A developer’s guide

Factory-built housing,
explained.

Understand the options, what arrives from the factory, and what your team still needs to deliver.

01 / The big picture

First, understand the umbrella.

Factory-built and prefab broadly describe buildings—or parts of buildings—made off-site and assembled or installed at the project location. A factory might deliver home sections, room-sized modules, panels, or individual components.[1]

The difference is what happens in the factory and what remains to be done on-site.

Also part of the picture: Kits, pods, and prefabricated components.

02 / What arrives from the factory

Four options you’ll encounter.

These common labels describe different aspects of factory-built housing. Start with what the factory supplies, then confirm the product’s approvals and delivery scope.[1][2][3][5]

Design comes before production.

  1. 01Share the site and goals
  2. 02Explore factory-compatible designs
  3. 03Coordinate scope and technical requirements
  4. 04Confirm the production package
01

Manufactured housing

Factory-built home sections.

01

Build home sections

Produce home sections in the factory.

02

Transport

Move sections to the property.

03

Install and connect

Set the home and complete site connections.

Homes built in one or more sections to federal standards administered by the U.S. Department of Housing and Urban Development (the HUD Code), then transported and installed at the site.[2]

02

Modular homes & buildings

Whole-home packages and three-dimensional building sections.

01

Build modules

Produce three-dimensional building sections.

02

Transport

Move modules to the property.

03

Join and finish

Join two sections into a home, or multiple modules into a multifamily building.

Homes and buildings are constructed in three-dimensional modules at the factory, then transported and installed at the site. A home may arrive in one or several sections; larger buildings combine multiple modules into a coordinated design.[3]

Modules can arrive with kitchens, bathrooms, wiring, plumbing, and interior finishes already installed. They follow applicable state or local building codes rather than the federal HUD Code.[3][4]

03

Panelized construction

Walls, floors, and roofs made off-site.

01

Make panels

Produce wall, floor, or roof assemblies.

02

Transport

Move panel assemblies to the property.

03

Assemble and finish

Assemble the panels and complete the building.

Factory-made panels are assembled into the building on-site. The package may range from framing to assemblies with insulation, windows, and other layers already included.[1][6]

04

Hybrid construction

Different systems working together.

01

Produce mixed assemblies

Produce the selected modules and panels.

02

Transport

Deliver the different assemblies.

03

Integrate on-site

Connect factory-built and site-built portions.

One project combines approaches, such as modules, panels, and site-built portions. Different teams may deliver different parts of the same building.[5]

Manufactured is not another word for modular. Manufactured housing follows the HUD Code; modular buildings follow the applicable state or local building-code pathway. Both still require attention to site and installation requirements.[2][3][4]

03 / Three practical questions

How factory-built projects
are designed and built.

The category is only the starting point. Understand what you can design, how it gets made, what you are buying, and who completes the work.

01

How is the building made?

Once the design and scope are coordinated, factory work and site work must come together. The split depends on the building system, the package purchased, and the project team.

Coordinated design and scope

Establish the agreed inputs for factory and site work.

Factory work

Produce sections, modules, panels, or components.

Site work

Prepare the site, foundation, and connections.

Delivery and assembly

Bring the parts together at the property.

Finish and verify

Complete connections, remaining work, and required inspections.

Factory work and site preparation may overlap when approvals and the project sequence allow.

A production method does not determine the material. Factory-built systems may use wood, steel, concrete, or engineered assemblies.[3] Explore materials and panel types.

Materials and panel types
Wood frame
A structural material choice, not a separate approval or delivery category.
Steel frame
A structural material choice that can be used in different off-site systems.
Concrete
Can be used in factory-made structural elements or modular systems; confirm the specific product and scope.
Mass timber
Engineered timber products such as cross-laminated timber panels and glulam members. It describes a structural system, not a finished-home package.
Structural insulated panels (SIPs)
Panels with an insulating core between structural facings.
Open panels
Assemblies with framing or cavities accessible for further work.
Closed panels
Assemblies with more layers completed before delivery. Exact insulation, windows, services, and finishes vary by supplier.

“Steel” describes the structure. “Modular” describes the production approach. Neither describes the whole package.[3][6][7][8]

Other terms you may see
Single-section / multisection
Describes whether a manufactured home arrives in one or several sections.
CrossMod®
A category within HUD-code manufactured housing with additional design specifications—not a synonym for modular or hybrid construction.
Permanent / relocatable modular
Distinguishes buildings intended for permanent projects from buildings designed for repeated relocation and reuse.
Precut kits
Prepared and cut materials supplied for on-site assembly, including some timber or log systems.
Pods and service cores
Prefabricated rooms or concentrated service assemblies, such as bathrooms, that can be incorporated into a larger building.
Components
Individual assemblies such as trusses or building-service racks; they need not constitute a complete building system.

A familiar label is a starting point. Verify the actual product, approvals, included scope, and remaining work.[1][2][3][9][10]

02

Where can your project start?

You can start with a factory design, a site and project goals, or drawings you already have. The right path depends on what you bring and how the manufacturer works.[5][6][13]

1. Start with a factory design

Choose an existing manufacturer floorplan or product family and explore the changes it supports.

What happens nextEvaluate site fit, permitted changes, specifications, and the remaining project scope.

Question to askWhich changes are supported for this design and site?

2. Start with a site and project goals

Bring your site, intended unit mix, target sizes, and development goals. Work with a manufacturer and design team to develop a configuration around the factory’s building system.

What happens nextExplore configurations, coordinate the design, and confirm technical fit and scope.

Question to askWhat site information and project goals are needed to explore a configuration?

3. Start with your own drawings

Bring an existing concept or architectural design for review. Determine what fits the manufacturing system and what may need to change.

What happens nextThe manufacturer helps adapt or develop the design around its building system. Confirm which architectural, engineering, fabrication, installation, and site-work responsibilities it takes on and which remain with your project team.

Question to askWhat needs review or revision before this design can move forward?

Example floorplans can show what a building system can do; they are not necessarily a fixed menu of products.[13]

03

How much is finished before it reaches the site?

A factory package is not always a finished building. Compare what is included and what your project team still needs to complete.

Physical building package The assemblies, materials, fixtures, and finishes delivered.

Project support services The agreed design, engineering, coordination, logistics, or installation support.

What arrives and what support the manufacturer provides are separate questions.

Structural package

Factory may includeFraming, structural panels, or other load-bearing assemblies.

Project team may still completeEnclosure, building services, finishes, and site work.

Enclosed shell

Factory may includeStructure and enclosure assemblies, potentially with insulation, windows, or doors.

Project team may still completeRemaining assembly, building services, interiors, foundations, and site connections.

More finished modules

Factory may includeInteriors, fixtures, and building services completed within individual modules.

Project team may still completeInstallation, foundations, utility and module connections, remaining finishes, and inspections.

04 / The complete project

Compare the whole project.
Not just the factory price.

Before comparing manufacturers, make sure you are comparing the same scope. Ask what arrives completed, what remains on-site, and who is responsible for each part.

01
Site and approvalsGroundUp Core
Can this product work on this property, and which approvals remain?
02
Design and yieldGroundUp Core
Can the system support the layout, unit mix, density, and design flexibility the project needs?
03
Delivery and installationGroundUp Supported
Can it reach the site, and what equipment, access, and staging are needed?
04
Scope and responsibilitiesGroundUp Supported
Which physical package and project services are included, what is excluded, and who completes each part?
05
Total economics and scheduleDeveloper Owned
What is the complete development cost and path to occupancy—not just the factory price or production time?

A concept can support an initial conversation. Provide GroundUp with drawings, specifications, and scope decisions to get project-specific pricing and production.[5]

Build a complete cost picture.

  • Land and acquisition
  • Factory package
  • Delivery and installation
  • Site work and utilities
  • Remaining construction
  • Design and approvals
  • Financing and contingency

Confirm what has been reviewed. GroundUp helps determine which local, installation, and site-specific requirements remain.[4]

05 / From understanding to evaluation

Where GroundUp fits.

From classical development to factory-built execution.

GroundUp helps you understand not just which factory can serve your site, but how its building system, design flexibility, and delivery scope fit the project you want to develop.

Whether you start with a factory design, a site and project goals, or existing drawings, GroundUp helps organize the inputs, evaluate preliminary fit, and coordinate the next steps with suitable manufacturers.

Our development focus

Single-family development
Individual sites, subdivisions, and build-to-rent communities.
Multifamily development
Housing projects where unit mix, building configuration, site constraints, and factory fit need to be evaluated together.
ADU development
Accessory dwelling unit projects where placement, access, utilities, and product fit need early attention.

This guide explains the wider factory-built category. Available GroundUp options depend on your location, project requirements, and participating manufacturers’ verified capabilities and approvals.

The factory and project design team confirm the technical design, scope, and production requirements. GroundUp supports evaluation and coordination; it does not replace them, the permitting authority, or the installation contractor.

06 / Keep exploring

Common questions.

Is prefab the same as modular?

No. Prefab is a broad description of off-site production. Volumetric modular is one approach; panels, kits, and components are others.[1][10]

Does factory-built automatically mean cheaper or faster?

No. The result depends on the site, design, factory scope, logistics, and remaining work. Compare total development cost and the complete schedule, not only the factory package.

Does an approved factory design mean my site is approved?

No. Confirm what the approval covers and which planning, site, installation, and other local requirements still apply.[4]

Are tiny homes and park models the same as permanent housing?

Do not assume that from the name or appearance. Check the specific product’s certification and intended use. Park-model RVs are designed for temporary recreational, camping, or seasonal accommodation, not as an interchangeable category of permanent housing.[12]

Your next project

Find the right factory-built approach for your site.

Bring your site, project goals, or existing drawings. GroundUp helps you evaluate preliminary fit and prepare the next manufacturer conversation.

Request Access

Single-family. Multifamily. ADUs.