This paper reviews aspects of current design procedures for seismic design of structures, and specifically examines their relevance to the design of light framed residential buildings under earthquake loading. The significance of the various structural contributions made by the components of cold formed steel framed residential structures subjected to earthquake induced loadings has been investigated. This is a common form of residential construction worldwide. Particular attention is given to aspects related to ductility and overstrength, the latter arising principally from the contributions of the designated "non-structural" components. Based on both analytical and experimental data obtained from research investigations on steel framed residential structures, typical ranges of the ductility reduction factor and overstrength ratios are determined. It is concluded that the latter parameter has a very significant influence on the seismic design of such structures. Although the numerical ranges for the inelastic seismic parameters given in this paper were obtained for Australian houses, the concepts and the highlighted aspects of seismic design methodology are more widely applicable.