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If you’re weighing your options, here’s the short version:
In most cases, a modular home is cheaper than building a traditional house from the ground up.
Modular homes typically cost 10–30% less per square foot, mainly because they’re built in factories with less waste, faster timelines, and bulk material pricing. A traditional “stick-built” home often comes with higher labor costs, longer construction times, and more financing hurdles.
Read on for the full breakdown.
What are Modular Homes?
Modular homes, also known as prefab or factory-built homes, are constructed in sections within a controlled factory environment and then transported to the site for assembly on a permanent foundation.
Unlike traditional site-built (or "stick-built") homes, which are constructed entirely on location, modular homes leverage industrial processes that drive down costs.
On average, modular homes cost 10-25% less than comparable site-built homes due to efficiencies in production, labor, and timelines.
Below, I'll break down the key reasons for these savings, supported by recent data (as of 2025), and include a cost comparison table for clarity.
Why Modular Homes Are Usually Cheaper?
1.Factory-Controlled Construction and Reduced Labor Costs
Building in a factory allows for assembly-line efficiency, where skilled workers operate in a climate-controlled setting without weather interruptions. This minimizes on-site labor, which can account for 50-60% of a site-built home's cost.
Pre-cut materials and standardized designs further cut labor by 20-40%. For instance, general contractor fees for modular assembly are only 20-40% of the total project, versus higher rates for full on-site builds.
2.Faster Build Times
Modular homes can be completed 40% quicker than traditional ones—often in 3-6 months total, with factory work done in weeks while site prep (like foundations) happens simultaneously.
This reduces holding costs (e.g., temporary housing or interest on construction loans) and avoids delays from weather or supply chain issues, which can add 10-20% to site-built timelines.
3.Less Material Waste and Bulk Purchasing
Factory precision results in 15-20% less waste than on-site construction, lowering material expenses. Manufacturers buy supplies in bulk, securing discounts, and use higher-quality wood (15-20% more per square foot) without inflating prices.
This also makes modular homes more sustainable and energy-efficient, potentially saving on long-term utility bills.
4.Fewer On-Site Disruptions and Transportation Efficiencies
Modules are built indoors, shielding the process from rain, wind, or labor shortages. Materials aren't hauled to remote sites repeatedly, cutting logistics costs.
While transportation adds some expense (e.g., $10,000-$20,000 for delivery), it's offset by overall efficiencies.
Modular vs. Traditional Homes: Quick Comparison
| Category | Modular Home Cost | Site-Built Home Cost | Savings with Modular |
|---|---|---|---|
| Per Square Foot | $80–$160 | $100–$200 | 10-25% lower |
| Total Base Price | $160,000–$320,000 | $200,000–$400,000 | $40,000–$80,000 |
| With Installation/Site Work | $240,000–$270,000 (avg.) | $300,000–$500,000 (avg.) | 20% lower |
| Labor Share | 20-40% ($48K–$96K) | 50-60% ($150K+) | 30-50% less labor |
| Build Time | 3-6 months | 6-12 months | 40% faster |
Where PanGu Technology Changes the Game
One common knock on modular homes?
They’re “boxy” and limited. But SY Prefab Home’s PanGu technology solves that problem.
- ✅ Flexible concrete modules – not just cookie-cutter boxes
- ✅ Simpler to assemble – fewer constraints compared to traditional prefab
- ✅ Practical & durable – combines the strength of concrete with the convenience of modular
This means you can get the durability of concrete, the efficiency of prefab, and the flexibility of design—without the headaches of a purely stick-built process.
SY Prefab Home – Leading Concrete Modular Manufacturer in China
SY Prefab Home is one of the leading concrete modular manufacturers in China, specializing in high-quality, durable, and customizable modular homes. Using our advanced PanGu technology, we deliver modular solutions that are efficient to build, cost-effective, and flexible for a variety of projects—from residential housing to commercial developments.
Ready to build smarter? Contact us today to discuss your modular home project and get a free consultation.
