Kit home vs modular vs prefab: what's the difference?
They're often used as if they mean the same thing. They don't. Here's what each one actually is, who does the work, and what to ask before you choose.
Search for an alternative to a traditional on-site build and you'll find kit homes, modular homes, prefab homes, transportables and relocatables, often on the same page. The terms get mixed up, but the difference matters. It decides who does the work, how long your site is a building site, and who's accountable when something goes wrong.
Prefab: the umbrella term
Prefabricated (prefab) simply means some or all of the home is made somewhere other than your block, then brought to site. It isn't one type of home. It's a family of methods, and both kit homes and modular homes sit under it.
You'll also see the industry term Modern Methods of Construction (MMC). It covers all of these off-site approaches, and the idea behind them: do more of the work in a controlled environment, and less of it exposed to weather and site delays.
Kit homes
A kit home arrives as a package of materials: frames, roofing, cladding, windows and so on. Everything is precut and ready to assemble, but the home is put together on your site, either by you as an owner-builder or by a builder you engage.
- Good for: people with building skills, time on their hands and a hands-on approach.
- Keep in mind: most of the work, and the weather and trade risk, still happens on site. The kit price usually covers materials only, so labour, site works, services and finishing are separate. As an owner-builder, you also take on the responsibilities of the builder.
Modular homes
A modular home is made in complete sections (modules) in a factory, with walls, windows, wiring, plumbing and finishes largely done under cover. The modules are then transported to your site, craned onto permanent footings, joined, connected and finished.
- Good for: people who want less time on site, less exposure to weather, and a more predictable program.
- Keep in mind: your site needs to allow a truck and crane to reach it. The home's price is only part of the total, so transport, craneage, footings and connections all need to be accounted for.
A modular home on permanent footings is a permanent home. It's approved, certified and connected like any other.
Panelised homes
Somewhere in between: walls, floors or roof are made off-site as flat panels, then assembled on site. There's more off-site work than a kit, but less than a modular home.
Transportables and relocatables
These are made to be moved, and sometimes moved again. They often sit on skids or a simpler base rather than permanent footings, and they're common for site offices, temporary accommodation and some granny flats. They're a different product from a permanent modular home, even though the words sometimes get used interchangeably.
At a glance
| Kit home | Modular | Transportable | |
|---|---|---|---|
| Where it's made | Assembled on site from a kit | Made in modules, under cover | Made off-site, moved whole |
| Time on site | Longest | Shortest | Short |
| Weather exposure | High | Low | Low |
| Who puts it together | You or your builder | The supplier's team | The supplier |
| Footings | Permanent | Permanent | Often on skids |
Is off-site cheaper?
Not necessarily, and be wary of anyone who says it always is. What off-site delivery does well is certainty and speed. The home is made while your site is prepared, so two jobs run side by side instead of one after the other, and weather doesn't set the program. What you'll actually pay depends mostly on your site, not on the method.
Questions to ask before you choose
- Who puts the home together on site, and who's accountable for it?
- Is it designed for permanent footings, or to be moved?
- What's included in the price: delivery, craneage, footings, connections, approvals?
- Who handles council approval and certification?
- What's the handover date, and is it in the contract?
- Can I see the standard inclusions in writing?
Where Veridian Living fits
Veridian Living delivers architecturally designed homes using Modern Methods of Construction. Your home is made off-site, under cover, while your site is prepared. It's then delivered, craned onto permanent footings, connected and handed over, with one point of accountability from approvals to keys. We work out your block first, so your price and handover date are set before you commit.
Not sure which suits your block?
Send us the address. Within 3 business days you'll know what your block needs and which homes suit it. No cost, no obligation.
This guide is general information about common home types in Australia. Definitions, approvals and requirements vary by state and council. It isn't professional advice for your property.
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