On a recent visit to Clayton’s manufactured home building facility in Andersonville, TN, one of the greatest benefits of off-site construction became readily apparent when the skies opened just seconds after I stepped through the door.

Torrential rains would have quickly shut down any outdoor construction project, but within the facility, the more than 200 Clayton Appalachia team members kept building. In fact, this well-oiled machine turns out about seven double-section homes each day. 

These homes are built to Clayton’s eBuilt® standards, featuring efficiency upgrades that help cut energy costs by up to 50%. Beyond Clayton’s standard level of efficiency, these homes also feature upgrades that certify them to the U.S. Department of Energy’s Zero Energy Ready Manufactured Home (ZERMH) program.

This is a big deal. Why? Because manufactured housing is the largest source of unsubsidized affordable housing in the country, according to the U.S. Department of Housing and Urban Development (HUD). 

Energy Savings

Since 2005, Clayton has built more than 260,000 certified Energy Star and Zero Energy Ready homes that have helped homeowners save an estimated $127 million in annual energy bills.

Meeting the DOE’s ZERMH program requires attention to detail, and many of the program’s features come standard in Clayton’s eBuilt design. Here are some of the key features of these homes:

• Upgraded insulation
• Sealing the building envelope and ducts against air leakage
• Efficient heat pumps for heating and cooling
• Smart thermostats
• Energy Star certified dishwashers and refrigerators
• Efficient LED lighting
• Low-E windows with argon gas

Manufactured Homes Offer Affordability, Opportunity

In North Carolina, one of the top four states for manufactured home shipments, there are about 470,000 occupied manufactured homes, and 91% are low-income households. The average monthly housing cost for manufactured home households in North Carolina is $655. Still, it’s nearly double that for all other home types, according to the North Carolina Housing Finance Agency. 

A 2023 study by the Joint Center for Housing Studies at Harvard University compares the costs of manufactured homes with those of a similar-sized site-built home. Single-section and double-section manufactured homes were 35% and 60%, respectively, of the cost to build the same size site-built home. The table below summarizes the analysis from the study. It’s important to note that this analysis does not include the cost of land.

Table 2: National Construction Cost Estimates

According to 2025 housing affordability data from the National Association of Home Builders, nearly 60% of households can’t afford a $300,000 home. Manufactured homes can help fill the affordability gap, but energy-efficient manufactured homes are key to ensuring an affordable total cost of ownership. One-quarter of manufactured homeowners are considered severely cost burdened, spending more than 10% of their income on energy costs. 

In 2024, one-third of new site-built single-family homes received a HERS® Rating, which quantifies the energy efficiency of the home on a scale from zero to 100, where a lower score is better.

Currently, manufactured homes do not get a HERS Rating when they are built. However, there is an opportunity to provide HERS Ratings for this home type going forward, which will provide for better transparency and easier comparison of energy efficiency among site-built and manufactured homes. Receiving a HERS Rating may also open this home type to local utility incentive programs that could lead to further efficiency improvements.

Final Thoughts

Housing affordability is becoming increasingly strained as more than half of households can’t afford a $300,000 home. Manufactured housing, with its fast, efficient processes, has the potential to fill more of the affordable housing gap. Energy-efficient manufactured homes, such as Clayton’s eBuilt homes, ensure an affordable purchase price and total cost of ownership for the households that need it most.