diff --git a/src/newgrf_house.cpp b/src/newgrf_house.cpp
--- a/src/newgrf_house.cpp
+++ b/src/newgrf_house.cpp
@@ -421,7 +421,7 @@ uint16 GetHouseCallback(CallbackID callb
 	return group->g.callback.result;
 }
 
-void DrawTileLayout(const TileInfo *ti, const SpriteGroup *group, byte stage, HouseID house_id)
+static void DrawTileLayout(const TileInfo *ti, const SpriteGroup *group, byte stage, HouseID house_id)
 {
 	const DrawTileSprites *dts = group->g.layout.dts;
 	const DrawTileSeqStruct *dtss;
@@ -444,7 +444,7 @@ void DrawTileLayout(const TileInfo *ti, 
 
 		if (IS_CUSTOM_SPRITE(image)) image += stage;
 
-		if ((HasBit(image, SPRITE_MODIFIER_OPAQUE) || !IsTransparencySet(TO_HOUSES)) && HasBit(image, PALETTE_MODIFIER_COLOR)) {
+		if (HasBit(image, PALETTE_MODIFIER_TRANSPARENT) || HasBit(image, PALETTE_MODIFIER_COLOR)) {
 			if (pal == 0) {
 				const HouseSpec *hs = GetHouseSpecs(house_id);
 				if (HasBit(hs->callback_mask, CBM_HOUSE_COLOUR)) {
@@ -467,10 +467,11 @@ void DrawTileLayout(const TileInfo *ti, 
 				ti->x + dtss->delta_x, ti->y + dtss->delta_y,
 				dtss->size_x, dtss->size_y,
 				dtss->size_z, ti->z + dtss->delta_z,
-				IsTransparencySet(TO_HOUSES)
+				!HasBit(image, SPRITE_MODIFIER_OPAQUE) && IsTransparencySet(TO_HOUSES)
 			);
 		} else {
-			AddChildSpriteScreen(image, pal, (byte)dtss->delta_x, (byte)dtss->delta_y, IsTransparencySet(TO_HOUSES));
+			/* For industries and houses delta_x and delta_y are unsigned */
+			AddChildSpriteScreen(image, pal, (byte)dtss->delta_x, (byte)dtss->delta_y, !HasBit(image, SPRITE_MODIFIER_OPAQUE) && IsTransparencySet(TO_HOUSES));
 		}
 	}
 }