Building a new construction home is one of the most rewarding things a homeowner can do. What many people don't realize until they get started choosing a builder is that there are actually several new home construction options to choose from.
Five Types of Construction Classifications
When looking at new construction homes, most buyers focus on floor plans and finishes. But there's something just as important that often gets overlooked: building code classifications.
Building codes classify structures based on their fire resistance. These classifications (Types I through V) determine how a building is constructed and what materials are used.
- Type I (Fire-Resistive): Made with concrete and protected steel that can withstand fire for 3+ hours. Used in high-rise and mid-rise buildings. Maximum safety but highest cost.
- Type II (Non-Combustible): Similar to Type I but with 1-2 hour fire resistance. Uses metal studs and non-flammable materials. Common in mid-rise apartments and condos.
- Type III (Ordinary Construction): Features non-combustible exterior walls (brick, concrete) with wood-framed interiors. Popular in townhomes and older apartment buildings.
- Type IV (Heavy Timber): Characterized by large, exposed wooden beams and columns that resist fire better than smaller wood. Found in loft conversions and "industrial chic" condos.
- Type V (Wood Frame): Standard lumber construction for most single-family homes and other types of residential properties. Most affordable and quickest to build but requires proper fire protection measures.
Types of Home Construction
Production
Production homes are built in bulk in home developments like master-planned communities. Driving through a development like this, buyers will notice that all the homes are built similarly, though they don't all look the same. Buyers who choose homes in these areas have their choice of lot size, exterior siding and appearance, floor plan, whether to include a bonus room and the appearance of major fixtures like the cabinets, countertops and floors. Production homes are created in a production environment, which means they're made quickly and efficiently. Production developments can grow fast.
You can even find newly built production homes that are already complete. This negates one of the biggest drawbacks of new construction (the wait time) at the cost of the opportunity to customize—but depending on what you want most out of buying a brand-new home in cheaper neighborhoods, it could definitely be worth it.
Who Is Suited for This Type of Home?
Production homes are great for people who want a brand-new home but have a limited budget. They're also the perfect home for people who want a new home but don't want to spend a lot of time monitoring the development of the structure. Production homes are built according to a plan with little customization, so once the home buyer decides which type of fixtures, layout and appearance is right for them, they are required to make few decisions before the home is built.
Benefits of a Production Home
- Relatively low-cost compared to other types of home building
- Home is available quickly for buyers who need to move soon
- Requires less involvement from the home buyer during the building process
Modular
Modular homes are built in sections at a factory, then transported to your lot and assembled on a permanent foundation. Many people confuse modular homes with manufactured homes, but they're completely different. Modular homes are built to the same local building codes as traditional homes, just in a controlled factory environment instead of on-site.
These homes can range from simple designs to complex multi-story structures. Once assembled, modular homes look just like traditional homes. In fact, your neighbors probably won't even know your home was built in a factory unless you tell them.
Who Is Suited for This Type of Home?
Modular homes work great for buyers who want a faster building timeline but still want quality construction. They're perfect for people building in areas with harsh weather conditions, since most of the construction happens indoors. Modular homes also appeal to environmentally-conscious buyers because factory building creates less waste and often uses more precise construction methods.
Benefits of a Modular Home
- Faster construction time than site-built homes
- Often costs 10-20% less than traditional construction
- Better quality control since built in controlled environment
- More energy efficient due to tight seams and modern materials
Custom
Custom homes are fully customized from start to finish. During the construction of a custom home, buyers work closely with builders to create a unique home that is right for their needs. This may involve working with an architect separately, or some home buyers will work with a design-build contractor who employs an in-house architect for these purposes.
Custom homes are labor-intensive for the builder and the architect, which means they're mostly found in more expensive neighborhoods. They also take much longer to construct.
Who Is Suited for This Type of Home?
People who are well-suited for this type of home have a lot of time to spend on the customization of their home, they're very particular about the appearance of their home, and they have a budget that can afford this type of home. Custom homes are forever homes.
Not everyone can afford this type of home or has the time and patience for it. However, those who do have the time and energy to spend on building a custom home often find the finished results to be as gratifying as a home can be.
Benefits of Custom Home
- Fully customized home
- Perfect for a homeowner who needs extra space
- Home value often higher than a production home
Semi-Custom
A semi-custom home is more customized than a production home, but not quite as unique as a custom home. Semi-custom home builders offer home buyers an array of choices that enable the buyer to create a home that looks and feels more unique than the other homes in their neighborhood. The result is a more diverse development.
Who Is Suited for This Type of Home?
Semi-custom homes are suitable for home buyers of many kinds, as semi-custom homes come in a large range of costs. People who are suited for a semi-custom home are people who have more money to spend on their new construction home. However, they may not have the time, energy or budget to create a fully unique construction.
Benefits of Semi-Custom Home
- Wider range of choices than a production home
- Often higher value than production home
- Not as costly as a custom home and requires less time commitment from buyer
Spec
Spec homes (short for "speculative") are new houses that builders construct before having a specific buyer. Builders make all the design choices and complete the home, then put it on the market ready for someone to buy and move in right away. These homes offer the benefits of new construction without the wait time of building from scratch.
Unlike production homes built in large developments, spec homes might be one-of-a-kind designs or just a few similar homes in an established neighborhood. Builders typically choose popular finishes and neutral colors to appeal to a wide range of buyers.
Who Is Suited for This Type of Home?
Spec homes are ideal for buyers who need to move quickly but still want a brand-new home. They're perfect if you don't want to make dozens of design decisions or deal with construction delays. Since you can see the finished product before buying, you know exactly what you're getting—no surprises like you might find with other building options.
Benefits of a Spec Home
- Move-in ready with no construction wait time
- Get a brand-new home with modern features
- What you see is what you get—no construction surprises
- Often includes builder warranty protection
Green Construction
Green construction focuses on building homes that are environmentally friendly and energy efficient. These homes are designed with sustainability in mind from the foundation to the roof, using eco-friendly materials and energy-saving systems throughout. Green homes might include solar panels, advanced insulation, energy-efficient appliances, water-saving fixtures, and sustainable building materials.
The standards for green building have evolved significantly. Many green homes now aim for certifications like LEED (Leadership in Energy and Environmental Design) or ENERGY STAR to verify their efficiency and environmental benefits.
Who Is Suited for This Type of Home?
Sustainable home construction appeals to environmentally conscious buyers who want to reduce their carbon footprint and save on utility bills. These homes work well for people who plan to stay in their home long-term, as the higher upfront costs often pay for themselves through energy savings over time. They're also great for those with allergies or sensitivities, as green homes typically have better indoor air quality.
Benefits of Green Construction
- Lower utility bills through energy and water efficiency
- Healthier indoor air quality with non-toxic materials
- Reduced environmental impact
- Potentially higher resale value
- Possible tax incentives or rebates
Stick-Built Homes
Stick-built homes are the traditional method of home construction built entirely on-site, piece by piece. These homes get their name from the "sticks" of lumber used to frame the house, with construction crews building everything from the foundation up right on your property. Carpenters cut and assemble the lumber on-site, creating a custom frame for your specific home design.
This construction method has been used for centuries and remains the most common way to build houses in America. Stick-built homes offer tremendous flexibility in design and can be built in virtually any style, from colonial to contemporary.
Who Is Suited for This Type of Home?
Stick-built homes are ideal for buyers who want traditional construction methods and complete customization options. They work well for people building on unique or challenging lots where pre-built components might not fit easily. This method also appeals to buyers who prefer having direct oversight of the entire building process, watching their home take shape from the ground up.
Benefits of a Stick-Built Home
- Maximum flexibility for design changes during construction
- Strong, durable construction that can last for generations
- Easy to modify or renovate in the future
- Often preferred by lenders and insurance companies
Masonry Homes
Masonry homes are built using materials like brick, stone, concrete block, or a combination of these. Unlike wood-framed houses, masonry homes have walls made of solid, non-combustible materials that provide exceptional durability and fire resistance, especially compared to stick-built homes. These homes often feature exposed brick or stone as both structural elements and aesthetic features.
Masonry construction has been used for thousands of years and creates some of the longest-lasting structures ever built. Modern masonry homes combine these time-tested materials with current building techniques for energy efficiency and comfort.
Who Is Suited for This Type of Home?
Masonry homes exceed the typical standars of residential construction with exceptional durability, fire resistance, and low maintenance exteriors. They're perfect for people building in regions with extreme weather events like hurricanes or areas prone to wildfires. Masonry construction also attracts buyers who plan to stay in their homes for decades and want a structure that will stand the test of time.
Benefits of a Masonry Home
- Superior durability and longevity compared to other construction types
- Excellent fire resistance and protection from extreme weather
- Better sound insulation from outside noise
- Lower insurance costs in many regions due to safety features
- Minimal exterior maintenance required
Panelized
Panelized homes use pre-built wall panels constructed in a factory, then shipped to your lot for assembly. Unlike modular homes that come in complete box-like sections, panelized construction ships flat wall panels that include framing, sheathing, windows, doors and exterior siding already installed. The panels are then quickly assembled on-site on a prepared foundation.
This approach combines some benefits of both stick-built and modular construction. The factory-built panels ensure precise construction in a controlled environment, while the on-site assembly allows for more design flexibility than fully modular homes.
Who Is Suited for This Type of Home?
Panelized homes work well for buyers who want faster construction than stick-built but more design flexibility than modular. They're good for people building in remote locations since panels can be more easily transported than full modular sections. This method also appeals to buyers who want quality control of factory building but the customization options of traditional construction.
Benefits of a Panelized Home
- Faster construction time than stick-built (typically 30-60% faster)
- Better quality control for wall systems built in a factory setting
- Less waste and greater energy efficiency
- More design flexibility than modular construction
- Reduced on-site labor costs
Which Type of New Construction Home Is Best For You?
Taking time to answer these questions will help you choose the construction type that's right for your situation. Remember that no matter which option you choose, doing your homework on builders is key to a successful project.
Building a home can be a rewarding and enjoyable experience, but only if you're working with the right home builder. If you would like to build a home, spend time interviewing local builders with a good reputation and plenty of experience. Interview at least three home builders.
Get references, look at the previous work, and discuss prices. By taking the time to find the right builder, you'll be happier with your new construction home.
Ready to move to the great state of Tennessee? Call The Ashton Real Estate Group of RE/MAX Advantage with Nashville's MLS at (615) 603-3602 to talk with a real estate agent who can help you find your dream Tennessee home.
