Prefab, But Make It Luxury: Modular Homes Can Be High End
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Prefab, But Make It Luxury: Modular Homes Can Be High End

More homeowners embrace prefabricated properties.

By ROBYN A. FRIEDMAN
Fri, Sep 17, 2021 11:27amGrey Clock 4 min

Ty Sharp, a 26-year-old software consultant from Aspen, Colo., is building a 267sqm holiday home in Ventura, Calif. The four-bedroom, four-bathroom custom home, for which he’s paying approx. $2.34 million, will have an open-concept floor plan, a chef’s kitchen, engineered hardwood floors and a master bedroom with a private patio and soaking tub.

But if you visit the quarter-acre site, which has views of the Pacific Ocean, you’ll find only a foundation despite the fact that the home is slated for completion within two months. That is because Mr. Sharp’s new house, a prefabricated modular home, is being manufactured in a factory two hours away.

The term “prefab home” may conjure up images of a double-wide mobile home. But that is a misconception, experts say.

One of the modules of Ty Sharp’s home is fabricated in the Dvele factory in Loma Linda, Calif. The house will be built with a total of four modules, which will be assembled at the homesite in Ventura, Calif. PHOTO: DVELE

“A mobile home is a manufactured home, but built to a lower standard. Modular homes are also manufactured in a factory environment, so that confuses people,” said Kurt Goodjohn, co-founder and chief executive officer of Dvele, a San Diego-based luxury prefab-home manufacturer that is building Mr. Sharp’s home.

Joseph Tanney, a founder of Resolution 4 Architecture in New York City, who has been designing modular homes since 2002, said today’s modular homes can be very high end. A seven-bedroom, nine-bathroom modular home that Mr. Tanney designed in Bridgehampton, N.Y., and which was completed in 2018, has a pool, pool house, decking, geothermal- and solar-power systems and a green roof. It sold in Sept. 2020 for its full asking price: approx. $6.435 million.

The modules for modular homes are created in a factory, then delivered to the homesite via truck. There, they are placed on the foundation by a crane and assembled like Lego blocks. The foundation and site-preparation work takes place concurrently with the factory’s fabrication of the modular blocks. That speeds up the construction process, especially because some modular manufacturers ship the modules with all cabinets in place, appliances installed, lighting complete and toilets hanging off the walls.

“Houses still need to get finished when they arrive on-site, so even though we’re doing 50% to 80% of the work off-site, you still have to connect everything,” said Brian Abramson, co-founder and chief executive officer of Method Homes, a Seattle-based manufacturer of prefab homes. Mr. Abramson said that a high-end custom 4,000- to 6,000-square-foot, traditional stick-built home takes 16 to 18 months to complete, but a modular home of similar size would take less than a year. A typical 4,000-square-foot house would be composed of eight modules, Mr. Abramson said.

Demand for luxury modular homes, which was already strong, has increased due to the pandemic, developers say. Mr. Abramson, for example, who declined to provide specific sales data, said that Method’s sales for 2020 were up 50% from 2019 sales. He’s built a new factory to accommodate the increased demand.

An advantage of modular construction over traditional construction is that modular manufacturers control the entire fabrication process. Speed is another.

Mr. Sharp, who is purchasing the vacation home with his 28-year-old brother, Ian Sharp, said “It’s a lot quicker than the normal construction process because they can separate the building from the site work and do both at the same time.”

Mr. Sharp, who is a software consultant for home builders, said that his own experience in the industry has shown that while his home will take only about six months to complete, a comparable custom-built home would take 12 to 18 months.

By automating much of the fabrication process, Mr. Goodjohn said that modular construction is more insulated from labor challenges than stick-built construction.

“Modular is a manufacturing process, not a product per se,” said Mr. Goodjohn. “You can train people to do a specific role in the process without the need for skilled labor to make decisions on the fly.”

A module for a custom home in Jackson, Wyo., built by Method Homes is installed by a crane. The Grand Tetons are in the background. PHOTO: METHOD HOMES

Here is what to consider if you’re interested in purchasing a modular home:

Your site might not be suitable. Mr. Tanney, of Resolution 4 Architecture, says modules must comply with size and weight regulations for transport on highways and roads. This could affect the ability of the modules to reach your site.

You may not be able to make design changes once fabrication starts. All design decisions are made by a buyer before production, according to Mr. Abramson, of Method Homes. Once the factory starts to build your modules, you can’t make changes. That helps keep production on schedule.

Build in the cost of the build. Mr. Abramson said the cost of a module ranges from $250 to $350 a square foot, including all interior finishes such as cabinets, counters, appliances, tile, hardwood flooring and fixtures. That price doesn’t include siding, roofing, decks, on-site connections, HVAC, transportation of the modules and installation. These additional costs are about 60-120% of the modular cost, he said. You’ll also need to pay for the land, and the foundation and site work needed before construction.



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We reveal the No. 1 areas for price growth in each capital city

By Bronwyn Allen
Thu, Jul 18, 2024 3 min

Home values across Australia rose by a median 8 percent in FY24, delivering the equivalent of $59,000 in new capital growth to the two-thirds of the population that owns a home, according to CoreLogic data. Investors received total returns of 12.2 percent over the year, including capital gains and gross rental income.

Very tight supply and demand in most capital cities except Melbourne and Hobart was a significant driver of the capital growth, with the smaller and more affordable capital cities of Perth, Brisbane and Adelaide experiencing the most price appreciation over the year. A lack of properties for sale trumped the usual dampening effect of higher interest rates.

As usual, some areas outperformed their city’s median growth benchmark. Here are the top SA3 areas for capital growth in each capital city of Australia in FY24. SA3 areas are large suburbs, or districts incorporating clusters of suburbs, with more than 20,000 residents.

 

Sydney

Home values across Sydney rose by a median 6.3 percent in FY24. The No. 1 area for growth was Mount Druitt. Its median value rose by 13.96 percent to $859,939. Mount Druitt is located 33km west of the CBD. It incorporates the suburbs of Mount Druitt, Ropes Crossing, Whalan and Minchinbury. The Mount Druitt community is very multicultural with almost one in two residents born overseas. It is home to many young families, with the median age of residents being 33 compared to the NSW median of 39.

 

Melbourne

Home values across Melbourne rose by a median 1.3 percent in FY24. The top area for capital growth was Moreland-North with 4.71 percent growth. This took the district’s median home value to $746,488. Moreland-North includes the suburbs of Hadfield, Pascoe Vale and Glenroy. It’s a multicultural community with a particularly large contingent of residents with Italian ancestry. One or both parents of 66 percent of residents were born overseas, according to the 2021 Census.

 

Brisbane

Home values across Brisbane rose by a median 15.8 percent in FY24. The No. 1 area for growth was Springwood-Kingston in Logan City. Its median value swelled by 25.55 percent to $710,569. Springwood-Kingston is approximately 22km south of Brisbane CBD. It incorporates the suburbs of Springwood, Kingston, Rochedale South and Slacks Creek. It is a multicultural community with one or both parents of 55 percent of the residents born overseas, according to the 2021 Census. More than 15 percent of residents have Irish or Scottish ancestry.

 

Adelaide

Home values across Adelaide rose by a median 15.4 percent in FY24. The best area for capital growth was Playford in Playford City. Its median value soared by 19.94 percent to $530,991. Playford is approximately 40km north of Adelaide. It incorporates the suburbs of Elizabeth Downs, Elizabeth Grove, Angle Vale and Virginia. It is home to many young people under the age of 40. The median age of residents is 33 compared to the state median of 41.

 

Perth 

Home values across Perth rose by a median 23.6 percent in FY24. The No. 1 area for growth was Kwinana in Kwinana City. Its median value skyrocketed by 33.19 percent to $618,925. Kwinana is approximately 37km south of Perth CBD. It includes the suburbs of Leda, Medina, Casuarina and Mandogalup. Henderson Naval Base is located here and there is a significant community of servicemen and ex-servicemen living in the area. It is home to many young families, with the median age of residents being 33 compared to the state median of 38.

 

Canberra

Home values across the nation’s capital rose by a median 2.2 percent in FY24. The best area for capital growth was Weston Creek. Its median value rose by 5.24 percent to $937,740. Weston Creek is approximately 13km south-west of the CBD. It includes the suburbs of Weston Creek, Holder, Duffy, Fisher and Chapman. Approximately 43 percent of residents have a bachelor’s degree, which is on par with the ACT median but much higher than the national median of 26 percent. Household incomes are about 35 percent higher than the national median. Almost one in five residents work in government administration jobs.

 

Hobart

Home values across Hobart fell 0.1 percent in FY24. The top performing area for capital gains was Sorell-Dodges Ferry with 2.78 percent growth. This took the area’s median home value to $615,973. Sorell-Dodges Ferry is approximately 25km north-west of Hobart. It incorporates the suburbs of Richmond, Sorell, Dodges Ferry, Carlton and Primrose Sands. The area has a large community of baby boomers and retirees, with the median age of residents being 43 compared to the Australian median of 38.

 

Darwin

Home values across Darwin rose by a median 2.4 percent in FY24. The No. 1 area for growth was Litchfield. Its median value moved 3.21 higher to $672,003. Litchfield is about 37km south-east of Darwin and includes the suburbs of Humpty Doo, Acacia Hills and Southport.  It has a high proportion of middle-aged residents, with the median age being 39 compared to the territory median of 33. About 12 percent of residents are Indigenous Australians. The biggest industries are government administration and defence. Median household incomes are about 35 percent higher than the national median.

 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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