Modular homes are prefabricated building structures that have grown increasingly popular in Canada for multiple reasons, including sustainability and cost-effectiveness. While living in a big city offers access to modern amenities, the cost of a home is quite high in such areas. This makes people look for affordable alternatives such as modular homes. Plus, these facilities offer customizable designs, empowering homeowners to create spaces that perfectly match their lifestyle and preferences.

Factors that influence the price of modular homes

Before transitioning into these types of living facilities, homeowners must take into account various factors.

1. Delivery

The cost of a modular home may differ depending on the multiple factors associated with delivery.

2. Square footage

Another factor that determines the cost of a modular home is its size, more accurately, in square feet. The more the square footage of the house, the higher the price will be.

3. Number of storeys

Modular homes come in many sizes, including those with one-, two-, and three-storey designs. The more the storeys, the higher the cost.

• A one-storey modular home can range between $40,000 and $110,000 if the area is between 800 and 1500 square feet. But, a custom-built unit can go up to $270,000 or more.
• For two-storeys, buyers could pay between $75,000 and $180,000 or more for space between 1,500 and 2,500 square feet, while custom units can exceed the $570,000 threshold.
• A three-storey modular home is the most expensive in this comparison, with the average price between $150,000 and $260,000 for a space range of 2,000 and 3,500 square feet. A custom build can cost up to $800,000 or more.

4. Number of bedrooms

The number of bedrooms built into the modular home can also influence the price. The buyer must also consider the number of bathrooms in the modular home. The estimate that contractors provide at the start of the project often accounts for just the space, excluding installation and other additional costs. For instance, a modular home with two bedrooms and one bathroom may cost between $65,000 and $225,000, but those with five bedrooms and three bathrooms may range between $160,000 and $460,000.

5. Land clearing and preparation

Modular homes need to be placed on a permanent foundation. But, in most cases, these areas are not prepared for install ation. So, the buyer may have to shell out some amount to ensure the structure is properly installed on the permanent foundation. These expenses include removing rocks, trees, and other debris. Some other situations may require the buyer to hire experts to level, grade, and excavate the land. Depending on the location, the homeowner may also need to consider building a driveway to the new site, septic tank requirements, and installing other elements. The average cost for preparing and clearing land to install a modular home is about $2,750. But, this cost can differ depending on the current condition of the land and square footage.

6. Utility construction

A buyer must spend on utility construction to make the home livable. For instance, they would need an electric panel, wiring, gas line, heating, ventilation, and air conditioning. Buyers can expect to pay between $2,500 and $25,000 for different utilities. Some average costs across provinces in the country include:

• Electrical wiring – $2,000 – $9,000
• Water well drilling – $3,000 – $15,000
• Water main connection – $500 – $2,500
• HVAC – $5,000 – $11,000
• Septic system – $3,500 – $10,000 (or higher)
• Sewer line installation – $1,500 – $10,000 (or higher)
• Plumbing – $2,300 – $5,200
• Electrical panel – $850 – $3,000
• Gas line – $500 – $5,200

7. Permits and Fees

Depending on the resident’s location, various permits are required to install a modular home, including soil testing fees, a certificate of occupancy fee, permits for driveway construction, a pre-planned preview, and mechanical permits. A buyer should check with local authorities for the laws and ordinances in place to stick to legal construction limits. On average, the individual should expect to pay between $500 and $5,000 for the different fees and permits needed for a modular home in Canada.

8. Taxes

Every modular home, including cost-effective options, is subject to sales tax. Buyers should expect to pay around $7,500 on the sales tax for the purchase, with a minimum of $5,000 and a maximum of $10,000. Based on the resident’s location, a charge of 5% to 7% of the cost of the home is collected as sales tax fees. This charge can vary from one city or province to another.