Centralized production facilities help modular companies keep overhead low. Additional modules can be added to expand living space as families grow. Factories provide stable jobs for communities, benefiting local economies.
Financing mobile homes can be tricky, as they may be considered "chattel" loans, with higher interest rates. Since the majority of labor occurs in a factory, modular home businesses in Columbia save significantly on labor. Mobile homes are generally more affordable than traditional site-built homes, making them an option for first-time buyers or retirees. Because they’re built in sections, modular homes take about half the time to complete compared to site-built homes.
Some modular businesses provide off-grid options, including solar power and water catchment systems. Modular homes have resale values comparable to traditional homes.
A large percentage of affordable housing in Columbia consists of mobile and manufactured homes. Modular companies can produce both permanent homes and temporary commercial structures in cities like Columbia. Newer models have enhanced insulation, making them energy-efficient and comfortable. Modular factories employ in-house labor, cutting down on subcontracting costs. In Columbia, some investors buy mobile homes in parks as a source of rental income due to low initial costs.
HUD has specific standards based on region, including "Wind Zone" ratings to ensure durability in different climates such as those in Columbia. Mobile homes are more susceptible to damage from tornadoes and hurricanes compared to traditional homes. Financing for manufactured homes can be through chattel loans, FHA loans, or even VA loans in some cases.
Manufactured homes must meet HUD standards that cover design, durability, fire resistance, and energy efficiency. Modular homes can range from budget-friendly to luxury, with finishes and sizes to match. Newer models have enhanced insulation, making them energy-efficient and comfortable.
Some investors buy mobile homes in parks as a source of rental income due to low initial costs. Many retirees, especially in the U.S., live in mobile homes seasonally, moving between warmer and cooler climates. Manufactured homes on leased land may face lower property taxes, appealing to cost-conscious buyers in Columbia. Placing a manufactured home requires site preparation, including utility hookups and foundation work.