What is Modular Housing?

Modular housing is one of the fastest growing sectors of the construction industry. Modular home building technology is a process, and is currently utilized for single-family and multifamily residential applications.

• Traditionally found in the Eastern U.S., the modular housing industry has begun to make tremendous inroads across the country, evidence of its broadening appeal to builders, developers, and consumers.

• A modular home is constructed of building materials in a controlled factory setting. The factory setting allows manufacturers of modular homes to use automated and technologically advanced systems and machinery in an assembly-line fashion.

• Modular homes are built to the exact same prescriptive building codes that local home-builders meet. It is the job of the manufacturer and the local builder to design each individual home to the local building code. Modular homes are also built using the exact same building materials in site-built homes.

• A state certified or third party inspector will inspect the homes during the factory construction phase. A local inspector inspects all work done on-site, both prior to module erection and assembly, and any work completed thereafter.

• A modular home manufacturer works directly with a dealer/builder/general contractor. A successful PARTNERSHIP between a modular manufacturer and a local builder/dealer or general contractor is absolutely necessary for a successful modular home project.

• Once built, the home is then transported to the home site where assembly occurs and the home is completed and finished by the builder.

• A modular manufacturer builds the home components in modules. A modular builder takes the modules and turns them into a home.

• By building off-site, a modular home manufacturer creates greater efficiency and allows builders to become more productive, thereby building more homes and creating jobs locally.

• The building industry will always be plagued by untimely weather delays, fluctuating and unpredictable material costs, and skilled labor shortages. The off-site, factory-built modular housing process helps alleviate and control the known variables that hassle builders daily.

• According to the U.S. Census Bureau, 50% of all residential builders cited a shortage of carpenters. By the year 2020, according to government data, there will be a need for an additional 1.1 million special trades contractors.

• On-time and volume purchasing enables manufacturers to build homes at a reduced cost, which then are passed onto the consumer. More importantly, the modular construction process saves time. By shortening the construction time, a builder is better able to manage the soft costs of construction, thereby increasing efficiencies and saving money, which again is passed onto the consumer.

• Modular homes are appraised and financed exactly in the same manner as site-built homes. Most jurisdictions zone and treat modular homes as any other residential structure, and the industry is educating those jurisdictions that may act differently.