Our guide to prefab or modular homes in the greater Chicago area addresses city specific questions that you may have about buying a prefab home in the Chicago, Illinois area. In this guide, we  answer questions such as “how much will it cost to build a prefab home in Chicago” or “best prefab builders in Chicago”. We also provide information for the Suburbs of Chicago such as Evanston, Lake Forest, Glencoe, Kenilworth, Winnetka, Highland Park, Clarendon Hills, Hinsdale, Western Springs, and La Grange. Keep reading below for prefab and modular housing information specific to Chicago, or connect with one of our Prefab Concierge representatives to receive free, one-on-one support for your prefab home project.

Why Might You to Want to Build a Prefab Home in the Chicago area?

• Quicker Build and Installation Times - prefab and modular homes are manufactured off-site, in a controlled environment and then later assembled at the build site. The efficiency of off-site manufacturing facilities often allows for quicker build times

  • Despite a harsh winter climate, the home manufacturing process can continue uninterrupted year round because homes are manufactured off-site, indoors

  • Cost Controlled - with a highly controlled build process (homes are manufactured in climate-controlled warehouses), unforeseen cost overruns can be better managed leading to reduced overall cost. This is especially important for expensive areas in the Chicago area such as downtown Chicago and expensive suburbs on the North Shore such as Glencoe, Kenilworth, Winnetka, Highland Park, and Lake Forest

• Sustainable & Modern - many prefab builders that serve Chicago and the surrounding areas such as the North Shore and towns to the west of Chicago such as Hinsdale, La Grange, and Western Springs can build energy efficient, net-zero homes. Many manufacturers specialize in homes that are LEED and Passive House certifiable

Key Decisions to Make:

• Home Location - building in an expensive area of Chicago such as downtown or in the suburbs such as Glencoe, Kenilworth, Winetka, Western Springs or Hinsdale might have high up-front costs but a prefab home in these (or other high-cost) areas can be a sound long-term investment. When buying property you should be mindful of a few things that could affect your home build:

  • Slope of lot - while this is not as big a concern in Chicago as it is in cities such as San Francisco, building lots with a significant slope may be unsuitable for some pre-engineered floor plans

  • Set back requirements

  • Floor area ratio or other zoning protocols that may affect the size of the home

  • Whether or not your neighborhood requires a design review

• Standard vs. Custom - While many prefab manufacturers that operate in Chicago and the surrounding areas of Illinois offer pre-designed floor plans some also offer options for partial or total home customization. This is in addition to companies who primarily serve as prefab designers and only work on custom prefab and modular homes. If you live on a tricky lot (uneven terrain, small-lot size, etc.) you may face a limited offering of standard home designs that are suitable for your situation - in these situations a custom home may be your best option

• Modular vs. Kit Home v.s. Panelized - While all three of these construction techniques qualify as prefab home building techniques, there are nuances that you should know when building your own prefab house. These prefab home styles include:

  • Modular - homes are made up of multiple box-like modules. These modules are fully assembled and consist of floor, walls, ceiling, wiring, plumbing, and internal fixtures. These modules are constructed off-site and then later shipped to your desired location. Once on site, they are joined and connected to the foundation. Modular construction is one of the most affordable prefab building techniques.

  • Kit Home - all materials and components necessary for building a home are delivered to the build site. In most cases, an owner-builder can assemble the kit home themselves as a cost-saving method.

  • Panelized - the home’s structural components: walls, floor, ceiling, are manufactured off-site and then later constructed at the final site like a traditional build. While somewhat similar to modular construction, panelized building offers more flexibility in the home build process.

• Architect vs. All-in Company - There are many steps in the prefab home build process. Major steps include land acquisition, home design, manufacturing, and assembly. When selecting a company for your prefab home, you should pay attention to the services your company offers. In some cases the company you choose may only offer a home design your home and therefore sub-contract out the manufacturing process. This leaves you responsible for acquiring land and later finding a builder to assemble the home. Other companies however, may be a one-stop shop and assist you in all stages of the home build process.

• Financing your home - unless you are planning to pay for your home in cash, you are likely going to need outside financing for your prefab home. The two most common ways of financing a prefab home build are:

  • construction loan - a short term loan that you can refinance once construction is complete

  • temp to perm loan - a construction loan for the duration of construction that converts to a normal mortgage once your house is finished. The advantage of these loans is you only have one mortgage close vs. two with just a construction loan.

  • These methods usually allow you to finance both the land purchase and the construction of your home however, the underwriting and approval process on these loans can be lengthy (60+ days) as the bank is not only underwriting you as a borrower, but also the viability of your building plans. To get land imore quickly, buyers will often pay cash for their building lot and then the lender will credit the land purchase as a down payment percentage on the purchase.

  • Some of the best lenders for these products only operate regionally. Therefore, if you would like assistance we can provide recommendations here.

  • If you’re looking to purchase an ADU (accessory dwelling unit) or tiny home, then you may want to consider a personal loan:

    • Many personal lenders allow you to borrow up to $100k with no down payment

    • These loans are typically amortized over a shorter period than mortgages (up to 12 years)

    • These loans typically don’t underwrite the property and instead underwrite you as a borrower

    • Many of the best personal lenders are online and serve almost the entire country

    • The time to get approved for a personal loan is generally pretty fast (as little as a day to up to a couple weeks)

Common Questions

• How much will it cost to build a prefab house in the Chicagoland area?

  • While certain variables such as location, builder, and floor plan will affect the total cost of building your home, it is our experience that the final cost of your prefab will range between $200 and $500 per sqft before the cost of land, as of June, 2019.

• Is a prefab home a good investment?

  • Yes, in areas where the total cost of building your prefab home (land cost + building costs)  is less than the average dollar per square foot sales price of homes in your neighborhood i.e. you are able to sell your home for more than it cost to build it. In the Chicago area, that includes areas where the average sale price per square foot is $350 per sq ft or higher. This includes most parts of Chicago and suburbs such as Evanston, Lake Forest, Glencoe, Kenilworth, Winnetka, Highland Park, Clarendon Hills, Hinsdale, Western Springs, and La Grange.

• Can I finance a prefab home in Chicago?

  • Yes. The most common way to finance a prefab home is a temp to perm loan or a construction loan if you already own the land. This financing method starts out as a loan for the construction of your home and converts to a mortgage once your home is completed. Another financing option is a construction loan which is a short-term loan that you then refinance once the construction process is finished

• What do the economics of an investment in a prefab home look like?

  • Our table (below) is an example of what the costs and potential benefits of a prefab home investment might look like. While there may be high up-front costs, there is still a chance for a sizable return on your investment. In Chicago and its surrounding areas, much like other competitive real estate markets in the United States, one of the most challenging parts of the build process is finding a building lot at a reasonable price. In some cases it might be cheaper to buy and tear-down an existing home rather than purchase a vacant, build-ready lot.

How long will it take?

• The answer to this question depends a lot on your particular location. Your town’s permitting and building process will play a large role in determining the timeframe for your build. Total, the build process can take between 1-2 years and maybe longer if there is a design review process.

• Planning Departments in and around Chicago

  • https://www.chicago.gov/city/en/depts/bacp/sbc/building_permits.html

  • https://www.cityoflakeforest.com/city-government/departments/community-development/building-permits/

  • https://www.villageofglencoe.org/business/building_and_zoning/building_permits.php

  • https://www.villageofkenilworth.org/2149/Community-Development

  • https://www.villageofwinnetka.org/departments/community-development/building-permits-and-construction/

  • https://www.cityhpil.com/government/city_departments/community_development/building/permit_applications_and_submittal_requirements.php

  • https://www.clarendonhills.us/152/Building-Permits

  • http://www.villageofhinsdale.org/departments/community_development/permits.php

  • https://www.wsprings.com/133/Community-Development

  • https://www.villageoflagrange.com/index.aspx?NID=107

Reputable Companies that Serve Chicago and Surrounding Areas

• Studio Shed

  • Offers 4 models, with the ability to customize layouts across 24 different sizes of studio spaces.

  • All-in-cost: $350 - $510 per sqft

• Alchemy Architects

  • Offers 3 home designs, though the main feature is their weeHouse, a rectangular unit that can be configured in a number of ways to achieve a custom design.

  • All-in-cost: $250 - $490 per sq ft

• Deltec Homes

  • Has over 10 models of cylindrical homes, featuring multi-story decks and 360 degree views.

  • All-in-cost: $180 - $400 per sqft

• Turkel Design

  • A well-known designer, Turkel has 11 models of beautifully designed and crafted luxury homes.

  • All-in-cost: $350 - $550+ per sqft

• Stillwater Dwellings

  • Has over 26 models, most featuring a signature slanted roof and contemporary design.

  • All-in-cost: $350 - $450 per sqft

• Acorn Deck House Company

  • With over 70 years of experience and 59 model designs, this company builds a variety of different home styles and sizes.

  • All-in-cost: $290 - $420 per sq ft

• Lindal Cedar Homes

  • Has a variety of home offerings ranging between 470 sqft and 6000+ sqft. Buyers can choose between 9 home styles or custom design their home from the bottom up.

  • All-in-cost: $450 - $550+ per sqft