Dominique Ward’s squeals of delight are relatable as she shares the thrill of seeing her first home — a pre-fab — literally fall into place.
The Chicago resident sounds like a lottery winner, and in some ways she is. The single mother of two is one of a number of first-time buyers in the city who have been able to purchase new homes for under $300,000 in areas where they would normally cost over $500,000.
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Ward paid just $275,000, including the price of the ringside seats from the sidewalk as her new modular home was lowered onto its foundation.
"For people like myself — single parents just trying to raise your kid and survive the world — it’s a great opportunity,” she told CBS News Chicago.
She purchased it from Chicago-based Inherent Homes, an innovative company that aims to make homes more affordable for everyday people.
"Finding ways to keep our costs down can meet more families where they’re at," founder Tim Swanson said.
Here’s how it works.
Cheap lots and factory-built homes
To keep land costs down, Swanson buys vacant city lots for as little as $1. The city offers financial incentives to help homeowners transform these abandoned lots.
For example, Chicago’s Building Neighborhoods and Affordable Homes Program provides forgivable loans to homeowners who can transform these vacant lots into tax-paying properties.
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Inherent Homes intentionally chooses sites that qualify for these incentives, which brings down the cost for property owners.
For example, although Swanson sells the homes for $395,000, the city subsidies can bring the price down significantly ($100,000 or more) closer to the $275,000 that Ward paid.
"Once I found out about these types of programs is when I went ahead and pulled the trigger," Ward told CBS. "I was able to show my girls that anything is possible. It’s an amazing feeling."
Swanson keeps the cost of the manufactured homes low by constructing them indoors. That removes weather and construction delays from the equation.
"We have six homes here that are not getting wet, which means they’re not drying, which means we’re not wasting a week to get back into the home," Swanson told CBS.
He added that it takes three weeks to frame out each home and another eight weeks to add the tiling, paint, and finishes. This speedy process keeps labor costs affordable, as does buying in bulk.
The company even buys appliances so all its homes are turn-key properties ready for families to move right in.
Could modular homes solve the affordability crisis?
As the debate over housing affordability rages, modular homes are gaining attention as one solution.
Shelftrend predicts that demand for prefab homes will continue to grow, noting that the U.S. modular home was worth more than $36 million in 2024 and is expected to reach $60 million by 2033. The popularity of Accessory Dwelling Units (ADUs) in people’s backyards is driving part of this trend, along with affordability challenges.
Modular homes are definitely cheaper to build — $270,000 on average compared to $317,786 for a traditionally built home, according to Detroit-based Rocket Mortgage.
Pre-fabricated homes have other advantages. Better Homes & Gardens notes they’re more energy efficient than traditional homes because the seams are tighter.
But there are some downsides. Manufactured homes are less customizable. Zoning rules may limit where they can be built. And they might not withstand serious weather events, such as hurricanes, so they may not be a good option for places like Florida.
Prospective homeowners may wish to talk with a real estate agent about how well modular homes hold their value in the local market.
Of course, the resale value may not matter much for those looking for a place to call home for the long term, especially if a modular home makes the property affordable when otherwise homeownership would be out of reach.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
