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The History of Modular Homes: When Were Modular Homes First Built?

The modular home is not unfamiliar in the construction industry. In 2017, a company developed a modular house that could automatically unfold and deploy in less than 10 minutes without needing foundations or builders. This "house structure" is similar to the "prefabricated buildings" in China. The prototype of modular homes can be traced back to the "kit houses" in the United States in the mid-19th century.

After more than a century of development, this industry has gradually matured and is widely considered to be the future form of housing construction. This article will explore the history of modular homes, providing a reference for anyone interested in learning about this new form of building construction.


Modular Homes vs Traditional Homes

To understand the development of modular homes, you must first understand the differences between modular homes and traditional homes. From this, you may learn why modular houses are considered the future of the housing construction industry.


traditional home


Generally speaking, in traditional house construction, builders first purchase a piece of land, then contractors and workers arrive at the site and begin work. The entire operation is subject to constraints such as weather and surrounding environmental conditions. However, for modular houses, builders and workers construct the house in a factory, and then transport the residence to the site. This entire process is efficient, convenient, standardized, and advantageous in terms of pricing.


modular homes


The First Modular House

The origins of modular home construction can be traced back to the 17th century. One of the earliest reported modular homes was invented by an American colonial fisherman who had just moved from England and wanted a house built using reliable English construction methods.

The ultimate solution was to ship a disassembled house across the Atlantic by boat. However, this can only be considered a prototype of modular housing and not a true modular home in the strict sense.


When Were Modular Homes First Built?

The first true modular homes were known as "kit houses."


The Initial Stage: Selling Home Kits

The Alladin Company sold home kits through catalogs, but they didn't achieve the same level of popularity as those offered by Sears Roebuck & Company. In the mid-19th century, Richard Sears began reaching out to the public with his first catalog.


Initially, Richard Sears focused on selling watches. However, he soon realized that his product catalog held significant business potential. By the early 20th century, he understood that he didn't have to limit himself to selling finished products; instead, offering assembly-style catalog products could be more appealing. During this period, he had already partnered with watchmaker Alvah C. Roebuck.


Between 1908 and 1940, Sears Roebuck & Company successfully sold over 100,000 home kits.


The Second Stage: Selling Kit Houses

In 1908, Sears Roebuck & Company introduced a revolutionary concept: kit houses. This innovative approach laid the groundwork for what would eventually become modular homes. The company offered comprehensive packages containing building materials and detailed instructions, allowing families to obtain all the necessary components to construct their ideal residences.


While some skilled customers chose to erect the structures themselves using the provided guidelines, the majority opted to engage professional builders. These homeowners would purchase the kit and then simply cover the labor costs for construction. This novel method of home acquisition and assembly paved the way for the development of genuine modular housing.


Early 20th Century: The Rise and Fall of Modular Housing

The year 1913 marked a turning point in housing options, as modular homes became a viable choice for numerous households. At the forefront of this revolution was Richard Sears, a marketing visionary. His innovative approach not only introduced the convenience of home shopping to consumers but also showcased his talent for effectively promoting his company's offerings.


Sears' ability to combine these two aspects - customer convenience and strategic publicity - played a crucial role in the success of modular homes during this period.


Bring in the Housing Assembly Line

When Henry Ford introduced the housing assembly line, he had the idea of building houses for families in factories. For families, this was a good way to buy a house at a reasonable price. Construction companies quickly began to see the benefits of building houses on assembly lines. They found that mass-producing drywall in factories was preferable to making plaster walls on-site.


The factory setting also proved advantageous for installing essential systems like plumbing and electrical wiring, resulting in significant cost savings compared to traditional on-site installation. These reduced production expenses made homeownership more attainable for middle-class families.


As this innovative housing approach gained traction, a new trend emerged: mobile dwellings. These often referred to as trailer homes, became popular for their versatility, especially as vacation retreats near beaches or lakes. Throughout most of the 1920s, both modular homes and trailer homes grew increasingly popular.


Trailer type mobile home (1)


The economic downturn following the 1929 stock market crash severely impacted homeownership. As financial hardships spread, demand plummeted for various housing options, including traditional homes, prefabricated structures, and mobile residences. This sharp decline in consumer interest led to widespread financial difficulties for companies specializing in these housing products, with many ultimately forced to cease operations.


Post-World War II Prosperity

In the post-war era of the 1950s, the modular homes regained its popularity. Veterans returning from the war needed housing for themselves and their families. Additionally, with the establishment of the new highway system, transporting modular homes to hotels became easier and cheaper.


The Resurgence of Trailer Mobile Homes

Trailer mobile homes also regained popularity. Their convenience of being able to move from one town to another was no longer valued by homeowners; instead, they were used as permanent, affordable housing. Soon after, popular homebuilders Gunnison Housing and Lustron also began producing modular homes.

Although these houses were a good way for people to afford their own homes, most people still chose traditional homes.


The Impact of Modular Houses

Many home construction companies saw the benefits of building houses in factories. It initially started with prefabricated walls built in factories and then shipped. When the Baby Boomer generation (referring to the "4664" phenomenon in the United States after World War II: from 1946 to 1964, during these 18 years, the baby boom population reached 76 million, and this group is collectively known as the "Baby Boomer generation") began to need housing, the demand for larger houses increased. This was when modular homes became increasingly popular.


In 1958, the first double-wide home (referring to a mobile home that combines two units) was built according to local building codes. As these houses were cheaper than traditional houses, they became a great option for potential homeowners.


HUD Emerges, Growth Continues in the 1970s

The 1970s saw a continued rise in modular home popularity, prompting federal intervention to ensure safe constructions. In response, the U.S. Department of Housing and Urban Development (HUD) introduced a new building code in 1976. This code, commonly referred to as the HUD code, established guidelines for both modular and conventional homes.


Under these new regulations, modular home manufacturers had to adapt their construction methods to meet specific requirements for heating, plumbing, and electrical systems. Additionally, the code addressed structural design, fire safety, and energy efficiency standards. Despite these changes to the manufacturing process, the appeal of modular homes remained strong among consumers.


Stricter Building Codes Emerge in the 1990s

Before this, modular homes were popular because they were the best way for struggling families to own their own homes. However, in 1994, the HUD codes were updated to set even higher standards for modular homes.


The implementation of new industry standards in the late 20th century led to a shift in the modular home market. These improved regulations attracted more affluent buyers and emphasized eco-friendly construction, appealing to a broader, more environmentally conscious customer base.


Advancement of the Modular Home

The early 2000s saw further growth in modular home popularity, driven by technological innovations. One advancement was the development of Structural Insulated Panels (SIPs), which revolutionized transportation and on-site assembly. These interlocking, pre-insulated wall components streamlined the construction process, allowing for rapid completion once delivered to the building site.


A significant boost to the modular housing industry came in 2003 when a prominent design magazine organized a modular home competition. This event showcased the potential for factory-built homes to rival traditional construction in both aesthetics and quality, challenging perceptions and demonstrating that modular homes could be indistinguishable from site-built houses once completed.


21st Century and Beyond

In recent years, the tiny house movement has injected new vitality into modular construction. People have repeatedly discovered that modular homes are both environmentally friendly and budget-friendly. Modular construction has a smaller ecological footprint and can be built to be durable and unique. Today, you can purchase a modular home at a much lower cost than on-site construction, and almost every aspect can be customized.


modular home (1)


New technologies, such as improved construction cranes, allow modular buildings to be built larger, taller, and with more diverse designs. Components can be transported nationwide and assembled on-site within days. If you're interested in modular construction, feel free to contact us for a free quote!

Rutang ZHANG

I am Rutang Zhang, a seasoned expert in the field of integrated housing with a wealth of experience spanning over 30 years. I have had the privilege of contributing to the success of numerous projects in more than 120 countries and regions. My expertise lies in navigating the intricacies of the integrated housing industry, and I am proud to have played a significant role in delivering successful outcomes across diverse global contexts. From conceptualization to execution, my commitment to excellence has been a driving force in achieving results that meet the unique requirements of each project.
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