Shopping for a home isn’t just about bedrooms and bathrooms anymore — now you’ve got to decide how your home is built. If you’ve been looking around and seen terms like modular, panelized, and traditional homes, you’re not alone in feeling a little overwhelmed.
So let’s break it all down in plain English. What’s the difference between modular vs panelized homes? What do they actually cost? And which one should you choose?
Modular vs. Panelized Homes: What Do They Mean?
Traditional Homes (aka Site-Built Homes)
This is the “standard” way homes have been built for decades. The house is constructed piece by piece on-site, usually over a few months (or longer). These homes are fully customizable, built to last, and follow local building codes.
Pros: Customizable, long-term investment, holds value
Cons: Takes longer to build, often more expensive, weather delays can slow things down
What are Modular Homes?
These are built (read:prefabricated) in sections at a factory, then shipped to your land and assembled on-site. Think of it like a Lego house — but high-quality and fully livable. Modular homes still follow local building codes, just like traditional homes.
Pros: Faster to build, usually more affordable than traditional homes, customizable
Cons: Limited by transportation (can’t be too big per section), sometimes harder to finance or resell depending on your area
What Are Mobile Homes?
These are also built in factories but to federal HUD standards, not local building codes. They’re delivered as a whole unit (or sometimes two halves), placed on a foundation or piers, and can be moved again later — though most people never do.
Pros: Very affordable, fast move-in time
Cons: May lose value over time, zoning rules can limit where you place them, financing can be trickier
What Are Panelized Homes?
Modular homes and panelized homes are both types of prefabricated homes, although with one core difference: Modular homes are built in sections while panelized homes, you guessed it, are built in panels like roofs, walls, etc. However, when you add the term ‘passive’ to a panelized or modular home, the whole definition changes.
So, you’re wondering what is a prefab passive house? Think of it like a prefab home that is built in a factory, then shipped to your lot for final assembly, albeit with one important caveat – it is extremely energy efficient. In essence, prefab passive houses not only are much quicker to construct than traditional houses, but are also super energy efficient, thanks to their thermally-efficient and airtight design philosophy. This makes prefab passive houses ideal for people who want to cut down on their energy use or those looking to build a home in a remote place with an unreliable power grid.
Pros: Reduced construction time, minimized environmental impact, lower energy bills
Cons: Costly, may face zoning, financing challenges in some areas.
Let’s Talk Costs (Because Budgets Matter)
When evaluating the cost of prefab homes, it’s essential to have a general idea of what you might pay per square foot for all types of homes — just to give you a ballpark:
- Modular Homes: Around $80 to $120/sq ft (like a budget-friendly custom build).
- Mobile Homes: Roughly $100 to $200/sq ft (think trailers, but way fancier).
- Traditional Custom Homes: $450+/sq ft (location and upgrades can send this soaring).
- Quality Panelized Prefab Home (Passive House Ready): Cost roughly $450/sq ft (sleek, eco-friendly, and worth every penny).
But wait! Keep in mind, costs can swing higher or lower depending on:
- Where you build (city vs. middle-of-nowhere costs differ a lot).
- Upgrades (granite counters and SS appliances aren’t free, sadly).
- Land prep (permits, foundation, utilities).
How Long Do They Take to Build?
- Traditional homes: 12–18 months, sometimes longer
- Modular homes: 4–6 months (sometimes faster)
- Mobile homes: 1–3 months
- Panelized homes: 4–6 months
Energy Efficiency and Green Options
When it comes to energy efficiency, prefab passive houses really start to shine, and for one very simple reason: Prefab passive houses are built from the ground up with energy efficiency principles. Therefore, from a design that lets in the maximum amount of sunlight in the house to airtight insulated windows and doors that keep the temperature stable and require little HVAC support, prefab passive houses are the most energy efficient of all the housing types discussed here.
Financing & Resale Value
This is where it gets a bit tricky.
- Traditional homes are the easiest to finance, and they usually increase in value over time.
- Prefab homes often qualify for the same loans as traditional homes and tend to hold value well. Prefab Homes from Simple Life Homes can now be financed through a special program in partnership with CIBC to make financing your new home easier than ever.
- Mobile homes may depreciate, and getting a mortgage can be more complicated — especially if the home isn’t on a permanent foundation.
If you plan to sell down the road, traditional and modular homes give you more resale power.
Additional Considerations
- Prefab Cottages: Prefab cottages or modular cottages are Ideal for vacation homes or secondary residences, offering quick construction and cost savings.
- Passive Home Builders: Passive home builders are specialized builders focusing on energy-efficient designs and sustainable materials. Partnering with passive house builders to construct a prefab passive house ensures the best quality construction for your passive home. We have a network of approved builder affiliates.
- Passive House Kits: Passive house kits are pre-packaged materials and plans for constructing passive houses, suitable for DIY enthusiasts or contractors.
So… Which One Should You Choose?
Here’s a quick cheat sheet:
- Choose Traditional if you have a big budget and time to wait and want a fully customized home with high resale value
- Choose Modular or Prefabricated if you want a faster, more affordable option that still feels like a regular home but is built more quickly and is high quality
- Choose Mobile if budget is tight and you need a quick, simple place to live
Final Thoughts
Purchasing a property has no “one-size-fits-all” solution. Your priorities—time, money, geography, lifestyle, or energy efficiency—will really determine everything.
Whichever route you take, just make sure to conduct builder or supplier research, ask the appropriate questions, and take your time in deciding on which home type, be it modular vs panelized homes or traditional home, to choose from. You are selecting the venue where your life will unfold, not just walls and a roof – and that is worth getting right the first time!
If you are leaning towards off-site constructed homes, especially energy-efficient prefabricated passive homes, get in touch with us. We are experienced in building energy efficient prefab passive houses, delivering them to your construction site. We even offer full home building services! Having been featured in the Toronto Star, CBC, TAF and other reputed media outlets, we are growing fast and would love to explain to you why a prefabricated passive house might be the right fit for your next home build.