DISQUS

Jetson Green: Prefab is Not The Answer to Affordable, Modern & Green Homes

  • Jake · 1 year ago
    Thank you for making the point publicly! I bet it won't be popular! The "idea" of prefab is so seductive- but trucking houses around is silly when you get to the bare bones, dirty hand part of really building houses.
    Houses make lousy cars and cars make lousy houses.
  • Mike M · 1 year ago
    I applaud the writers at JG for posting this particular blog. They have shown a past love-affair with pre-fab housing, and it would be difficult to post something that goes against your own pre-dispositions. Well done.
  • Preston · 1 year ago
    Thanks Mike M. We haven't quite gotten over our love affair with prefab, but we're certainly willing to challenge our predispositions. Chad's analysis here, I personally think, is quite compelling ...
  • Nancy · 1 year ago
    Unfortunate news. Prefab seemed like such a great option - but I have heard a couple of stories to back up your claim. We just built a house out of SIPS, and prior to having it built, we talked a prefab company and there was no way they could build an existing design for under $200/SF - at least the one we liked would be $250-300. They priced out our design too, and they claimed the cost would be about $200, but too many things were not accounted for (like anything we could get locally, and they didn't exactly specify what mid-high end finishes would be). Although we chose to go with SIPS for a lot of the right reasons, we figured it cost about 20% more than conventional stick built -- so not necessarily an immediate cost saving.
  • Copeland · 1 year ago
    We are building our own SIPs house kit right now- received the foam yesterday, and foundation work begins next week! So I'd like to offer others to follow along on our construction costs post- to see whether it comes within their idea of an affordable but efficient home:
    http://www.greenmodernkits.com/2008/01/money-mo...

    Also the project will be detailed in the blog:
    http://www.greenmodernkits.com/casa-ti1.htm
  • Chad Ludeman · 1 year ago
    Copeland has a good project there and it will be interesting to see how the final costs stack up to conventional stick building and prefab options.

    Preston linked to a good prefab article related to the topics in this post a few weeks ago in one of his WIR posts - http://www.consciouschoice.com/2008/09/prefab08...

    Keep in mind with SIPs, the total cost of all materials and labor must be taken into account for a true comparison to stick built. All of the insulation and sheathing is included so comparing lumber costs only to SIPs material costs is not a fair comparison. Also, comparing batt insulation used in stick built homes is not a fair comparison either in terms of cost. Blown in cellulose or some type of spray foam will be better comparisons and much more costly than poorly installed batt insulation. Again, we're talking about energy efficient, green homes, not standard homes...

    Thanks again for the supportive comments so far. I'm still waiting for the ones that disagree out there.
  • donald trotter · 1 year ago
    The conclusins in this article make emminent sense to me. I have seen prefab designs I like, but when I see the psf cost, it is clear to me that a site-built house would be cheaper. In my area, $150 psf (w/o land) yields a medium high level of finish. I have not seen a pre-fab option in this range, except perhaps Rocio Romero, who offers a "kit" which is basicaly the shell of the house. The example projects on that web site indcate that "sweat equity" can render a psf in the more affordable range.
  • Scott Sanders · 1 year ago
    This post was a great commentary on quite a range of topics. Chad makes great points about the reality of prefab construction and needs to add one more thing - most Americans aren't interested in the "cutting edge" architecture of the majority of prefab houses.

    In the next section, Chad talks about the hybrid prefab/site-built approach and lists five points to make it successful: 1) Quality, stock plans, 2) Educated clients that know they aren't buying custom, 3) Prefab building envelope, 4) Internal prefab components 5) Better scheduling and coordination. Many national production builders are doing 4 out of 5 of those items with the exception of internal prefab components.

    They have a set line of plans that customers choose from that has been value engineered to wring out as much material cost as possible, they present buyers with a short, standard list of options and changes they can pay for, a few use panelized construction where wall panels come out on a truck and are craned into position or placed using a forklift, and most have excellent scheduling and coordination with trades and building officials.

    So how do you make your hybrid method compete with theirs? Build in single lot infill locations where they can't/aren't building, offer new materials and methods such as SIPs and modern interiors and exteriors, and leverage the fact that you will be working with them from start to finish, not a sales rep, then a construction supervisor, warranty supervisor, etc. From what I know about the 100k house an it's team, it sounds like you're right on in making it work.

    I also have to note that the 10 largest "tract builders" build only about 26% of all new homes, the 100 largest build only about 40% total, and the 400 largest build about 46% total, not 80% as Chad mentioned. Also, #400 (and many further up the list) built about 100 homes in 2007, hardly what I would call a "tract builder".
  • Chad Ludeman · 1 year ago
    Excellent points Scott. Thanks for the stats on "tract builders" in the US. I should have kept is more vague in alluding to the 80:20 rule - 20% of the national builders are probably building about 80% of the home stock.
  • Dale · 1 year ago
    As Scott notes, the custom and semi-custom home building sector hasn't been touched by the big tract builders or prefab manufacturers. This makes it the only industry I can think of where a large capital item is supplied onezy twozy by small scale entrepreneurs. The market demand is being met by companies that are literally worth less than the next five homes they build.

    This is a market that is definitely ripe for the economies of scale that big companies provide, but no one has a clue yet how to do it.

    You can bet they are strategizing as we speak, since conventional greenfield development is in its death throes. I don't think it will be very long before you see a Toll Brothers target a cheap, existing urban neighborhood with "potential" and try to silently buy everything in sight. Then the model home goes up, and you drive around with the sales person and pick your lot out. Only this lot will be sandwiched by two rundown "scrapers".

    And small developers like Chad only have a few month lead in the style, materials, and energy consumption categories. The big guys must adapt quickly to the market demands because the consumers are finally learning of better options than the old "drive till you qualify" tract homes.

    How to prevent getting swamped by large builders in a couple years? Get some cash and credit, and go buy those homesites NOW. Target the places with job growth. Land is almost free in Detroit, but there is still no chance of profit there.
  • darin dougherty · 1 year ago
    Chad,

    Very well written. As an architect, I have been contacted on several occasions with potential clients who are very excited about saving money using a prefabricated method. We've done the best we can to let them down gently, but the cost of prefab is indeed more expensive than custom site built construction (at least here in Portland). One client in particular purchased a gorgeous lot with a great view of the city, purchased plans from a well known prefab company and was ready to get rolling. Unfortunately, after the additional architect's fees to customize portions of the plans and to prep the site for construction, they were looking at $300 per s.f. (and this was a couple of years ago). Unfortunately, they had to sell the lot, which was developed by a ticky tacky tract home that completely ruined the site.

    We've started a project using a hybrid method that is under construction now completely built out of SIPs. The home is a spec house we're targeting for LEED platinum. We're realizing all the advantages of prefab. To date, we have poured footings and foundation walls and the interior slab on grade. We will begin erecting the panels, which are on site in the next day or two. Cabinets, windows and many other items that typically are ordered once framing is complete has already been ordered.

    You can follow along here:

    www.sipshousepdx.com
  • Dave Wax · 1 year ago
    Hi Chad,
    First off, this is the best post on pre-fab I have every read. I have been looking at this market for 5 years now trying to figure out what was going on and how we could bring costs down. I, like you, finally concluded that with the current structure there is no way that this could happen. That said I have two interesting stories\examples of how my new company FreeGreen will be testing out some of your hybrid models over the next couple of months:

    1) FreeGreen (which provides Free Green House Plans while working with green product vendors on an advertising basis to specify their products into our plans) is going to be releasing a new SIP based plan in conjunction with our SIP partner R-Control in October. This is the first of a 10 plan deal that we have with R-Control. Since these plans are free and fully integrated with SIPs (and of course the other green technologies that are always in our plans) it will be directly testing your first hybrid method.

    2) We are about to announce the winners of our FreeGreen Challenge Contest (a contest where our users competed to win a free custom design). One of our winners actually priced out a number of pre-fab systems for his land, each of them coming in at $350 to $450 a sq. ft. We are going to work with this winner to design a green, modern, site built home that will easily beat those prices (and then of course post the design to our site for everyone to download free). OK. Sorry if this seems like a bit of a commercial, but the article really struck a cord with me and my business is what I know these days. Looking forward to working with you Chad to see if we can right this ship.

    Thanks,
    Dave Wax, CEO FreeGreen
  • Josh Stack · 1 year ago
    Those here might also be interested in Bensonwood Homes, a genuinely fantastic company that offers, in my view, a uniquely invaluable and different perspective than the current form of most pre-fab, including the "affordable" market.

    http://openprototype.com/index.php?gallery=-60-...
    http://www.openprototype.com/serendipity/

    My biggest hesitation with pre-fab and applying a manufacturing model to the built environment was about the harms of standardization and using technology as a substitute for skill. But I believe Bensonwood has figured out the appropriate use of prefab technology, not as a substitute for skill, but as a tool of craftspeople.

    That makes all the difference in the world.
  • Josh Stack · 1 year ago
    and their website:

    http://www.bensonwood.com/
  • Avi Telyas · 1 year ago
    Indeed, Chad, modular of prefab construction has been the next best thing for the past 100 years. A great many architects and business people have tried to realize the dream of industrialization in construciton without a single notable success. Interestingly, the latest show in prefabrication at the MoMA in New York, called Home Delivery, (where our Company Kullman has a building) continues this fascination but again without offering any evidence of broad based appeal or acceptance for this building method. Although you think you offered an answer to why this is so in your article, In my opinion, you failed to look a the broader implication of modular construciton.

    Like others, you are looking for modular success in the wrong places. That is, most of the activity in this space has been for the single home building type. My Company, Kullman Buildings Corp. (www.Kullman.com) on the other hand specializes in the multi story, multi tennant building types where the benefits of volumetric modular construcion go beyond just cost. As an example, I can point to a project we did at Muhlenberg College last year. The College year ended on May 14th. We moved in to demolish and tear down 5 wood buildings and build foundations on May 15th. We started delivery of the modules on June 15th and by August 15th, a mere 90 days after the last student left his dorm, student were in their new brick, steel and concrete dorms paying rent a year ahead of what a conventional site builder would have delivered. Further, there was no disruption on campus, no runoff on the steep site and yes, no waste generated on site. the cost was comparable to convetional construciton, though honestly we should charge more for this wonderful benefit.

    The modular industry's (and MoMA's) preoccupation with the single family residence type will continue to frustrate the onset of a large scale prefab industry that is able to bring to bear the true benefits of industrialization. What is needed is a fresh focus on what we at Kullman consider the "killer app" of modular construciton which is tall (12 story) multi rsidence building types. The economic of mid rise modular buildings are much more attarctive in comparison to the economics of a single family residences, much like the economics of a $10mm loan are more attractive than the economics of a $250K loan. When developers and owners begin to value time to market like universities do, the benefits of modular construction will be recognized and more successes will be evident. Though it preoccupied us for many years, Modular construction is truly in its infancy and although it captures less than 10% of all building projects annually, the economic trends are poinitng to a much brighter future.a
  • John W. · 1 year ago
    Avi,

    When is that book "Modular Methods" going to be finally published? I see it on the website, but the link goes nowhere. I'd love a copy, but have heard no updates.
  • John W. · 1 year ago
    I'm sorry, the proper title of the book is "Modular Architecture Manual".
  • John W. · 1 year ago
    Avi,

    You're the only one here that 'gets it'. If the current interest in prefab constructions goes the way of all those in the past, so fascinatingly chronicled in the MoMA show (6th floor travelling exhibit gallery), you'll have blogs such as this, Dwell magazine, Metropolis magazine, Residential Architect magazine, Architect magazine, etc. to blame- and they'll absolutely BE to blame. Prefabrication is about P R O C E S S, and not about product. Any method will result in product, but if you're really interested in prefabrication and what it has to offer not only the housing industry but all occupyable structure history, you'll have to understand this critical distinction. Kullman clearly understands this, and its work demonstrates this repeatedly. In their excellent 2003 book, "refabricating Architecture", Kieren and Timberlake slam this point home over and over again, and if those who gush over glossy pictures of a Marmol Radnizer or Jennifer Siegal project would try, in earnest, to understand this, then perhaps prefabrication will survive the stupidity and ignorance that has killed all the past iterations chronicled at the MoMA show that ended in October.
  • ERD · 1 year ago
    Isn't expandable polystyrene foam used in SIP's? Isn't that stuff pretty nasty to the environment?
  • Dougist · 1 year ago
    After going to the MoMA show on Pre-Fabs I asked the question, "Why don't pre-fabs seem to work?" and answered it here...

    http://dougist.com/index.php?p=28

    Your post is very well written and I only touched on a few of the many points you made.
    But I ended up speaking on the idea of pre-fab as a tool for urban design experimentation - not the grand hopes for all in the industry but a nobel contribution never the less

    Lloyd Alter of Treehugger was kind enough to leave a nice comment.

    Doug
    www.dougist.com
  • dlm · 1 year ago
    I appreciate the in depth research and report that went into this article and I too agree that prefab is not were we want it as of yet but I like to think in a positive manner my belief that it may be a valid option someday. I would also like to add that your notion of a hybrid pre-fab vs. stick built process is an excellent possible solution to the manufactured home process and warrants further study.

    My displeasure with the writer’s comments is his recommendation of stock plans and the idea of producing more cookie cutter choice houses. The fact is there are thousands of those plans flying over the web, in books, magazines and racks at your local Home Depot. I for one am growing tired of the “McDonalds” look alike house that are produced by cheap minded money grubbing contractors and developers who don’t give a damn about the quality and value of living in America. It has to be the same old suburbia look that everyone is dying to have???

    I am referring to single family detached…I am not really sure I am excited about having “slick contemporary” modern homes becoming the norm either even though that is my style of choice. I think people having variety and choice is always best.

    Lets follow that up with the architect…All the comments presented by the writer pretty close to truth and reality about custom designed homes. But a lot of people may hire an architect for the plans and that is it…the professional is cut out of the rest of the process. And the process is what is important. It is a learning and growing experience for the design professional and the owner. Architects can help with the bid process picking out interior finishes and details, and help in finding high quality fixtures and equipment for the right price; or they can provide alternate ideas. There are always unique ways of doing the “business as usual” process you just need to find the right designer for you.

    Contractors and developers are always using the unknown as excuses to raise prices, I say don’t let them get away with it. Do you take the first bid that comes along when you are tying to sell your house, do you not expect to barter with the car salesman? Were I appreciate the thoughtful recommendations of the writer in this article it is still seems presented in a typical construction as usual persuasion…how one can side step some of these costly pitfalls. Instead I say lets change the process and work designer, developer/contractor, and owner as a team with all the information out in the open.

    I apologize for the negative connotations of my response but when I see “STOCK” plans as an option it drives me batty. But thanks for the helpful antidotes.
  • Robin the Energy Saver · 1 year ago
    The argument that prefab homes involve a lot less waste sounded so believable until this series of articles (here and on other blogs) dispelled the myth. It seems like efficiencies of scale apply where the big guys want (as in, reduced cost, hence higher profit magins) and are touted, but not actually realized, where the buyers want (as in, 'greener homes' but not really).
  • modern architect · 1 year ago
    An interesting article. Perhaps prefabricated houses such as NOMAD home aren't quite as eco or as cost-effective as they make out, but the pre-fabrication process should not be ignored - if more people would go in that direction, the benefits would really be seen. Also, it certainly works with projects such as this:

    http://archiblog.d-earle.com/2008/09/02/a-house...
  • John W. · 1 year ago
    It's rather amazing that such a well-conceived counterpoint argument to the current prefab craze ultimately falls into the same trap as those who drool over the glossy images in Dwell magazine. This article, otherwise so thorough in its deconstruction of the well-travelled, bullet-point spin typically offered by the likes of (insert your favorite Dwell magazine star architect, and his/her signature project), manages to miss the most important advantage that means of prefabrication offers to a project, which is of course, economy of scale. The Dwell homes by Empyrean are prefab... but... why? They happen to be prefab, but who cares? That's dumb. There is no earthly reason to use means of prefabrication for a one-off or singular project that can just as easily be built on-site. The author's counterargument in the article seems to only address those that believe the standard fare published in Dwell and the usual green gadget blogs is what deserves mention, and completely misses the real advantage of means of prefabrication. Is prefab more green? Maybe... but who really cares? If one fails to even mention economy of scale and the natural advantage that prefabrication offers to a large project of repetitive units, has one really offered a convincing counterpoint argument to prefab? Of course not. Are you building singular prefab projects? Really? Why? That's just dumb. Silly Dwell magazine and green gadget blog reading [mostly architects]... prefab is for large, multiple unit projects... not one-offs. If you haven't figured this out, you deserve to waste your hard earned money on a dumb project. It's also worth mentioning the title of the article includes one qualifier that taints this article from the outset - 'modern'.
  • Norman Solomon · 9 months ago
    Wow, this was by far (Chad Ludemen's article) the most informative (and accurate) assessment of so-called modular or pre-fab homes. I just completed extensive research on modulars and can vouch for virtually every item mentioned.I am not a builder or architect, rather, a potential buyer looking for an innovative approach to building a small house. 25 years ago we built a "hybrid" house in Switzerland which utilized incredibly advanced SIP type panels. I suspect that the SIP panels readily available today could make very useful "building blocks" in designing a home especially in Vermont.
    Norman Solomon, Brookline, Vermont
  • Joseph Guerrero · 9 months ago
    Hello Chad,
    I have found your article very informative, particularly in pointing out the differences between the MODULAR, PRE-FAB & HYBRID.
    As a fan of CLASSIC MODERN ARCHITECTURE I am not concerned about the "regular/average" homes, but my focus is strictly with the (ECOHOMES)modernist pre-fab designers such as MARMOL RADZINER, FREEGREEN (the view box greenhome), LIVINGHOMES (RK1, RK2, RK4, RK5). & ROCIO ROMERO.
    My intention is to do projects here in Arizona with such products and/or use an architect builder such as MICHAEL P. JOHNSON for the larger custom homes.
    I appreciate your take on the pre-fab/modular homes, and you are certainly more experienced on the topic than I, would it be possible to get your oppinion on the above builders of said products? you are more knowledgable than I on this topic and it would help me tremendously.
    I am in Real estate, in land aquisition and development (put sub-divisions together) and with a group of investors want to build CLASSIC MODERN HOMES (GREEN), for both, the more affluent that will downsize and for the lower brackets a simpler affordable highly efficient dwelling (GREEN).
    Please advice,
    I thank you in advance.
    Joseph Guerrero RE/MAX EXCALIBUR Scottsdale Az. 602 740-1132
    I am also an artist; Joseph Breton
  • mlkolb · 3 months ago
    Are you all kidding me!? This guy is a builder, hence the PreFab industry gives him NO work. He builds stick houses! So you mean to tell me that I can take a manufactured car and buy it from a dealer for more than I can buy all of the separate parts and components and build it myself? NO. And also what he's saying with "Hybrid" so now you don't only have the overhead of the factory for prefab, which is absolutely expected, but you have the overhead of his pockets, the panels you buy company, shippers, installers, carpenters, catch my drift? Whereas the prefab is all upfront and know the cost.. If your going to let this change your mind on PreFab go ahead and be influenced by someone who is completely biased. Look at his job title! I'm still going to prefab