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Cost by Size Square FootageAverage Cost Range 1,000 $80,000$160,000 1,500 $120,000$240,000 2,000 $160,000$320,000 2,500 $200,000$400,0003 more rows May 16, 2025

The pros of modular homes include lower costs over traditional construction methods, better quality, improved construction speed, and better resilience while the cons consist of a bit more complicated financing process, lack of customization, and the social stigma that is the consequence of the low-quality of modular

What Is The Average Profit Margin For A Modular Construction? Modular construction earnings generally reflect a profit margin ranging between 10% and 15%, positioning them well within attractive thresholds compared to many traditional construction models.

On average, builders reported $11.3 million in total revenue for fiscal year 2023. Of that, about $9.0 million (79.3%) was spent on cost of sales (i.e., land, direct and indirect construction costs), which translates into an average gross profit margin of 20.7%.

Is a modular home a good investment? A modular home can be a good investment. They often offer energy efficiency which is a selling point. However, a modular homeʼs value will be dependent on the housing market in your area, just as it would be with any other kind of home.

Markup rates can vary significantly depending on the type of project, location, competition, and other factors. However, industry experts suggest that a general contractor should mark up labour costs by around 25% and more, and material costs should see a markup of approximately 30% to 50%.

MODULAR HOME VALUE CAN BE HIGH Just like with traditional homes, a modular homeʼs value can fluctuate based on many factors. The good news is that many modular homes end up having a similar resale value as a traditional home. They can also sell for a higher price!

Clayton Homes (or Clayton) is the largest builder of manufactured housing and modular homes in the United States.