Do prefab homes save money? Do shipping-container ADUs save time?

During our free Q &A calls, we get a lot of questions about container and prefab homes. 

  • Would a container home be cheaper than a custom ADU?

  • Is it faster to bring in a shipping container than to build from scratch?

  • I saw a set of pre-drawn plans for sale that I really like. Should I buy them?

We’re so happy to hear questions like these. It means the homeowner is thinking about all the possibilities, and that’s the type of person we love to work with. 

Here’s what we tell those clients:

Your ADU options include custom design/build, prefab homes, container homes, and building from pre-drawn plans. In almost every case, custom design is better.

Here’s why:

Custom design/build fits your property.

Every property is unique, so it can be nearly impossible to get a container or a prefab home that fits. 

  • Containers often can’t be put in place. Some homeowners find that there’s no cost-effective way to get a shipping container into their backyard. 

  • Often, prefab homes and pre-drawn designs literally don’t fit. They just don’t work with the terrain and shape of the property.

  • How you use the space in your yard matters. Custom design takes your main home and your yard into consideration. Your designer will create a space you can use the way you want. 

  • With custom design/build, your designer can take advantage of your property’s unique features like views, sunlight, and outdoor space. A pre-drawn design, container, or prefab home is incredibly limited and won’t help your property live up to its potential. 

Custom design is better suited to the site. A designer considers the views, sunlight, and shade. There are also requirements like not having your ADU’s windows face a neighbor’s living room window. Also, when the structure maximizes the space on the land, whether that be in regard to setbacks or height or space between buildings, that’s worth a ton.
— Cindy Lan, Senior Design Associate
Custom design considers circulation on the site, how people use the space in between the buildings, which direction each room faces, and the outdoor spaces. Plopping down a pre-designed plan doesn’t take into consideration any of these things. There are numerous lost opportunities to make great spaces in between the buildings and to create an ADU that not only fits on the site but relates to what is going on there.
— Amy Guiang, Senior Design Associate

Custom design/build lasts longer and looks better.

Great design and craftsmanship will be appreciated for 100 years or even 500 years. You only get that with custom.  

  • Custom design lets you choose the style of your ADU.

  • You and your designer choose the materials. 

  • A proven contractor will work WITH your designer as a team to make sure your new ADU is built exactly right.

With custom we can make a shape that is more organic to the site, customized to clients’ wishes and needs. Most fabricated homes are modern in appearance, while custom can match the architecture of the existing structure if needed. Finish selections are not limited to what’s available by the prefab company.
— Jeffrey Rexford, Senior Design Associate

Custom design/build costs the same as (or less than) prefab, and it takes about the same amount of time.

While the price tag of cookie-cutter homes may look smaller up front, it’s important to consider the total cost of the project—in dollars, time, and stress.

  • You’ll still need to excavate, pour a foundation, and connect utilities.

  • You’ll still need a design professional to make the home fit your property. 

  • For shipping containers, you’ll still need to insulate and fill the interior with all the things that turn a box into a home.

  • You’ll still need to go through the permitting office. (That’s a process that can be frustrating on a good day—unless you have an experienced design professional handling it for you.)

  • You’ll still need a designer to make changes. (Things like window placement, fire ratings, and utility connections depend a lot on your individual property and your municipal codes.)

  • If you accept the cheap finishes that come with prefab homes, you’ll have to replace them. You can do it during construction or in a few years, but cheap materials just don’t last.

The exception on costs is mobile homes and truly cheap prefabs. They are engineered to be cheap—cheap materials, cheap finishes, low quality throughout. When they use nice materials, they cost the same. Then, the added crane and shipping make them more expensive.
— Kevin Casey, CEO
It is important to stress that prefab or modular isn’t necessarily cheaper. The prices people see for those types of projects often don’t include the site work that is always necessary. Even prefab units need foundations, excavation, utility connections, etc.
— Lucas Gray, National Design Director

Custom design/build is the easiest way to get an ADU (when you work with the right people).

With any pre-drawn design, prefab home, or shipping container, there’s still a ton of work to do for design changes, permitting, and installation. 

Many people are looking for a way to save money, time, and stress, and at first glance, the cookie-cutter options seem like they might be the answer. But when you look closer, they cost just as much or more in terms of money, time, and stress.

The key is working with the right team.

With the right people, custom will beat prefab for quality, cost and value every time. With a shady contractor or incompetent designer, custom is a nightmare. That’s why New Avenue accepts only experienced, proven designers and contractors.

Custom design/build fits you

Your custom design/build will fit you. It’s not just about your tastes. It’s about your life. It’s about what you want to do with your ADU, your main home, and the space in between. It’s about how long you want it to last. Only custom design and quality construction can give you exactly what you want.

Custom means the project is suited to the needs of the client.
— Sean Wittmeyer, Project Architect

You might agree with your neighbor about politics. You might speak like your mom or dad. You might prefer running to cycling, salad to steak, and yellow to orange.

But those things don’t define you.

You can’t be put in a box.

Neither can your home.

If you’re adding an ADU to your property, custom design/build is the best choice, but only if it’s done right. New Avenue can make it happen on schedule, on budget, and without unpleasant surprises.

Schedule your free call to get all your questions answered.

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