Why modular homes you can buy online may become the next hot housing trend

Some would say that what is known as a modular home in the housing industry is an eye-catcher, with its simple design and welcoming exterior. Once inside, the uncomplicated layout might even further its appeal.

Sarah Mikhitarian, a senior economist at Zillow, explained what a modular home is and what are the advantages of owning one.

"A modular home is kind of like a home built out of Legos. You have all these different pieces, the sides that come together and you're able to create a home that is just like any other single-family home," Mikhitarian said. "Affordability is probably the biggest advantage that anyone could get out of a modular home. In addition, homes that are kind of these prefabricated often have much tighter seals. So as you think about living in the homes, you might be able to save money on heating and cooling."

The modules, or pieces, are built in a factory, wrapped then delivered by flatbed truck. Some are almost complete when they arrive but others will require further assembly. Some are quite affordable. Amazon lists at least one priced at less than $10,000.

However, owning a modular home has some disadvantages as well.

"Obviously, in order to build a home you need land to begin with, and land in certain parts of the country can be very expensive," Mikhitarian said. "Some people, they may live in a neighborhood where for some reason or another, neighbors may not be as favorable to having modular homes."

While extremely popular in Europe, modular homes are not as popular in the United States. But that could change down the road.

"And now that major outlets are offering modular homes, like through Ikea and you can even purchase them on Amazon, I think they will continue to gain traction," Mikhitarian said.