Real Estate Investing

Pre-fabricated housing was once relegated to government projects and low-income neighborhoods. Now, a new day has dawned. When housing is built off-site and trucked in, it can make for a much more affordable housing option. But it doesn’t have to be small, rickety or ugly. Prefab has spread its wings and landed in some of the most chic, lux neighborhoods imaginable.

Bonus: It’s usually lower cost. The Washington Post wrote about Barry Bless and Jennifer Watson, who built a two-bedroom, one-bath, 1,150-square-foot mountain abode for $95,000. That’s about $83 per square foot. This is an ultra-modern home, with an open floor plan, hardwood flooring and floor-to-ceiling windows. Additional work needed on the home, like site prep and water/sewer hookup, was handled by the couple and their friends, which the article points out as an obvious cost-cutter.

“But Barry Bless and Jennifer Watson figure that even if contractors had done most of the work, their 1,150-square-foot, two-bedroom, one-bath mountain retreat would have come in at around $150,000. That works out to $130 a square foot, compared with the $200-to-$400-per-square-foot costs of many modern, architect-designed houses.”

Prefab housing has plenty of options. With full-length porches, decks, garages, fireplaces, basements, stone and brick exterior, these houses are virtually indistinguishable from their more traditional counterparts. However, prefab is really making a name for itself in modern housing design, something which would normally require elite architects and seemingly endless pockets. The boxy, airy, lofty looks are more popular around the U.S. and have also caught on in other countries like Sweden, where partnerships have been formed with Ikea modern furniture manufacturer.

OpenHouse NYC blog offers a video tour of a fabulous prefab home and interviews with real estate experts. Marcia Altman, a realtor in West Hampton, tells the blog that the only remaining stigma attached to prefab, or modular, housing is among “the uninformed.” Essentially, she says, this option helps home buyers get “a little more house for a little less money.” The prefab housing option may increase in cost as demand and respect grows, particularly when the limping housing market recovers and home prices soar once again. For homebuyers on a budget, it’s an option worth digging into.