What Is a Prefab Home?

Brief 

A prefab, or prefabricated, home is often an affordable alternative to a traditionally constructed home. See what experts have to say about this type of home.

Insight

You’ve heard of mobile homes, manufactured homes, and modular homes, but did you know that all these structure types fall into one category of housing?

Called prefabricated (or prefab) homes, these structures are built off site (often in a centralized factory or warehouse setting) and assembled on your property. Prefab homes are a fast and affordable option for housing that’s growing in popularity.

“Today, there is an even greater need for affordable housing in America due to low inventory and high demand nationally,” says Ramsey Cohen, director of community and industry affairs for Clayton, a manufactured home company.Studies show that the prefab housing market in the United States has increased about 28 percent from 2012 to 2022.

Chances are good that you’ll see more and more of these structures on the market in coming years. But what are the pros and cons of these types of homes? Read on to learn how these homes are made and whether one is a good fit for your next purchase.

What Is a Prefab Home?

Prefabricated homes—typically called prefabs, or prefab homes—are homes that were built off site and moved to a lot of land after construction. This is in contrast to traditional homes, which are built on site and typically can’t be moved. Prefab homes are typically built in a factory setting before they’re moved to your lot.

On the lot, they might need some finishing touches for assembly, but much of the work is already done.“There are various types of prefab homes,” says Andrew Pasquella, a realtor at Sotheby’s International Realty in Malibu, California.

“Manufactured and mobile homes are actually the same thing. Mobile homes were the name given to manufactured homes before 1976, and now all mobile homes are called manufactured post-1976. Manufactured homes don’t sit on a permanent foundation but rather on a chassis.”