The Economics of Purchasing and Customizing a Prefab Home

In 2008, I sought to purchase a Los Angeles home.  Home builders quoted me prices of $350 per square foot for the construction cost of building a new home on any land that I acquired.   At the time, it crossed my mind whether a prefab home would offer a suitable alternative.   This article offers an interesting case study.

The article talks about a buyer who received quotes that their "dream home" would cost at least $1 million to construct.

"They bought the house, “a skeleton that had all the wiring, outlets, plumbing, pipes and electrical,” from Segalla’s TurnKey Housing in Canaan, Conn., said Mr. Bristow, 49. “We then built out the remaining parts of the house: windows, doors, lighting, built-ins, bathrooms, kitchen, flooring, baseboard, trim, window and door details, roofing, overhang details, carport and landscaping.”

The total cost was $493,422, including $250,625 for the modular shell. (The price per square foot was about $137, a figure that does not include the kitchen, which Mr. Bristow built himself, or their furniture, a mix of their own designs, refurbished hand-me-downs and vintage store finds.)

As Ms. Proffitt, 44, observed, “The modular house has advantages: 120 workers will build your house in five days in a factory,” and it arrives “at its appointed hour, or there will be penalties.”

 

 

Comments

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