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Why the Future of U.S. Home Construction Is Factory-Built and Better Than Ever

August 21, 2024
by
Jill Nielsen
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Sustainable Construction

While the nostalgia for old-fashioned buildings is understandable, today's factory-built homes offer a compelling alternative and address the realities of the country’s aging housing stock.

A recent home listing featuring a nondescript 1990s house read "a great place to start over." The details focused on the land and its prime coastal location – nothing about the house. Though the home was relatively young, the seller assumed the buyer would demolish the house to build new.

"They just don't build them like they used to."

The lament goes beyond mere nostalgia. It’s a rejection of today’s throwaway culture, where products are designed to last only until the next trend or model. It reflects a longing for the quality craftsmanship and longevity that characterized homes of the past. However, the sentiment overlooks the remarkable advancements in construction technology today.

In fact, maybe they shouldn’t build them like they used to.

New technologies, materials, and processes are making it possible to build homes that are more efficient, sturdy, and long-lasting than ever before. Factory-built homes, like those constructed by BuildLabs, embody this evolution. These homes benefit from precision engineering, superior materials, and innovative construction methods, resulting in structures that not only meet but exceed the standards of traditional craftsmanship.

Factory-Built Homes

Factory-built homes refer to various types of homes that are at least partly fabricated or constructed off-site and then reassembled or finished on location. The process contrasts with “stick-built” homes, which are assembled entirely on-site from many individual pieces like studs, drywall, pipes, wires, etc.

Types of Factory-Built Houses

The various types of factory-built homes include mobile, manufactured, modular, panelized, and pre-cut or kit homes, each with distinct characteristics and regulations.

Mobile homes, built before June 15, 1976, are becoming rare. They predate the building codes outlined by the U.S. Department of Housing and Urban Development (HUD) and are rarely supported by major mortgage institutions. Manufactured homes, built after 1976 and code compliant, are transportable in sections and vary widely in size and quality.

Modular homes are built in factory modules and transported to the site, using the same materials and meeting the same codes as site-built homes but without HUD certification labels. Panelized homes are assembled on-site from large pre-constructed panels, allowing for customization and quick assembly, and must comply with local codes.

Kit homes, popular with DIY builders, are pre-cut in a factory and assembled on-site. These can range from simple cabins to elaborate timber frames and must meet local and state codes.

Advantages of Factory-Built Homes

The advantages of factory-built homes over traditional site-built houses are significant. These homes offer cost savings, reduced waste, shorter construction times, superior quality control, and enhanced safety. Their efficiency, customization options, and compliance with building standards make factory-built homes a versatile and attractive option for modern home construction.

  • Cost Savings

Factory-built homes can cost up to 50% less than site-built homes. Constructed in controlled environments, they avoid weather delays and cost overruns. Labor costs are significantly lower, and bulk purchasing discounts on materials are passed on to buyers.

According to research by the NAHB Building Systems Councils, building a 2,600 square foot home with trusses and panels required 26% less lumber, produced 76% less waste, and took just 37% of the man-hours needed for a comparable stick-built home.

  • Less Waste

As previously stated, factory-built homes generate less waste, as materials are used efficiently and often recycled. The controlled environment protects materials from weather damage, reducing the need for replacements and lowering disposal costs.

  • Less Time to Build

Factory-built homes also have shorter production cycles, often taking a month or less compared to over three months for site-built homes. (The time will, of course, vary depending on the type and scale of the home.) This reduces construction loan interest and allows quicker occupancy.

  • Quality Control

Quality control is superior, with homes built in climate-controlled settings by specialized professionals. Advanced machinery ensures precise construction, and federal or state inspections support high standards.

  • Safety

Factory-built homes use the same materials as site-built homes and are engineered for safety and energy efficiency specific to their regions. Federal laws mandate various safety features, ensuring a high level of protection.

BuildLabs: A Leading Pioneer in Factory-Built Homes

BuildLabs is a pioneer in factory-built homes and is revolutionizing the industry with its innovative processes and commitment to customization and quality. Founder and operations director Punit Chugh emphasizes that their method is not modular or panelized construction but an “open wall” system that ensures precision and efficiency.

Built in a controlled factory environment, BuildLabs’ homes are built in a controlled factory environment, meticulously labeled, and precisely prefabricated all within an eighth-inch tolerance. "We are integrating what traditional construction does in an off-site facility,” explains BuildLabs Founder Punit Chugh. “We assemble it seamlessly here, saving a lot of on-site time, management, transaction, and costs."

BuildLabs guarantees their homes a 100-year lifespan through precise construction methods and the use of durable, sustainable materials like glulam wood, a robust alternative to steel or concrete. Their customizable process lends itself to a variety of styles and details, such as dovetail joints, preinstalled windows, and cellulose insulation to achieve top-notch energy efficiency and weather resilience.  "Our system is as limitless as the imagination,” says Chugh. With a new factory planned in North Carolina, BuildLabs is poised to elevate home construction standards, uniting traditional craftsmanship with modern efficiency.

While the nostalgia for old-fashioned buildings is understandable, today's factory-built homes offer a compelling alternative. They are the future of home construction, providing beauty, craftsmanship, and longevity that rival—and often surpass—the homes of yesteryear.

Looking for more?

The Modular Home Building Institute (MHBI) and the Manufactured Housing Institute (MHI) have helpful resources and reports on Factory Built Homes. Additionally, government agencies like Fannie Mae, Freddie Mac, and the U.S. Department of Housing and Urban Development (HUD) have resources specifically related to factory-built homes.

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Sustainable Construction

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