Teton Realty Blog

Teton Region Real Estate Market Stats, Articles & News

Manufactured vs. Modular, What’s the Difference?

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With building costs continuing to rise, the popularity (or at least the idea) of prefab homes also continues to grow. As a result, I have seen an increase in interest for land that will accommodate these types of homes. However, there seems to be some confusion as to what “these types” of homes are, and what the differences are between manufactured vs modular homes. This confusion has lead some subdivision homeowners associations disallowing anything but stick-built, and has made it difficult for those interested in anything other than a stick-built home to find suitable land.

I’ll save the difficulties and challenges finding suitable land for another post, but I would like to dive into the differences between these types of homes to help shed some light on the issue. Note that some of this is subject to my own experience and opinion. Also, the terms associated with the different types of homes tends to vary by region.

Manufactured: This can be confusing because a manufactured home is prefabricated just like its modular counterpart. Manufactured homes, however, are built in compliance with FEDERAL HUD manufactured home construction and safety standards. They usually have a metal frame which serves as the floor system, as well as the frame for the transportation system. They then can be set on a permanent foundation, but don’t necessarily have to be. These types of homes have transportation size limitations. This is often where you hear the phrase “double wide”, meaning two finished portions of the house that are put together on one permanent foundation at a later date.

Modular: As defined by the State of Idaho division of building safety, a modular building is any building other than a manufactured home that is entirely or substantially prefabricated or assembled at a place other than the building site. I would personally add: Modular homes have construction standards set by local, as opposed to federal regulation. The easiest and best explanation I have seen is that modular homes cannot be moved. It is feasible that a manufactured home could be split, or picked off its foundation, moved to another foundation and placed or reassembled. (Note that when I say “cannot be moved” I have to be careful here, knowing that even stick built homes can be moved.) Sometimes modular home companies create their own category of homes such as a “phased built” or “systems built” to further differentiate and separate their product from a manufactured home. However, in my opinion, these are one in the same as modular. A modular home doesn’t have to be completed in major sections. It could be completed in wall sections and assembled on a permanent foundation. They would normally be transported on a flatbed trailer as opposed to a trailer integrated with the structure.

For further clarification; in my opinion, the following are all forms of modular homes, all of which would be subject to local building codes and inspections which would later receive a standard certificate of occupancy:

– a tiny home built in a factory or shop and delivered to a permanent foundation that conforms to local building codes and receives inspections similar to those required for stick built homes.

– a home constructed in small sections (such as individual walls) potentially with pre-installed siding, floor systems and precut materials installed on a permanent foundation.

– a “kit” home delivered in panelized sections installed permanent foundation.

RV’s: To make matters more confusing, we are beginning to see a rise in popularity of RV style tiny homes that can later be converted to permanent structures. Again, much of this is all subject to local and federal laws. A company building a custom home classified as an RV with wood siding and residential windows would need to comply with Transportation Department requirements in order to be legally transported, but this type of dwelling (RV) may have challenges in obtaining local zoning approval. For example, RVs can often only be parked in one location for storage, and if they are going to be used as a dwelling, can usually only be done so temporarily. In addition, parking an RV may require a special permit.

Idaho Division of Building Safety information for Tiny Houses, Manufactured Homes, Modular Buildings & Recreational Vehicles can be found HERE.

To be continued: Suitable land for manufactured or mobile homes and RVs.

Cold Roofs, Explained

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Due to popular demand, I’m going be writing more and more articles referencing some sort of construction and my experience with it in the real estate industry. Because of this, I’m going to have a new category and page where you can find all of these construction specific articles on my website tetonrealtyblog.com – “Know Your Home”.

Recently, a past client of mine who purchased a beautiful piece of land in Snow Crest Ranch wanted to sit down with me to get my opinion on construction methods. I assumed this would be for resale value or potential rental income with respect to a layout and design, but we talked more and more about construction methods and my personal opinions there. One of the topics was cold roofs, and their importance in Teton Valley. To be clear, not all contractors, people, or Realtors believe cold roofs are a good solution, so take my advice with a grain of salt, and make sure to consult with your architect and/or contractor.
First, what is a cold roof? A cold roof is basically a roof in which the insulation is above the ceiling of the home, but there is an air space between the insulation and the roof itself which is not conditioned or heated space. In most cases, this space is also ventilated to allow airflow between the insulation and the roof.

The primary purpose of a cold roof, particularly in our climate, is to prevent ice dams. Because most of the heat inside your home rises and “stacks” along the highest points of the ceilings, much of that heat and the moisture in the air along with that heat finds its way through the roof and into the attic space. Most people don’t realize that even latex paint is not a vapor barrier, it will allow moisture and heat to convect through the drywall and the insulation. If this heat doesn’t have a way to escape before it gets to the bottom of the roof opposite the snow sitting on that roof, it will eventually melt the snow. As the snow melts, that water turns to ice which creates ice dams, those gigantic icicles hanging from your roof eaves. Once this begins to happen, ice can freeze up and under flashing, and creep into areas it’s not supposed to be, often causing leaks on the inside of your home. There are other benefits to a cold roof, such as ventilation. As I had mentioned above, often times that warm air carries some of the moisture inside the home along with it. These ventilated spaces between the insulation and the roof allow this humid air to dissipate.
Depending on the style of construction, cold roofs are easier to achieve with some types of roof systems than others. For example, if you are planning on flat ceilings with vaulted ridgelines, you’ve got plenty of space for an unconditioned attic, adding vents in the soffits and along the ridge is an easy task. However, you might be building a shed style roof or perhaps your ceilings are vaulted inside to match the roof lines. In these cases, it can be difficult to achieve the required R-value if you reduce the thickness of the insulation to allow space for ventilation. One consideration here would be to use closed cell spray foam which has a higher R-value per inch. If you do this, make sure you work closely with your contractor and insulator to make sure that the foam is thick enough and the proper vapor barriers are in place as not to cause condensation problems.

Will Heat Pumps Work in the Teton Valley Climate

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You’ll probably find a video in the coming weeks with respect to heat pumps in our climate, I’ve just installed one. One can assume that probably means that they do work in our climate, otherwise I wouldn’t have installed one. The real answer is, pretty much. With that said, read on for details.

The first thing to understand about heat pumps is how they work. In a traditional sense, heat is created by burning fuel (in the case of Teton Valley, propane, whereas natural gas is not available) or with the use of an electric heating element much the heating element in your oven, or the elements that glow bright red in your toaster. Heat pumps work much differently. Essentially, they absorb heat from the outside and transfer that heat inside your home through refrigerant. Refrigerant has all sorts of weird properties that allow it to boil and change from a liquid to a vapor at temperatures far different than something like water.

Not all heat pumps are created equal, there are different types. The most common types are air source and ground or water source heat pumps.

Ground source heat pumps are more traditionally referred to as geothermal systems.  There are different types of geothermal systems. The most common types are open-loop and closed-loop, we see closed loop systems more frequently in our area, but I have seen both. With a  closed loop  system, liquid is pumped through tubes in the ground which is naturally warm, even throughout the winter months. The heat that is absorbed is then extracted from the liquid as it returns to the heat pump, and the cold water is then pumped back into the ground to be reheated naturally. In the case of an open loop system, groundwater is used usually from a domestic well, the heat is extracted, and the water is then allowed to drain or in some cases is injected back into the ground.

Air source heat pumps are more traditionally referred to as condensers and evaporators, a good example is an air conditioning system. An air conditioner works by absorbing heat inside the home, then transferring it outside. In the winter the cycle reverses, and the heat is absorbed from the outside air and transferred inside. Believe it or not, there’s enough heat in the outdoor air even at very low temperatures. Obviously a major benefit of an air source system is that it can be reversed, and the home is then air-conditioned during the cooling months. The downside is that these systems begin to lose efficiency at about 0 degrees Fahrenheit, but can operate efficiently in Sub-Zero temperatures to a point. This is why at the preface of my article I said “pretty much.”

With respect to the air source systems, it never gets below 0 degrees in Teton Valley, so there’s nothing to worry about. Right? Sarcasm aside, there are solutions. The easiest solution is obviously a backup heat source that can be activated when the temperatures get too low for the system to operate efficiently. The other solution is to add an auxiliary form of heat to the system which can either be in electric coil that is activated at very low temperatures, or a gas furnace that activates at low temperatures. The latter is referred to a “dual fuel” system.

There are other types of air source heat pumps which are commonly referred to as “mini splits.” Mini splits are basically an air source heat pump, but rather than having the system tied to a traditional furnace, they usually have a smaller self contained blower connected to an outside condenser via refrigerant lines. Mini splits are very common in most parts of the world because of their efficient cooling and heating capabilities and the fact that they can easily be retrofitted to any residence or building with relative ease. The downside is that most mini split indoor units (often called heads) don’t have any way to add auxiliary forms of heat such as heating elements or gas-burning forms of backup heat. Regardless, I do anticipate seeing more of these types of installations with backup heat such as baseboard electric which can be used seldomly when the temperatures dip into the sub double digits.

As for my system, it’s ducted and ductless mini split system with backup heat strips and temperature lockouts, all of which is controlled from my smartphone. I’d be happy to fill you in, it’s pretty cool stuff.

Why are Building Costs so High?

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A couple of years ago I did an article about building costs in Teton Valley. At the time, it seemed like building costs exceeded what the average home sale price was at the time. Well, it seems like we are at that point once again, only building costs are even higher.

So, why are building costs so high? I’ve spoken with several builders and contractors. I’ve also talked with subcontractors. I was hoping I could pinpoint one major area, but unfortunately it is a number of items contributing to today’s building costs.
Labor: This is an obvious place to look when trying to balance your overall project cost. Yes, it is true, this is one of the larger contributing elements, but not to the point that it alone even comes close to the overall cost hike. Why is labor up? The cost of living is up. Home prices, rental prices, even groceries are more expensive than they used to be, even two years ago.
Subcontractors: Subcontractors are one of the main contributors as well. Subcontractors are usually defined as someone who carries out a specific task as part of an overall project. Examples include masons, electricians, plumbers and so forth. General Contractors oversee various Subcontractors who carry out most of the work. If you ask a General Contractor or “General” most of them report that these Subcontractors or “Subs” are price gouging because demand is so high. If you ask a Sub, they will report that labor costs are high and laborers are difficult to find. Personally, I think it’s a combination of both. We know the problem with labor costs and while I don’t think Subcontractors are gouging per se, they are certainly taking advantage of market conditions.
Materials: Materials are being impacted in many different ways. Remember that building materials don’t just include plywood. Industries can affect material costs. The main element in your electrical wiring is copper, which is an industry by itself. Fuel cost can have an impact, as well as regulations on imported goods which is currently having an impact on the overall dynamic. Further, just like high demand for subcontractors, I personally feel that high demand for materials results in higher prices.
In a nutshell, I’ve identified the main elements required for constructing a home. Time, labor, materials. The more complex issue is the number of contributing factors to each major element. Interestingly, it’s all gridlocked between high demand, increasing cost of living resulting in higher labor costs and changing Industries. Each of these major elements has its own set of smaller items that make up the problem. Here in Teton Valley, these elements are compounded by higher than average cost of living, and our remote location which only adds to material costs and lack of availability for contractors. I believe it is these two elements which have the biggest impact for our local market when comparing building costs with other areas, while the National trends such as high demand for builders and increasing material costs create the foundation that supports our local challenges.
So what does all of this mean for our local market? First, home prices are likely going to continue to rise to meet increasing costs of building. Second, we need to keep an eye on our rate of growth so as not to oversupply of the market, which ultimately will happen when comparing where our market is in the cycle of growth, oversupply, recession and recovery. Obviously we are on our way up, and we will likely create an oversupply which will in turn stabilized prices once again. Do I feel we are headed towards 2008 again? Not really. These cycles have been occurring for many years, by far predating the recession 10 years ago. Fortunately interest rates are still extremely low which creates a favorable environment for buyers to invest. 1% over 30 years on a 354k home (the median price in Teton Valley last month) will result in about $56,000 in interest over the life of the loan.

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