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Taylor Morrison finds offsite components cut cycle times and costs
In its Austin division, the builder narrowed the premium for offsite components from 16.1% to 0.7%, citing cycle-time gains in framing and insulation readiness.
Taylor Morrison is increasingly using offsite components in its Austin division as builders face soft margins, uneven demand, and chronic labor shortages, HousingWire reports. The company says faster construction cycle times and improved trade coordination can help offset the higher upfront price of factory-built elements.
The Austin division evaluated offsite options beyond bid price and found that cycle time and operational savings narrowed a 16.1% premium to 0.7%. Its internal data also showed the biggest cycle-time improvements were concentrated around framing inspection and insulation readiness, HousingWire reported.
Taylor Morrison began adopting offsite components in 2020, after building homes through conventional stick framing. The approach gained additional experience and capabilities after the builder acquired William Lyon Homes just before the COVID pandemic, which brought a more component-heavy operating model.
As cost pressure became a more dominant driver, the division expanded its analysis through 2024 and 2025, including using a “Total Cost of Ownership” framework. HousingWire reports that by January 2026 the Austin division began piloting component construction on move-up homes, as it continued refining how to scale with fewer workers.