How Much Does It Cost to Build a Modular Home in 2023?

Modular Home Cost Breakdown

Modular Home Prices

A modular home that is 1,800 square feet will cost about $72,000 to $144,000 for the materials alone without any customization, such as flooring or siding upgrades. The base model's price is the largest single expense of the total cost for a finished home. However, when looking at base prices for these units, keep in mind that it is only one part of the total expense.

Modular Home Cost per Square Foot

Home buyers pay about $40 to $80 per square foot for the base price of a modular home. When you request a quote from a builder, you need to confirm what the total includes. The base price covers the cost of the section but not customization, delivery, or installation.

*Add an extra $10 to $40 per square foot if you plan to customize your home.

Prefab Home Kit Prices per Size

Paying for a base-model home kit can cost as low as $30 per square foot, but typically ranges from $40 to $80 per square foot. Some builders are willing to sell and deliver a pre-built house to a homeowner who will complete the rest of the work. Others arrange the construction and finishing through their own subcontractors. Decide which approach you prefer before talking to builders to make sure you are contracting with a partner who is aligned with your goals. 

Cost to Move a Modular Home

Transporting the sections from the warehouse to the property costs about $5 per square foot. Delivery charges often relate to the number of sections for the home. Floorplans under about 1,200 square feet may be built as one unit. Larger houses usually come in multiple shipments.

Prefab Home Kit Prices by Number of Stories

Modular homes can be more than a single story. In fact, many modular homes cover three stories in high-population locations where home footprint space is at a premium. In addition to costing more to assemble, larger, multi-story homes are delivered and constructed in pieces rather than as single or two-piece units.

One Story

A single-story, prefabricated modular home costs an average of $76,500. However, cost anywhere from $40,000 to $113,000 for a home of between 800 and 1,500 square feet. For a single-story custom modular home, expect to pay around $186,000. Costs for this type of home could run from $96,000 to $276,000. 

While it's true that you can build larger homes over a single story, beyond 1,500 square feet, it becomes significantly more expensive than adding a second story. The foundation and the cost of the roof are the two most expensive elements of a modular home build.

Two Stories

For a two-story prefab modular home, you'll typically pay approximately $131,500. Costs for this type of home could run from $75,000 to $188,000 for a home of between 1,500 and 2,500 square feet. A custom modular home of the same size costs around $377,500. You may pay as little as $180,000 or as much as $575,000. 

Two-story modular homes are the most common type. Their larger overall square footage with a comparatively small roof and foundation make them cost-effective and suitable for large families. There's more room for bedrooms above and family space, an office, or a large kitchen downstairs. Even with the extra space and potential additions, homeowners can make significant savings because of the reduced costs of the foundation and roof size.

Three Stories

Prefab, three-story modular homes cost around $206,500. For a 2,000- to 3,500 square-foot home, you could pay between $150,000 and $263,000. A custom modular home of this size and type costs $587,500 on average, but can run from $375,000 to $800,000.

Three-story modular homes are less common due to the complexity and logistics of transporting and constructing the pieces. They're most commonly chosen where the footprint has to be small, but the homeowner still needs a lot of square footage, such as when building a large family home in a city or somewhere with a comparatively small lot.

These homes cost more per square foot than one- and two-story models because they're more challenging and time-consuming to deliver, construct, and finish.

Modular Home Costs by Bedrooms

Just like stick-built homes, modular properties can have anywhere from one to five bedrooms (or more). The larger the home and the more bedrooms it has, the longer it takes to finish, the more space it takes up, and the more it costs. Take a look at the typical costs of prefab and custom modular homes by the number of bedrooms.

One Bedroom

A one-bedroom prefab modular home of between 800 and 1,000 square feet costs around $57,500, while a custom model of the same size typically costs $163,000. A small prefab using budget materials and finishes with no extras can cost as little as $40,000. However, a custom property of the larger end of the range that uses high-end materials has a top-quality finish, and plenty of extras can run you up to $230,000.  

Two Bedroom

Two-bedroom, prefab modular homes cost, on average, $70,000, assuming a size of between 1,000 and 1,200 square feet. These can be built over one or two stories and can cost anywhere from $50,000 to $90,000. A custom home of the same size costs an average of $198,000 and could run you from $120,000 to $276,000. 

Three or More

A prefab modular home with three or more bedrooms costs an average of $169,000. A budget-friendly three-bedroom, two-story home can cost as little as $75,000, while a high-end, five-bedroom luxury prefab can cost up to $263,000. Custom homes of the same size cost an average of $500,000. For these homes, a three-bedroom budget property could set you back $180,000, while a luxury five-bedroom may be priced at $800,000.

Modular Home Costs by Type

Modular homes are available in almost any design or architectural style, just like stick-built homes. The cost per square foot is similar, regardless of design style. The biggest influences on cost based on home type are the typical square footage and the number of stories. For example, per square foot, the cost to build a tiny home is similar to that of a two-story duplex. The difference is the size of the duplex in comparison to the tiny home.

Take a look at the typical costs associated with some of the most popular modular home design types.

Average Cost to Build a Modular Home

In addition to the cost to purchase the modular home, you’ll pay about $52,000 to $167,000 to have it delivered and installed. The wide range accounts for variations in the land and the size of the home. Generally, the company providing the structure prefers to handle all of these tasks, giving you one grand total for the finished home. This estimate from an experienced builder should be highly accurate.

Consult the sales contract for procedures concerning delays or damage prior to completion as they may differ between companies. Problems that come up after you take ownership will be a matter of warranty coverage.

Some factors and additional fees that may impact your final cost include:

• Clearing land costs about $3,200. This involves removing trees, plants, or rocks, leveling the ground, and establishing the proper grade.

• Installing a foundation costs about $8,500 on average. A monolithic slab costs the least while a basement foundation can reach as high as $44,500, depending on the size.

• Running a natural gas line costs $550 per line.

• Installing a sewer main costs $2,900 on average.

• Adding a water main costs around $1,600.

• Wiring for electricity costs about $1,400.

• Adding a fence costs around $3,000.

• Landscaping your home costs on average $3,200.

• Adding a pool costs about $33,000, depending on the type of pool.

Cost of Prefab Home Customizations or Additions

Depending on the model you select, you may want to opt for some customizations or add-ons. Common options include:

• Building a two-car garage costs: $28,000

• Installing a deck costs: $7,800

• Build a basement: $24,000–$44,500

• Constructing a shed costs: $2,500

Factors That Impact the Cost of a Modular House

Additional cost factors may vary depending on your local ordinances and options. When planning your budget, be sure to consider:

• Permits and fees

• Regional size and design differences

• Sales tax

• Custom designs

Permits and Fees

The cost of permits and fees ranges from $500 to $5,000. The permits required for preparing the land and installation usually cost the most. Some municipalities may require impact fees for parks, roads, or schools. Homeowners may need to obtain permission for:

• Building

• Utility connection

• Soil testing

• Construction of additional features

Ask your contractor which permits you need or consult your city's building department.

Regional Size and Design Differences

Although prices per square foot tend to be fairly standard nationwide, homeowners may notice regional differences in the size and design of homes available. Companies located in areas with bigger lot sizes may offer modular homes with larger footprints, particularly one-story ranch styles. Home manufacturers that serve urban clientele will most likely have a suite of compact two- and three-story designs that are appropriate for narrow lots.

Sales Tax

Homeowners may need to pay sales tax on the modular home components, which average about $5,000 to $10,000. Taxes are usually specific to the state but may also vary by city. The manufacturer of your modular home should be able to answer sales tax questions or contact your local tax office.

Custom-Design Prefabricated Home Prices

Modular Home vs. Building a Fully-Custom House