1908–1940 In 1906, Frank W. Kushel, a Sears manager, was given responsibility for the catalog company's unwieldy, unprofitable building-materials department. Sales were down and excess inventory languished in warehouses. Kushel is credited with suggesting to Richard Sears that the company assemble kits of all the parts needed and sell
entire houses through mail order. That year,
the Aladdin Company of
Bay City, Michigan, offered the first kit homes through mail order. In 1908, Sears issued its first specialty catalog for houses,
Book of Modern Homes and Building Plans, featuring 44 house styles ranging in price from
US $360 to $2,890 (about $ to $ today). The first mail order for a Sears house was filled that year. As its mail-order catalogs were already sent to millions of homes, Sears had a distinct advantage over other kit-home competitors. As sales grew, Sears expanded its production, shipping, and sales offices to locations across the country. To provide the materials for the Modern Homes division, Sears operated a lumber mill in
Cairo, Illinois. In 1912, Sears purchased the Norwood Sash and Door Company in
Norwood, Ohio (primarily used for fabrication of doors, windows, and other millwork), and, in 1926, opened a large
lumber yard in
Port Newark, New Jersey. The ability to mass-produce the materials used in Sears homes reduced manufacturing costs and consequently the kits' price tags. Precut framing lumber pieces, an innovation pioneered by Aladdin, were first offered by Sears in 1916. Precut lumber was cut to the appropriate lengths and angles based on where the framing lumber would be used in the house, and letter/number codes were stamped on the pre-cut lumber pieces, coordinating with labels found on the blueprints for the house. Before 1916, the home builder had to cut their Sears-supplied lumber to appropriate lengths. These pre-1916 houses are generally considered
catalog houses, not
kit houses. Pre-cut lumber reduced construction time by up to 40%, according to Sears. The houses were designed with
"balloon style" framing that eliminated the need for a team of skilled
carpenters, reducing cost and construction time for the buyer. This system used precut
lumber of mostly standard sizes (
2"x4" and 2"x8") for framing. Balloon-framing systems rely only on nails to make connections between joints, whereas previous methods used heavier members and pegs. The method's name reflected that the structure was light and could be lifted away like a balloon. Plumbing, electrical fixtures, and heating systems were options that could be ordered at additional cost; they were many families' first steps to modern
HVAC systems, kitchens, and bathrooms. During the Modern Homes program, large quantities of
asphalt shingles became available. Asphalt shingles were cheap to manufacture and ship, and easy and inexpensive to install. Sears also offered a plasterboard product similar to modern
drywall (under the name
Goodwall) as an alternative to the
plaster and
lath wall-building techniques which required skilled carpenters and plasterers. This product offered the advantages of low price, ease of installation, and added fire protection. Local building requirements sometimes dictated that certain elements of the house construction be done professionally and varied depending on where the house was constructed.
Economic aspects Sears began offering financing plans around 1912. Early
mortgage loans were typically for 5 to 15 years at 6% to 7% interest. Sales peaked in 1929, just before the
Great Depression. While financing through Sears helped many homeowners purchase homes, a number of those purchasers defaulted during the ensuing
Great Depression. The company was forced to liquidate $11 million in defaulted debt. The mortgage program was also a public relations disaster, as many of the families Sears foreclosed upon refused to do further business with the company. Sears stopped offering mortgages at the end of 1933. In 1935, some newspaper reports stated that Sears had "discontinued" the "modern homes department". However, there's no evidence that Sears actually stopped selling homes and it continued to issue a new "Modern Homes" catalog throughout the 1930s. Home sales slowly recovered as the United States emerged from the
Great Depression.
After 1940 The last "Modern Homes" catalog was issued in 1940. Although it is sometimes claimed that no Sears kit homes were built after 1940, Sears continued to offer pre-cut kit homes through 1941 and into early 1942. Advertisements for Sears Modern Homes appeared through May 1942. Many of these post 1940 homes were based on models from the 1940 and earlier Sears catalogs but not all were, leading to debate over whether these homes qualify as "Sears Modern Homes". Because these homes were constructed using pre-cut lumber and plans provided by Sears, these homes can be considered to be "Sears Modern Homes". Many of these homes were built in Sears planned "Home Club Plan" developments in New Jersey, New York, Ohio and Pennsylvania. == Models ==