Modular vs. Manufactured Homes: Which Is the Best? (2024)

The median price of a modular home is $280,000 in 2024. These homes cost up to 15% less than stick-built houses. Fast construction, energy efficiency, and design flexibility are some of their benefits.

Whereas, the median price of a manufactured home ranges between $120,000 and $270,000. Manufactured homes account for 9.8% of single-family homes in all U.S. housing units. However, manufactured homes have the stigma of mobile homes and low long-term value.

MODULAR AND MANUFACTURED HOMES- AN OVERVIEW 🧾

  • Modular homes are as good as site-built homes. Their resale value increases over time, and their construction duration is almost 40% less than that of site-built homes.
  • In 2023, the worldwide modular home market size was estimated at $45,260 million. It is expected to grow to $54,050 million by the end of 2029.
  • Manufactured homes are portable, but they can be fixed to the foundation if their wheels are removed from the chassis.

Modular vs. Manufactured Home

Modular and manufactured homes are prefabricated structures that have acquired a huge market. They significantly speed up the construction process and save expenses.

What Is a Modular Home?

A modular home is constructed from factory-made housing modules on a permanent foundation. The homeowner has to build the house according to the code of the HOA. Many HOAs don’t allow modular homes, while other HOAs have a code of conduct.

However, you will need to rent or own land to build this type of home. You can construct a small house or a 2-story home with the modular method and customize it according to your needs.

Pros

  • Quality Control: All the modules go through a quality test, which helps to build a strong structure.
  • Flexible Specs: The modular homes are customizable. You can choose the pre-designed module or present your plan to build the house.
  • Construction Efficiency: The construction is completed quickly since the modules are 90% pre-ready in factories.

Cons

  • Land Issues: The cost of renting land can increase if you do not own it. Additionally, the government has banned the construction of modular homes in some particular areas.
  • Extra Cost: You may have to bear additional expenses when you choose to customize your home.

What Is a Manufactured Home?

Manufactured homes are built in factories or warehouses. The U.S. Department of Housing and Urban Development (HUD) establishes guidelines for their construction. The foundations for the houses might be either permanent or temporary.

Manufactured homes are cheaper and can be relocated. They come in three different options: single-wide, double-wide, and triple-wide, with double-wide being the most popular.

Lenders offer various loan options to purchase mobile or manufactured homes. These include chattel loans, personal loans, FHA loans, etc.

>>Checkout Mobile Home Loans to Purchase or Refinance

Pros

  • Affordable Option: Manufactured homes are one of the cheapest options that you can opt for.
  • Factory-ready: These homes are pre-assembled and have a chassis with wheels, making it a portable construction.
  • Energy Efficient: The manufactured homes come under HUD regulations, resulting in quality and energy efficiency.

Cons

  • Depreciating Asset: The value of the manufactured houses may decrease over time unless they’re fixed on a permanent foundation.
  • Lesser Customization Options: The manufactured homes have few to no customization options.

Modular vs. Manufactured Home: Key Differences

Here are the key differences between modular and manufactured homes:

SpecificationsManufactured HomesModular Homes
PortabilityYesNo
Financing FHA Title 1 loan, chattel loan, or standard loanStandard loan
Building CodeHUD codeState, regional, and local codes
FoundationTemporary / Permanent (when affixed)Permanent
CustomizabilityLessMore
Cost to buildCheapModerate
DurabilityLess Moderate
Home sitePrivatePrivate / land-lease

Financing Options

Here are the financing options for modular homes as well as manufactured homes:

Modular Homes

To build a modular home, a buyer can opt for various types of loans. Conventional, FHA, VA, USDA, and personal loans are available for modular homes. Additionally, a construction loan is an option available to the buyer for the duration of the development project.

Manufactured Homes

There aren’t many financing options available for manufactured homes. However, you can avail of a standard mortgage if you own the land to build your house.

FHA provides Title 1 for manufactured homes. You can also opt for chattel loans. You can be eligible for these schemes once you fulfill all the requirements.

Modular vs Manufactured Home: Which One Should You Choose?

A modular home is a permanent structure, and a manufactured home is for movers. However, you can fix the manufactured house with no wheel on the chassis.

Moreover, you must opt for the one that is suitable for your budget and requirements. You can also look for your dream at Houzeo.

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Frequently Asked Questions

What is cheaper, a modular or manufactured home?

Manufactured homes are cheaper. Modular homes don't cover land costs and can be expensive to customize.

Is a modular home better than a manufactured home?

Modular homes are better in terms of comfort and space. But the customization and other charges make it expensive.

Are modular homes as good as stick-built ones?

Modular homes are not as good as stick-built ones. Most of the time, the build quality is poor for modular homes.

Types of Homes

Modular vs. Manufactured Homes: Which Is the Best? (2024)

FAQs

Modular vs. Manufactured Homes: Which Is the Best? ›

Modular homes are generally more expensive than manufactured homes, even without the cost of the land to put them on. For your extra money, however, you'll get a greater degree of customization, and a house that will depreciate less quickly. On the other hand, you might be drawn to the mobility of a manufactured home.

Is modular better than manufactured? ›

If you're looking for a home that will appreciate over time with a lot of options for upgrades and expansion, a modular home could be the perfect fit for you. If you're more interested in saving money and the ability to move your house from one place to another, a manufactured home may be the better option for you.

What is the disadvantage of modular homes? ›

Modular homes have limitations in terms of customization and design flexibility compared to traditional homes. Financing options for modular homes may be more limited and interest rates may be higher. Resale value of modular homes may be lower compared to traditional homes.

What is the downside of a manufactured home? ›

A disadvantage of buying a mobile home is that its value will depreciate quickly. Like a new car, once a mobile home leaves the factory, it quickly drops in value. Stick-built homes, on the other hand, normally appreciate in value over time because the stick-built home owner almost always owns the underlying land.

Are modular homes as good as stick built? ›

Modular homes offer the best of both manufactured and stick built worlds! Having a home built almost entirely at the factory level, increases the quality control, reduces weather delays and damages, as well as offering a Greener way to build!

Are modular homes prone to mold? ›

The nature of modular construction makes it difficult to repair once water or mold damage is found. Sometimes the damage can be such that the modular building has to be deconstructed to remove deteriorated materials, and then re-designed and re-constructed using conventional methods.

What are the main disadvantages of modular design? ›

Disadvantages of Modular Architecture: Increased complexity: Breaking a system into smaller parts can make it more complex and difficult to understand for new developers. Higher cost: Modular architecture can be more expensive, as it requires more time and resources to design and implement.

Why do people not like modular homes? ›

Why shouldn't you buy a modular home? Modular home buyers aren't for everybody. While they're trendy right now, some people prefer a traditional home build. It's also important to note that once you've built a modular home, it's more difficult to customize or make additions after you've started the build.

What is the life expectancy of a modular home? ›

The short answer is that modular homes can last just as long as traditional site-built homes, if not longer. In fact, many modular homes come with warranties of up to 50 years. The key to a modular home's longevity lies in its construction process and the materials used.

Who makes the highest quality manufactured homes? ›

TOP 10 Manufactured Builders Ranked – 2023 Study Ratings
1Skyline Homes★★★★★
2Cavco Homes★★★★★
3Genesis Homes★★★★★
4Legacy Housing☆☆☆
5Chariot Eagle☆☆☆
5 more rows

Why do people not buy manufactured homes? ›

Difficult to move: Moving a manufactured home can cost $10,000 or more—which is why 90% of them are never moved. Placement limitations: Some communities restrict where manufactured homes can be placed. Depreciation: Manufactured homes on leased land are considered personal property, not real estate.

Why do banks not like manufactured homes? ›

Many lenders will not approve a conventional loan for a mobile home because they are not considered “real property.” However, homes that are attached to a permanent foundation could qualify.

Why are people against manufactured homes? ›

Manufactured homes might not be a good idea for some home buyers for the following reasons: Must have a foundation: You can't just wheel your home wherever you feel like it, like a camper or RV. Manufactured homes require finding undeveloped land or space in a manufactured home community.

Is it cheaper to build or buy modular? ›

Is stick-built cheaper than modular home? Some estimates have found a modular home to be 10 to 20 percent less expensive than stick built homes. A traditional stick built 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.

Is a double wide the same as a manufactured home? ›

Eligible manufactured homes will be considered “double wide” will be no less than 20 feet in width and have no less than 600 square feet of living space inside. Some people think of a “double wide” and think it must be at least 16 feet wide, but the industry marker is actually just 12 feet.

Which is better modular or non modular? ›

Modular power supplies offer several advantages over non-modular ones. First, they can improve the airflow and cooling inside your case by reducing the clutter of unused cables. Second, they can make your build look neater and more aesthetically pleasing by hiding the excess wires.

Is modular the same as manufactured? ›

Modular homes are assembled on a site and anchored to a foundation, whereas a manufactured home is transported in one piece to a site and can be relocated. Because they can be moved, manufactured homes are considered chattel (personal property) — like a recreational vehicle.

Why is fully modular better? ›

Fully modular PSUs offer unparalleled flexibility and ease of cable management, allowing you to connect only the cables you need. This can greatly improve airflow and aesthetics within your PC build.

What is the difference between mobile manufactured and modular? ›

Both mobile homes and manufactured homes are prefabricated structures, built in a factory on a permanently attached chassis before being transported to site. A modular home, on the other hand, is built to the same local, county, and state building codes as a site-built home.

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