One of the country’s largest builders is reaching out to buyers young and old with the message that its homes can help them save money on energy bills.
Maryville, Tenn.-based Clayton is capitalizing on the importance of environmental stewardship among millennials and first-time home buyers as well as retirees and active adults, says CEO Kevin Clayton. The modular home building company aims to show potential buyers that its factory-built homes have many environmental benefits.
“Currently, just over 30 percent of our customers are millennials,” he says. “We’re looking to grow that number with energy-smart construction and lifestyle amenities.”
Clayton Homes CEO Kevin Clayton
Clayton offers buyers energy-saving features like smart thermostats, low-E windows and efficient water heaters. In addition, the company recently achieved ISO certification for all 36 of its home-building facilities by meeting a voluntary set of measures designed to reduce the cost of waste management and energy consumption. Here, BUILDER talks with Kevin Clayton about how the company is reaching out to eco-conscious buyers.
Are you seeing an increase in millennial-aged buyers?
We are! As more and more Millennials get older and closer to their 30s, they are considering homeownership for the first time. This group has notoriously rented in the past instead of buying houses because of fear of being tied down to a specific location or a large debt, but manufactured and modular homes are increasingly becoming a smart, affordable option for them. Currently just over 30% of Clayton customers are millennials.
Why do you think millennials are becoming more interested in factory-built homes?
Millennials did not grow up with the stigma of post-WWII mobile homes like their parents and are more open to viewing the modern manufactured home as a quality, affordable housing option with beautiful floorplans and amenities. Not only that, these homes are extremely customizable and can fit just about any lifestyle.
MORE CLAYTON NEWS
The Clayton empire is growing. Last week, Clayton Properties, a Berkshire Hathaway subsidiary, acquired all of the operating assets of Summit Custom Homes in Missouri. This is in addition to its recent acquisitions of Goodall Homes and Chafin Communities.
This year, Clayton is on track to build 40,000 homes, up from 34,000 in 2015.
In what parts of the country are you doing the most business?
Over the years, traditionally we have have done more business in the Southeast where the manufactured housing business has a strong foothold. Though not surprisingly, our most successful Clayton Homes locations are currently in Colorado and California. In regions where traditional housing costs have risen to all-time highs, a factory-built home is a smart investment and allows the buyer to allocate more money toward land.
What other demographic groups do you see a lot of?
Another very large demographic for our homes is baby boomers (or Zoomers) who are looking to downsize and retire soon yet want to remain active and entertain. The bulk savings from production-line construction means that the prices on our homes can remain low, while the amenities can be high-end or upgradeable, allowing our customers to live in ultimate comfort while spending money on travel and leisure.
Something that appeals to buyers at both ends of the demo spectrum is sustainability, from a cost-saving, energy efficient perspective and from an environmental stewardship perspective. Clayton’s recent ISO certification validates the company’s commitment to responsible corporate citizenship. The implementation of the ISO standard across 36 of Clayton’s home building facilities will lead to reduced waste, decreased energy consumption, and the promotion of recycling building materials.
