Prefabricated Homes Contribution to Affordable Living

Prefabricated Homes Contribution to Affordable Living

Member since 2023 · 19 posts · 9 votes

Prefabricated homes/Container homes are a viable option for affordable living in many markets. An answer to the affordable housing crisis can simply be put as: increase the supply of housing. However, there are a number of economic factors that contribute to dampening the construction industry's ability to provide a greater supply. Prefab and Container homes are a viable option to increase supply and provide affordable living. 

I'm interested to hear responses to this, would appreciate other's perspective and thoughts!

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y

I am just not seeing it.  While construction is expensive, so is land in the metros that people want to live in.  You still need land to put a prefab on.

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  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    Show me a company who can build and deliver a prefab home for less than it costs to build a site built home.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    Prefabs homes are not as good as site-built homes, will not have the resale value, etc.....it would have to be quite the price benefit to make it work....

  • Member since 2023 · 19 posts · 9 votes
    3y
    Quote from @Bruce Woodruff:

    Prefabs homes are not as good as site-built homes, will not have the resale value, etc.....it would have to be quite the price benefit to make it work....


    You have a valid point here, many others share the same viewpoint. However, there is always innovation. For example, Pleasant Valley Containers is a company that I view will provide great innovation and efficiency. Reference their website here: https://pleasantvalleycontaine...

  • Member since 2023 · 19 posts · 9 votes
    3y
    Quote from @Scott E.:

    Show me a company who can build and deliver a prefab home for less than it costs to build a site built home.

    Will do, Scott! Check out your messages and I'll send you a few businesses.

  • Real Estate Agent · Kansas City, MO · Member since 2022 · 147 posts · 40 votes
    3y

    @Andrew Chime I think that container homes are definitely on the right track, we have some going up here in KC. But I have to agree, I think the prices just aren't quite there yet. If they had better resale values, but I don't think they're widely accepted enough for the market to have great resale values, or for lenders to close on them without any issues. I haven't looked a crazy amount, but from what I've seen, average price is about 40-60k, before delivery, plus you have to have the land. And when there are properties you can buy that don't have any of the issues containers do, that cost the same amount, and have a shot at appreciation, it doesn't make since to go with the container option. I hope that eventually they will be more accepted and more affordable 

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y
    Quote from @Andrew Chime:

    Prefabricated homes/Container homes are a viable option for affordable living in many markets. An answer to the affordable housing crisis can simply be put as: increase the supply of housing. However, there are a number of economic factors that contribute to dampening the construction industry's ability to provide a greater supply. Prefab and Container homes are a viable option to increase supply and provide affordable living. 

    I'm interested to hear responses to this, would appreciate other's perspective and thoughts!

     Gentrification is a MUCH  better solution.

    Detroit for instance, sometimes $1,500 will get you a SFH that needs big help of TLC.

    Wait a bit longer and the prices in the neighborhood go up (as the crime recedes).

    New windows, fixup the porch, some new flooring--and you have a cheap house.

    Vs. build a affordable/cheap house (prefab or otherwise) and there is no barrier to prevent a neighbor from Section-8ing his SFH and mving in the Crime from the other Cheap areas.

    At lest with Gentrification, if you get in early enough, you might be able to sell for a big profit if the area becomes popular enough.

    Detroit for instance as the Detroit Land Bank for hearty (brave) pioneers who wish to live there.

    Living in any of these fixed up proper homes would be superior to living in a metal container, 

    and most likely based on the price point of Affordability, crime will simply discover your little enclave and move in there the same as the potential gentrified areas.

    Good Luck!

  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    I am just not seeing it.  While construction is expensive, so is land in the metros that people want to live in.  You still need land to put a prefab on.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Andrew Chime:
    Quote from @Bruce Woodruff:

    Prefabs homes are not as good as site-built homes, will not have the resale value, etc.....it would have to be quite the price benefit to make it work....


    You have a valid point here, many others share the same viewpoint. However, there is always innovation. For example, Pleasant Valley Containers is a company that I view will provide great innovation and efficiency. Reference their website here: https://pleasantvalleycontaine...


    Very nice! Don't get me wrong, I'm a big fan of these alternative buildings, but they have to make sense financially for an investor. If I was just going to get one for my own vacation home, I wouldn't care as much about ROI.

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    Mobile homes, modular homes, panel homes, home kits and now prefab & container homes have all been tried with ittle success.

    Worked with modular homes for 3 years and limitations were: 

    1) Designs limited as have to transport down roads

    2) No cost savings on land

    3) No cost savings on site work

    4) Transportation damages

    To address the challenge of the subject line, ALL the issues need a comprehensive solution, not just 1 or 2 parts.

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