When home buyers pay closer attention before construction starts,
they are especially likely to see the advantages of modular
construction, according to panelists at a press conference held today at
the National Association of Home Builders (NAHB) International
Builders’ Show in Orlando, Fla. Research shows that a typical modular
home is built more quickly when home buyers make timely decisions.
“Builders
are looking for new solutions in today’s challenging economic climate,”
said Kevin Flaherty, vice president of marketing for Genesis Homes and
Champion Home Builders Inc., based in Troy, Mich. “When homeowners
choose modular construction, as they often do, they experience
measurable savings in cost and time."
The time and cost savings
can be measured with the U.S. Census Bureau’s data on housing starts.
“The Census Bureau publishes characteristics of new housing, but
typically doesn’t show detail for modular homes,” said Paul Emrath, NAHB
vice president for survey and housing policy research. “By tabulating
the Census data ourselves, we can see the characteristics of today’s
modular homes in some detail, and compare modular to site-built
construction.”
The data show that a typical modular home started
in 2010 has three bedrooms (71.6 percent), two full bathrooms (56
percent) and vinyl siding (83.9 percent).
When compared to
site-built, a notable difference is how quickly modular homes tend to be
built. The average time from start to completion for a modular home is
five months, compared to 6.9 months for a site-built home, and this
average savings of roughly two months has been consistent over time.
Modular homes also tend to be slightly smaller, with an average of 1,902
square feet compared to 2,387 for site-built, and less expensive, with
average permit value of $76.80 per square foot versus $94.34 for
site-built.
It is necessary to base the cost comparison on permit
value rather than price, because about 80 percent of modular homes are
custom built on the owner’s lot and therefore record a sale price,
unlike site-built homes that are often built speculatively for sale at
some point in the future, Emrath said.
The Census data show that
modular homes are located more often in the north central and east coast
Census divisions. Additional research conducted by the business
planning and marketing consulting firm Hallahan Associates uses permit
data to analyze trends in modular home construction by state. “During
the past five years, there has been a visible trend of modular home
market share growth in key states like New York and Virginia, where
modular has an established history,” said Fred C. Hallahan Jr., founder
and principal of Hallahan Associates in Baltimore.
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