Pros and cons of a prefab home | Genius Homes (2024)

Building a new house can be daunting, whether you're ready to upsize, downsize, retire, invest, or get onto the property ladder. Fortunately, prefabricated homes (prefabs) provide an affordable and convenient solution tailored to your needs.

In this article, we explain what prefab homes are and explore the advantages and challenges so you can make an informed choice for your situation.

What is a prefab home?

Prefab homes are manufactured in a controlled factory environment and then delivered to your site as a finished product. They’re permanent and durable, with none of the hassles of conventional construction. Prefabs are ideal for new home builds, family homes, tiny homes, cabins, holiday homes, farm homes, and second dwellings.

At Genius Homes, our prefabs are built to the highest standards, with strict quality controls and inspections throughout. We’re also committed to providing a seamless building experience, with turnkey solutions including house design, full project management, factory construction, on-site work, final touch-ups, and ongoing support.

Benefits of a prefab house

Due to the factory portion of construction, prefab homes are more predictable, efficient, cost-effective, and sustainable. At Genius Homes, our process also offers sustainable building methods, design customisation, regular progress updates, and high-quality materials. The key advantages of our prefab construction include:

Predictable and controlled

Because our prefab homes are constructed inside a purpose-designed factory, every element of the project can be tightly controlled. This also means we can define and adhere to your budget and timeline.

Weather can often be an unreliable variable for traditional builds, as heavy rain or strong winds can cause tradespeople who work on the exterior of a home (such as builders, painters or brick layers) to halt work on jobs. This can have a domino effect on the timeline of other trades which delays the schedule and may increase the costs. As our prefab homes are built in a factory, we can continue work throughout the year, rain or shine.

Sustainable construction

Compared to brick-and-mortar houses, our prefab homes use fewer materials, creating a more sustainable building. Building offsite also reduces the number of trades, vans, and diggers visiting your site, which reduces our impact on your landscape and the recovery time of your land, allowing you to enjoy that "settled-in" feeling much sooner.

At Genius Homes, we also store any excess construction materials in our factory, preventing waste and mess in your environment.

Faster construction

Once your plans have entered our production line, the average building process to site delivery will take up to 10 weeks, depending on the size of your home. Before your project begins, we will provide you with a clear timeline from commencement to delivery and will keep you informed throughout.

There will be an additional few weeks of site work until the keys are handed over. With an internal team of builders who are well-practised in building these designs, we can move efficiently and quickly to have your home ready as soon as possible.

Our houses come with appliances, kitchens, and bathrooms so, once the essential connections have been made, you can start enjoying your Genius Homes prefab within hours.

Generally, it takes one to four months longer to build a traditional home than it does to construct a prefab home, especially during winter. Therefore, prefab construction also reduces the time spent in temporary accommodation or staying with family while you wait for your house to be built.

Customisable designs

If you’re not sure about the shape of your roof or you want to add a scullery, we can change your plans to reflect your individual preferences! Our prefab homes are highly customisable so you can add a personal touch or change the layout.

At Genius Homes, we can draw up a new design to meet your specific requirements. You can either take one of our existing designs and tweak it or come to us with your ideas for a dream home and we can discuss your options.

Regular progress updates

During construction, we will send regular photos and reports of how your house is progressing. If you want the experience of watching your house come together like an on-site build, you also can visit our factory and see your new home coming together.

Affordable new homes

Building a prefab home is an average of 10% to 20% more affordable than a traditional home. The controlled construction environment in the factory means you’ll be provided with a fixed cost at the beginning of the process. Due to our bulk buying agreements with suppliers, we can also pass great discounts on to you.

Energy efficiency

Our prefab homes are built for South Island conditions, with thermally broken aluminium window frames, double-glazing with Argon and Low-E, EPS R3.1 floor insulation, and Pink Batts roof and wall insulation. This makes them highly energy efficient, resulting in lower energy bills and warmer, more comfortable homes.

High-quality materials and workmanship

Your Genius Homes build is delivered to your site as a fully-finished house, complete with all your specifications. From the framing to the finishing touches, everything is carried out in the factory under close supervision so we can ensure your home is built to the highest quality standards.

With every Genius Homes prefab, the standard inclusions include products from New Zealand’s most trusted brands, including COLORSTEEL®, Weathertex, Pink Batts, Resene, Godfrey Hirst, Bosch, and more.

Pros and cons of a prefab home | Genius Homes (1)

Challenges of a prefab house

Whilst owning a prefab home comes with a great many benefits and advantages, there can be challenges also. Although some may not be relevant to your situation, these points are worth considering.

  • Finding the right financing provider

  • You need to find buildable land


Finding the right financing provider

Historically, securing finance for a prefab has been tricky because banks cannot treat it the same as a normal construction loan. However, as prefabs are increasingly popular, banks are starting to offer loans that are designed for the prefab approach. For example, we work in partnership with BNZ to offer prefab home loans.

Ensuring the land is suitable

With a prefab, you will need to find and purchase a piece of land for the house to be placed on. Compared to a house and land package, this may require more time and resources. You will also need to account for any site work required to prepare the land for your prefab home, such as removing soil, laying a driveway, or building a retaining wall.

At Genius Homes, we offer free site visits to assess your land and determine your options. We can recommend house plans that will work with your site and terrain and also identify the best delivery route for a prefab transportable home. This allows us to plan the costs of your building project and give you a clear, fixed price tailored to your site.

Additional expenses

In this section, we share the additional costs that are not included in the base cost of your Genius Homes prefab. While the majority of the project is included in a fixed price, delivery and site work are priced separately because they vary based on location.

However, even with these additional costs, prefab home projects are typically still more affordable than a standard build. What’s more, we include design work, full project management, expediency, and convenience as standard with all our prefab projects.

Generally, transport prices range from $3,000 to $20,000, depending on your location and distance from the factory. When purchasing a prefab home from Genius Homes, your project manager will come to your site and identify additional costs before your project gets underway so that there are no expensive surprises later on.

Prefab Homes NZ

To find out everything you need to know about the process of building a prefab home, download our full guide today. Alternatively, if you’d like to discuss our process with one of our experienced consultants, contact us directly for a friendly chat.

Pros and cons of a prefab home | Genius Homes (2)

Pros and cons of a prefab home | Genius Homes (2024)

FAQs

Are prebuilt houses worth it? ›

They can be more energy-efficient than traditionally built houses, and the materials and building process may be more environmentally friendly as well. They are considered better able to withstand environmental threats (flooding, hurricanes) than traditionally built homes.

What is the lifespan of a prefab building? ›

With proper care, temporary modular buildings have a service life of at least 25 to 30 years, after which the components are typically repurposed or recycled.

What are four drawbacks of modular homes? ›

Of course, modular houses have their downsides. These include less customization capabilities than stick-built homes. The cost of the land and construction of the home may be higher than some people can afford, land restrictions, and perceive quality issues. Modular homes may also have more a complicated loan process.

How does plumbing work in a prefab home? ›

Manufactured home plumbing runs through the floor of the home. Your pipes are located within the belly board, which is sometimes called the bottom board, and is surrounded by insulation. The belly board closes in the insulation around your plumbing and keeps everything in place under your home's flooring system.

Is it cheaper to build or buy prefab? ›

The general rule of thumb is that prefab construction is cheaper than stick-built homes by an average of 10 to 25 percent. Why? Mass-produced materials on an assembly line cut down costs because factories buy supplies in bulk.

What's the difference between prefab and modular homes? ›

Modular homes are delivered to a building site where they are then assembled by local contractors, while prefabricated homes involve constructing panels in a factory and then delivering them to the building site where they are assembled locally.

Do I need planning permission for a prefab? ›

You may also need planning permission for a modular home or building. This depends on a number of factors such as how big it is, where it will be situated and what it will be used for. A modular home is a home that is built off-site and then delivered and finished at the planned location.

How long does prefab take? ›

SOLO houses can be completed in a matter of a few days. DUO houses can take up to a few weeks. For TRIO houses, the average building time is 8 weeks (for the smallest model).

What are the advantages and disadvantages of prefab construction? ›

Table of Contents
  • Benefit #1: Affordability.
  • Benefit #2: Energy Efficiency.
  • Benefit #3: Relatively Fast Construction Process and No Waste.
  • Drawback #1: Transportation and Assembly Factors.
  • Drawback #2: You Have to Buy the Land.
  • Drawback #3: Utility Hook Up and Other Hidden Costs.
Jun 8, 2020

Why don't people buy modular homes? ›

Why shouldn't you buy a modular home? Modular home buyers aren't for everybody. While they're trendy right now, some people prefer a traditional home build. It's also important to note that once you've built a modular home, it's more difficult to customize or make additions after you've started the build.

What is the downside of modular? ›

If a modular component fails, it can be difficult and expensive to replace. The overall effectiveness of modular design depends on the quality of the individual modules and how well they are integrated. Poorly designed modules can lead to problems and inconsistency in the overall product.

What is the downside to buying a manufactured home? ›

Cons of Buying a Manufactured Home

Manufactured homes have some downsides too. Extra upfront and ongoing costs: You'll need to pay for the home's initial transport and setup, and manufactured home parks charge rent for space and may charge other fees.

What is the most common plumbing item to fail in a residential home? ›

The most common plumbing problems are clogged drains and toilets, leaky faucets and pipes, water heater issues, low water pressure, and a running toilet.

Do modular homes come pre-wired? ›

Modular homes are fully pre-wired in the production facility as prescribed by the NEC (National Electrical Code) and the home's electrical plan.

What is prefab plumbing? ›

Pipe prefabrication is manufacturing pieces of pipelines in a factory instead at the construction site. This enables utilization of better tools and working conditions. This results in higher productivity and better quality. It also reduces the lead time at the construction site.

Are prefab homes a good investment? ›

Modular homes in California that are well taken care of and which are in good neighborhoods have an excellent chance of being viewed as an outstanding investment.

Does prefab save money? ›

Affordable Housing

Manufacturers of these homes order materials in bulk to keep construction costs low. Also, prefab homes tend to cost less per square foot than traditional houses. These attributes make prefab houses more affordable for renters and homeowners. That also has benefits for homeowners' finance.

How long does it take to build a prebuilt house? ›

Generally speaking, a traditional home takes 9-12 months to build from the ground up. In contrast, a modular home usually takes 3-4 months. This faster building time is the result of several factors.

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