A system and method of panelized construction for use in construction of a building module, such as a residential housing addition. A plurality of pre-fabricated panels, such as wall panels, roof panels, floor panels, and ceiling panels may be provided to decrease on-site building time. The panels may comprise one or more covering layers pre-installed on a frame. The panels may also comprise pre-installed insulation or other core materials. The panels may further comprise a pre-installed portion of a house system, such as an electrical system. Additionally, the panels may comprise pre-installed windows, doors, or skylights. The panels may be designed to meet the residential building code requirements of one or more jurisdictions to decrease permitting time and inspection delays. The panels and other materials may be included in a building kit for a building module to be constructed by contractors or do-it-yourselfers.