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Pre-fabricated versus Modular Homes

Updated on September 13, 2010

Prefab versus Modular homes

prefab home
prefab home
modular home
modular home

Prefab or Modular: Which is Better?

            Modular Homes vs Pre-Fabricated Homes: Which Is Better?

Pre-fabricated homes are manufactured offsite and shipped to the designated place and set up there. Modular homes are also built in factories. However, they are built and delivered at the site in multiple models. Though both are constructed indoor, follow standard patterns and are known for using labor-saving tools, there are important differences between the two, and prospective buyers must know these before finalizing their choice.

Modular Homes vs Pre-Fabricated Homes

The differences between modular and pre-fabricated homes lay in several areas.

Building Laws

Modular homes are constructed following the building laws that govern the prospective site. Contrary to it, pre-fabricated homes follow the federal Department of Housing and Urban Development code. In many states, certain laws restrict use of pre-fabricated homes on a permanent basis.

Cost Involved

Modular homes are popular as they present a less expensive option for constructing houses. But pre-fabricated homes are cheaper to build due to their simple design and less colorful interior.

Durability of Structure

Modular homes are more durable than pre-fabricated homes. These are built using the same techniques employed in building an on-site house. The various modules are assembled and permanently connected to a strongly built foundation. Contrarily, pre-fabricated homes use lightweight materials and are usually designed as a mobile structure.

Market Value of House

Modular homes are treated as permanent structures and their market price increases day by day. These properties even compete with traditionally built houses in the real estate market. Banks and financial institutes even offer loans to acquire refinance and modify these homes. However, in case of pre-fabricated homes, it is difficult to secure the refinancing facilities, as their market value decreases with time.

The Best Choice

Modularhomes score overpre-fabricated homes in many areas. They are durable and permanent compared to pre-fabricated homes. Due to the availability of refinancing facilities, these homes are easier to sell and purchase. This makes them a good investment option. Modular homes are also a better option for people who plan to build larger houses and decorate them according to their own taste.


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    • profile image

      Candice Harding 

      4 years ago

      Interesting hub. Modular and pre-fabricated buildings are so interesting. Do the same guidelines apply to industrial modular buildings as to modular homes?

      Candice Harding

    • ifrahsidiq profile image


      8 years ago from india



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