Elvira and Bobby Guerra spent three years searching for a home to buy in southern Texas, but their real-estate agent repeatedly showed them houses that were too expensive and still in need of work.

Late last year, they went to see a house they found on Zillow and were surprised to learn it had been built in a factory. They liked the large backyard and that it was in a new 21-home subdivision in the San Antonio outskirts of Seguin. The first-time home buyers closed in February.

This post first appeared on wsj.com

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