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

Economics
Nov 09, 2026
Remodeling Activity Holds Flat in Second Quarter Amid Housing Slowdown

Remodeling activity was flat in the second quarter amid a broader nationwide housing slowdown, according to NAHB's State Projections of Remodeling (SPR). The SPR provides a quarterly, state-by-state analysis of remodeling spending, market share and changes in spending.

Advocacy
Nov 06, 2026
NAHB Monthly Update: What the Midterms Mean for Housing

NAHB’s Monthly Update equips members and HBA staff with timely talking points on the Federation’s top housing priorities. This month’s update covers the post-election outlook for housing, progress on permitting reform and NAHB’s response to the latest WOTUS proposal.

View all

Latest Economic News

Economics
Nov 09, 2026
Residential Building Worker Wage Growth Rebounds, but Real Wages Continue to Decline

Wage growth for residential building workers showed signs of a modest rebound in September 2026 following a sharp slowdown earlier in the year. According to the latest data from the U.S. Bureau of Labor Statistics, nominal wage growth picked up from its June pace, although it remained relatively modest.

Economics
Nov 09, 2026
Remodeling Activity Holds Flat in Second Quarter Amid Housing Slowdown

The National Association of Home Builders (NAHB) has released its State Projections of Remodeling (SPR) for the second quarter of 2026. As a reminder, the SPR provides on a quarterly basis a state-level estimation of the market share and total dollar value of remodeling spending.

Economics
Nov 06, 2026
Hiring Rebounds in October, but Residential Construction Employment Declines

The U.S. labor market rebounded in October, with nonfarm payroll employment increasing by 165,000 jobs and the unemployment rate declining to 4.1%. However, the improvement in overall employment contrasts with continued weakness in residential construction, where employment fell by 16,400 jobs, the largest monthly decline since March 2021.