PETERSBURG, Va. — At first glance, the house parked on a muddy lot along a residential street not far from City Hall looks like it has been ripped apart right down the middle.
But the opposite is happening. A construction team is pushing together two halves of a brand-new factory-built house in the middle of this neighborhood of small single-family homes.
Once it’s set, with its pitched roof and front porch, it won’t look like anyone’s stereotype of a mobile home. Across the street, two big trucks roll in from Pennsylvania to deposit another house, this one with blue siding and beige window shutters.
For decades, manufactured homes have faced stigma and been confined to trailer parks. But that’s changing with updated designs and higher-quality construction — and as cities and states struggle with a housing shortage that has pushed prices out of reach for many.
The new houses here are part of a larger push to allow factory-built homes in more places — to rent and also to buy, along with the land underneath.
Developer Tom Heinemann with MH Advisors is putting up dozens of such homes on vacant lots in Petersburg, targeting low- and moderate-income families.
“Room to raise their kids, walk to school and all of those amenities that people generally like about single-family homes,” he said. “But bring it to people who ordinarily would be in a three-story walk-up or a town house or apartment.”
“Like I designed it myself”
Kennisha Missouri had not seen other manufactured homes nearby when she moved into one last December, and she admits she was skeptical. The photos online seemed fine. But she still expected it to look like older models in trailer parks.
Still, the rent for a four-bedroom home included utilities and was lower than what she was paying for a smaller two-bedroom apartment. Missouri works in recovery care and has two children, one not yet a year old. She signed up sight unseen.
When she finally saw the spacious rooms, walk-in closet and kitchen island with amber-colored hanging lights, it was “like I designed it myself,” she said. “I love it.”
Her new home is one of nearly four dozen manufactured rental houses built with a federal tax credit and restricted to people with lower incomes. After 15 years, Missouri will have the option to buy it. Another 10 new homes are being sold right away.
With the cheaper rent, she doesn’t have to work as many hours at her side gig doing hair and is still able to save up.
“The money that I was using to pay the utilities, I actually pocketed it,” she said. “It makes my life a little easier.”
Filling the gap in starter homes
Creating manufactured housing is faster than building on-site and is nearly half the cost per square foot. Federal construction standards have improved quality and also mean developers don’t need local approval for every project. All that makes the homes hard to beat in a housing market where costs have escalated sharply.
“Starter homes that were built in the ’50s and ’60s just aren’t made today,” said Rachel Siegel of the Pew Charitable Trusts, a research and policy organization. “Manufactured housing really can fill that gap very well, without subsidy, which is unique for this type of housing.”
So far, nine states have relaxed zoning restrictions on manufactured homes, and lawmakers in Virginia have passed similar legislation. But it can still be harder and more expensive for buyers to finance such homes, because they’re considered personal property, not real estate.
“Modernizing these state policies to make it easier and faster to get a mortgage just like any other mortgage is really crucial to affordability,” Siegel said.
Another big change may be coming. Sweeping housing legislation making its way through Congress would end the requirement that factory-built homes have a permanent chassis. The steel frame allows the housing to be transported, but many manufactured homes — like those in Petersburg — are placed on permanent foundations and never moved again.
Getting rid of a chassis would cut construction costs and allow more flexible design, making it easier to add a second story or basement, for example, industry experts say. It could also make it easier to expand manufactured housing into suburbs and cities.
At a HUD housing showcase on the National Mall last fall, Colt Davis with Clayton Homes showed off a 990-square-foot two-bedroom with an attached garage and front porch. Such a home would be perfect for a smaller lot in a dense environment, he said, “where land cost has become one of the major drivers … putting pressure on housing affordability.”
From start to finish, it took about six days to construct. That may not cut costs enough for the priciest cities, like New York or Los Angeles, but Davis said, “In most areas, we expect to be able to bring this home to market at $250,000 or less.”
“This neighborhood has transformed”
In Petersburg, the factory-built homes are popping up in the Delectable Heights neighborhood, known for the many affluent freed slaves who lived there before the Civil War. More recently, the area has struggled, since tobacco and other manufacturers moved out of the city decades ago.
“This was all dilapidated, this block right here,” said Howard Myers, a former mayor and current city councilman for the area. As he walked down a street, he pointed out lots where he had pushed for old homes to be torn down. “They were run-down. They were vacant. Some were drug ridden.”
Now, he said, “This neighborhood has transformed.”
The manufactured homes are making it safer, while helping more people build wealth, Myers said. And that applies not only to the newest renters or homeowners but also to longtime residents.
“When you have a dilapidated home, two and three and four to a block, and you’re the only homeowner on the block, it drastically affects your ability to maintain your financial wealth,” he said.
When developer Heinemann approached Petersburg about placing manufactured homes here, they were technically not allowed because they were considered mobile. But officials granted approval after he explained that the houses would be on a permanent foundation.
It wasn’t so easy in Harrisonburg, Va., where Heinemann faced “a very painful process” getting the OK for 800 housing units. Public hearings went into the wee hours, he said, as residents voiced opposition, “relying on the old tropes that [manufactured homes] depreciate. … They don’t look good. They’re not built to high-quality standards.”
After explaining none of that is true anymore, he finally got the go-ahead. The stigma persists, but he believes people can be sold when they actually see the homes.
Back in Petersburg, a chance encounter proved that.
Kenston Fields was in a good mood as he came out of a cottage-style, three-bed, two-bath home with deep blue siding. After a grueling nine-month search, he’d just decided to buy the place for him and his 84-year-old dad.
“I was sold the moment I walked in. It’s beautiful,” he said, adding it was a great deal for the price.
Did he know when he walked in that it was factory built?
“I’m pretty sure if I would’ve had a bingo card I wouldn’t have guessed that,” he said with a laugh. “Could have fooled me.”
