Modular vs. Mobile Homes: Know the Difference
What is the Difference Between a Modular Home and a Manufactured / Mobile Home?
Although both "modular homes" and "manufactured homes," sometimes called "mobile homes," are both prefabricated in a factory, manufactured and modular homes are fundamentally different products in a few key ways that drive long-term value. If you are planning to develop property, it is important for you to understand these fundamental differences, in order to decide which is best for you.
Modular Homes:
The critical feature of modular homes is that they have a structure similar to those built on-site, and they are permanently attached to the land by way of a traditional foundation. Once the modular home is shipped from the factory and installed, it is legally and effectively identical to a home that was built on site.
Modular homes are built in a factory and assembled on a permanent foundation
Currently, Cassette only sells modular homes that can be permanently affixed to a foundation.
Manufactured Homes:
By contrast, manufactured homes, sometimes called "mobile homes," are built in whole or sections on a mobile chassis with wheels, allowing them to be transported. They follow highway codes, not local building codes, and so cannot be permanently affixed to the land. They are typically less expensive than permanently-affixed homes and can be moved, but this also affects their zoning and financing options. Manufactured homes often face stricter zoning laws and are treated as personal property rather than real estate.
Manufactured homes are mobile and require land with special zoning
Traditional Financing for Modular Homes
In many cases, it’s easier to get a traditional mortgage on a modular home, like those produced by Cassette. Since manufactured homes may be moved, it can be harder to secure financing for them. Local jurisdictions also may require special zoning to allow manufactured housing in a neighborhood, while modular homes are no different with respect to land use than any other form of permanent housing.
It’s easier to get a traditional mortgage on a modular home, like those produced by Cassette.
Why Modular Homes Are a Smart Investment for Property Development
In short, modular homes act like site-built homes, but they offer some key advantages:
- Faster Construction: Modular homes are built in a factory while site preparation occurs simultaneously, reducing build times, in some case by 50%.
- Quality & Cost Control: Controlled factory environments lead to better material management, less waste, and reduced labor costs, making modular homes more affordable.
- Sustainability: On average, factory-based construction can material waste by up to 80%, and reduce emissions by reducing truck trips to the jobsite by 70%.
Summary
When it comes to property development, understanding the differences between modular and manufactured homes can significantly impact long-term value, financing options, and zoning challenges. Modular homes offer distinct advantages by being permanently affixed to the land and complying with the same building codes as traditional homes, making them a smarter investment. In contrast, manufactured homes, while also cost-effective, face mobility limitations that can complicate financing and zoning. This distinction is crucial when deciding on the best approach for developing your property.
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If you'd like to know more about developing a property using modular homes, feel free to drop us a line here!
