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!
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.
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....
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...
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
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.
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.
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.