Is Craning in Your Prefab Extension a New, Easier Way to Build?
Should your next home be craned in using prefabricated modules? We spoke to five Australian and NZ builders to find out
Julia Fairley
7 March 2020
Chief Sub-Editor and Writer, Houzz Australia and New Zealand. I love design and architecture that is thoughtful, sophisticated and champions an element of the unexpected. Before graduating with a Bachelor of Arts at UNSW and becoming a journalist, I studied interior architecture. For over a decade I have interviewed inspiring creative minds from around the world to write about design in its many different forms. Recently, I have also become an accidental gardener, to everyone's surprise.
Chief Sub-Editor and Writer, Houzz Australia and New Zealand. I love design and architecture... More
There’s a kid on the construction block who, although not new, is making many architects and builders question if it could be a major future disruptor. Let us introduce you to prefabricated modular construction. Prefabricated homes have been around for decades. However, many architects and builders believe we are close to a tipping point where this construction method will quickly becoming the norm. Houzz talked to five architects and builders in Australia and New Zealand to get the real story.
What exactly are prefabricated and off-site modular homes?
Prefabricated and off-site modular construction is an alternative building method. It involves constructing large sections or modules of a home (if not the entire dwelling) off-site in a factory, then transporting the modules on-site to be installed, often using a crane.
It’s quickly gaining popularity in extensions and new builds, and while not every site or location lends itself to this type of construction, those that do can result in vastly more efficient projects.
Curious to find out if your next renovation or build should be modular? Find a builder near you on Houzz for an expert opinion
Prefabricated and off-site modular construction is an alternative building method. It involves constructing large sections or modules of a home (if not the entire dwelling) off-site in a factory, then transporting the modules on-site to be installed, often using a crane.
It’s quickly gaining popularity in extensions and new builds, and while not every site or location lends itself to this type of construction, those that do can result in vastly more efficient projects.
Curious to find out if your next renovation or build should be modular? Find a builder near you on Houzz for an expert opinion
“At Cubiluxe, we have an on-site team and an off-site team,” says Kemble Cain, builder and director of Cubiluxe in Sydney, NSW. “Our modular construction involves constructing new building sections off-site simultaneous to the demolition and groundworks on-site. We then transport and crane the structures into place to be permanently fixed for the creation of the home or extension.”
This type of building method favours materials that are quick to work with over those that are painstakingly laid one by one, hand by hand – goodbye, bricks and mortar; hello, steel framing and fibre-cement sheets. It is also better suited to larger mass-residential housing projects, such as high-rise apartments, than to smaller, individual residential homes.
This type of building method favours materials that are quick to work with over those that are painstakingly laid one by one, hand by hand – goodbye, bricks and mortar; hello, steel framing and fibre-cement sheets. It is also better suited to larger mass-residential housing projects, such as high-rise apartments, than to smaller, individual residential homes.
What’s all the hype about?
Joe Snell, an architect and James Hardie ambassador, believes that in the near future whole sections of our homes will be constructed in a similar way to our cars – in a factory with a more rigorous focus on quality control and testing – before being transported on-site and connected together.
“We were hardly talking about prefabricated building 10 years ago, but now we are seeing projects hitting the ground,” says Snell. “In five to 10 years, I think prefabricated homes will feel common to the consumer, even if they aren’t in every suburb yet. In 10 to 20 years, I think the industry will have fundamentally changed and it will be normal for prefabricated homes to be viable – they will be winning the long-term race.”
Joe Snell, an architect and James Hardie ambassador, believes that in the near future whole sections of our homes will be constructed in a similar way to our cars – in a factory with a more rigorous focus on quality control and testing – before being transported on-site and connected together.
“We were hardly talking about prefabricated building 10 years ago, but now we are seeing projects hitting the ground,” says Snell. “In five to 10 years, I think prefabricated homes will feel common to the consumer, even if they aren’t in every suburb yet. In 10 to 20 years, I think the industry will have fundamentally changed and it will be normal for prefabricated homes to be viable – they will be winning the long-term race.”
What are the advantages for homeowners?
“No rain days!” says Snell. “Almost every on-site construction program faces days of lost work due to inclement weather. It is a factor that can blow out timelines and budgets and illustrates the fact that developing something in a dry, well-lit and controlled environment, such as a factory, is more efficient than building out in a paddock, which is what a traditional home site is.”
For Matthew Dynon, architect and director of Sydney-based MODE Homes, centralised factories have the advantage of dodging local trade shortages that plague many traditional residential renovations and new builds. They also boast superior site access and ample space – not to mention security – needed to receive, log and store large deliveries of building materials and appliances.
“No rain days!” says Snell. “Almost every on-site construction program faces days of lost work due to inclement weather. It is a factor that can blow out timelines and budgets and illustrates the fact that developing something in a dry, well-lit and controlled environment, such as a factory, is more efficient than building out in a paddock, which is what a traditional home site is.”
For Matthew Dynon, architect and director of Sydney-based MODE Homes, centralised factories have the advantage of dodging local trade shortages that plague many traditional residential renovations and new builds. They also boast superior site access and ample space – not to mention security – needed to receive, log and store large deliveries of building materials and appliances.
“Another advantage of off-site modular construction is the impact on the lives of clients and their neighbours,” says Cain.
“By building off-site, Cubiluxe is able to take away a large portion of building noise and disruption from neighbourhoods. Depending on the particular build, we have had clients who were able to stay in their home longer, as we began building off-site before we started the groundworks. Another advantage of our modular construction is that the structures are steel and engineered to be lifted, which makes them much stronger than a traditional build.”
“By building off-site, Cubiluxe is able to take away a large portion of building noise and disruption from neighbourhoods. Depending on the particular build, we have had clients who were able to stay in their home longer, as we began building off-site before we started the groundworks. Another advantage of our modular construction is that the structures are steel and engineered to be lifted, which makes them much stronger than a traditional build.”
What are the advantages for builders and trades?
The safety of homeowners’ trades is an often overlooked factor, but one that’s of vital importance to Cain. “We build second storeys off-site at ground level with free access around the entire building module,” he says. “This makes the work move quicker and improves work safety for our team, and by having better access it allows for greater quality control with detailed finishes.”
The safety of homeowners’ trades is an often overlooked factor, but one that’s of vital importance to Cain. “We build second storeys off-site at ground level with free access around the entire building module,” he says. “This makes the work move quicker and improves work safety for our team, and by having better access it allows for greater quality control with detailed finishes.”
This means second-storey windows can be installed from ground level at the factory, as can roofing, guttering, external cladding and painting – all of which negates potentially dangerous heights. It also means no carrying heavy bathtubs up steep stairs, no navigating gyprock sheets through narrow hallways and no scaffolding (an extra trade and cost you’ll likely be happy to cross of your list).
What are the disadvantages for homeowners?
“Factory rent is a significant cost that needs to be accounted for,” says Dynon. “A traditional build does not need to consider this cost. Cranes and transport also add cost. But if module sizes are less than 3.5 metres wide while travelling these transport costs can be kept relatively low.”
Poor weather conditions can still affect installation, and architects and builders agree that in some cases, site access makes off-site modular construction impossible; think narrow roads or power poles getting in the way.
Snell addresses the elephant in the room, acknowledging that prefabricated and off-site modular construction can be restrictive in terms of style. “Good design can limit the aesthetic constraints that prefabrication poses, however for certain looks and bigger statements, a traditionally built house has more scope,” he says.
“Factory rent is a significant cost that needs to be accounted for,” says Dynon. “A traditional build does not need to consider this cost. Cranes and transport also add cost. But if module sizes are less than 3.5 metres wide while travelling these transport costs can be kept relatively low.”
Poor weather conditions can still affect installation, and architects and builders agree that in some cases, site access makes off-site modular construction impossible; think narrow roads or power poles getting in the way.
Snell addresses the elephant in the room, acknowledging that prefabricated and off-site modular construction can be restrictive in terms of style. “Good design can limit the aesthetic constraints that prefabrication poses, however for certain looks and bigger statements, a traditionally built house has more scope,” he says.
What are the disadvantages for builders and trades?
Snell believes this transition to factory and modular construction building – including the inevitable automated systems this involves – will put pressure on traditional building jobs unless professionals prepare for the change.
“It is imperative that Australia and New Zealand develop a world-leading prefabrication industry, otherwise we could see houses turning up on ships, as we have seen happen to our car and steel industries,” he says. “Prefabricated homes will have the biggest effect on volume builders, as the modular units have to fit on the back of a truck, limiting its use for bigger houses or rooms.”
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Snell believes this transition to factory and modular construction building – including the inevitable automated systems this involves – will put pressure on traditional building jobs unless professionals prepare for the change.
“It is imperative that Australia and New Zealand develop a world-leading prefabrication industry, otherwise we could see houses turning up on ships, as we have seen happen to our car and steel industries,” he says. “Prefabricated homes will have the biggest effect on volume builders, as the modular units have to fit on the back of a truck, limiting its use for bigger houses or rooms.”
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What are the differences in costs?
The answer to this question is highly variable, and many of the experts Houzz spoke with reported greater savings, greater expenditure and minimal differences when comparing traditional and modular building methods.
“Prefabricated homes are often more expensive than site builds, particularly when transport costs are included,” says Fiona McKenzie of Melbourne, Victoria-based Superpod. “It really depends on your comparison groups. I think mid-high end pre-built homes are cheaper than some site builds (such as bespoke architect ‘designer’ homes) and more expensive than others (such as volume builders’ homes). They tend to be quicker builds than site builds.”
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The answer to this question is highly variable, and many of the experts Houzz spoke with reported greater savings, greater expenditure and minimal differences when comparing traditional and modular building methods.
“Prefabricated homes are often more expensive than site builds, particularly when transport costs are included,” says Fiona McKenzie of Melbourne, Victoria-based Superpod. “It really depends on your comparison groups. I think mid-high end pre-built homes are cheaper than some site builds (such as bespoke architect ‘designer’ homes) and more expensive than others (such as volume builders’ homes). They tend to be quicker builds than site builds.”
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According to most professionals, a project’s cost is still largely be driven by each individual’s choice of materials, such as their cladding selection, fittings, fixtures, flooring, joinery and window selections. “There are cost savings in the reduction of construction time,” says Dynon. A reduction in time can also translate to auxiliary cost savings, such as in the time families need to rent alternative accommodation.
Cost savings come with scales of economy – a factor that can largely drive down prices of larger housing developments than individual residential builds. Nevertheless, “Because prefab is inherently more time efficient it will end up being more cost effective,” says Snell. “However, because the traditional method of construction is so established, and there are simply more companies offering that method, it is more competitive in most conventional home building scenarios for now. This is rapidly changing.”
Cost savings come with scales of economy – a factor that can largely drive down prices of larger housing developments than individual residential builds. Nevertheless, “Because prefab is inherently more time efficient it will end up being more cost effective,” says Snell. “However, because the traditional method of construction is so established, and there are simply more companies offering that method, it is more competitive in most conventional home building scenarios for now. This is rapidly changing.”
How expensive is crane hire?
It pays to keep in mind that the bigger the build you’re undertaking, the bigger the crane you’ll need. And the bigger the crane, the more expensive it will be to hire.
“For a simple lift where the crane is close to the truck and where the module will be lifted to a smaller crane, a 45-tonne crane may only be required,” says Dynon.
“These can be rented for the time required for about $1,500. If you’re lifting from the street over power lines and require a permit, the entire cost of the craning exercise could be over $10,000.”
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It pays to keep in mind that the bigger the build you’re undertaking, the bigger the crane you’ll need. And the bigger the crane, the more expensive it will be to hire.
“For a simple lift where the crane is close to the truck and where the module will be lifted to a smaller crane, a 45-tonne crane may only be required,” says Dynon.
“These can be rented for the time required for about $1,500. If you’re lifting from the street over power lines and require a permit, the entire cost of the craning exercise could be over $10,000.”
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What are the biggest challenges craning in homes?
“Small streets and power lines pose some problems for craning,” says Dynon. “For new homes on larger blocks of land, the craning is very easy if the crane and truck can both be on private property during the lift. When lifting from the street or public realm, permits and street closures are required and can be difficult to obtain.”
But even if you can sidestep the need for a crane, trucks still come with their own challenges. Snell points out that trucks often have to take over-dimensional truck routes that avoid narrow streets, low bridges and power lines.
“Small streets and power lines pose some problems for craning,” says Dynon. “For new homes on larger blocks of land, the craning is very easy if the crane and truck can both be on private property during the lift. When lifting from the street or public realm, permits and street closures are required and can be difficult to obtain.”
But even if you can sidestep the need for a crane, trucks still come with their own challenges. Snell points out that trucks often have to take over-dimensional truck routes that avoid narrow streets, low bridges and power lines.
Image by Nautilus Modular
At Nautilus Modular, cranes posed enough of a challenge that Watkins found a way to circumnavigate them altogether. “The dimensions of our modules are such that we are able to transport them on a specially designed trailer system and stay within the transport envelope,” he says.
“This means we don’t exceed maximum transport heights or widths, or need pilot vehicles, or have restrictions on when we transport the modules on the road network. The trailers are designed in such a way that the module installation method on the sub-floor assembly structure doesn’t require craning in – installation can be achieved by two people.”
At Nautilus Modular, cranes posed enough of a challenge that Watkins found a way to circumnavigate them altogether. “The dimensions of our modules are such that we are able to transport them on a specially designed trailer system and stay within the transport envelope,” he says.
“This means we don’t exceed maximum transport heights or widths, or need pilot vehicles, or have restrictions on when we transport the modules on the road network. The trailers are designed in such a way that the module installation method on the sub-floor assembly structure doesn’t require craning in – installation can be achieved by two people.”
How long does it take to build a prefabricated or modular house?
While the question of cost is still highly variable with prefabricated and modular building, there’s no debating that this approach significantly reduces timeframes. “What would be a nine-month job traditionally can turn into a six-month job using off-site construction,” says Cain.
While the question of cost is still highly variable with prefabricated and modular building, there’s no debating that this approach significantly reduces timeframes. “What would be a nine-month job traditionally can turn into a six-month job using off-site construction,” says Cain.
Image by Nautilus Modular
For Jason Watkins, general manager of Nautilus Modular based in Wanaka, New Zealand, reducing time is a key future focus for the company. “Off-site manufacturing and prefabrication can allow a building to be constructed and completed on-site sometimes in a matter of days, whereas traditional methods are likely to take months,” he says. This is the best-case theoretical scenario. In current practical terms, this dramatically short timeframe is physically possible but it’s best not to count on it… at least for now.
“Our planned future plants will be capable of producing quantities of modules sufficient for multiple houses in one day,” says Watkins. “Installation of the modules on-site into a functioning building will only take a matter of days, so from production to installation, the total time for a build could be less than a week in total for a family house.”
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For Jason Watkins, general manager of Nautilus Modular based in Wanaka, New Zealand, reducing time is a key future focus for the company. “Off-site manufacturing and prefabrication can allow a building to be constructed and completed on-site sometimes in a matter of days, whereas traditional methods are likely to take months,” he says. This is the best-case theoretical scenario. In current practical terms, this dramatically short timeframe is physically possible but it’s best not to count on it… at least for now.
“Our planned future plants will be capable of producing quantities of modules sufficient for multiple houses in one day,” says Watkins. “Installation of the modules on-site into a functioning building will only take a matter of days, so from production to installation, the total time for a build could be less than a week in total for a family house.”
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What about council and regulatory approvals?
“Council approvals are much the same for both in terms of aesthetics, however some further approvals may be needed to get the modular units to site as they are relatively large for many streets and suburbs,” says Snell.
Watkins adds that off-site manufactured buildings are still constructed to the Building Code, but points out that councils’ assessment processes don’t always ‘fit’ off-site modular construction. “The challenge for councils going forward is that off-site modular builds will often have quite different processes and stages of production to traditional builds – how councils assess these buildings through their production phases is something I know local government authorities are working on,” he says.
“Council approvals are much the same for both in terms of aesthetics, however some further approvals may be needed to get the modular units to site as they are relatively large for many streets and suburbs,” says Snell.
Watkins adds that off-site manufactured buildings are still constructed to the Building Code, but points out that councils’ assessment processes don’t always ‘fit’ off-site modular construction. “The challenge for councils going forward is that off-site modular builds will often have quite different processes and stages of production to traditional builds – how councils assess these buildings through their production phases is something I know local government authorities are working on,” he says.
McKenzie notes that because different local and state councils have varying processes, transporting a prefabricated home or modules between states isn’t always smooth. “The approvals process is not necessarily different, but across state borders there can be regulatory challenges when local tradespeople are required for aspects of a prefabricated home,” she says.
Are prefabricated and modular homes sustainable?
Sustainability is a subject that’s equally difficult and important to quantify, regardless of building practices. “Good design has an understanding of the prevailing natural climatic conditions on any given site and on the best way to harness or block them out,” says Matthew Dynon. “Materials need to selected with sustainability in mind, from how that material is made or formed to how that material is used.”
Dynon embraces sustainable building practices at MODE Homes, using double-glazed windows and insulated floors and walls that exceed the standard requirements.
Sustainability is a subject that’s equally difficult and important to quantify, regardless of building practices. “Good design has an understanding of the prevailing natural climatic conditions on any given site and on the best way to harness or block them out,” says Matthew Dynon. “Materials need to selected with sustainability in mind, from how that material is made or formed to how that material is used.”
Dynon embraces sustainable building practices at MODE Homes, using double-glazed windows and insulated floors and walls that exceed the standard requirements.
McKenzie designs and checks each Superpod home using the PHPP (Passive House Planning Package) design tool, which is managed and certified by the International PassivHaus Institute in Germany. “A key design driver is Passivhaus physics compliance, which calculates aspects like solar gain and will help to determine things like orientation of windows,” says McKenzie. “These drivers need to be there at the start of a Superpod process – they cannot be an afterthought.”
Image by Nautilus Modular
Watkins is also tackling sustainability by spearheading waste – a topic that’s caused heat in the construction industry. “We reduce waste through two main initiatives. First, we integrate standard materials and their dimensions into our design. For example, we decided that the width of our modules would be governed by multipliers of 1,200 millimetres as this is the width of a standard sheet of ply, which is one of our key materials. And second, we work with suppliers to produce components from raw materials exactly to the dimensions we require, so there are no off-cuts and minimal waste through the supply chain.”
Watkins is also tackling sustainability by spearheading waste – a topic that’s caused heat in the construction industry. “We reduce waste through two main initiatives. First, we integrate standard materials and their dimensions into our design. For example, we decided that the width of our modules would be governed by multipliers of 1,200 millimetres as this is the width of a standard sheet of ply, which is one of our key materials. And second, we work with suppliers to produce components from raw materials exactly to the dimensions we require, so there are no off-cuts and minimal waste through the supply chain.”
Cain has also modified building practices to address waste head-on. “If builders are reliant on skip bins on-site and they don’t have the space to sort and separate their waste, everything ends up in landfill,” he says. “Off-site, we separate and sort waste, and we neatly stack and crate anything recyclable it until it’s ready to go to the recyclers. This includes masonry, plasterboard, timber off-cuts, and hard and soft plastics. On-site, we commit to bringing recyclable waste back for sorting and crating if it can’t be taken directly to the recyclers.”
What scope do homeowners have to customise designs?
“It depends on the size of the building,” says McKenzie.
“Large Superpod buildings can be designed to pretty much any shape or size. Smaller buildings are offered in particular sizes and shapes to enable easier transport and keep the costs of redesigning to a minimum. The same goes for interiors. You can fit out a Superpod Passivhaus any way you like, but for smaller homes we offer a pre-designed package, to save time and reduce redesign costs.”
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“It depends on the size of the building,” says McKenzie.
“Large Superpod buildings can be designed to pretty much any shape or size. Smaller buildings are offered in particular sizes and shapes to enable easier transport and keep the costs of redesigning to a minimum. The same goes for interiors. You can fit out a Superpod Passivhaus any way you like, but for smaller homes we offer a pre-designed package, to save time and reduce redesign costs.”
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What’s the future of prefabricated and modular construction?
This method of building has lagged in Australia and New Zealand but has long been embraced in Europe – we’ve all heard about the precision and speed of German prefabricated homes. Nevertheless, many modular builders are experiencing an upswing in popularity and expect it to continue.
“They might have a bit more traction in the inner city (because access is difficult due to traffic) and remote areas (because access is difficult due to distance) and would continue to grow in my view in this space,” says McKenzie.
This method of building has lagged in Australia and New Zealand but has long been embraced in Europe – we’ve all heard about the precision and speed of German prefabricated homes. Nevertheless, many modular builders are experiencing an upswing in popularity and expect it to continue.
“They might have a bit more traction in the inner city (because access is difficult due to traffic) and remote areas (because access is difficult due to distance) and would continue to grow in my view in this space,” says McKenzie.
“I believe that this construction method will continue to grow in the future as we shift our thinking to the possibilities, because people see that it makes so much sense,” says Cain.
“We also need to remind ourselves how other things have progress in this way: once upon a time, a carpenter would build joinery from scratch, day after day, on-site; but we’ve progressed past that and we now accept that our kitchen will be built off-site, delivered and installed.”
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“We also need to remind ourselves how other things have progress in this way: once upon a time, a carpenter would build joinery from scratch, day after day, on-site; but we’ve progressed past that and we now accept that our kitchen will be built off-site, delivered and installed.”
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What should people be aware of when choosing a modular builder?
As with all large and small investments, doing your homework is key. “Make sure the process is very clear in regards to what the modular builder is offering,” says Snell of finding a builder who offers this construction method. “Are they a one-stop shop that creates the building in the factory, but also does the on-site requirements as well, such as site preparation, connection to services, delivery and building completion?”
As with all large and small investments, doing your homework is key. “Make sure the process is very clear in regards to what the modular builder is offering,” says Snell of finding a builder who offers this construction method. “Are they a one-stop shop that creates the building in the factory, but also does the on-site requirements as well, such as site preparation, connection to services, delivery and building completion?”
Watkins warns homeowners that transport and issues affecting installation can significantly impact the overall cost of a project. “I’d also suggest asking the company if they could point you toward previous clients so you can have a chat to them and find out what their experience was,” he says. “Sometimes actual experiences may differ from the marketing that companies prepare, so don’t be afraid to do some extra research.”
Like every building method, the devil is in the details, and what may sound like a small difference in details can equate to a big difference in cost.
“Some companies only construct their own designs and those designs may or may not be what homeowners are looking for; others may only construct new builds and don’t want to know about renovations and extension,” says Cain.
Like every building method, the devil is in the details, and what may sound like a small difference in details can equate to a big difference in cost.
“Some companies only construct their own designs and those designs may or may not be what homeowners are looking for; others may only construct new builds and don’t want to know about renovations and extension,” says Cain.
Your turn
Have you used prefabricated or off-site modular building methods? Share your experiences in the Comments below, like this story, save the images, and join the conversation.
More
Keen to learn more about the nuts and bolts of building and costs? Don’t miss Renovation Education: The Costs Per Item of a Classic Kitchen
Have you used prefabricated or off-site modular building methods? Share your experiences in the Comments below, like this story, save the images, and join the conversation.
More
Keen to learn more about the nuts and bolts of building and costs? Don’t miss Renovation Education: The Costs Per Item of a Classic Kitchen
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I am involved in design & prefabrication (including flat packing to Malibu Beach), I have been a builder for over 30 years, as Blue Skys Construction, and I am amazed at the advantages in building in a controlled environment. Timber arrives dry & leaves dry. We put our roofs on & it was pouring outside! Tools remain dry & permanently locked up. No leads roll up or roll out. Flat concrete floor allows for level scaffold & platforms. Look up web site <www.bachpodz.com>. Andrew Porteous
Whilst I can see quite a number of advantages in prefabrication (and we certainly need to lessen the cost of new builds in NZ) the one thing that always never gets mentioned is how difficult it is to obtain bank finance over such a project. So unless you have adequate equity in your land, almost all of the big trading banks will not lend over houses that are built in the factory as they have concerns over security if something goes wrong. I have seen a number of my neighbours go down that path and just find the financing too difficult even though the numbers stack up way better for a prefabricated new house. So unless the house company offers finance during the construction phase (which some do) it can result in a lot of frustration for the buyer. Just something for new/low equity home builders to think about.
I absolutely love Prefab homes. Honestly, these articles don't address the important issue. Thats is it affordable. The answer is, it can be. The issue is, the main stream prefab companies have over priced these homes way to much. Especially when you comoare to traditional build. I have been in contact with direct manufavtires who produce the ESP OR SIP wall panels, steel manufactures and others. I can order a prefab home for $60,000 and act as my own general contractor in Florida. Companies have to stop the greed and provide real prices so its affordable to most. Yes I am in the process of purchasing my prefab home.