The Price is Right—Manufactured Homes Today

Most often, the price of a manufactured home is less than a site built (or “stick-built”) home. Just how much depends on the style and amenities of the particular home and your local area construction costs.

When comparing all facets of a manufactured home, its associated site preparation and other construction costs, one factor that is often considered is the price of a complete manufactured home project versus a similar site-built home project. With further investigation it soon becomes apparent just how much money can be saved.

Actual construction costs will vary by region depending on the prevailing labor rates and costs of associated materials. So to state a general rule of thumb across the nation would be quite misleading. However, when one does their own research in their specific area by comparing all of the components of manufactured and site-built home projects the numbers become very clear.

Most of us are not professional homebuilders or work in the home construction industry, but if you do have access to such people, they can be a wealth of information. Here are some things to consider when comparing the two types of construction methods:

The cost of site work is usually the same for either type of home construction project. For example, every home, no matter what type of construction method, needs a water source (well or water meter), septic system or sewer utility hook up, power extended to the site, finish grading and landscaping. Therefore, these costs will generally run the same.

It is in the actual construction of the home structure where the price differences begin to show up. The types and quantities of materials are the same, but a manufactured home—built in controlled a factory environment—offers many advantages.

The first cost savings are realized at very onset of the project. With a manufactured home there is no need for an outside architectural design service and all engineering is done “in house” by the manufacturer so there is no need for the builder to find these resources. Since the house plans are approved by the by federal government, there is no need for the local building authorities to review detailed construction prints for a manufactured home during the permit application and review process. This also helps to shorten the time the permit package takes to traverse the building department’s approval process.

The manufactured home builders buy their building materials and appliances in bulk quantities, which allows for volume discount pricing. This is then passed on to the consumer in the form of a lower home price.

There is minimal waste in a factory environment as most materials (studs, joists, siding, etc.) ordered in pre-cut lengths and widths. With on-site construction, there is most often a build up of waste materials where even more costs are incurred in disposal.

With site-built construction, there is considerable cost in transportation of equipment and laborers to the construction site on a daily basis. In a factory environment, all of the tools and equipment stays in one location and the labor force travels to the fixed location each day. Additionally, the factory line labor costs can be less than on-site construction labor costs especially when start-of-day set-up, end-of-day clean up and securing the building site items are taken into account.

Since manufactured homes are built to the HUD (Housing and Urban Development) building code, the local building authorities have little jurisdiction over the structure itself. Therefore, there are fewer costly interruptions in the construction process to wait for local building department inspections and perform the necessary corrections.

The on-site build time of the home is also greatly reduced with a manufactured home as the major home sections are “married” together over the foundation, the utilities are connected and the inside floor covering and interior drywall close up is competed. Once again, less labor expended equals less total construction costs.

The shortened construction cycle associated with a manufactured home results in a correspondingly shorter construction loan period. This shorter period results in less money spent on interest payments and being able to lock into a permanent interest rate on the long-term loan sooner.

As mentioned earlier, if you are lucky enough to know of someone in the residential construction industry, just ask him or her, “So, what is the total cost per square foot of a site built home in this area?” Once you have an answer, don’t forget to ask “Does that include permits, sewer, water, power, gas and the driveway?”

Then look into a manufactured home total turnkey construction price for a similar home in the same area to real see the difference in savings.

To learn more about figuring out how much your manufactured home project might cost, click here.

Norm Pettit
Marketing and Sales Consultant

Bo Von Brockdorff is a retired contractor who has installed many Amador County modular home and recommends the knowledgeable folks at Village Concepts, who are modular home manufacturers Sacramento. Village Concepts manufactured home center ensures a great experience by managing each step of the buying process, including El Dorado County manufactured home, site review, planning, construction, and installation.