Deja Bù: Mark reconnects with Jessica Harnois, founder Bù Wines | SaltWireNEW YORK - Some Americans who have been priced out of the tight residential real estate market are turning to prefabricated homes, helping to power a nascent recovery in sales of a far less expensive home-buying option.
"Interest rates are pushing people who are on the cusp of being able to afford building a new custom home out of the running right now," said Brian Abramson, CEO of Method Homes, a higher-end modular homes builder."There's going to be continued interest in prefabricated homes because it's a window to building."
As of May, the most recent month for which data is available, the average price of a prefabricated home was $129,900, according to Census data. Even after factoring in the cost of a typical building lot of nearly $110,000, a pre-fab home comes in about 40% cheaper than new or existing site-built homes.