Modular Wall Panels in New Construction: What Homebuyers Should Know

As a home inspector, I’ve noticed a growing trend in residential construction: instead of building homes entirely on-site using traditional framing methods, some builders are now assembling homes from pre-fabricated wall panels. These segments are built off-site in a factory setting and then shipped to the construction site where they’re connected—much like giant building blocks.

This technique is becoming common among high-volume builders such as Ryan Homes, NV Homes, and others. It allows for faster build times and lower labor costs. But what does this mean for the homeowner?

Let’s explore the potential concerns.

1. It’s a Departure from Time-Tested Framing Practices

Traditionally, builders frame homes on-site using techniques outlined in the International Residential Code (IRC). One such practice is the use of continuous double top plates—horizontal framing members that run along the tops of walls and overlap at joints. This overlap (staggered at least 4 feet) provides crucial structural integrity and ties walls together.

With pre-framed wall segments, those top plates stop at the end of each segment. That means the structural continuity of the framing is interrupted—something the IRC aims to avoid.

2. Sheathing Is Also Interrupted

In site-built construction, the exterior sheathing—typically OSB or plywood—is installed in continuous runs that overlap wall studs and corners, effectively bracing the home like a skin. In panelized construction, each segment comes with its own sheathing, and the sheathing stops at the panel edge. There’s no interlocking or overlap, and the bracing effect is weakened.

3. Long-Term Performance Is Uncertain

Builders often point out that these homes pass inspection and that they haven’t experienced any issues. While that may be true today, the real concern is long-term performance—especially in high winds or severe storms.

This method simply hasn’t been in use long enough for us to know how well these homes will age. As a home inspector, I cannot label this as a defect, but I do believe homebuyers deserve to know what’s behind the walls—especially when it departs from conventional wisdom.

So, What Can You Do?

If you’re buying a home built with modular wall panels, ask questions. You may want to consult with a structural engineer or independent architect for a second opinion. And if you’re reading one of my home inspection reports, you may see a reference to this article when such construction methods are present.

Knowing how your home is built helps you make informed decisions—not just during the purchase, but as you plan for maintenance, improvements, or even resale.