Is Prefab Better Than Traditional Building?
Last Updated: Feb 13, 2025In the past, prefab construction was usually associated with mobile homes. However, as interest in sustainable home construction gains traction, prefab homes continue to evolve from their humble beginnings. When deciding between prefab and traditional building, there is no simple answer to the question: "Which is best?" As with most sustainability decisions we take, the best option will depend on your particular circumstance. This article takes an in-depth look at the benefits and drawbacks of prefab and traditional homes. This analysis will help you make an educated decision regarding which type of residence will be best for you.
Table of Contents
- How Do Prefab Homes Work?
- What's The Difference Between Prefab Homes And Stick-Built Homes?
- How Long Do Prefabs Last vs. Old Homes?
- Are Prefabs Made From High-Quality Materials?
- How Much Do Prefabs Cost vs. Traditional Homes?
- Do Prefab Homes Lose Value Faster Than Traditional Homes?
What's The Difference Between Prefab Homes And Stick-Built Homes?
Some homeowners mistakenly believe that prefab homes and stick-built homes differ mainly in the type of materials used in the construction process. However, stick-built and prefab structures can use different building materials, methodologies, and technologies. The main difference is related to how and where the home is built. Stick-built homes refer to a home that is constructed entirely or primarily on-site. In contrast, prefab homes are built in factories or warehouses before shipping to the house site.
The name "stick-built" comes from the most common construction method, referring to the superstructure of the walls and roof made from posts and beams. While most stick-built homes are made from 2x4s, metal posts and poles are common. Many prefab or modular homes also use 2x4 post and beam structures. However, other prefab home examples include insulated concrete forms, panelized homes, and structural insulated panels (SIPs).
How Long Do Prefabs Last vs. Old Homes?
The durability of prefab and traditional homes largely depends on the building company. Unfortunately, as the housing market grows increasingly competitive, many builders attempt to cut costs with shoddy building materials and practices, resulting in fewer permanent homes. A traditional home built to passive house standards with a super-tight building envelope and high-performance insulation will most likely last a lifetime. Similarly, a prefab homemade from structural insulated panels could also be highly sturdy and durable.
However, one advantage to prefab homes is that due to the shipping process, most prefab and modular builders add an extra focus on durability. The homes built in factories and warehouses need to be sufficiently structurally sound to withstand the movement associated with shipping and being lifted by a crane onto a standing foundation. Prefab builders want to avoid the extra costs of having to fix on-site a prefab home that fractured or cracked during the shipping and mounting process. Thus, most prefab homes will be exceptionally structurally sound with a motivated focus on rigorously tight building envelopes.
How Much Do Prefabs Cost vs. Traditional Homes?
One of the most oft-cited advantages of prefab homes is that they are widely considered less expensive than stick-built homes. The efficiency in resource and material use alongside mass-production models with factory-built homes makes them more affordable. Nonetheless, it is crucial to recognize that there can be hidden costs associated with the final home cost.
Homeowners interested in prefab homes should ensure that the quoted price includes delivery and crane fees. Also, if you are purchasing an unfinished prefab home, getting a detailed quote on the complete turnkey product is necessary. A finalized quote is critical, primarily if you work with different contractors. Of course, prefab homes also don't include the cost of land. In some areas, the value of a property can easily be equal to or even higher than the price of the home itself.
In general, however, homeowners can expect to pay between $180 and $220 per square foot for prefab homes. This amount usually includes all interior fixtures and amenities. Some stick-built homes are comparative in price and might even be cheaper. Home Advisor finds that the average price for stick-built dwellings in 2019 was just $150 per square foot. However, customized stick-built homes can be increasingly expensive, costing between $800 and $1,000 per square foot.
Do Prefab Homes Lose Value Faster Than Traditional Homes?
Numerous factors will determine the resale value of any home. The oft-repeated mantra of the real estate industry, "location, location, location," is a testament to the fact that the type of construction is often less important than where your home is located. Nonetheless, some types of prefab homes might be harder to sell down the road due to the overwhelming popularity of customized stick-built homes.
Many prefab builders are today offering customization building plans. However, there is still a stigma around these homes that they are mass-produced, cooking cutter-style in appearance. A fully-customized stick-built home will probably cost you significantly more upfront, though it could hold a higher resale value down the road. As more homeowners begin to appreciate the sustainability benefits of prefab homes, their resale value may continue to rise.
So, is prefab better than traditional building? The answer, of course, is that it depends on several different aspects and features that relate to your particular context and situation. Finding a home contractor with experience in sustainability building experience is by far the most critical part of the decision-making process.
Tobias Roberts
Tobias runs an agroecology farm and a natural building collective in the mountains of El Salvador. He specializes in earthen construction methods and uses permaculture design methods to integrate structures into the sustainability of the landscape.
