Factory and Site-Built Housing: A Comparative Analysis: Fid-Bau Portal

Factory and Site-Built Housing: A Comparative Analysis

Using three approaches, the study analyzes and compares the relative costs of site-built, modular, and manufactured homes. A detailed analysis contrasts the selling prices and production costs between site-built homes and HUD-Code homes. Contributing factors to variances in selling price and production cost include: Factory production economies of scale and purchasing power of producers; Presence or absence of land in the transaction; Type of foundation systems; Inclusion of design amenities such as garages and fireplaces; Building materials used for floor, roof, and wall construction; Regulatory systems and technical requirements for design and construction; A cost comparison of the three types of housing finds that manufactured homes are less expensive than the site-built or modular homes due to their lower square-foot production costs, even after correcting for major contributing factors including land, square footage, and differences in foundation costs. Up-front costs and monthly payment estimates from the buyer's perspective under several alternative scenarious are also used in the analysis. The report concludes with a series or regulatory and technical recommendations and a separate set of recommendations for site builders and production builders. The recommendations show how conventional home builders can improve their operations, take advantage of new opportunities, and learn from the experience of the manufactured homes sector as strategic alliances and interaction between large site builders and large HUD-Code producers increase.