Are Kit Homes Cheaper Than Building Traditionally? (Checked)

Kit homes are prefabricated homes that are assembled on the construction site. These homes come in pre-cut parts that are manufactured at a factory and sold as a kit, thus its name.

Each home kit typically includes all the basic parts for you to build the structure of the house.

How much do kit homes cost? Is it really cheaper to build them compared to traditional houses? In this article, we will be answering these questions and other commonly asked questions regarding kit homes. Let’s get to it!

Are Kit Homes Cheaper Than Building Traditionally?

In most cases, building a kit home can be significantly cheaper than building a traditional home. However, the cost may still depend on various factors. The size of the home, the materials used, and the level of customization allowed are all factors that can affect the cost of building a kit home.


How Much Do Kit Homes Cost?

Kit homes are generally cheaper than traditional homes because they require less effort in terms of construction.

The parts are manufactured at a factory and they are sold as a set. Then they are transported to the construction site, where they will be assembled.

The cost of kit homes can vary a lot depending on several factors, such as the size of the home, the location of the construction site, the materials used in manufacturing the parts or components, and the level of customization that you can get.

In general, a small and basic kit home without any customization options can cost anywhere between $20,000 to $50,000. These homes are usually around 400 to 800 square, which is quite small, and the kits only may include the basic parts needed for assembly.

Of course, a larger kit home can cost more, plus having more options for customization can easily rack up its price.

A custom-designed kit home with about 2,000 to 5,000 square feet can easily cost around $500,000 and some of them may cost more. These homes may include more than just the basic components and they may be made of higher-end materials.

Some home kits may also include extra features such as custom cabinetry and storage, energy-saving appliances, and home automation systems, such as smart home devices.

Apart from the cost of the kit home itself, you also have to consider the cost of land and the manpower that it would need to prepare the site for construction and build the foundation. This can also vary depending on the location and the condition of the land.

How Much Cheaper Is It To Build With A Home Kit?

In general, a building with a home kit can cost anywhere between $60 to $125 per square foot.

This is significantly cheaper than building a traditional home which would normally cost anywhere between $100 to $400 per square foot.

Some traditional homes can even cost $500 or more per square foot to build, especially if they have extra amenities or luxurious finishes.

Let’s take a look at how much it would cost to build with a home kit considering the price of the house.

  • Small kit homes, with an area of 1,000 square feet or less, can cost $80 to $125 per square foot to build.
  • Medium kit homes, with an area of 1,000 to 2,000 square feet, can cost $70 to $100 per square foot to build.
  • And lastly, bigger kit homes having an area of over 2,000 square feet can cost $60 to $90 per square foot to build.

It’s worth noting that these costs are merely estimates for construction, but they don’t include the cost of the land and the cost of labor needed to prepare the site for construction and to build the foundation.

Now you may be wondering why bigger kit homes are cheaper to build in terms of per square foot compared to smaller kit homes.

This is because some of the costs of building with a home kit are fixed regardless of the size of the home. These other costs include building permits, foundation work, and the installation of utilities. But even though bigger kits homes have a lower cost per square foot, the overall cost will still be higher.

Please also check out our article, What Are Houses With A Lot Of Land Called?

What Is The Cheapest Way To Build A Home?

Depending on the location, size of the home, and materials to bused, building a home can be quite expensive. However, with recent innovations in technology, building a home can be cheaper than it used to be.

In general, the cheapest way to build a home is through DIY (Do It Yourself), but of course, this requires a certain level of construction know-how to ensure that the completed house will be well-built.

DIY may require more time and effort on your part, but you get to save on labor costs. You also get more control over the design and the construction process.

In addition, there’s a bigger sense of self-accomplishment if you’re the one who actually built your house.

However, not everyone has the construction skills needed to build their own home. So here are ways to spend less while building a house:

Build a kit home:

Consider building a kit home if you want to spend less.

These homes are generally cost-effective since they require less time and effort to build compared to traditional homes.

Build a smaller home:

Building a smaller home is always a good way to spend less. That’s because, in general, small houses require fewer materials, less square footage, and fewer labor costs.

However, this is only ideal if you have a small household. Plus, transitioning from a big or medium-sized home to a small one can be challenging since you may need to de-clutter and get rid of some of your possessions.

Use a simple design:

Another cheap way to build a home is to simplify the design. You can start by designing a simple box-shaped home, either square or rectangular. This is cheaper to build compared to a house with multiple stories or complicated shapes.

Make it even cheaper by following an open floor plan and minimizing the number of interior walls. Having fewer walls means spending less on materials and labor costs.

Use affordable materials:

The materials used for building your home can highly impact the overall costs. By using affordable materials, you end up spending less.

Make sure to look for durable alternatives. While you want to go for more affordable materials, you also don’t want to compromise the stability and durability of the house.

In addition, you may want to consider using recycled and thrifted materials to cut costs.

For example, some people use reclaimed wood to build wooden countertops for their kitchens. Other people browse online marketplaces, such as Craigslist and Facebook Marketplace, for old doors, sinks, and cabinetry that are still in good condition.

Build in a rural area:

The location of the house is another factor to consider in terms of construction costs. In general, it costs more to build a house in an urban area compared to a rural area. In rural areas, land and labor costs are lower.

However, there are drawbacks to building and living in a rural area.

There aren’t a lot of commercial establishments in rural areas, so you may have more transport costs just to get your supplies to your land or have to travel far to buy something at a grocery store.

Getting around may also be a challenge since public transportation isn’t common in these areas and more often than not, you’d have to have a car.

Can You Assemble Kit Homes Without Experience?

Building a home often requires a certain level of construction experience, knowledge, and skills.

Back in the day, you couldn’t just build a house on your own, you’d always need an expert to ensure that your house was properly constructed and suitable for habitation.

However, with the growing popularity of kit homes, more and more kit home manufacturers are offering options specifically designed for those without construction experience.

So yes, technically, you can now assemble a kit home without experience.

These kit homes often include pre-assembled components. They may also have simple instructions to make the entire assembly process easier for those without any prior knowledge or experience in construction.

However, even though assembling these home kits doesn’t need construction experience, they do require careful planning and very good attention to detail. You may also need to use specialized tools and equipment in the process, so make sure to keep this in mind if you’re planning to build a kit home.

Doing your research can help make the process easier for you. Also, it’s a great idea to consult with a kit home manufacturer or construction professional so that you can get guidance throughout the assembly process to ensure the house is properly built.


Kit Homes: What You Should Know Before Buying

Is It Cheaper To Buy A House Kit Or Build From Scratch?

The Pros And Cons Of Kit Homes

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