From Prefab to Instant Home, What Features Have Prospective Buyers Bidding?
Prefabricated homes have been on the up and up for some time. Prospective buyers desire affordable, sustainable, quality builds, and modular construction allows them to attain home ownership in a fluctuating and expensive real estate market.
However, prefab homes aren't the only structures taking the residential construction market by storm. Fully furnished "instant homes" have also grown in popularity among buyers.
Architects, engineers and contractors would be remiss to ignore prefab and instant home potential — especially as ample opportunity exists to capitalize on the trends. Here is what they should know about the modular home market and what buyers want.
Photo by Dillon Kydd
The Rise of Prefab Homes
According to the Manufactured Housing Institute, prefab homes accounted for 11% of total single-family new construction in 2022 — equivalent to 112,882 new homes.
Many have jumped on the prefab bandwagon for numerous reasons. For one thing, the traditional housing market has priced out various demographics. Therefore, due to their much lower cost and rapid off-site manufacturing, prefabrication presents a solution to the housing crisis. For example, 80% of a 56-story multi-family complex in Singapore is under off-site construction, with completion expected in 2026.
The shift toward remote work and multigenerational living arrangements has also boosted interest in smaller-scale prefab building. Homeowners can assemble accessory dwelling units for at-home offices or mother-in-law suites in weeks. This reduces the costs of building an addition for extra square footage.
Indeed, modular homes have undergone an architectural evolution, with more varied designs and aesthetics, room for customization and advanced features. Experts predict the U.S. will have a 7.8% compounded annual growth rate for modular construction by 2023. As of 2022, the global market was worth $90.79 billion.
Instant Homes: A Matter of Comfort
With prefab structures altering the real estate market, some buyers are inclined to spend more money for move-in readiness, right down to the bed linens.
Developers often stage residential properties with luxury decorative pieces and furnishings, giving potential buyers a taste of what living there could look like. The mass exodus of city dwellers, supply chain delays and telecommuting during the pandemic is a potential catalyst for instant home success. For instance, turnkey properties reduce long waiting periods for building a home and purchasing new furniture.
Washington State-based Brilliant Staging & Design is a prime example of an instant home interior design business. BSD consults with clients regarding their preferences, needs and budget, followed by product procurement and assembly.
BSD began offering instant home design services in response to clients' growing interest in purchasing staged decor. Clients can enjoy their space from the moment they move in, with luxe items in their possession from the start.
What Prospective Buyers Want
Architects and construction professionals can capitalize on prefab and instant home trends by understanding what piques buyers' interests. The following insights underscore the most important features of modular and predesigned homes.
Prefab Homes
Buyers interested in prefab home construction are particular about aesthetics, eco-friendliness and durability. Architects should consider the following components when designing modular homes:
Customizable design: Prefab homes are no longer limited to standard box designs. Buyers want customization opportunities for unique, modern styles to reflect their tastes.
Sustainability: Off-site construction is more sustainable than building at a homesite. However, buyers also want to create homes with sustainable materials and reduced energy consumption. For instance, rooftop solar provides 75%-100% of a home's electricity, saving money on utilities.
Comfort: Prefab homes are well-insulated for year-round interior comfort.
Fast turnaround: Buyers look for rapid turnaround, ensuring their prefab homes are ready within shorter timelines.
Quality construction: Modular homes must meet the same stringent building codes as conventional construction, using the most durable materials to withstand extreme weather.
Buyers are also interested in prefab construction's affordability. A prefab home is about 10%-25% cheaper than traditional new construction. Therefore, builders should ensure they price their designs competitively.
Instant Homes
Prospective buyers of instant homes are typically interested in other factors — primarily appearance and convenience. Fully furnished houses have modern aesthetics and are move-in ready, ideal for those who must relocate quickly without the hassle of designing a residence alone.
Instant homes may also have a high resale value, meaning homeowners can eventually sell them for a profit. However, it is essential to understand the market, location and household features to know if they would make gains.
Regardless, instant homes have changed the homebuying process for immediate enjoyment and satisfaction over cost-effectiveness.
Building and Design Technologies
Architects can take advantage of innovative software in designing complex prefab home designs. Today, they can use 3D modeling for more accurate visualization — prior 2D drawings were prone to errors.
Additionally, building information modeling creates a virtual representation of the project before construction is underway. BIM software boosts project efficiency and coordination for the best results.
Off-site construction is much safer than homesite builds, as manufacturing plants utilize autonomous machines and robots to build different prefab components. In 2021, the construction industry accounted for 46.2% of workplace fatalities from slips and falls.
Prefab and Instant Homes Are Here to Stay
The housing market remains uncertain, with home prices and low inventory a continuous problem. As such, architects and builders can expect the demand for prefab and instant homes to progress, presenting new housing opportunities and construction trends.
Author: Emily Newton
Cover image by Zac Gudakov on Unsplash
