Like manufactured homes, modular homes are constructed in the controlled environment of a manufacturing facility.  However, modular homes must be built to conform to state and local building codes. And unlike manufactured homes that are built on a frame, sections of the modular home are built and transported to the building site on removable carriers and are typically placed on a frost wall or foundation.

Modular homes are not restricted to single-family dwellings and they can be single- or multi-story.  Modular construction is also widely used in commercial construction projects.