When assessing the benefits of prefabricating housing, it is common to look at the cost of a completely prefabricated home versus one that is built on site, rather than simply weighing individual items such as preparation of the site and other building expenses. Upon more investigation, you will know how much money you can save.



Actual construction costs vary greatly in different regions due to differences in labor rates and the cost of materials. For this reason, any nation-wide rule of thumb is likely to be misleading. Once at you compare the total costs of manufactured and site-built home projects, in your area, the numbers become clear.

Although most of us aren't professional homebuilders, if you are acquainted with people who are, they can give you a lot of help. Think of these things as you make your comparison:

One thing to consider is that the cost of site work is usually identical for either type of construction project. Some features are necessary in every home, like water, sewer or septic systems, power, grading and landscaping. For this reason, site work costs are generally similar.

Price differences usually start showing up during the actual construction phase of the house. Types and quantities of materials don't change, but manufactured homes (which are built in factories) offer several advantages.

There are savings to be seen even at the very beginning of the process. If you choose a manufactured home, you will not need any architectural outside design service because, the manufacturer does all the engineering. Because the house plans are already approved by the federal government, it is not necessary for local building authorities to review detailed plans for a manufactured house during the permit application and review process. Therefore, the permit application goes faster through the approval procedures of the construction department

Manufactured home builders take advantage of volume discount pricing by purchasing their building materials in bulk. The benefit of a lower price for the home is passed down to the purchaser.

Most materials (studs, joists, siding, etc.) are ordered in pre-cut lengths and widths, minimizing waste in factory environments. On-site construction sometimes has a build up of waste materials that cost even more money to dispose of.

Daily equipment and personnel transportation costs can be expensive with site-built construction. In a factory, workers go to the same location everyday while all the tools and equipment are fixed in one place. Labor costs can be less in a factory than on-site labor when you consider set-up, clean-up, and security issues.

Area building agencies don't really have much authority over the actual structure, because prefabricated houses are built to HUD specifications. Thus, you avoid costly delays in construction waiting for building inspections and any corrections that might be mandated.

Once the manufactured home is on-site, the sections of the home are joined together over the foundation, utilities are connected and the inside flooring and interior drywall jobs are completed, vastly reducing the on-site building time. Needing less labor results in overall cost savings.

Because manufactured homes can be constructed in a shorter period of time, you'll also be paying on a construction loan for a shorter time. A quicker home build allows a permanent interest rate to be locked in sooner, and also results in cheaper interest rates for the new owner.

Ask someone in the construction industry to tell you the total cost per square foot to build an on site home. When comparing it to the cost per square foot of a manufactured home, be sure the price includes permits and utilities. You will see a notable difference.