Housing, Industrialized: Designing for Off-Site

Design
Published

With one slight change to his floor plan schematic, architect Ryan White increased the production of a new single-family project by 33%.

How? By shaving just a foot off the depth of the three-story, side-by-side duplex destined for an infill lot in Pittsburgh, he enabled Structural Modular Innovations to build three boxes at a time on its factory floor instead of only two.

“Understanding the capabilities of the factory allowed us to meet the attainability goals for the project,” says White, director of design at Dahlin Group, in Irvine, Calif. “And losing that 1 foot didn’t affect the livability or marketability of the homes at all.”

As more home builders look to alternative production solutions such as modular and full-scale panelization to combat a chronic skilled labor shortage, volatile structural materials prices, and an increase in the overall cost to build, the level of design detail and collaboration with providers for new homes is paramount in achieving the benefits of industrialized construction.

“Design casts the biggest shadow in the whole process,” says Sara Logan, AIA, VP of design and Volumetric Building Companies, a vertically integrated modular provider based in Philadelphia. “When you look at a building as a product instead of a project, you realize that what you spend on design [typically 2% to 5% of the overall budget] has significant implications on bigger costs, such as materials [50%] and labor [15%].”

Design for Construction — in a Factory

“Before we submit anything to the building department, we know how the house is going to be built,” says Donald Carpenter, VP of product development at Oakwood Homes, in Denver, which incorporated panelization 20 years ago. “It’s about embracing manufacturing principles that everything has to be decided and designed beforehand.”

In large part, that’s a testament to the ever-advancing technical wizardry of various computer design and modeling software programs that not only build a house and all of its elements virtually, but provide the factory and the field with precise documents and detailed spec lists that take the guesswork (and rework) out of the equation.

“We’re able to walk these houses virtually, and not just a framed house, but with all of the MEP [mechanical, electrical, and plumbing] in place,” Carpenter says. “One of our absolutes is we don’t make field decisions, so everything has to be thought out. And if it does happen, it’s brought back to the product development team [to refine the drawings].”

Rich Binsacca, editorial director of Pro Builder Media, provides more details and benefits of the off-site design process in this Pro Builder article, which originally appeared in the May/June 2023 issue.

NAHB will also host the Building Systems Housing Summit — a one-of-a-kind conference dedicated to offsite construction — at the National Housing Center on Oct. 15-17 for those interesting in learning more about off-site construction and networking with prominent industry professionals. Register now to attend.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Multifamily

Jul 28, 2026

High-Density Building Completions Hold Highest Multifamily Market Share in 2025

For the ninth consecutive year, most new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.

Resiliency

Jul 27, 2026

Building A Resilient Home from the Ground Up With Climate Responsive Design

As climate pressures intensify, builders are being asked to deliver homes that perform under more challenging conditions. The most effective place to start is at the site and planning level, where architects, engineers and builders work together.

View all

Latest Economic News

Economics

Jul 28, 2026

How a Home Purchase Boosts Consumer Spending

The housing market has changed greatly since the COVID-19 pandemic, along with consumer spending behaviors. During this period, housing demand surged, home prices appreciated rapidly, inflation increased, supply-chain disruptions happened, and mortgage rates moved from historic lows to elevated levels.

Economics

Jul 28, 2026

Median Lot Value Stabilizes as Regional Trends Diverge

Following a multi-year run of record highs, the national median lot value for single-family detached spec homes largely stabilized in 2025. According to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC), the U.S. median lot value for homes started in 2025 was $59,000, compared with $60,000 a year earlier.

Economics

Jul 27, 2026

Share of Apartments Built in Buildings with 50+ Units Moves Higher in 2025

Following the highest number of multifamily completions in nearly 40 years in 2024, completions declined in 2025 to 484,000, according to NAHB analysis of the Census Bureau’s Survey of Construction. For the ninth consecutive year, a majority of new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.