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Modular Home Prices: How Much Do They Cost?

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Modular Home Prices: How Much Do They Cost?

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People are looking into new and unique ways to reduce home prices. This now includes the size of a home and the way it is made. After all, eighty-six percent of Americans say they would buy a tiny home as their first home. This shift in interest has led to an increased interest in modular homes. 

But what is a modular home? How much do they cost? Are they really worth it in the end? Keep reading to discover the answers to these questions and more. 

What Is a Modular Home?

Modular homes are any type of dwelling constructed from large sections instead of being built from the ground up. These sections are typically assembled in a large factory and may not even be made with housing as the primary intent. Then, they are shipped to where they are needed and turned into a home. 

One popular example of this is a shipping container home. With this type of home, relatively low-cost shipping containers are transformed into a home. A single shipping container may have windows and doors cut into it to serve as a home entirely on its own. Or, multiple shipping containers can be welded together and then altered in the same way, creating a larger home. 

Sometimes, these adjustments are made at a later point in time. A shipping container home may start as a single shipping container, but then, as the owner is able to afford more, a second container is added for more room. Like adding an addition to a regular home, this is a way to increase the square footage of the house. 

While shipping containers are a popular approach to modular home creation, many more options are now available. Companies exist that assemble modular homes that look like traditional homes. The only difference is that these homes are built in pieces and then assembled in their final location. Because of this, modular homes can look like any other home you would find in a neighborhood. 

Related: Everything You Need To Know About Container Homes

How Much Do Modular Homes Cost? 

Because they are so open to customization and many options exist, there is no universal price for modular homes. However, there are a few estimates that we can give. 

Average Range of Home Cost By Size

Price Range

1,000 sq. ft.

1,500 sq. ft.

2,000 sq. ft.

2,500 sq. ft.

Low

$80,000

$120,000

$160,000

$365,000

High

$160,000

$240,000

$300,000

$200,000

Modular Home Cost

A modular home starts with the cost of the home itself. This is the price of the actual modules, which will go on to become the home. 

On the cheaper end, these modular homes tend to cost between $50-60 per square foot. These homes will be made from less expensive materials and may not look as nice as other options. Meanwhile, more up-scale modular home options start at around $100 per square foot and can run as high as $150. These will be made from better materials and will typically look much nicer. 

Modular Home Cost per Square Foot

Item

Cost Per Square Foot

Base and Delivery

$50 - $100

Insulation and Finishing

  • $30 - $60

Customization and Additions

  • $10 - $150

Total

$80 - $310

Installation Costs

While the cost of a modular home starts with the cost of the modules, it does not end there. It costs more to ship these modules to the location, install them, and do any other relevant work. Because of this, installation costs need to be considered as well. 

There are a lot of different things that impact the price of installation. However, in general, the installation will add around $25 per square foot to the cost. 

Average Cost

With all of this in mind, you can expect the average modular home to cost anywhere from $75-$175 per square foot. This includes the price of the home itself and the cost to install it. This range includes both the higher and lower ends of the market. 

With this range in mind, we can determine the price of an average home. As the average home in America tends to be about 2,000 square feet, a modular version of this home can cost anywhere from $150,000 to $350,000. 

Factors Impacting Modular Home Cost

As you can now see, modular home prices have a lot of variety to them. This is because there are so many different factors influencing the price. To make sure you are getting what you want from your modular home, it is important to know what is having an impact on this price. 

Modular Home Prices and Floor Plans 

Floor Plan

Square Feed

Base Unit

Total Installed

Average 1-Story

1,400 - 1,700

$70,000 – $170,000

$110,000 – $275,000

Average 2-Story

1,500 - 2,000

$75,000 – $200,000

$120,000 – $320,000

2 Bedroom / 1 Bathroom

800 - 1,400

$40,000 – $140,000

$65,000 – $225,000

2 Bedroom / 2 Bathroom

1,000 - 1,500

$50,000 – $150,000

$80,000 – $240,000

3 Bedroom / 2 Bathroom

1,200 - 1,800

$60,000 – $180,000

$95,000 – $290,000

3 Bedroom / 3 Bathroom

1,400 - 2,500

$70,000 – $240,000

$115,000 – $365,000

4 Bedroom / 2 Bathroom

1,600 - 2,600

$80,000 – $250,000

$130,000 – $380,000

4 Bedroom / 3 Bathroom

1,700 - 3,000

$85,000 – $270,000

$135,000 – $430,000

5 Bedroom / 3 Bathroom

2,000 - 3,200

$100,000 – $290,000

$160,000 – $460,000

Size

The factor with the greatest impact on the cost of a modular home is the size and number of modules it will end up having. In this case, purchasing larger modules and purchasing additional modules will cost more. This is because the modules will use more materials and, in doing so, eat up more costs. In general, the more you get, the more you will pay. 

In this way, you will end up paying more if you want a home with a larger blueprint. A one-bedroom home with a single bathroom will be on the less expensive side. Meanwhile, a house with multiple floors, bedrooms, and bathrooms will cost a lot more. 

For example, the average size of a tiny home in America is 225 square feet. Meanwhile, the average size of a normal home is around 2,000 square feet. Considering a mid-range price of around $75 per square foot for the basic cost of a modular home, the average tiny home would cost $16,875, and the average normal home would cost $150,000. As you can clearly see, this is a massive difference in price, and this is before installation costs are even considered. 

This is why you should carefully consider what you want before you start building a home. Drafting up an example site plan is a good way to start visualizing the home before you have to make any decisions. 

Quality and Customization

While the basic cost of a modular home comes from the modules themselves, not all modules are built the same. The quality of these modules has a big impact on the price. 

This means that lower-quality home materials will cost less than higher-quality ones. This is the reason why shipping containers are a popular choice for modular homes, as they are made from cheap materials. However, shipping containers don’t exactly look good, and most people want something that more accurately reflects the look of a traditional home. Unfortunately, getting something like this will cost more. 

In addition, custom models will significantly drive up the price. Customization takes time and effort on behalf of the manufacturer, and they will be sure to charge accordingly.

Factors Impacting Installation Cost

While the cost of the modular home itself will be the most significant aspect of the total cost, installation needs to be considered too. The total cost of installation will vary depending on the location and the amount of work you need to have done. 

Site Prep Costs For a Manufactured Home

Type

Average Cost

Land Survey Costs

$350 – $1,000

Land Clearing Costs

$1,350 – $3,900

Excavation

$1,600 – $4,400+

Land grading cost

$600 – $2,000

Total

$3,900 – $11,300

Preparation

The first cost related to installation comes from the location itself. You will have to pay to have the site prepared in order for the home to be assembled there. 

This starts with a survey. This survey lets the company know what work will need to be completed. From here, the area is cleared of anything that is in the way. This includes large rocks, trees, other plant life, and any other debris that would hinder construction. Finally, the land is leveled, if necessary, and space for the foundation is made.

Each step in this process will cost money, but the price will depend on the amount of work that needs to be done. If you are dealing with completely flat land, installation costs will be on the lower end. If you are building a house on a slope and need to have a lot of trees cleared out first, then the installation costs will be much higher. 

To reduce these costs, you can try to pick a site that will require very little work. This means picking a place relatively free of obstacles. If this isn’t the case for the property you have, you can work to clear it yourself, which will save on installation costs. Unfortunately, reshaping land that is sloped is something best left to professionals and should generally be avoided as a do-it-yourself project. 

Modular Home Foundation Cost Chart

Type

Cost Per Square Foot

Average Total Cost

Basement

$33 – $47

$20,000 – $29,000

Crawl Space

$7 – $14

$6,300 – $16,300

Pier and Beam

$7 – $11

$3,000 – $8,000

Stilts / Pilings

$11 – $19

$12,000 – $30,000

Foundation

Modern living room with a fireplace

Every home starts with a solid foundation. Once the area is cleared and fully prepared, this foundation can be built. 

In general, the cost of a modular home foundation ranges from $7 to $30 per square foot. The exact cost depends on what type of foundation you choose. 

When building a modular home, you can choose from pier and beam foundations, crawl spaces, basements, or stilts and pilings. 

Pier and beam foundations are the most basic choice. These are cheap and easy to assemble. However, they don’t add any utility to the home. 

Crawl spaces are similar to pier and beam foundations but add a little bit of utility. They effectively give the home a small amount of basement storage. This can be a great way to make space within the home, as it may require you to spend less on closets and other storage areas. However, crawl spaces will cost more than pier and beam foundations. 

Basements are even more elaborate than crawl spaces. A basement is effectively an additional room that is added to the house. This will dramatically increase the cost of the foundation but is by far the most helpful option. 

Finally, stilts and pilings are useful in specific situations. These essentially put the house or sections of it on stilts. They are used when the house is built on a dramatic slope or in places where keeping the house on the ground would expose it to flooding and other water damage. 

Delivery and Moving

Another big factor influencing modular home prices is the cost of delivering and assembling the home itself. Smaller homes will require fewer parts, which will cost less to deliver and assemble. If you want a larger home, you will have to take on the increase in installation costs. 

This is the point in the process where the pieces of the home are taken from the manufacturer and set up at the site. However, after the home is set up, it is not completely ready yet. It still needs to be fully installed in a process called “buttoning up” before it will be livable. 

Possible Installation Chart

Distance

Average Cost

On-frame

$1,000 – $8,000

Off-frame

$5,000 – $15,000

Installation

The installation or buttoning-up process is where the separate parts of a modular home come together in a unified way. Think of it like assembling a piece of modular furniture after the set of pieces was delivered to you. 

This process starts with connecting the modules themselves and installing any additional pieces. From there, other work like installing drywall, carpentry, and other small adjustments can be completed. Finally, testing and inspection are conducted to ensure that the home is safe to live in. 

This entire process will typically cost somewhere between $5 to $35 per square foot. Where exactly a home will fall in this range depends on how much needs to be done. A home with many modules and additional pieces will cost more to assemble. However, a simple and straightforward home consisting of only a few pieces will be on the lower end of the spectrum. 

Related: Is It Cheaper To Build Or Buy A House?

Utilities

A home doesn’t just sit on a property. To function properly, it needs to be connected to a number of different utilities. Otherwise, you are dealing with a home that doesn’t have running water or even electricity. 

In general, the cost to hook up utilities ranges from $3,000 to $30,000. This is partially influenced by the property itself. If the soil is difficult to dig into and the lines are hard to reach, the price will be slightly higher. 

However, a higher utility cost typically comes from any special additions the owner desires. A septic tank and a well will help make the home more self-sufficient. However, both will require an upfront cost. 

Taxes and Fees

On top of everything else, you will have to pay taxes and fees. Typically, taxes are included in most estimates. However, you should always make sure this is the case before agreeing to a purchase, as taxes could alter the price by thousands of dollars. 

Fees will vary depending on the locality. Many places require permits and other legal documentation for you to build on a property. The exact cost of these will depend on what you are doing and how much the area charges. 

On the low end, fees may cost as little as $500. On the high end, it may cost as much as $4,000. However, around $1,000 seems to be the average. 

Modular Home Addition Costs Chart

Upgrade

Average Cost

Garage Addition Costs

$10,000 – $25,000

Deck Costs

$4,000 – $10,000

Basement Foundation Costs

$25,000 – $80,000

Basement Finishing Costs

$22,000 – $46,000

Driveway Costs

$600 – $8,000

Fence Costs

$1,500 – $3,000

Landscaping Costs

$3,000 – $16,000

Shed Costs

$1,500 – $5,000

Outdoor Additions

Another factor that has the potential to increase the price of installation dramatically comes from outdoor additions. 

Some of these additions are large and entirely optional. These include elements like decks, garages, and fences. None of these are necessary but will definitely help make the home look better and could increase the home’s value overall. For example, a garage addition will actively protect a car and also gives the owner a little more storage space. Ultimately, the benefits of the potential additions need to be weighed against their costs. 

Other additions include things that most people consider essential and wouldn’t even think of as additions. These include a driveway and any landscaping around the house. Most people want a place to park their car and a path that leads to the front door, so these additions are something that should absolutely be considered. 

The Cost of Adding to a Modular Home

Modular Addition To Existing Home Cost 

Room

Average Cost

Includes

Bedroom / Office

$11,000 – $20,000

~144 SF with new foundation and roof

Bathroom Addition

$15,000 – $40,000

Toilet, shower, tub, sink, finishes

Guest House / In-law Suite

$45,000 – $135,000

~600 – 750 SF, mid-sized bath, 3 windows, concrete slab, and more

Second Floor

$100,000 – $300,000

~1,200 SF of bedrooms, bathrooms, windows, staircase.

We’ve gone over the cost of a modular home and then the cost of installing that home onto a property. However, many modular homeowners end up adding to their homes later on. They may outgrow the home as their family expands, they may finally have the money to add to the place, or they may simply want more room in their house. When they add to the house like this, it is called a modular addition. 

A modular addition can be any number of different things. It could be an extra bedroom, a second story, another bathroom, or something else entirely. The great part about modular homes is that they can be added onto in any way. 

However, when it comes to modular additions, the costs are different. On average, a significant modular addition will cost between $100-200 per square foot. The exact cost will depend on how significant the addition ends up being. For example, adding a second story to a home requires a major renovation and will end up costing quite a bit. Meanwhile, simply attaching another room to the side of an existing home will cost less. 

Advantages and Disadvantages of Modular Homes

Now that we’ve taken a look at the price of a modular home, you can better understand the advantages and disadvantages of purchasing one. Both the positives and negatives are important to keep in mind when making this decision. 

Modular Home Advantages

A couch in a living room

The biggest advantage of choosing a modular home is the price. This is what initially attracts many people to modular homes and is a big part of their popularity. In general, modular homes cost around 15% less than their alternatives. 

While a 15% reduction in price might not sound like a lot at first, it ends up being a significant amount of money when dealing with expensive homes. For example, a 15% discount on a $100,000 home ends up saving you $15,000. You could put this extra money in savings or use it to make the home even bigger. 

On top of initial cost savings, modular homes save money in the long run. They are generally very energy-efficient and, thus, will save money on utility bills. They are also durable and built to withstand the test of time. 

The other big advantage when it comes to modular homes is the fact that they are faster to build. While traditional homes may take a year or more to build, modular homes are ready in only a few months. If you are in any sort of a hurry to build your home and move in, a modular home will suit your needs perfectly. 

Finally, modular homes offer an amazing level of customization. Most homes will have specific features they need to include, even if you don’t actually want that feature for your home. However, modular homes often have the option for you to pick exactly what you need and only include those features. So, with a modular home, your house is built to your specifications.

Related: Everything You Need To Know About House Foundations

Modular Home Disadvantages

Most of the disadvantages of building a modular home come from area-specific problems. These are issues that will have a bigger impact on some locations and localities than others. 

First off, the availability of land has a big impact on the overall efficacy of a modular home. If no good land is available or if the land is simply extremely expensive, then building a modular home will either be impossible or will face excessive costs. This is why modular homes are more popular in rural areas and less popular in urban ones. 

Other laws and regulations have an impact here as well. Some areas place restrictions on building modular homes, making it difficult or impossible to do. Others impose fees that significantly add to the cost. Some states even place an additional tax burden on modular homes, depending on how the state classifies these dwellings. 

While many of these problems are location-specific, there are also a few problems that face most modular homes. One is the fact that the down payment is usually higher, which means the owners need to have more money before starting construction. In addition, the process of financing a modular home can be difficult, as some banks classify them in a way that restricts loans. 

How Much Do Modular Homes Cost?

Modular homes come in a variety of shapes and sizes. Because of this, they also come in a variety of prices. In general, you can expect to spend somewhere between $75-$175 per square foot, which includes the cost of the home and installation. However, the exact price of your home is highly dependent on your individual wants and needs.

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  • Ryan Crownholm