When you’re house hunting, you’re mostly looking to buy a pre-built home. But in some cases, you might not find that perfect house that makes your eyes light up. A good option can be a prefab home. But what are the pros and cons of a prefab home? In this guide, we will tell you everything you need to know.

A prefab home’s best thing is affordability. Plus, they are also energy efficient. So, you will save money in the long run. However, there are some drawbacks too. Like you would need to own the land underneath.

That isn’t all. There is more nuance to it. For the right person, a prefab home can be exactly what they are looking for. So, let’s get started.

What Is a Prefab Home?

Let’s start from the basics. What is a prefab home? Well, Prefab is just short for prefabricated. Simply put, a prefab home is manufactured in a factory setting. And then it was made into a fully built home.

It makes much more sense now, doesn’t it? That isn't all though. There are different types of prefab homes as well:

● Kit Homes

● Manufactured Homes and

● Modular homes

Kit Homes

Kit homes are very simple. The name itself gives you hints as to what they are. These are made with build pieces and the good thing about kit homes is that most owners can just build them themselves.

Manufactured Homes

Then we have manufactured homes. One of the main factors for a manufactured home is that they need to meet HUD requirements. The house is built section by section. Engineers will then put together the full house with the right equipment.

Modular Homes

If you want a lot of personalization, modular homes are the way to go. They allow you to customize the floor plan and more. There is a caveat though. Manufactured homes and kit homes are moveable. Modular homes aren’t since they have an immovable foundation.

The Pros of Prefab Homes

Alright, now that you have a good idea about what prefab homes are, let’s take a look at the pros and cons of prefab homes.

There are some common pros no matter which kind of prefab home you choose to go with. And for the right kind of buyer, they can be the perfect fit.


Affordability has to be one of the biggest pros for a prefab home. They do not take that much time to build. So, you’ll save some money on labor costs as well. And the heating and cooling can be cheaper as well. This brings me nicely to the next pro.


Traditional homes can impact the environment in a bad way. Building a normal home is not that good for the environment since it will require materials to be transported back and forth. And that means there will be gas emissions.

On top of that, all of the materials might not be used up either. If there is no proper recycling system in place, the materials that were not used might end up in landfills. And that creates even more of a negative impact on the environment.

None of these are issues with prefab homes. They are much more sustainable. The extra materials can be used for new projects. And the home is just shipped after it is built. No back and forth, and no emissions.

Energy Efficient

Prefab homes are fantastically energy efficient. The tight construction will cost you less when it comes to heating and cooling. On top of that, the state-of-the-art construction also gives you a lot of structural rigidity. That means your prefab home will be able to withstand natural disasters as well.

Be smart about it though. If your area is struck by a natural disaster, do not risk it. You should always follow the local guidelines. But it will give you peace of mind knowing that your prefab home isn’t that flimsy.

Quick Constructions

Prefab homes always come partly constructed. And you just need to assemble the sections and hook them up to the utilities. This means they are very quick to build compared to traditional homes. You can get a ready-to-move-in home without waiting for years.

The Cons of Prefab Homes

The pros of a prefab home are pretty great. But it isn’t all sunshine and roses. There are some cons too.

I wanted to give you a full picture of owning a prefab home. So, you know exactly what you’re getting into.

Up-front Payment

A major con of a prefab home is generally higher up-front payments. You see, with a traditional pre-built home, you can pay an initial payment of 20%. Then you can pay the rest over time.

However, you need to pay the construction prices of a prefab home before you can move in. You’ll have a contract that will specify the payment cycles. And you need to make these payments while the manufacturer builds it. So, be sure you can afford the upfront costs.

Hooking Up Utilities

Utility hook-up can be a pain sometimes. You might need to arrange for utilities and other site details. That can be tough. Connecting to city water or well water can also be a hassle.

Also, for uneven sites, an extra foundation needs to be laid to make it even. Luckily, there are prefab homes that offer these extra services.

Land Costs

Lastly, there are the land costs as well. The thing about a prefab home is that you need to own the land you plan to put the house on. This means that if you don't already own any land, you'll need to buy one. Plus, you will need permission to have a prefab home on it.

Wrapping Up

There you have it. That is all the pros and cons of prefab homes. Although there are some drawbacks, for the right kind of person, a prefab home can be an awesome choice. You just need to see whether or not it works for you.

It can also be a good option for first-time homeowners. Since affordability and energy efficiency are one of the biggest benefits.

September 02, 2022 — Della Wang