I have a house built around 1910 with dimensional 2x4's spaced 16" apart. There are enough different issues going on that it makes sense to strip the exterior down to the studs and rebuild the exterior in a more modern way with at least basic insulation and air sealing. We are in New England, zone 5A. Because batt insulation isn't ideal for dimensional 4" studs, I'm wondering about the possibility of furring out the exterior side of the studs by 1.5" to 5.5" in order to use batts meant for nominal 2x6 studs. I'd be adding sheating, replacing windows, and attaching something like Hardie Plank siding.
Is this ever done? My searches only come up with info for doing the interior of walls.
If so, and done right, can I consider the new outside surface of the studs for nail penetration considerations when attaching siding and sheathing, or do I still need to penetrate the original 2x4?
Any guidance and consideration here would help a ton.