials, modular buildings are quickly catching up with conventional construction. 

Whether prefab or custom, we can help you design and build your dream residential project. Book your free consultation today!