6 Reasons Why Modular Homes are Good Investments
As modular homes continue to gain traction across the globe, you may find yourself thinking about purchasing one. After all, they have an affordable price tag and can be customized to your liking. But are they a good investment? To answer this important question, it's important to know how the modular home market has evolved and whether today's modular homes satisfy the needs and demands of tomorrow's Canadian homebuyers. Below are six reasons why you should consider investing in modular homes.
1 .They offer superb sustainability
"Modular home builders have a dedicated sales staff that is knowledgeable about the wide variety of available sustainability features like bamboo flooring, low-flow faucets and energy-efficient heating and cooling units that modular builders typically offer." - Green Building Canada
The sustainable design of modular homes contributes heavily to their investment value. Today's generation of homebuyers may be more eager and demanding than previous generations, but they are also more focused on sustainability and conserving resources. Here are three key ways modular homes support the growing demand for sustainable housing:
- Energy efficiency: Modular homes can lower energy consumption by as much as 72%, boosting their allure as a long-term investment.
- Sustainability features: Modular homes are often built with low-flow faucets, VOC-free paint, bamboo floors, and top-quality insulation.
- Reduced waste: By prefabricating frames and trusses in factories, there is very little used in the construction process that is wasted.
2. They can be built much faster than stick homes
A modular home is an excellent investment for people who want a new customized home quickly. Many of today's homebuyers have high expectations, but they are also impatient. Once they decide they are ready to buy a house, they want to be able to move into the customized home of their dreams yesterday. The last thing they want to hear from an architect or builder is that their site-built dream home will take nearly a year to build.
Now imagine hearing that you could move into a newly built home in less than two months. Modular homes require much less time to build than a site-built stick home. Some buyers are immediately won over when they learn the modular home of their dreams can be built in only 4-10 weeks and installed in as little as 7 days. Moreover, the relatively quick turnaround time enables buyers to start living in their homes months sooner, eliminating the need to pay for temporary housing for an extended time.
3. The perception of modular homes is changing
"This perception has evolved as prefabricated homes give site-built houses a run for their money. The factory-built home of today comes in sleek and airy, energy-efficient designs made of high-end materials and fixtures." - Armina Ligaya, Financial Post
Modular homes are now perceived in a favorable light by most developers, real estate professionals, and homebuyers. Before the turn of the century, modular homes were often viewed as a cut below site-built homes. In some cases, this perception stemmed from the use of lower quality building materials and the tendency for consumers to mentally categorize them with mobile homes.
In recent years, perceptions of modular homes have completely changed. The quality of building materials is typically top-tier and many modular homes are customized with granite countertops, vaulted ceilings, and custom cabinetry. This is all excellent news for anyone planning to invest in a modular home.
4. Demand for affordable housing is high
"Over the past few decades, the inventory of affordable homes has been in sharp decline while home prices have risen dramatically... Since 2012, the average price of a home has risen by almost 47%. As a result, affordable housing solutions like manufactured homes may be more suitable for homebuyers looking for a starter home or seeking to downsize." - Housing Wire
Investing in a modular home is a good idea because the demand for affordable housing in Canada is surging. At the same time, the supply of affordable homes is dwindling, creating an affordable housing crisis in Canada. Caitlin Wood with Loans Canada described the lack of affordable housing as a "vicious circle" marked by skyrocketing home prices.
People who invest in a modular home can enjoy living in a new home at a fraction of the cost of living in a typical frame home. For example, the average price of a home in Canada was over $500,000 in 2020. A modular home can be purchased for a fraction of that price, enabling buyers to enjoy a new home at an affordable cost.
5. Modular homes are incredibly strong
"It has been proved time and again that modular homes stand up to extreme conditions much better than their site-built counterparts. FEMA has continually praised modular construction for sound workmanship...FEMA reported that modular homes 'performed much better than conventional residential framing'." - Federal Emergency Management Agency (FEMA)
Modular homes are durable and tend to age better than the average frame home, boosting their investment value. They are so durable that FEMA officials note that they "performed much better than conventional residential framing" during Category 4 hurricanes that produced 131-155 mph winds.
6. Celebrities are endorsing modular homes
"Building smaller, along with building houses prefabricated - in the process using less time, fewer materials, and using both more efficiently - is the sanest and wisest recipe for home construction, for now, and the future." - Robert Redford
If you think celebrity endorsements don't influence sales and investments, then think again. Celebrity endorsements can boost sales by as much as 4%. This is a welcome statistic for prospective modular home investors. In recent years, some of the world's most successful actors, writers, and artists have touted the benefits of modular homes.
Some of the most notable celebrity proponents of modular homes include best-selling author, Sheri Koones, and Hollywood legend, Robert Redford. Both have actively promoted modular homes, citing their economical and eco-friendly aspects. With millions of copies of Koones' books being sold across the globe, modular homes are receiving more attention than ever from a global audience.
The Bottom Line on Modular Homes
As outlined above, a modular home is a good investment. Their customizable, sustainable design, and ability to be constructed quickly make them an excellent fit for today's discerning homebuyers, who don't want to wait 9-12 months for a traditional stick-built home. And with an affordable price tag, it's easier to invest in a modular home.
To learn more about why Canadians are investing in modular homes, we invite you to contact us at Modsolid to schedule a complimentary consultation. During your meeting, you can view some of our most popular floor plans and discover how we can design the perfect new space to meet your needs. We look forward to helping you realize your dreams for a beautiful, affordable, and sustainable home!
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