Methods of New Home Construction

By Charlie Wardell

Jul. 13, 2025 at 7:37 PM CST

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Not all new homes are built the same way. Here’s what to know before you break ground.

Stick-built homes dominate the U.S. market – over 90% of new homes use this method.

  • Stick framing (or platform framing) uses stick-by-stick assembly of the skeleton of the home including wall studs, floor and ceiling joists, and roof trusses or rafters.

  • Panelized framing uses factory-built wall panels trucked to the site – same materials, just pre-assembled in a controlled environment.

  • Modular homes are built in sections in a factory, transported to your lot, and assembled there.

  • Light-gauge steel, Structural Insulated Panels (SIPs), thick foam panels sandwiched between OSB board, and Concrete systems are gaining popularity in specific regions or for performance builds.

Stick-Built vs. Prefabricated Homes

Stick-BuiltPrefabricated (Panelized/Modular)
Build locationOn-siteFactory + site assembly
CostVaries, but generally lowerCan be higher for modular
TimelineWeather-dependentOften faster, weather-protected
Design flexibilityHighMedium to high (modular limitations)
Insulation/Air sealingNeeds careful installMore controlled in factory builds

Pros and Cons

Type of ConstructionProsCons
Stick FrameMost popular, longstanding method; standardized, time-testedIncreasing lumber costs; lumber shrinkage causing insulation issues, drywall cracks
ModularFaster build time; consistent quality; potential for energy efficiencyDesign limited by transport size; quality varies by manufacturer; may carry stigma in resale
Light-Gauge SteelFire-, rot-, and termite-resistant; doesn't warp or shrinkTypically costs more; requires specialized labor; conducts heat, need thermal breaks for efficiency
Structural Insulated Panels (SIPs)Best for: High-efficiency homes with tight energy goals.Superior insulation and air sealing; quick assembly; may reduce HVAC size and energy useHigher material cost (but labor savings may offset it); limited contractor familiarity; requires precise planning

Concrete Construction Methods

Used more in hurricane zones or for ultra-durable homes. Variants include:

  • CMU (Concrete Masonry Units):

    Common in the South; slower heat transfer keeps homes cooler.

  • AAC (Autoclaved Aerated Concrete):

    Lightweight blocks with built-in insulation; costs more.

  • ICFs (Insulated Concrete Forms):

    Foam blocks filled with concrete—high insulation (R-20+), excellent storm resistance, quiet interiors.

Cons:

  • Higher upfront cost, heavier walls

  • Still usually combined with wood roof systems

Cost Comparison of Construction Methods

MethodEst. Cost Impact vs. Stick-Built
Stick-builtBaseline
Panelized~Equal or slightly more
ModularVaries; often more for high-quality
SteelMore upfront cost
SIPsMaterial cost up, labor cost down
ICF/ConcreteMore upfront cost

Note: Regional costs, materials, and labor availability can swing pricing significantly.

Environmental Impact

  • Best: SIPs and ICFs – tight envelopes mean lower energy usage long-term

  • Good: Modular – less waste, factory efficiency

  • Moderate: Stick-built – more on-site waste, but recyclable lumber

  • Watch for: Steel – high embodied energy unless offset by performance gains

Best for Energy Efficiency

  • Top choices: SIPs, ICFs, high-quality modular builds

  • Why: These methods create tight, well-insulated homes that need less heating/cooling

  • Pro tip: A tight envelope matters more than the structure alone. Pair any method with quality insulation, windows, and mechanical systems.

Common Problems by Method

  • Stick-built: Warping lumber, poor air sealing

  • Modular: Inconsistent quality, shipping damage

  • Steel: Complicated insulation, harder wiring/plumbing

  • SIPs: Limited flexibility for changes, requires precision

  • Concrete: Slower builds, higher initial costs

Concrete vs. Wood Frame

  • Wood: Flexible, familiar, lower cost

  • Concrete: Stronger, more durable, better thermal mass

Verdict: Concrete offers long-term durability and storm resistance, but wood still leads for cost and availability.

How Long Does It Take?

MethodTypical Timeline
Stick-built6–12 months
Modular4–8 months
SIPs6–10 months
ICF7–12 months

Weather delays are less likely with prefab methods.

Next step: Talk to your builder about which methods they’ve mastered and what fits your priorities best.


charlie-wardell

Charlie Wardell

Charlie Wardell is a licensed builder and a writer and editor with more than 20 years of experience covering home building and construction.A Massachusetts resident, his work has appeared in some of the nation's leading media brands in print and online.In addition to his exclusive articles for NewHomeSource, Charlie has written or edited for publications that include Architectural Record, Custom Builder, Fine Homebuilding, Green Builder, Harvard Management Update, Popular Science and This Old House.