Modular homes are houses that are divided into multiple modules or sections which are then manufactured in a remote facility and then delivered to their intended site . The modules are assembled into a single residential building using either a crane or trucks.

Modular components are typically constructed within a large indoor facility on assembly lines much like Henry Ford originally instituted with his automobile company. Such facilities use an assembly line track to move the modules from one workstation to the next. Independent building inspectors are on site to supervise the construction and ensure that all building codes are adhered to during assembly.

Modular homes are often priced lower than their stick-built counterparts and are typically more cost-effective. These new homes can be constructed in less time then it takes to build a home "on-site". Manufacturers offer the following reasons for the typically lower cost/price of these dwellings:

• Indoor construction. Assembly is independent of weather which increases work efficiency and avoids damaged building material.
  
• Favorable pricing from suppliers. Large-scale manufacturers can effectively bargain with suppliers for discounts on materials.
  
• Ability to service remote locations.  Modular homes can be built in major towns and sold to regional areas.
  
• Low waste. With the same plans being constantly built, the manufacturer has records of exactly what quantity of materials are needed for a given job. While waste from a site-built dwelling may typically fill several large dumpsters, waste from a modular dwelling generates much less waste.