Modular homes: Businessman wants to reframe buyers' thinking on construction

The Chicago Tribune ^ | October 4, 2009 | Mary Ellen Podmolik

[2ndDivisionVet]

It's hard to not be spellbound by the sight of half of a new house slowly swinging across the street and gently coming to rest on a precast concrete foundation.

Raise the roof line, join the two sections, add a decorative facade, tidy up the entrance and it's almost ready for occupancy, right down to the sparkling bathroom mirrors and kitchen appliances.

But would you want to live in a house that arrives on two flatbed trucks? Or would you feel your home sweet home is one front step away from living in a trailer?

A California businessman with Chicago roots is eager to take on the stigma of factory-built homes and change consumers' mindset, one or two houses at a time. The best way to do so, said Richard Lupa, is to show people what he's talking about, despite the fact that spec homebuilding is largely kaput.

Hence the reason for the 200-ton crane that stood taller than the tree line in Maywood as a crew recently installed raised ranches on two lots in the western suburb. A few hours after the process began, two mostly completed homes sat on what had been vacant land for decades, and Lupa started readying them for sale.

"People think this is a mobile home, and we can't break the stigma until we start to build," said Lupa, a real estate agent and owner of Modern Factory Homes LLC. He acts as a developer and broker; the homes are built by other companies.

On site, a modular home isn't built so much as it is installed. At a Maywood lot, a crew fastens three large straps around one half of the house and connects them to a crane.(continued)

[2ndDivisionVet]

Probably the wave of the future in homebuilding.

[A CA Guy]

My wife’s aunt lives in one and to be honest, it is very nice.
Nothing wrong with that being a home option among other choices IMO.

[Publius6961]

Probably the wave of the future in homebuilding.

Only the latest wave.
There have been similar waves in the 60s, 70s and 80s.

Some of them were quite good, but price difference was almost insignificant.

Government permit snd fees today is where the expense is. That and the NIMBY factor. Together, this invisible cost amounts to twice the total cost of a 3-bedroom home in 1960.

[South40]

But would you want to live in a house that arrives on two flatbed trucks?

As a contractor with 31 years in the business I say no. But that’s my biased opinion. I would think no one would want an inferior quality home, but to each his own.

[goodnesswins]

"But would you want to live in a house that arrives on two flatbed trucks?"

My husband's great grandparents house was a SEARS house...it arrived by truck I believe...and is still standing, and one of the best looking homes in that little town....

[Age of Reason]

My husband's great grandparents house was a SEARS house...it arrived by truck I believe...and is still standing, and one of the best looking homes in that little town

LOL--good point.

But one difference is, I believe, that those Sears houses were shipped in pieces of lumber labled and cut to size, which had to be stick built on the spot, whereas todays modular houses are delivered in a few already assembled parts that you just join together.

[HiTech RedNeck]

The quality of either one will reflect the quality of its construction, whether that happened on the site or at a factory. I’d expect that certain things are difficult or impossible to prefabricate, such as brick walls.

[HiTech RedNeck]

That would be more like a house kit.

[Hillarys nightmare]

I've seen some pretty good modular homes, but comparatively speaking; the cost is pretty much the same as a site built home.

Also, any Realtor will tell you that a modular home just doesn't have the same appeal to home buyers as one that is site built. People still see them as being too much like a mobile home. They may be novel, and they may be built well. But they still lack that special feel and finish of a site built home; and that means a great deal to most home buyers.

[South40]

Also, any Realtor will tell you that a modular home just doesn't have the same appeal to home buyers as one that is site built.

Not just that, but ask an appraiser. Mods don't appeal to them, either.

[cmsgop]

There are some really nice manufactured homes out there, it is the future IMHO

[supremedoctrine]

You took the words right outta my mouth.
I was going to bring up that in effect those great Sears houses of decades ago, arrived in the same way,(by truck)
but in pieces, methodically arranged so that the “kit” could be built in an orderly fashion. I worked, as a contractor, on one dating from the 40s in Ft Lee NJ: all concrete shell, very unusual.

[null and void]

ping

[HiTech RedNeck]

There are other approaches to prefabrication besides large scale modular. I lived as a small child in 1950s built Gunnison homes, which were built on slabs at the site out of marine grade plywood panels that had been heat-fused at the factory and which already contained doors and windows as needed. The weight of the structures was borne by the panels. Siding could be added or the panels painted and used as is. U.S. Steel carried the line on until about 1974.

[maine-iac7]

Here's one of the most expensive kit house sold by Sears in the 1920's -

"The ability to mass-produce the materials used in Sears homes lessened manufacturing costs, which lowered purchase costs for customers. Not only did precut and fitted materials shrink construction time up to 40% but Sears’s use of "balloon style" framing, drywall, and asphalt shingles greatly eased construction for homebuyers.

These framing systems did not require a team of skilled carpenters, as previous methods did. Balloon frames were built faster and generally only required one carpenter

Sears built some 447 different designs and sold over 70,000 - The depression and things like the Union in Chicago, was pretty much the end of a great system that gave quality homes and lower prices. These homes were much sturdier than most homes built today - and many are still standing today...

http://www.searsarchives.com/homes/1927-1932.htm

[Hugin]

No reason they need to be inferior. They are a good alternative in areas where long winters limit building seasons. They can be built indoors in the winter, and put up in the summer. That means a smaller crew can be kept busy all year round instead of hiring a bunch of people for a few months then laying them off.

Another thing is they may be better built than conventional houses. Being transported on a flatbed is like a day long earthquake. They have to be built well or they will fall apart in transit.

[Frantzie]

Any one familiar with these large blocks from Germany used in cinstruction? I recall a house probably worth about $4 million where the house was built using then. Very impressive home. They are supposedly very strong.

[truth_seeker]

“Probably the wave of the future in homebuilding.”

[truth_seeker]

“Probably the wave of the future in homebuilding.”

If we regain a strong enough economy to absorb the numbers of homes from the phony demand based on liar loans, builders will be open to cost saving methods of construction.

We have national, state, county and city building codes.

If a volune modular factory fabricator could depend of his modules being approved widely, some nice homes could result.

The exterior of many homes is regionally style specific; makes sense to site build the front facade.

A great feature would be to sell a nice starter two bedroom home to young people, with a pre-planned system to add space. Say to add two more bedrooms, another bath and family room at the back.

[South40]

There is more to a quality built home than how it may withstand seismic activity, far more. Mods are bolted together to deal with the shaking they’ll experience during transport. Beyond that, I have never seen a mod, be it a HUD Code Mfg or BOCA/state code modular that came close to the quality I’ve seen and put into a quality onsite, stick-built home. But you need not take my word for it, ask any appraiser.

With my 3+ decades experience in the building industry I can say unequivocally, I would never buy a modular home. That choice, however, belongs to the individual.

[HiTech RedNeck]

I’d certainly expect you to push your own trade; that is not a surprise.

If a different means of construction provides the same space at a better bargain, there will be a market of grateful buyers for it. Those “appraisers” can be a bane or boon depending on what side of the purchase (or sales) fence you sit!

[Ronin]

They’re all over the place in Japan. In fact, I wouldn’t be surprised if the concept was invented here. It’s amazing how fast they go up.

I understand they are pretty cheap as well.

[Isabel C.]

I would think no one would want an inferior quality home, but to each his own.

Why makes you think that this type of house, by default, has to be of inferior quality?

[conservatism_IS_compassion]

Sears’s use of "balloon style" framing, drywall, and asphalt shingles greatly eased construction for homebuyers. These framing systems did not require a team of skilled carpenters, as previous methods did. Balloon frames were built faster and generally only required one carpenter

According to The Americans: The National Experience by Boorstin (a fascinating book recommended by Thomas Sowell), "ballon construction" was first done in Chicago in the Nineteenth Century. What the heck is "balloon construction?" It is nothing other than modern lumber construction using 2x4, 2x6, and larger standard lumber sizes - as opposed to just using timbers straight from the tree, which is much more of a craft than just sawing and nailing standard size boards. Of course modern construction is much lighter, hence the name.

[conservatism_IS_compassion]

Sears built some 447 different designs and sold over 70,000 - The depression and things like the Union in Chicago, was pretty much the end of a great system that gave quality homes and lower prices. These homes were much sturdier than most homes built today - and many are still standing today

. . . including Richard Nixon's home in California.

[ArmstedFragg]

Balloon framing in older houses is often the bane of firefighters’ existence. The vertical lumber is in one piece from floor all the way to the roof. In many older houses, there weren’t enough firestops in those walls, and the spaces make really lovely raceways for flames.

In my old neighborhood, we had a two story house with balloon walls catch fire after a wiring short near the floor downstairs. By the time the homeowner noticed, there wasn’t a lot to do besides get out and watch it burn.

[Right Wing Assault]

You would think the original article would have a pic or two.

[Graybeard58]

There also is the issue in the city (Chicago) of navigating a home around wires and into a traditional 25-foot-wide city lot

I have a building that wide on my property, I call it, "the shed".

[Rebelbase]

Modular can be customized to be very nice, but most factory stock that is offered cuts corners with things like raised bathroom sinks and Formica counters, cheaper grades of carpet and windows, and in the two story homes, folding roof decks that have splints at the rafter joints when erected.

The success of modular and manufactured has more to do with the instant gratification expectation of society. People look at a model and envision it on their lot in quick fashion. Especially in areas with few builders. What they don’t understand is the foundation, decks, connections, etc. all have to be built using sub contractors anyway.

And then there’s the whole padded contract thing where the dealer acts as contractor, the buyer agrees to inflated costs because they don’t know any better and didn’t shop the job; The dealer then uses a super cheap sub and pockets the difference and also pockets the “builder’s 10% discretionary fund”.

Most buyers are blinded by their desire to see the thing on the property as quick as possible which opens them up to being overcharged.

[BlueMondaySkipper]

My first house was a variant of this.

The individual walls were built in the shop and then hauled to the site on a flatbed where they were assembled. This was only for the framing (no drywall, wiring or plumbing) and seemed to work very well. In fact I think it was better since the house wasn't exposed to weather for a few weeks until the roof got on, and the lumber wasn't laying there in the dirt for the whole time.

[RegulatorCountry]

That was once called “panelized” construction, might still be. A decent sized crew with a small crane could have it framed up and under a roof in a couple of days, provided the foundation was all set and ready to go. Very appealing in rainy climates. Weather becomes much less of a factor, and the wood doesn’t get soaked with the potential torquing or warping.

There are or were several large modular home manufacturers in my vicinity. Seems like at least one of them has gone under due to the economy, out of Martinsville, VA. Can’t recall the name.

[Rebelbase]

Wasn’t Nationwide Homes the one in Martinsville?

[Rebelbase]

I used a purchasing power of money online calculator to find out what the $5140 cost of that good looking Sears home from the 1920’s would cost today. A figure of $63,129.35 was returned. I don’t think that’s accurate. A home like that would cost hundreds of thousands in materials alone.

[RegulatorCountry]

I think that’s the one. Shut completely down, didn’t it?

[nascarnation]

Interesting question posed.

Do we get better quality from a crew of illegals stickbuilding onsite, or from a unionized factory or from a crew of illegals working in a factory?

[RegulatorCountry]

It probably just uses a straight-line calculation of inflation over time, which would not account for price increases above and beyond that, such as in construction materials. Concrete and lumber are still well above pre-boom levels, despite the near collapse in new construction.

[2ndDivisionVet]

A fourth option would be a non-unionized, non-illegal alien workforce in a factory, right?

[Rebelbase]

The last time I was by the Cemtex block plant out the corner of Sandy Ridge road and West Market, every bit of their outdoor storage area was covered in pallets of unsold block.

[discostu]

Modular homes have been around for a long time, historically the big problem is they don’t age well. Stress from being transported constructed and the weakness of the join method often results in noticeable cracks and structural unsoundness in 15 to 20 years. That might not be the case with these new ones, but we’ll need to wait 2 decades to find out. IMHO it’s dumb to get a 30 year mortgage on a construction style that tends to fall apart in 20.

[RegulatorCountry]

Well, Pine Hall Brick seems to have something big going, at least, although I have no idea what it might be. I’ve gotten stuck behind a line of them on several mornings recently, on hilly NC 68. How many tons of brick, and how many tons of forklift, are on that flatbed trailer? Don’t know, but it must be quite a load. Only a couple of them get through an intersection from a dead stop, before the light turns.

[RegulatorCountry]

Now, you know we can’t take nonunion manufacturers in right to work states, that also attempt to enforce immigration laws, into account. It messes up the globalist argument.

[gura]

If we built cars like we built houses, GM would drop a load of steel, rubber, and plastic in your driveway along with a foundry, forge, and a crew of fifty $40 a hour union workers.

A small family car would cost $60k and would slowly take shape in your driveway over the course of three weeks.

[2ndDivisionVet]

[Right Wing Assault]

Thanks. I’ve seen some TV shows where people built nice places like this using modules.

The ones in the article sound a bit less involved.

[Yehuda]

Good pics!