Was originally going to use 3 1/2" until a carpenter recommended 2 1/2' for the basement. The price difference is about 30 cents per stud and the insuation batts will be held in place by wire spanned along back of studs. Yes ,I will be holding framing 2"- 3" from foundation wall. Some folks recommend 24" spacing, although I feel the standard 16" suits me and allows 15" wide batts to fit properly.
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