Pros and Cons of Prefab Homes

Pros and Cons of Prefab Homes

Prefabricated homes or simply, Prefab homes have gained popularity recently. With a growing demand due to the effect of the trending tiny house movement, prefab or modular homes are among the in-demand homes across the world. Furthermore, prefab homes are a great option for homebuyers nowadays because of the rise in labour costs. But what are these prefab homes? And what are the pros and cons of prefab homes?


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Prefab Construction

A modular or prefab company constructs your home in a sheltered environment thus there are no delays due to climatic and other external conditions. After constructing offsite, the company transports your home to your site to assemble and install the constructed home. Prior to installation, owners constructs the foundation and prepares the site for installation.


Pros / Advantages of PreFab Homes

Here are 5 advantages of Prefab Homes:

1. Quick Build

The main advantage why prefab homes are in demand is the quick turnover. Prefab homes significantly lower the usual construction time because it can be completed within just a few months. You don’t have to worry about delays brought by weather conditions and other related problems such as suppliers, subcontractor issues and late delivery of materials. This is in part due to the construction in a controlled factory. Because of this, labour costs won’t escalate as it was on schedule.

2. Less Cost

Prefab homes are generally less expensive than building a conventional stick-built home. Part of the savings are due to less labour cost. It takes fewer labourers working to make a prefab home installation-ready. That saves you a chunk of money. Another reason for the saving is that the prefab company guarantees a fixed price contract. This saves you from unforeseen surcharges and unplanned costs. Prefab homes are normally priced per square foot and that gives you more idea on the probable total cost. Note that the price varies depending on your choices in finish, materials and fixtures, or the type of window and doors etc.

3. Monitored Quality

Prefab homes come with warranty against structural defects. Prefab companies assures clients of managed quality control and building regulation compliance, as well as other certifications. A factory environment guarantees the quality of workmanship in controlled settings with standard processes and safety procedures.

4. Better Insulation

Prefab homes promises better insulation. Given that the house is constructed where there is a strict quality control, materials used are generally more durable and suitable to the site location. Prefab companies know already the standards in insulating your home with your given site location.

5. More Sustainable

Prefab homes are clearly more sustainable than conventional construction. Main reason for this is that prefab construction have considerably less carbon footprint and uses less energy. Prefab creates lesser emissions due to lesser material transport and lesser waste disposal on site. It is important nowadays to build homes that are Eco-friendly and sustainable and prefab homes is an efficient way to help the environment.

Cons / Disadvantages of PreFab Homes

Here are 3 disadvantages of Prefab homes:

1. Upfront Payment

You’ll need to pay for your prefab home’s construction before you move in. When you sign the contract, the prefab company provides you with the terms of payment while your home is being built in their factory. So you might need to save first before going into a prefab construction. While there are many financing options for prefab homes, you still need a considerable amount to pay for these upfront payments.

2. Limited Customization

Prefab homes limits you on customizing your own home. There may be different design choices but this type of construction has several constraints. One constraint is the size. You cannot customize the size of your home unless you are willing to pay huge amount of money. Prefab homes sizes are usually transportable size – size of trailer trucks. This limits you with the size and height of your home. Depending on the prefab company you choose to build your home with – you can be limited to material options and home layout possibilities.

3. Low Resale Value

There is a stigma that prefab homes are low quality. Quality reduces because it is massproduced. Which can be true but it always depend on your chosen prefab home builder. Less home buyers are interested in buying old prefab homes and the resale value can go low. On the other hand, there are many innovations in prefab construction nowadays and technology are changing the prefab building process.


The cost of building prefab homes depend on your preference. Prefab companies will propose many options that may help you decide which way to go. If you choose to build a prefab home, just make sure that you are involved in the process. It is your own home after all.

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