Modular Homes in Connecticut: One Path to Affordability — From Someone Who Lives in One

*By Mike Bergin | BerginHomesCT.com | ERA Treanor Real Estate*

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I do not say this in every article, but it matters here: I live in a modular home in Connecticut..

Not a mobile home. Not a manufactured home on a rented lot. A true modular home. It was built in sections at a factory, delivered to my property, set on a permanent foundation, and finished like any other house in the neighborhood. Most people walking through the front door would not know it was built off-site. The workmanship is solid. The house functions like any other home on the street. And it builds equity the same way any other conventionally financed home does.

I can say this from experience as well as research: living in a modular home does not feel like living in a compromise.

That distinction matters because modular homes in Connecticut are getting more attention for one reason above all others: affordability. Buyers are looking for practical paths into homeownership. Landowners are looking for build options that are more predictable. Towns and lawmakers are debating ways to add housing supply. In that conversation, modular construction deserves a clear explanation grounded in how it actually works here in Connecticut.

The Quick Take

- Modular homes in Connecticut are generally regulated through the same larger system that governs other new residential construction: state building code, local zoning, permitting, contractor registration, and taxation.
- The main savings are usually in the structure and the build process, not in the land or site work. Excavation, septic, well, foundation, grading, and utility connections still have to be paid for. Research on factory-built housing also points to cost and production efficiencies compared with conventional construction.
- Connecticut lawmakers are actively debating modular housing in 2026. HB 5395 would make it easier for modular homes to be approved in towns that already allow single-family homes, and it would count those homes toward the state’s affordable housing goals. It has not become law.

 What Modular Homes Connecticut Buyers Should Understand First

A modular home is a home built in sections in a factory and then assembled on a permanent foundation at the site. It is different from a manufactured home. Manufactured homes are built to the federal HUD code and sit in a separate regulatory and financing category. Freddie Mac’s guidance makes that distinction directly: modular homes built to state or local building codes are generally treated as site-built homes for financing, appraisal, and sales comparison purposes, while manufactured homes are handled under separate manufactured-housing standards.

That is one reason outdated assumptions still cause confusion. People often hear “factory-built” and assume all factory-built homes are the same. They are not. In legal, financing, and appraisal terms, modular and manufactured housing are different products.

Why Modular Housing Is Getting Attention Now

Connecticut’s affordability problem is not hard to see. Buyers are dealing with high home prices, limited inventory, and financing costs that still make entry-level ownership difficult. At the same time, new construction remains expensive and slow. Labor constraints, weather delays, and site coordination all add time and uncertainty to a traditional build.

Modular construction changes part of that equation because much of the structure is built in a controlled indoor setting. That can reduce weather delays and compress the build schedule. Harvard’s Joint Center for Housing Studies has pointed to off-site construction as a tool that can improve efficiency and, in many projects, reduce time or cost compared with conventional methods. Their research on factory-built housing also found meaningful cost advantages compared with comparable site-built housing, though that research is broader than modular alone and includes manufactured housing as well.

The practical point for buyers is simple: modular is not a magic discount on every part of a project, but it can offer a faster and more predictable path than a fully site-built home.

What the Savings Cover — And What They Do Not

This is where buyers need the straight version.

The savings in modular construction usually apply to the house structure and the production process. They do not erase the cost of the land. They do not erase the cost of the land. Excavation, foundation work, septic installation, well drilling, utility hookups, driveway work, drainage, grading, and permitting all still need to be paid for. Those costs depend on the lot and the town. They exist whether the home is modular or stick-built.

That is why the best case for modular homes Connecticut buyers can make is not “everything will be cheaper.” The stronger case is “the house itself may be more predictable to price and faster to deliver.” That matters. When a project moves faster, construction financing can become less expensive because the borrower may spend less time carrying the construction loan before conversion to permanent financing.

The exact savings depend on the lender, the loan structure, and the site conditions, but the timeline advantage is real enough to matter. Harvard’s off-site construction work points in that direction as well: factory building can improve efficiency and reduce schedule pressure in the right projects.

How Connecticut Regulates Modular Homes

Connecticut does not have one simple, standalone modular housing statute that controls the entire subject. Instead, modular homes fit into the broader legal framework for new residential construction.

The Connecticut State Building Code applies to permitted building work in the state. The Office of the State Building Inspector also distinguishes modular housing from manufactured housing in its interpretation materials. One published state interpretation states that the local building official must inspect modular housing for a certificate of occupancy, while the interior construction of manufactured homes falls under a different framework. That is an important practical distinction. It shows that Connecticut does not treat modular homes as the same thing as HUD-code manufactured homes.

In practice, the modular question in Connecticut is usually less about the house and more about the lot.

Zoning Is Local: Where Most Connecticut Modular Home Projects Rise or Fall

The state building code is only part of the picture. Zoning remains local in Connecticut. Municipal zoning regulations control setbacks, lot size, permitted use, height, coverage, access, septic feasibility, wetlands issues, and other land-use constraints. Connecticut’s zoning statutes also expressly address how municipalities may regulate manufactured homes, which reinforces the broader point that local land-use treatment still matters.

So the real question is rarely “Can I build a modular home in Connecticut?” The better question is “Does this specific lot in this specific town work for the home I want to place on it?”

That is the point buyers should focus on early. Before spending money on plans, deposits, or site prep, confirm the zoning, health department, driveway access, wetlands, and utility issues that affect the parcel.

Builder Registration Matters in Connecticut

This is one of the most important practical points in the entire process.

The Connecticut Department of Consumer Protection states that anyone engaged in new home building or offering new home construction services must have a valid certificate of registration under the New Home Construction Act before a building permit may be issued. DCP also states in its consumer guidance that building officials are prohibited from issuing building or construction permits to builders unless they receive a copy of the builder’s valid certificate of registration, subject to limited exceptions such as an owner pulling a permit for that owner’s own home.

For buyers, that means this: do not assume that a general contractor or home improvement registration is enough for a modular build. A standard Home Improvement Contractor registration is a separate credential and, by itself, is not the registration Connecticut requires for a builder engaged in new home construction. Ask for the builder’s New Home Construction Contractor registration specifically and verify it with the DCP before signing anything.

Tax Treatment Exists, but It Is Not the Whole Story

Connecticut law does specifically mention modular and prefabricated homes in the sales-tax context. General Statutes § 12-412c addresses when sales tax applies to certain sales involving mobile manufactured, modular, and prefabricated homes. That is worth understanding when you are building your all-in budget. But it does not turn modular housing into a separate zoning category or a lesser form of homeownership. It is one part of the cost picture, not the whole legal picture.

What Is Happening at the State Capitol in 2026

Connecticut lawmakers are actively debating modular and prefabricated housing this year.

The most relevant proposal is **HB 5395**. Based on the 2026 Connecticut General Assembly bill materials and fiscal analysis, the bill would require municipal zoning regulations to allow modular or prefabricated homes as of right on lots that already allow single-family homes. It would also award one-quarter housing unit-equivalent point for each qualifying modular or prefabricated home developed as of right under the state’s affordable housing framework. The bill had advanced through committee, but the official materials available at the time of writing do not show that it became law.

That does not change the law today. But it does show the direction of the policy conversation. Modular housing is no longer being treated as a fringe topic. It is part of Connecticut’s broader housing-supply debate, and the direction of that debate is toward treating modular homes more like conventional single-family construction — not less.

The Stigma Around Modular Homes Is Older Than the Product

A lot of the skepticism around modular homes comes from people confusing them with older forms of factory-built housing or with low-quality products they saw decades ago. That stigma has lasted longer than the facts supporting it.

Modern modular homes are typically built to state or local code, assembled on permanent foundations, and finished to standards that many buyers would never distinguish from a conventional build. The core difference is where much of the work is done. In a modular build, more of the work happens in a factory. In a conventional build, more happens outdoors on site.

What This Means for Connecticut Buyers and Landowners

If you already own land, modular may be worth a serious look. The first step is not choosing finishes or floor plans. The first step is confirming that the parcel works: zoning, health department, site conditions, access, and utilities.

Buying land with modular in mind can widen your options, but only if you budget honestly. The module price is not the whole project cost. Site work can be significant.

For buyers of an existing modular home, treat it like any other purchase. Confirm that it is permanently sited, review the title and property record carefully, and ask your lender about any modular-specific underwriting questions early. Freddie Mac guidance indicates that modular homes are generally financed and appraised like site-built homes, which is the key practical point for many buyers.

If you are selling land, it helps to know that some buyers are specifically looking for lots that can support modular construction. Clear information about zoning, utilities, soil conditions, and approvals can make a real difference in how that property is received.

The Bottom Line on Modular Homes in Connecticut

Modular homes in Connecticut are not a separate class of “lesser” housing. They generally fit into the same larger system that governs other new residential construction: building code compliance, local zoning, contractor registration, permitting, and financing. The state’s own interpretation materials distinguish modular homes from manufactured homes, and financing guidance from Freddie Mac does the same.

The affordability case for modular is real, but it needs to be stated accurately. The benefit is usually not that every part of the project costs less. The benefit is that the structure can be built more efficiently, with more predictable timing and pricing, while the site costs still have to be handled the same way they would in many conventional builds.

For buyers, sellers, and landowners in Connecticut, modular deserves to be evaluated as a practical building method. Not a shortcut. Not a stigma. Just one legitimate path to homeownership and new housing supply.

*Mike Bergin is a Connecticut REALTOR® with ERA Treanor Real Estate. He works with buyers, sellers, and landowners across residential and land transactions in Connecticut.*

*This article is for informational purposes only and does not constitute legal or tax advice. Connecticut zoning and regulatory requirements vary by municipality. Legislative proposals referenced are subject to change. Consult a qualified attorney or tax professional for advice specific to your situation.*

References: 

Connecticut State Government
• CT State Building Code (2026): https://portal.ct.gov/das/-/media/das/office-of-state-building-inspector/2026-csbc-public-comment-8-28-2025.pdf
• Office of the State Building Inspector: https://portal.ct.gov/das/divisions/office-of-state-building-inspector
• DCP — New Home Construction Contracts (consumer guidance): https://portal.ct.gov/DCP/Consumer/Consumers––About-New-Home-Construction-Contracts
• DCP — New Home Construction Contractor registration verification: https://portal.ct.gov/dcp/verify-a-license
• CGS Chapter 219 including § 12-412c: https://www.cga.ct.gov/current/pub/chap_219.htm
• CGS Chapter 412 — Mobile Manufactured Homes: https://www.cga.ct.gov/current/pub/chap_412.htm
HB 5395 — Modular Homes Bill
• Bill status page: https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&which_year=2026&bill_num=HB05395
• LegiScan bill tracking: https://legiscan.com/CT/bill/HB05395/2026
• Joint Favorable Report (Planning and Development Committee, March 16, 2026): https://www.cga.ct.gov/2026/JFR/H/PDF/2026HB-05395-R00PD-JFR.PDF
News Coverage
• Hartford Courant / Yahoo News — CT modular housing bills (March 30, 2026): https://www.yahoo.com/news/articles/ct-housing-ideas-one-fast-091000816.html
• CT Mirror — HB 8002 final passage (November 14, 2025): https://ctmirror.org/2025/11/14/ct-senate-final-approval-housing-bill/
Financing
• Freddie Mac — modular vs. manufactured home guidance: https://sf.freddiemac.com/faqs/modular-homes
Research and Housing Data
• Harvard JCHS — off-site construction research: https://www.jchs.harvard.edu
• Enterprise Community Partners — scaling modular construction (January 2026): https://www.enterprisecommunity.org/community-highlights/4-lessons-scaling-modular-construction-address-housing-crisis
• J.P. Morgan — modular affordable housing: https://www.jpmorgan.com/insights/real-estate/commercial-real-estate/an-off-site-solution-for-affordable-housing
• NPR — manufactured housing affordability (March 2026): https://www.npr.org/2026/03/13/nx-s1-5713908/bucking-stigma-more-places-turn-to-factory-built-affordable-housing