Modern factory-built homes are becoming an increasingly popular choice for homebuyers who value quality, affordability, and energy efficiency. A 2021 survey by IKEA revealed that nearly half of the respondents expressed interest in homes constructed off-site. However, despite their numerous advantages, misconceptions continue to keep people from considering them as a viable housing option.
Let’s debunk five common myths about factory-built homes and uncover the truth about their construction quality, climate resiliency and long-term value.
Myth #1: Factory-Built Homes Are Poorly Built
The Truth:
Today’s factory-built homes are constructed using advanced building techniques and must meet strict safety and durability standards.
Modern factory-built homes are designed and built in a controlled environment, which helps eliminate common construction issues like weather-related delays and material inconsistencies. They must meet rigorous safety and quality standards, including the HUD Code for factory-built homes or modular home building codes that align with or exceed local site-built home requirements. Programs like Fannie Mae’s MH Advantage® and Freddie Mac’s CHOICEHome are only available for high-quality factory-built homes that resemble site-built homes. These homes offer features like pitched roofs, durable siding and attached garages. With high-quality materials and precision engineering, today’s factory-built homes are built to last and nearly indistinguishable from site-built.
Myth #2: Factory-Built Homes Aren’t Energy-Efficient or Climate-Resilient
The Truth:
Many factory-built homes now meet or exceed federal energy efficiency standards and can be designed to withstand extreme weather conditions.
Many modern factory-built homes are designed to be highly energy-efficient, with options for Zero Energy Ready (ZER) and ENERGY STAR® certifications. These homes are built with better insulation, high-performance windows and energy-efficient HVAC systems that help homeowners save 30-50% on monthly utility bills. Additionally, factory-built homes can be designed with enhanced wind resistance and climate-resilient materials, making them well-suited for areas prone to extreme weather. Homes are built to withstand the severe weather, like hurricane-force winds or heavy snowfall, of the installation location.
Myth #3: Factory-Built Homes Lose Value Over Time
The Truth:
Like site-built homes, factory-built homes can appreciate in value—especially when placed on a permanent foundation on owned land and maintained properly.
The idea that factory-built homes automatically depreciate in value is outdated. While home appreciation depends on factors like location, maintenance, and land ownership, many factory-built homes appreciate just like site-built homes—especially those placed on permanent foundations with proper upkeep.
Take, for example, the Woody family, who purchased a Clayton-built Next Step home in Kentucky. Their home, built with high-quality materials, modern design, and energy-efficient features, has proven to be a valuable long-term investment. As Robert Woody shared:
When we first purchased our home [in 2015], it was around $179,000. They did an appraisal just a couple weeks back and it ended up appraising for around $320,000.
Robert Woody | Next Step Homeowner
Their experience shows that a well-placed, well-maintained factory-built home can increase significantly in value over time, just like a traditional site-built home. In fact, manufactured home prices have appreciated similarly to site-built since 2000.
Myth #4: Factory-Built Homes Are Only for Mobile Home Parks
The Truth:
Many homeowners place factory-built homes on private land, and they can blend seamlessly into traditional neighborhoods.
While some factory-built homes are located in communities designed specifically for them, many are placed on private land or in mixed-housing neighborhoods. Advances in factory-built home design mean they can be nearly indistinguishable from site-built homes, with features like attached garages, covered porches, and customizable exterior finishes. A great example of this is Homes in the Heights, an infill project in Petersburg, Virginia. This initiative uses factory-built homes for infill development, transforming vacant lots in an established neighborhood into durable, energy-efficient housing. The homes meet local building standards and are designed to blend seamlessly with surrounding site-built homes, demonstrating how factory-built housing can be used to revitalize communities and expand affordable homeownership opportunities.
Myth #5: Factory-Built Homes Are Only for Low-Income Buyers
The Truth:
Factory-built homes offer affordability without sacrificing quality, making them a smart option for buyers across income levels.
One of the biggest advantages of factory-built homes is their affordability. They can cost 10-30% less per square foot than site-built homes, primarily due to the efficiency of factory production. However, this affordability doesn’t mean they are only for low-income buyers.
Today, factory-built homes appeal to a wide range of buyers, including first-time homebuyers, retirees looking to downsize and middle-income families seeking cost-effective homeownership options. These homes provide modern designs, high-end finishes and energy-efficient features at a fraction of the cost of a site-built home, making them an attractive choice for many.
Factory-built homes are high-quality, energy-efficient and a smart financial investment. Despite persistent myths, they offer a durable, modern, and affordable housing solution for a wide range of homebuyers.
Ready to Take the Next Step? Here’s How:
- Speak to a HUD-certified housing counselor to better understand your purchasing power.
- Explore our homebuyer Resource Library to learn more about buying and living in a factory-built home.
- Visit a factory-built housing retailer near you to tour homes in person.