The increasing adoption of prefabrication in the Global North reflects a response to the urgent demand for safe and affordable housing. This demand is compounded by the necessity to meet contemporary standards for aesthetic quality, structural safety, and energy performance, all within the context of the current climate and safety challenges. Prefabrication, underpinned by the principles of design for manufacturing and assembly (DfMA), offers a pathway toward modernizing construction practices. Specifically, lightweight steel profile technologies, particularly suited for low- and mid-rise buildings, offer an efficient solution to meet these evolving demands. However, to achieve widespread adoption, further optimization is necessary. The reduction of material use, fabrication waste, and production time, alongside cost reduction, will be critical in aligning prefabrication technologies with sustainable development goals. This paper presents an eight-step methodology in which manufacturing and assembling strategies are considered since product development and according to which materials and components are selected, prototyped, and tested to optimize both mechanical and environmental performance. The methodology has been validated through an academic and industrial venture that aimed to optimize a lightweight cold-formed steel volumetric system for housing applications. The study demonstrated to achieve a system that fully met the structural requirements while also minimizing the use of material, waste, and production time. In doing so, this work contributes to a broader effort to modernize construction practices and address the dual imperatives of safety and climate resilience.