What if you knew your home building project was going to be cost-certain, sustainable and quick? You’d probably ask where to sign. 

Today, many Kiwis are familiar with the concept of prefab and the benefits it offers. However, people often come back to the same question: ‘Do prefab homes hold their value like traditional builds?’

It’s completely normal to think about resale potential –  and the good news is well-built prefab homes do retain their value. The key is choosing a high-quality, code-compliant build. 

Let’s explore why.

Understanding the range of prefab homes in New Zealand

Beneath the umbrella of prefab homes sit a wide variety of buildings. In New Zealand, there are a number of low-cost options, including:

• Tiny homes
• Container homes
• Kitset homes
• Imported kitsets
• Other low-cost modular alternatives.

While these work well for some homeowners, they also come with challenges that can impact a prefab home’s value.

That’s because they often:

• Provide less design flexibility
• Vary in how well they comply with the NZ Building Code
• Use lower-grade materials and finishes
• Expose durability issues that may affect prefab house values. 

This is where high-quality prefab homes – like those from Advance Build – stand apart. 

Do prefabricated homes hold their value over time?

Short answer: yes. But, like we said at the start –  only if they’re high-quality. 

A common misconception is that prefab homes lose their value faster than traditional builds. In reality, modern, code-compliant prefabricated houses – like those from Advance Build – often hold their value as strongly as traditionally-built ones. It’s all about strong design, robust construction and quality. 

You only have to look at the Cable Bay prefab home that YouTube stars Chasing a Plate’s Thomas and Sheena Southam recently sold for $895,000. Built in 2022 by Advance Build, it has retained (and slightly increased) its value in a challenging market. 

Of course, it depends who constructs your prefab home. Unlike lower-tier houses, Advance Build homes can hold their value because they are:

• Fully compliant with the NZ Building Code
• Architecturally-designed 
• Built with factory precision
• Constructed with durable materials suited to NZ conditions.

Advance Build prefab homes vs traditional: which holds value better?

When comparing value retention, the real difference isn’t between prefab and traditional homes – it’s between high-quality prefab and traditional builds. Advance Build homes sit firmly at the premium end, meaning their long-term performance is equal to (or higher than) traditional builds.

Advance Build vs traditional homes

As we said earlier, Advance Build homes are built to the same NZ Building Code standards as traditional homes. 

Specifically, they:

• Use comparable materials
• Follow the same compliance requirements
• Deliver long-lasting builds.

All of this means their resale performance – and overall prefab home value – typically aligns with traditionally-built homes of similar age, quality and location.

Why low-quality prefab homes lose value

Invariably, the low-cost options we’ve mentioned (like tiny homes and kitsets) do depreciate faster. There are a few reasons for this, including:

• Limited or inconsistent compliance with the NZ Building Code
• Use of lower-quality materials
• Less design flexibility
• Perceptions of being temporary structures.

It’s this part of the prefab market where value retention rates can vary sharply.

Industry insight

Reports such as those from Mortgage Point point out that modern prefab homes are increasingly appreciating at rates similar to site-built homes. This reflects the growing quality and buyer confidence in the prefab sector.  

How design and build quality influence resale value

When it comes to lasting value, design and construction quality matter just as much as location. Homes that are well-designed, energy efficient and built to last naturally better retain their value.

Advance Build’s residential designs

Every Advance Build layout is created to suit New Zealand living. Whether it’s from the Classic, Modern or Designer range, you get:

• Thoughtful designs that maximise light and space
• Practical, functional floorplans 
• High-quality finishes.

Quality that last the test of time

Advance Build homes are designed and constructed to last. It’s this reliability that plays a major role in protecting resale value. 

Their homes offer:

• Engineered durability – Every home is built using high quality materials and construction methods that meet or exceed NZ Building Code standards.

• Fewer defects – Controlled factory conditions minimise weather delays and construction errors.
• Peace of mind – A 10-year warranty on workmanship and materials, plus a 1-year defects and remedials period.

These factors create quality homes that perform for many years – retaining strong buyer appeal when it’s time to sell. 

It’s these features which ensure your home remains attractive to future buyers.

Key takeaways: how to protect your prefab home’s value

Looking after your investment is important – and goes a long way towards supporting strong long-term value. 

Here are the essentials to think about:

• Keep up regular maintenance – Routine inspections and timely repairs help retain your home’s conditions and appeal.

• Consider energy-efficient upgrades – Features like heat pumps, window glazing and insulation can boost comfort, reduce running costs and improve resale value.

Choose a certified builder – Working with a reputable company like Advance Build ensures your home is built to last, aligns with industry standards and maintains strong market value.

Making your own smart, long-term investment

As you can see, prefabricated homes do hold their value – when they’re built to high standards and maintained well. That’s why it’s worth choosing a builder with proven experience, consistent quality and strong resale performance.

For more than 17 years, Advance Build has provided Kiwis with innovative, high-quality prefab homes across the upper North Island. Their modern, functional layouts are cleverly designed, fully compliant and customisable to suit your site, needs and lifestyle. 

Visit Advance Build to explore the full range of prefab homes plans and learn more about long-term value retention.