Pros and Cons of Prefab Houses

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If you’d rather build a home than buy one, you’ve likely considered opting for a prefab house instead of a traditionally built one. While prefab houses are a great option for many people, it’s important to have a realistic understanding of their advantages and drawbacks.

Pros and Cons of Prefab Houses

Below, we’ve outlined the pros and cons of prefab houses to help make you make an informed decision about your options for a new home.


  • Quick Construction – One of the most significant advantages of prefab houses is that they can be constructed much faster than traditionally built homes. It is important to remember, however, that you will still need to account for the pre-construction time required to attain the right permits, prepare the land for the home, and to hook up the necessary utilities.
  • Affordability – Because less labor is involved in the construction of prefab houses, you can expect the construction costs to be lower than traditionally built houses.
  • Efficiency – Many people are surprised to learn that prefab houses are extremely energy efficient. Their tight construction helps prevent drafts and other seal issues, and it’s even thought to help them stand up better to natural events like earthquakes and other natural disasters.


  • Upfront Costs – Although you can get financing and other such assistance for prefab houses, you will have to pay for the construction before you can move in. While paying upfront will save you money on interest in the long run, you must be sure that you can afford the initial costs before committing to a prefab home.
  • Pre-construction arrangements – It can be a challenge to set up necessities like preparing the foundation and utility hook-ups or applying for building permits. Some construction companies can help with these tasks as part of their services, so always inquire if you’re having trouble.
  • Land – You’ll need to own the land you want to construct your prefab house on, as well as ensure that you’re allowed to build a prefab house on it.