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

Construction Costs | Material Costs

Dec 23, 2025

Lumber Capacity Has Peaked for 2025

An annual revision to the Federal Reserve G.17 Industrial Production report shows current sawmill production levels above 2017 by 7.5%, but just 0.3% above 2023 levels.

Building Systems Councils

Dec 22, 2025

Can Offsite Housing Solve the Housing Affordability Crisis?

Offsite construction – a method in which components are planned, designed, fabricated in a factory setting and then transported and assembled onsite – is something more community-based organizations (CBOs) are turning to as a solution to the housing affordability crisis.

View all

Latest Economic News

Economics

Dec 22, 2025

State-Level Employment Situation: September 2025

In September 2025, nonfarm payroll employment was largely unchanged across states on a monthly basis, with a limited number of states seeing statistically significant increases or decreases. This reflects generally stable job counts across states despite broader labor market fluctuations. The data were impacted by collection delays due to the federal government shutdown.

Economics

Dec 19, 2025

Existing Home Sales Edge Higher in November

Existing home sales rose for the third consecutive month in November as lower mortgage rates continued to boost home sales, according to the National Association of Realtors (NAR). However, the increase remained modest as mortgage rates still stayed above 6% while down from recent highs. The weakening job market also weighed on buyer activity.

Economics

Dec 18, 2025

Lumber Capacity Lower Midway Through 2025

Sawmill production has remained essentially flat over the past two years, according to the Federal Reserve G.17 Industrial Production report. This most recent data release contained an annual revision, which resulted in higher estimates for both production and capacity in U.S. sawmills.