Modular Homes: A New Way That is Not So New.

January 26, 2024

Every person has a basic need, regardless of status, for shelter. Our definitions of shelter may vary, but the truth is that everyone needs shelter as a basic human need. It is innate in us to look for a dwelling to have a place to keep us out of the cold, heat, and everything in between.  Because we are always looking for shelter, we start looking for houses to become our homes and shelters for our families. Typically speaking, we are looking at houses that have been built already or to build a new home. Frequently, people are looking for houses and think about building. Today’s building is a costly adventure that many feel is out of their budget; however, many times, the building may be cheaper than buying—queue modular homes in the building market.

Modular houses are often mistaken for manufactured housing. While both are built in a factory; they have very different ways they are created. The simplest way to break this down is the foundation/joists systems used. “A modular home is constructed in a factory and then transported to its final location, resembling traditional stick-built homes. It complies with local building codes, offers diverse financing options, and, like manufactured homes, may be challenging to distinguish from traditional on-site constructions. In contrast, manufactured homes, often known as mobile homes, are built in factories according to HUD building codes and transported to their final site, typically affixed to a permanent foundation.” (RocketMortgage.com)

Historical Background of Modular Homes

Modular homes go back to the early 20th century: prefabricated homes and house kits sold by Sears, Roebuck, and Company out of catalogs. In 1908, Sears sold the houses as “kit homes,” they were not sold as completed houses, but rather, they were sold as “Sears Home” and needed carpenters to build the house on site, but everything was already pre-cut and ready to be put together.

“As mentioned above, Sears was not an innovator in home design or construction techniques; however, Modern Home designs did offer distinct advantages over other construction methods. The ability to mass-produce the materials used in Sears homes lessened manufacturing costs, which lowered purchase costs for customers. Not only did precut and fitted materials shrink construction time up to 40%, but Sears’s use of ‘balloon style’ framing, drywall, and asphalt shingles greatly eased construction for homebuyers.” (SearsArchives.com)

Throughout the history of modular homes, there have been many changes. The changes often are minuscule, but over time, the minute details become large, leading to what we have today!

Traditional Building Costs

Old Modular Home ad from 1917

As mentioned earlier, the houses were all meant to be an affordable option to build a brand-new house. The costs of homes often ebb and flow with the market, inflation, and interest rates set by the US Treasury Department. However, modular homes are often built 15-20% more inexpensive. The modular homes became very popular after World War II for the soldiers returning from combat—a quick housing shortage answer to a huge shortage problem. Modular and manufactured housing helped a country-wide need that was easily solved with the updated innovations and technological advancements that have made the modular housing markets.

The largest factor in building a house, any house, is having the land to build a home on. Ensuring enough room to fit your home and keep setbacks and easements. Frequently, the land is the costliest portion of the building. Furthermore, the costs of traditional buildings are sometimes offset by the unknown costs that pop up, including but not limited to the permit costs and zoning. If you build in a city, the costs of adding to the sewage and receiving clean, potable water add up. Now, that happens in any building project but compounded by the fact that the unforeseen in a traditional site-built house is more often because of unknowns. With a new modular build, the unforeseen costs are taken away because the build is in a controlled environment with inspectors in the factory in any given time. Taking away the guesswork once the new modular is placed on its foundation.

New Modular Building Costs

There are unforeseen instances in any building; however, the likelihood that a modular home has an unforeseen cost is fewer. This makes the building cost more manageable and foreseeable.

Building a modular home always starts with a home design specialist. At Modway Homes, you meet with Nick to review your budget, pick a general floor plan, and then add the options you would like. Nick sends this to our factory representative, which goes into production once approved. Once into production, our factory builds the house in an assembly line fashion. Once a house is on the assembly line, it takes 2-3 weeks to be finished and back to us to set up the home.

While the house is being built, we dig and build the foundation and take care of all building and other permits needed. (Including the occasional variance that needs to be done in the city.) After the house is ready, we have our movers take the home to the property that it is to be set on. Our set crew and a crane operator will move the house onto the foundation. Then, because both sides of the home are built at the same time together, we marry the houses together with no issues. Marrying the house is drywalling and seaming the house together. Then we have our final fit and finish crew come in and paint and tidy up the house. A final walkthrough with the new homeowner and aftermarket service begins.

New Modular Quality Control

On site new modular home, this is a site built garage

The biggest hurdle we run into is that the perception of a modular home is a perceived reality. The reality of a modular home is that it is built to local jurisdiction codes and often exceeds those codes. Each home is built efficiently and is sustainable in the market long after it is set. Which, once a home is set, it becomes actual real estate that is appraised the same as a site-built home. Once the house is on the factory floor, everything gets inspected to ensure it is good and passes the code. Signed and sealed by a state-approved inspector, the house is moved to the next phase until it is sent to the property.

Once on the property, the house has 3-4 added inspections to ensure livability.

  • The water is brought in from a well, or a city water source, and the plumbing throughout the house must be installed.
  • The electricity has to be brought in from the main source. The inspectors will inspect the house and ensure that the electricity is brought in properly and to code.
  • Mechanical / HVAC. Most of the time, in many jurisdictions, these inspections are at the same time and bring in the gas line and come back later to get an HVAC (heating, ventilating, and air conditioning) inspection. This is sometimes done in two inspections.

Overall, the quality is ensured that it is done well throughout the process, and the final inspection is finished quickly because we do not have to wait on every inspection that a traditional stick-builder has to deal with.

The History of New Modular Building Continues

As the housing market continues to see issues with inflation and higher costs for materials, building a home in a controlled environment becomes much more accepted. The costs of building modular are much better because of the bulk buying of building materials. Therefore, bringing the costs to a much more affordable rate.

As cities become increasingly popular, the housing market will look for single-family dwellings again.

Beyond cost considerations, modular construction aligns with sustainable building practices. The controlled environment in which modular homes are constructed allows for efficient resource utilization, minimizing waste, and optimizing energy efficiency. As environmental consciousness becomes increasingly prevalent, the eco-friendly aspects of modular building further contribute to its appeal.

Advancements in technology and design continue to drive innovation in the modular building industry. From smart home integration to customizable and energy-efficient features, modular homes are evolving to meet the changing demands of modern living. The prospects of modular construction appear promising, offering a combination of cost-effectiveness, sustainability, and adaptability to meet the diverse needs of homeowners in a dynamic housing market. As cities grow and housing preferences shift, the modular building stands poised as a versatile and forward-thinking solution to address the evolving landscape of residential construction.

Conclusion

In the timeless pursuit of shelter, modular homes have emerged as a revolutionary solution in home construction. As the housing market grapples with inflation and soaring material costs, modular construction provides a welcomed alternative in a controlled environment. The economic advantages of bulk material purchasing make modular homes more affordable and reflect a forward-thinking approach to the present challenges.

Furthermore, the historical journey of modular homes, from Sears’ kit homes to today’s technologically advanced structures, highlights the adaptability and resilience of this construction method. Modular homes continue to prove their worth as a quality, sustainable, and cost-effective housing solution, overcoming misconceptions and outdated perceptions.

Looking ahead, the rising popularity of urban living prompts a renewed interest in single-family dwellings, where modular construction can play a pivotal role. Beyond the financial benefits, modular homes align with eco-conscious practices, emphasizing efficient resource utilization and minimizing waste—a crucial aspect in an era increasingly focused on environmental sustainability.

As technology propels the industry forward, the future of modular construction promises innovation, featuring smart home integration, energy efficiency, and customizable features. This ongoing evolution positions modular homes not just as a response to current challenges but as a versatile and adaptive solution to the ever-changing landscape of residential construction. In a world where cities expand and housing preferences shift, the modular building stands as a beacon, embodying a new way that, while not entirely new, is undoubtedly paving the way for the homes of tomorrow.

 

Citations and Researched Sites

“About Cavco.” Cavcohomes.Com, www.cavcohomes.com/about. Accessed 26 Jan. 2024.

“About Fairmont Homes.” Fairmonthomes.Com, www.fairmonthomes.com/about. Accessed 26 Jan. 2024.

CHESNEY, CAREY. “Modular Vs. Manufactured Homes: What’s The Difference?” Rocket Mortgage, 2023, www.rocketmortgage.com/learn/modular-versus-manufactured-homes.

D., Hannah. “History Unwrapped: How Modular Homes Came to Be.” History Behind Modular Homes | Clayton Studio, 22 May 2020, www.claytonhomes.com/studio/history-of-modular-homes-and-construction/.

Hunters, Kit House. “Revisiting the History of the Final Years of Sears Roebuck’s Modern Homes Program.” Revisiting the History of the Final Years of Sears Roebuck’s Modern Homes Program, kithousehunters.blogspot.com/2018/01/revisiting-history-of-final-years-of.html. Accessed 26 Jan. 2024.

“Sears Archives, History.” Sears Archives Home Page, 2012, www.searsarchives.com/homes/index.htm.

Wagner, Kate. “The Modularity Is Here: A Modern History of Modular Mass Housing Schemes.” 99% Invisible, 15 Dec. 2016, 99percentinvisible.org/article/modularity-modern-history-modular-mass-housing-schemes/.

 

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Author

kenny

Kenny Holmes, born and raised in the vibrant community of Elkhart, IN, has lived a life defined by service, perseverance, and a passion for digital innovation. Beginning with his 12-year commitment to the Army, Kenny exemplified unwavering dedication, until his path was altered due to injuries sustained in combat during his deployment in Iraq, leading to his honorable medical retirement. Even in his earlier years, Kenny's fascination with the online world was evident, and this passion only grew stronger as he pursued higher education, eventually graduating from Indiana University South Bend. His commitment to family shines through as a devoted husband and caring father. Alongside his roles as a devout Christian and a beacon of friendship to all, Kenny serves as a vital member of ModWay Homes, assuming the responsibilities of both Project Manager and Marketing Director. Leveraging his remarkable leadership skills and strategic acumen, he spearheads the success of numerous projects within the organization. Kenny's life story serves as a testament to the resilience of the human spirit, a story of a man who has overcome adversity with grace and continues to inspire those around him with his unwavering strength and compassion.

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