Panel Built Home: What are the Pros and Cons?

Posted by Brandon Trombley on Apr 29, 2025 11:45:00 AM

Klienschmidt

Panel built homes bring together the best parts of stick-built and modular construction without the usual compromises.

They offer the freedom to design your home your way, paired with a faster and more efficient building process. For many homeowners, that combination just makes sense.

But when it comes to building a house, no one wants to second-guess their decision later. That’s why it’s so important to understand the real pros and cons of panel built homes, especially from people who’ve been through it.

If you're weighing your options, this article lays it all out clearly so you can move forward with confidence and know exactly what to expect.

Panel Built Homes: 4 Pros

It’s hard to define all of the pros of the panel build process as panelized construction offers something valuable to every homeowner.

For most owners of panel built homes, the top benefits of this construction method include: 

  1. Plenty of customization options

  2. Flexible site selection

  3. Efficiency 

  4. One point of contact  

1. Plenty of Customization Options

When you construct a panel built home, you have design freedom that’s not available with modular construction.

Panelized home construction starts in a factory, with the panels comprising the structure manufactured to exact specifications. Unlike modular homes, which draw from a limited set of floor plans that are hard to modify, it’s easy to make wall panels and other components of a home that meet your design vision. While stick building does offer the same level of customization as panel building, it’s a time-consuming process, with most of the “heavy lifting” happening at the build site. 

Side Note: All Barden homes are 100% customizable. 

With panelized construction, homeowners are involved in every step of the process and aren't limited by sizes, shapes, or materials. In essence, your wants and must-haves (within reason) are all fair game for your panel built home’s design. 

2. Flexible Site Selection 

It doesn't matter whether your home lot is in a subdivision or on rural land, any property is a good fit for a panel built home.

Able to fit into tighter spaces than other types of homes, panel built houses are ideal for crowded subdivisions.

Additionally, when building in rural areas, it may be hard to find a full team of experts who are equipped to assist you in every aspect of home construction. Skilled subcontractors can be hard to come by, too. Panelized construction eliminates the need for a large construction crew and plenty of subcontractors to build a home -- most are built with a small crew and a few specialty trade workers. 

Resource: 5 Orientation & Design Considerations for Your Custom Home

3. Efficiency 

Considered an eco-friendly building alternative, panel built homes deliver on the efficiency front in several ways:

  1. Using fewer materials and made with precision technology, human error and scrap product are greatly reduced during the in-factory fabrication process. 
  2. Built using modern construction materials and methods, panelized homes are more energy-efficient
  3. With all the home’s components delivered to the building site ready, crews are able to get right to work, spending less time on actual construction. 

    Wondering what materials are used in a panel built home? Our Material Specification Details break down the components that bring a Barden home to life.


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4. One Point of Contact

Panelized construction simplifies and streamlines the custom home building process. That's because there's usually only one point of contact for the homeowner to interface with.  Our Barden Independent Dealers fill this role when building a Barden home. 

That's more, your point of contact manages various suppliers and individuals out of the home building process, allowing the homeowner to focus on other things. 

Every step, from financing to construction, is coordinated through your panel building partner and their team of experts.


Panel Built Homes: 2 Cons

There’s no 100% perfect home construction method. Perceived shortfalls of panel built homes include: 

  1. Potential for higher costs than modular 

  2. More homeowner involvement 

1. Potential for Higher Costs Than Modular

Depending on the design of your house, panel building may be more expensive than modular building. There are a few things to note about the potentially higher cost when comparing modular vs. panelized homes. 

  1. The more a panelized home is customized beyond basic floor plan adjustments -- think adding dormers and gables --  the greater the chances are for increased expenses.  Keep in mind that the more features added to the home, the better value you'll get. 

  2. Panel manufacturing uses higher-quality materials and more precise engineering than both traditional construction and most modular home factories. This precision reduces waste and creates stronger, more durable structures. Remember: the money that you spend on those materials is not wasted by the quality depreciating because they are exposed to the elements during traditional building.

When you move into your panelized home, you can feel confident that it’s built to last. Things like drafts or snow load are already taken care of during the design phase, which means fewer surprises and more savings down the road.

Modular home manufacturers are undefeated in the "small, simple, and cheap" space when there are no adjustments made to a floor plan. However, once customization enters the picture, the price of a modular home goes up significantly. 

When it comes to a panelized home vs. stick built house, panel built homes are generally less expensive when all costs are considered.

2. More Homeowner Involvement

Panel built homes typically require more ongoing input from homeowners throughout the construction process. Unlike more hands-off building methods, you'll need to make decisions beyond just approving the initial floor plan.

This increased involvement is actually a benefit for many homeowners who want control over their investment. You'll have the final say on important details rather than leaving decisions to others. 

However, if you prefer a more hands-off approach to home building, the level of participation required might be an adjustment.

 

Frequently Asked Questions about Panel Built Homes

Here are some of the most asked questions when it comes to panel built homes:

Q: How long does it take to build a panel built home from start to finish?

A: The full process usually takes around 4 to 6 months. Panel manufacturing happens quickly in a factory setting, often within weeks. Once the panels arrive on-site, framing takes just days, and the remaining work – like mechanicals and finishes – moves efficiently. 

While not as fast as basic modular homes, panel built homes are noticeably quicker than traditional stick builds.

Q: What are the financing options or challenges for panel built homes?

A: Financing typically involves a construction-to-permanent loan, similar to other custom homes.

Most lenders are on board, but some may ask for additional documentation since panelized construction is less familiar. Partnering with a knowledgeable builder or dealer can make the financing process smoother and help address lender questions early.

Q: Are there limitations to the architectural styles or finishes available with panel built homes?

A: While panel built homes allow for a high level of customization, extremely complex designs or uncommon materials might require additional coordination. Still, most architectural styles are easily achievable. For the average homeowner, there’s plenty of flexibility to create a home that matches their vision.


Panel Built Homes: A Balanced Approach to Custom Home Design

Panel built homes make it easier to create a custom home that reflects your style, needs, and goals – all while saving time and reducing stress during the build.

When you look at both the benefits and potential drawbacks, it’s clear that panel built homes offer a smart, balanced approach to new home construction. You stay involved, your investment goes further, and the finished product feels truly your own. 

Ready to start planning your dream home?

Our Custom Home Building Guide walks you through the panelized construction process, the Barden way.

Custom Home Building Guide: Panelized Home Construction & Building the Barden Way - Learn More


This piece was originally published in 2019 and was recently updated to reflect industry trends. 

Topics: Panelized Construction, Behind the Scenes, Budget, Technical Specs, Process, Price, Site Prep

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