Do Kit Homes Save You Money?
Tiny homes have been popular for years now, particularly among those seeking a cheaper path to homeownership. But for those who may not be aware, they aren't the only option when it comes to budget-friendly home-buying opportunities.
Kit homes, which date back to the late 19th century in this country and were popularly known as mail-order homes or even catalog homes, are still available for purchase in 2022. When they were first introduced in the United States, these simple wooden homes offered buyers a shot at the American dream. And still today, they can be a far more affordable way to get into homeownership.
Here's a closer look at kit homes, including whether they are truly a way to save money on a home purchase.
Courtesy of Bungalow in Box
What is a kit home and where can you buy them?
True to their origins, kit homes continue to be mail-order homes—meaning they're typically purchased from a catalog or a manufacturer and delivered in pre-cut parts to be constructed on your property.
Typically, the kits include everything you need when building a home, such as architectural plans, stamped frame engineering plans to state or county requirements, frame layout and drawings, frame assembly details, pre-assembled galvanized steel frames including brackets and fittings, and onsite assembly instructions, explains Michael Sutkus, senior merchant, dimensional lumber for The Home Depot.
"Kit homes are simple DIY solutions that come with pre-assembled frames and trusses as well as easy-to-follow instructions, taking up to seven days, or less, to assemble," says Sutkus.
Although they're known for being relatively basic structures such as bungalows and work studios, it's possible to buy kit homes to build a spacious, three-bedroom home. To that end, kit homes range in size from a very compact 60 square feet to as much as 1,000 square feet.
For years, Sears was one of the most popular places to find these homes, but today some of the top manufacturers offering kits include Allwood Sommersby, Shelter-Kit, and Bungalow In A Box. They are also sold by The Home Depot.
Can kit homes save you money?
The resounding answer to this question is yes—kit homes continue to offer a less expensive way to become a homeowner. Bailey Carson, home care expert for the website Angi, says prices for these types of homes typically start at around $50,000.
"By comparison, a fully custom house usually starts at $350,000 and goes up to $1,500,000 or more," says Carson. "So the savings when going with a kit home can be significant."
In fact, some kit home makers offer prices starting well below the $50,000 cited by Carson. Allwood, for instance, sells a 540-square-foot cabin kit starting at $39,950, excluding shipping. Shelter-Kit also offers models that start at $38,800.
Pros and cons of kit homes
Kit homes have certainly come a long way over the years. When initially conceived, they were often extremely basic and generally lacked heating, electrical, and plumbing elements. But they have since evolved and can now be ordered with a variety of upgrades, as well as far more elaborate or contemporary designs, even including circular floor plans and sleek modern residences.
There are plenty of benefits to be realized when opting for these types of homes, not the least of which is a much speedier construction timeline in today's pandemic-impacted world, where building supply chain disruption, labor shortages, and more are causing protracted timelines for many projects. Kit home materials, by contrast, can often be delivered relatively quickly, allowing you to accelerate home construction, says Sutkus.
"Kit homes increase efficiency with home building," Sutkus explains. "They are delivered to your worksite so that the project building can begin immediately."
Yet another perk of kit homes is the ability to tweak their design in order to create a finished space that suits your family's unique needs or your taste and style.
"Despite it being a kit, there is a lot of flexibility for customization. This gives you the ability to create a home that works for your family and lifestyle," says Andra DelMonico, lead designer for the website Trendey. "If you can't afford to build a custom home with a contractor, a kit home gives you the opportunity to have a brand-new home where you are the first people to live in it."
What's more, your kit home will be just as durable as any other home, so you aren't sacrificing quality, adds DelMonico.
The price point of kit homes is another major benefit that can hardly be overlooked.
"You can save a significant amount of money buying a kit home over working with a contractor," continues DelMonico. "The bulk of the work is already done, which reduces your design and labor costs."
None of which is to say that kit homes are easy-breezy. The downsides to consider include having to navigate local city, state, or county permitting on your own, which can often be a complex and daunting endeavor. In addition, depending on the kit selected, you may need to purchase additional materials to complete your home, such as windows, plumbing, electrical, HVAC, and more.
"Do your research and be sure you know exactly what you are getting for the price," says DelMonico. "If you've never built a home before, consult with someone who has experience before agreeing to a purchase. Some kits will include everything you need, while others only supply you with the bare framework."
