Clayton Homes, the Maryville, Tenn. producer of modular houses, is turning its marketing focus to millennials amid the shortage of inventory and rising prices in the existing home market.
Clayton’s pitch is pinned on energy efficiency and an affordable price. “Unlike previous generations, millennials are less concerned with having the biggest home,” the company states in a press release. “In 2016, the median size of a new home actually declined by 2%.
As a demographic, millennials also share different obstacles to attaining home ownership than those who came before them. According to the Harvard Joint Center for Housing Studies (HJCHS), many first-time home buyers possess the household income to qualify for home ownership but struggle to save money for a down payment due to lingering debts from student loans and other debts. This combined with a low supply of available, affordable houses and a high pool of active buyers is driving up prices and competition. According to the U.S. Census Bureau, the share of millennials in 2015, or adults born between 1982 and 2000, comprises more than 25% of the population. At 87 million strong, millennials are the largest generation in history, according to HJCHS.
“Many millennial home buyers believe that owning a dream home is out of reach,” Clayton CEO Kevin Clayton said. “However, Clayton provides an affordable housing solution that fits within the budget of millennials, while not sacrificing on quality or amenities. Manufactured and modular homes are affordable, stylish, energy efficient and customizable – the perfect solution for such a unique generation.”
Millennials have housing preferences that differ in many ways from other generations. According to the Census Bureau, the median size of a new single-family home declined by 2% in 2016. While this is a modest decline, it is the first time since 2009 that the median size has declined. Millennials are also focused on having homes that are energy efficient. Clayton provides homes with energy efficient options such as programmable thermostats, upgraded insulation, double paned UV windows and sealed ductwork.
