Prefab homes vs traditional: what are the pros and cons?

News & Updates Prefab homes vs traditional: what are the pros and cons?
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28th Feb 2025

The desire to own a home is deeply ingrained in our society. After all, a home is a place to call your own. A safe, comfortable space to raise a family and make special memories.

Today that dream is still well and truly alive. Unlike earlier generations, however, many Kiwis today are demanding homes with a little more. Houses that don’t just meet their basic needs – but also enhance their quality of life.

In other words, homes that are:

  • Efficient
  • Sustainable
  • High-quality

But when it comes to constructing those homes, how do you know which path to take? Do you stick with the tried and true traditional build? Or does the prefabricated path win out?

We’re going to look at both these approaches, how they differ and the pros and cons of each.

 

Back to basics first: what are traditional and prefabricated homes?

If you’re considering building a home, you’ve likely come across both these terms. So…how exactly do we define each?

Traditional homes

homes vs traditional

When we talk about ‘traditional homes’, we mean those that are built onsite – from the ground up – using standard construction methods. All materials (bricks, cement, tiles, paint etc.) are brought to the site where builders and tradespeople then construct the house.

Prefabricated homes

homes vs traditional

Prefabricated homes are built offsite in factories, then transported to the site for installation. Every prefab company has slightly different processes, but at Advance Build, we construct every element in our weathertight factory. That means walls, floors, kitchen fittings – everything! The completed transportable homes are then transported to the building site and connected to their foundations.

 

But…what exactly are the pros and cons of traditional home construction?

So…we know the building approaches are different. But how? And, when it comes to prefabricated homes vs traditional, who wins out?

In short: that depends on your needs, vision and priorities. Yes…it’s a big decision! That’s why we’ve put together a list of pros and cons for each.

Keep reading.

Traditional homes: the pros

  • Better customisation

    Complete design and material flexibility (e.g. you can use brick cladding for traditional builds, but not prefab).

  • Easier financing

    Banks are more willing to finance traditional builds. This is because on-site construction provides them with better security over the property compared to prefab builds.

  • Greater size + complexity

    Traditional builds, constructed on-site, offer greater freedom for larger and more complex designs. Prefabricated homes, however, are limited by what works for the delivery route.

  • More choice on materials

    Perhaps you want custom-cut stone or a particular type of glass. That’s all possible with a traditional build (depending on your budget!).

Traditional homes: the cons

  • Slower process

    Weather delays and onsite challenges can dramatically push out construction times.

  • Higher cost

    Onsite labour can get expensive, especially if the project takes longer than expected. Plus, having a team of architects and contractors is often pricey (and time consuming). There is also more material waste, which increases the overall build cost.

  • Inconsistent quality

    When you’re at the mercy of bad weather, the quality of the construction can suffer. There is also more potential for human error if there are gaps in skills or experience.

  • Heavier environmental footprint

    Without a streamlined manufacturing process, there is often more material wastage. Not to mention all those trucks delivering cement, bricks and tiles – those emissions can really add up! And, when it comes to the home’s energy efficiency, you’re dependent on your builder’s focus on green practices. Some are all about minimising waste and installing energy-saving features; others…less so.

Prefabricated homes: the pros

  • Faster to build

    Without weather delays and other onsite disruptions, you can stick to your timeframe and move into your new home quicker.

  • Cost certainty

    When your timeframe doesn’t blow out, your budget doesn’t tend to either. You don’t need to manage the unexpected costs often associated with onsite delays — thanks to the streamlined, efficient manufacturing process. Better yet, you can plan your temporary accommodation to align with your build, instead of facing expensive short-term rentals. All in all, a far less stressful experience!

  • Kinder to the environment

    Factory-constructed homes produce less materials waste because they are built more efficiently. Prefab houses also use greener materials for better insulation and lower emissions.

  • Consistent quality

    The strict quality control standards of a factory means the same high-quality product is manufactured – every time.

  • Focus on durability

    Again, those stringent quality checks throughout the manufacturing process matter. They help prefab companies maintain accuracy and adherence to building regulations. After all, if prefab homes were flimsy, they wouldn’t survive the journey to site!

Prefabricated homes: the cons

  • Less design flexibility

    A prefab home is not bespoke in the way a traditional one is. Traditional builds offer complete design freedom – from layout and materials to fittings and finishes. Having said that, companies like Advance Build offer a wide range of prefab floor plans which you can customise to suit your needs.

  • Site limitations

    Not every site will cater to a prefab home. The dimensions might not work or it could be too difficult to access.

  • Tricker financing

    Prefab is still lesser known, so banks are more cautious about approving mortgages. This is largely because the majority of the construction is off the customer’s site, giving the bank less security over the building.

 

Prefabricated construction vs traditional: what’s the verdict?

A prefab home won’t work for everyone. But they are an excellent choice if you want:

  • More cost certainty (and less budget blowouts)

  • A faster build (so you can move into your new home sooner)

  • To build (and live in) a more sustainable home

  • Your home to be high-quality and long-lasting.

On the flipside, you might take the traditional route if you prefer:

  • A completely bespoke home where you can choose nearly everything

  • Less stress around financing

  • A large and/or complex build that needs an onsite team

  • The choice of using bespoke materials

 

Thinking prefab? Talk to Advance Build

If you think prefab is for you, you need an expert in your corner. A well-established, experienced team who offers:

  • A hassle-free building process. That means managing everything from start to finish so you can enjoy the journey

  • Innovative designs that are stylish, comfortable – and are able to be customised just for you

  • Factory-controlled precision to give you a high-quality home that lasts the test of time

  • Faster, cost-certain builds that take the stress out of the process

  • Sustainable designs and building practices to reduce your environmental footprint – and your energy costs.

Explore Advance Build’s extensive range of floor plans here. Or, talk to the team about your dream home today.

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