Breaking Down Modular Home Pricing (and Why It’s Often a Smart Money Move)

When considering building a new home, many people are drawn to modular homes for their efficiency and modern appeal. Modular homes also have a reputation for being more affordable than traditional “stick-built” constructions. However, understanding the costs involved in a turnkey modular construction can be confusing. Modular homes offer a unique approach to construction, but pricing varies widely depending on several factors.

The good news: once you understand the major cost drivers, modular pricing becomes much easier, especially when compared to a traditional build. And according to industry experts like NewHomeSource, modular homes can cost 10–20% less than comparable site-built homes, mainly because of factory efficiency and shorter build times associated with the modular construction process.

In this blog, we’ll walk through five key pricing factors of modular home construction and how they work together, so you can decide if modular is a smart investment for your budget and your long-term plans.

1. Size and Design Complexity

A home’s square footage and layout play a major role in the cost of any new home construction. Just like a traditional build, a larger modular home costs more than a smaller one because it uses more materials and labor. But complexity matters almost as much as size.

Key factors include:

• Simple shapes, such as ranch or rectangular floor plans, are typically the most budget-friendly.

• Homes with multiple rooflines, bump-outs, dormers, two stories, or dramatic vaulted ceilings add structural complexity — and cost.

• Extra features like attached garages, porches, and decks will also increase the overall price.

  
  

At Corey’s Construction, we help you balance size and layout by starting with hundreds of customizable floor plans — from compact ranches to spacious two-stories and chalet-style homes — and then tailoring them to fit your budget.

2. Materials and Finishes

Materials and finishes are where your modular home really starts to feel like “you.” While they do impact cost, they also add long-term value to your home in terms of daily quality of life and resale value. This is why Corey’s Construction offers a wide range of materials, finishes, and other design options to choose from.

When you work with our design team, you’ll make choices in areas like:

• Exterior: Vinyl siding vs. fiber-cement, stone, or brick accents

• Roofing: Standard shingles vs. architectural or specialty products

• Interior finishes: Flooring, cabinets, countertops, trim, plumbing fixtures, and lighting

• Energy features: Upgraded insulation, higher-performance windows, efficient HVAC, and smart-home systems

  
  

Speaking of energy efficiency, here’s a fun fact: According to the National Association of Home Builders (NAHB), modular building systems often deliver consistent quality and tight construction because they’re built indoors with controlled processes and third-party inspections before the modules ever leave the factory. 

Energy-efficient upgrades will usually add to your upfront budget, but they often pay you back over time through lower utility bills. Corey’s Construction standard packages don’t include energy-efficiency upgrades, but you can purchase upgraded products from outside vendors, and our team will help you with installation. 

3. Location and Site Preparation

You can’t talk about modular pricing without talking about the lot. Site work and location can significantly influence your total project cost. These pricing factors include:

• Land conditions: If your lot requires clearing trees and removing old structures, this impacts costs, as well as grading and drainage.

• Soil and foundation requirements: For example, sloped lots or poor soil may need additional engineering.

• Utilities: Will your location have access to well or public water? Septic or sewer? What about power, gas/propane, and the Internet?

• Driveways and access roads: This is an important consideration for a modular construction, since trucks and a crane need to reach the site

• Local permitting and codes: Some areas require more inspections, additional energy measures, or specific foundation types.

  
  

The NAHB notes that modular homes are set on permanent foundations and must meet the same local building and fire codes as site-built homes. So your local code environment — and how strict or complex it is — will affect your foundation and site costs, just like with a traditional build. 

Corey’s Construction builds modular homes in Maryland, Pennsylvania, West Virginia, and Virginia, and our turnkey approach includes coordinating the site work, foundation, and utility connections so all those moving parts stay aligned with the house budget.

4. Transportation and Installation

Modular homes are built in sections in a controlled factory setting, then transported to your site and set with a crane. This process removes the risk for costly weather delays and increases cost-saving efficiencies compared to traditional site-built homes. But there are cost factors involved with your modular home’s transportation and installation, including:

• Distance from factory to site: Longer hauls equal higher transportation costs*.

• Module size and route: Oversized loads and tricky routes may require escorts or permits.

• Crane time: The size of the crane and how long it’s on site affect cost.

• On-site completion: Once the modules are set, the crew finishes roofing, siding tie-ins, interior seams, mechanical connections, and final trim.

  
  

Modular homes are delivered to the site already framed, wired, plumbed, and inspected, then placed on a permanent foundation and finished by your local builder. This means a lot of the expensive, weather-sensitive work is already done before your home arrives — one of the reasons modular can help control total project costs.

*Transportation cost is added to the base pricing and may be adjusted based on the distance of your lot from the factory

5. Customization and Upgrades

Unlike mobile homes, modular homes are fully customizable. For example, Corey’s Construction offers more than 300 floor plans and home designs to choose from. Plus, most of our buyers add at least a few upgrades to make the home feel like their own. Common add-ons include:

• Upgraded kitchen and bath packages

• Expanded porches, decks, or garages

• Built-ins and storage features

• Smart-home technology and security

• Fireplace or specialty trim packages

  
  

And each modular floor plan comes with multiple finishes and feature options. You can keep things simple and budget-friendly — or layer in more customization where it matters most, like the kitchen or primary bath.

From a pricing standpoint, the key is to distinguish between “must-have” upgrades (e.g., energy efficiency, durability) and “nice-to-have” style extras. A good modular builder will help you prioritize so you get the best long-term value, not just the longest upgrade list.

Is It Cheaper to Build a Traditional On-Site House or Go Modular?

This is the big question: Is modular actually cheaper than a traditional site-built home? The honest answer: It depends, but modular has real cost advantages. Independent industry studies suggest that modular and other off-site methods can reduce total project timelines by 20–50% compared to conventional construction. And as we noted earlier, modular delivers 10–20% savings in total construction costs in many cases, especially when projects are well-planned and standardized. 

This doesn’t mean every modular home is automatically cheaper than every traditional site-built home. Land, design complexity, finishes, and local labor all play a role. But modular shines in three big areas: time, labor/material efficiency, and quality control.

How to Get the Best Value in Modular Home Pricing

To maximize your modular home investment, consider these practical tips:

• Choose a simple design: Simple doesn’t have to be boring. Clean, efficient layouts usually give you the best cost per square foot. Spend money where you’ll feel it every day (like kitchens and primary baths) instead of on overly complex rooflines.

• Prioritize energy efficiency: Better insulation, high-performance windows, and efficient HVAC might add to the upfront price but can lower monthly bills. For many buyers, this pays off over the long term and improves comfort.

• Understand your lot before you fall in love with a plan: Soil conditions, slope, and access all affect foundation and site costs. A quick site review early with your builder can prevent surprises later.

• Be strategic about upgrades: Ask your builder which upgrades typically deliver the best resale value in your area — things like curb appeal, kitchen quality, and primary bath finishes often rank higher than ultra-luxury secondary spaces.

  
  

Make the Right Choice for Your New Home Investment

Understanding the factors that influence modular home pricing empowers you to make smart decisions. Modular homes take less time to build and offer labor and material cost efficiencies that save money as you build your dream home. By carefully considering all the construction pricing factors we’ve reviewed in this blog, you can review options with your builder to fit your needs and budget.

Corey’s Construction lays out how we coordinate these pieces in our Building Process and Turnkey Construction resources, showing how factory and on-site work are aligned to keep quality high and headaches low.

If you’re ready to run numbers or explore floor plans, contact us, so we can help you match budget, design, and timeline — so you know exactly what you’re getting before you commit.