Category: Clayton Homes

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Clayton Homes

Berkshire’s Clayton is Building Affordable Homes in Denver

Berkshire Hathaway’s Clayton Homes’ subsidiary, Oakwood Homes, has listed 96 single-family homes for sale at Green Valley Ranch, one of the fastest-growing communities in metro Denver.

On2 Homes, Oakwood Homes’ newest brand, is offering four distinct floor plans, with two-and-three-bedroom options available to prospective buyers. With a starting listing price in the low $300’s, On2 Homes’ prices start at half the median cost of a single-family home in metro Denver, now more than $600,000.

“Our customers have been stuck,” said Kristen Nelson, president of the On2 Homes division for Oakwood Homes. “They want to get their foot in the door of the Denver housing market, but steep entry prices keep them trapped in the renting cycle. With On2 Homes, we’re launching a product that delivers the quality of a traditional single-family home at a uniquely affordable price point.”

The affordability of On2 homes is driven by an innovative approach that merges off-site and site-built construction and supply processes, resulting in decreased build time and cost for homeowners. This method also demonstrates Oakwood Homes continued success in making homes constructed with off-site-built and site-built practices indistinguishable from one another.

Built in an off-site home building facility, On2 offers cost-effective, energy-efficient and high-quality homes at a fraction of the cost of site-building. At off-site design centers, On2 Homes uses precision-building techniques to maximize cost, speed and energy efficiency without compromising quality. With unique design features like EnergySmart® utility systems and weather proofing, On2’s single-family homes deliver high quality finishes at a price accessible to more Coloradans. Oakwood guarantees every On2 homebuyer full ownership over their property’s land rights – an increasingly rare opportunity in today’s housing market.

In 2021, metro Denver experienced a 19.3% year-over-year increase in the median listing price of a single-family home. With single-family starter homes beginning at more than $600,000, many Denver residents find themselves priced out of the housing market. With On2 Homes, Oakwood hopes to address Denver’s shortage of affordable single-family homes, expanding the possibility of homeownership to all the city’s residents.

As of December, Colorado has the fourth worst housing shortage in the United States. To keep pace with population gains, the state needs to build 54,000 new housing units annually over the next five years. Much of this burden falls on the homebuilding and construction industry. By utilizing efficiencies found in off-site home building and modular construction, the homebuilding industry can help answer the demand for affordable housing.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Clayton Homes

Clayton Showcases Its First Net-Zero Home

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Berkshire Hathaway’s Clayton, a national builder of off-site and site-built homes, has unveiled its first net-zero electricity home.

Unveiled at the 2022 Berkshire Hathaway Shareholders meeting in Omaha, Nebraska, the home showcases energy-efficient features available to Clayton customers today, as well as new technologies Clayton is exploring for future innovation – including solar power.

“Clayton is committed to building sustainable and attainable homes,” said Kevin Clayton, CEO. “Whether it’s building this net-zero home or through our volunteer program, Clayton Impact, our team members aim to leave a lasting, positive impact on our communities and the planet.”

The net-zero electricity home showcased at the Berkshire Hathaway Shareholders Meeting is The Pulse floor plan, paired with several energy efficiency upgrades and a solar roofing system. Features on the home currently available to customers include Energy Star® appliances, LED lights, Lux windows with argon, 22-21-50 insulation package and an ecobee® smart thermostat. Additional upgrades, not currently offered through Clayton, include CertainTeed® Solar shingles and Benjamin Moore® low-VOC paint. This net-zero electricity home costs just under $230,000 before the cost of land and solar panels.* With all of these upgrades combined, the home produces enough electricity to power itself.

“Our design teams are dedicated to creating homes with the features our customers want while upholding our vision for beautiful, modern design,” explained Megan Foster, Interior Design Manager. “Across all aspects of the building process, from materials to innovative design, Clayton Built homes are built efficiently and thoughtfully to serve as an attainable home solution for a growing number of people.”

Just one 64-gallon bin of waste was collected during the off-site building process of the net-zero electricity home, which was displayed during the annual meeting, helping attendees conceptualize the low amount of waste accumulated during the off-site home building process.

“From the building process to homeownership, Clayton aims to incorporate sustainability across our business,” said William Jenkins, Director of Environment and Sustainability. “While we are continuing to improve the energy efficiency of our homes, our sustainability efforts also include improving the energy and fuel efficiency of our operations, increasing our reliance on renewable energy, and setting ongoing reduction targets for waste and water consumption.”

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Acquisitions Clayton Homes

Berkshire Hathaway’s Clayton Homes Acquires Richmond, Virginia-Based Home Builder

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Berkshire Hathaway’s Clayton Homes has added to the rapidly growing number of site-built homes companies that it owns with the acquisition of Richmond, Virginia-based CraftMaster Homes.

On July 1, Clayton’s Clayton Properties Group used its South Carolina-based Mungo Homes to acquire CraftMaster Homes. CraftMaster Homes is Clayton’s first site-builder in Virginia.

The company is headed by Jeff Tunstall, who has been building homes in the Richmond-area for the past twenty years and will be staying with the company.

“We are thrilled to align CraftMaster Homes with a company who shares our values and drive to create an enjoyable customer experience,” Tunstall said. “This opportunity will allow us to grow our team and our footprint in the Richmond housing market. We take pride in the homes we build and the lives we touch, and we are excited to be able to reach even further with our partnership with Mungo Homes.”

“The partnership with Clayton has given us this opportunity to grow,” Steven Mungo, CEO of Mungo Homes notes. “The joining of CraftMaster Homes and Mungo Homes creates tremendous synergy and adds a strategic location to the Mungo footprint. We are excited to work together, to learn from one another, and to serve the housing needs of the Richmond area for years to come.”

Mungo Homes itself was acquired by Clayton Homes in 2018, and Clayton has been moving aggressively to add site-builders to its subsidiary Clayton Properties Group. CraftMaster Homes is its 13th acquisition since it began acquiring companies in 2015.

Acquired by Berkshire Hathaway in 2003 for $1.7 billion, Clayton Homes has grown into a diverse builder offering traditional site-built homes, modular homes, manufactured homes, tiny homes, college dormitories, military barracks and apartments.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Acquisitions Clayton Homes

Clayton Homes Acquires Alabama Site-Builder Legacy Homes

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Berkshire Hathaway’s Clayton Homes has once again expanded its footprint in the site-built homes market with the acquisition of a site-building company in Huntsville, Alabama.

In June, Clayton’s Goodall Homes, a major site-builder in Nashville, Tennessee, acquired Legacy Homes, the largest private homebuilder in the Huntsville market, including Huntsville, Athens, New Market, Meridianville, and Monrovia.

Legacy Homes is constructing over 400 homes in 2021, and has built over 1,500 homes since the company’s founding in 2013.

The addition of Legacy Homes will allow Goodall Homes to continue to expand its new home footprint in North Alabama.

The current Legacy Homes leadership team will retain their roles within the company, with Jeff Korotky continuing in the role of division president.

Combined, the four principals of Legacy Homes – Korotky, Mark Hunter, Shawn Fairburn and Dan Nash – have more than 100 years of experience in the home building industry.

“The Legacy Homes team is thrilled to be a part of the Goodall family and looks forward to continuing our commitment to excellence with a group that values culture, character and integrity, and makes customer experience a top priority,” Jeff Korotky said.

Legacy Homes is the twelfth site-builder that Clayton Homes has acquired since it first started adding site-builders in 2016.

Acquired by Berkshire Hathaway in 2003 for $1.7 billion, Clayton Homes has grown into a diverse builder offering traditional site-built homes, modular homes, manufactured homes, tiny homes, college dormitories, military barracks and apartments.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Acquisitions Clayton Homes

Clayton Homes Subsidiary Arbor Homes Acquires R&R Plumbing

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Clayton Homes subsidiary Arbor Homes has acquired R&R Plumbing Inc. in a deal that closed July 1.

Financial terms were not disclosed.

Former owner Dick Poynter, who founded R&R in 1989, will remain as president and continue daily management of the operations. R&R has more than 90 employees.

“On behalf of the entire R&R Plumbing community, we are honored to join the Arbor Homes team and look forward to doing our part in providing high-quality affordable housing to central Indiana for many years to come,” Poynter said.

Founded in 1994, Arbor Homes was acquired in July 2018 by Berkshire Hathaway’s Clayton Properties Group Inc., a division of Berkshire Hathaway.

The R&R acquisition is the second for Arbor since it became part of Clayton Properties.

In December 2020, the company acquired Franklin-based Fisher Contracting, a land development company.

Arbor filed 1,372 single-family building permits in 2020, up from 1,188 the previous year. It has built more than 14,000 new homes in the Indianapolis area since its founding in 1994.

“We are excited to welcome this like-minded company into the Arbor Homes family,” Pete Logan, chief operating officer for Arbor said in written rcoook. “This partnership will help expand our mission of building great neighborhoods and homes for people across the state, where they can fully experience and celebrate life.”

Acquired by Berkshire Hathaway in 2003 for $1.7 billion, Clayton Homes has grown into a diverse builder offering traditional site built homes, modular homes, manufactured homes, tiny homes, college dormitories, military barracks and apartments.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Acquisitions Clayton Homes

Clayton Homes Acquires Its 11th Site-Builder Company

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Berkshire Hathaway’s Clayton Homes has continued to expand its footprint in the site-built homes market with the acquisition of a site-building company in the Boise, Idaho metro area.

Summit Homes, a subsidiary of Berkshire’s Clayton Properties Group, has acquired Berkeley Building Co., a top residential home builder and developer based in Meridian, Idaho. The acquisition took place on May 3.

Berkeley will continue to operate under the Berkeley Building Co. brand name in its current new home communities in Boise metro, with Joe Atalla, Founder, overseeing operations. Heather Atalla will continue as Berkeley’s Founder/CFO and Jenna Englund will maintain her role as President of Berkeley, as well as the other members of their team. The addition of Berkeley will allow Summit to expand its new home footprint into Idaho as well as provide an entry into the Boise new home market.

“We are thrilled to expand into the Boise market and welcome Berkeley to the Summit family,” said Fred Delibero, CEO of Summit Homes. “It was clear that both companies share very similar core values and cultural alignment. We are both focused on providing a high-level of customer experience to our new home buyers.”

Joe Atalla launched Berkeley Building Co. in 2008 in Boise, Idaho. Berkeley currently builds in seven new home communities in the Boise market. The new home builder is also known for its commitment to charitable giving and has been a longtime supporter of St. Jude Research Hospital through its building of the St. Jude Dream Home for over a decade.

“We are excited for the opportunity to not only partner with Summit Homes and join Clayton Properties Group, but to also join the Berkshire Hathaway family,” said Joe Atalla. “Joining forces just makes sense as we are all working toward common goals: to provide a first-class homebuilding experience and provide extraordinary resources to our team members to grow and develop, both of which will be enhanced through this partnership.”

“Berkeley’s success as a builder is an impressive testament to their passion, talent and values. They have developed an outstanding team that builds exceptional homes while upholding the experience as their top priority,” said Delibero. “We could not be more excited about the future and the opportunities this will bring our buyers and team members.”

Berkeley Building Co. is the eleventh site-builder that Clayton Homes has acquired since it first started adding site-builders in 2016.

Acquired by Berkshire Hathaway in 2003 for $1.7 billion, Clayton Homes has grown into a diverse builder offering traditional site-built homes, modular homes, manufactured homes, tiny homes, college dormitories, military barracks and apartments.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee

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Clayton Homes

Clayton Homes to Build 350 Site-Built Homes in Pfafftown, North Carolina

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Berkshire Hathaway’s Clayton Homes will build 300 to 350 site-built homes on a former estate in Pfafftown, North Carolina.

The 184-acre former estate of Eldridge “Redge” and Jane Hanes was sold to Clayton Homes for $4.5 million and will be developed by Clayton’s Mungo Homes division, and marketed under the Shugart Homes brand.

Mungo Homes was acquired by Clayton Homes in 2018, and Shugart Homes was acquired by Clayton in 2019.

The manor house will be demolished, however, a guest/boat house that sits at the 22-acre lake on the property will be refurbished.

Berkshire’s Clayton Homes, which is the largest producer of manufactured homes, has been moving aggressively into the site-built market, and is already among the top-ten site-builders in the U.S.

Clayton Homes has acquired ten site-built companies since it first started adding site-builders in 2016.

Acquired by Berkshire Hathaway in 2003 for $1.7 billion, Clayton Homes has grown into a diverse builder offering traditional site-built homes, modular homes, manufactured homes, tiny homes, college dormitories, military barracks and apartments.

Read a Special Report on how Kevin Clayton has transformed Clayton Homes.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Clayton Homes

Clayton Goes Solar to Power Texas Facility

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Berkshire Hathaway’s Clayton, a Tennessee-based home builder of site-built and off-site built homes, has installed its first 200 kilowatt solar carport system at its Clayton Sulphur Springs home building facility in Texas.

The system was installed by Solar One, and will allow the company to offset 30 to 40 percent of the facility’s on-demand electricity use with renewable energy, while providing shade for its team members’ vehicles.

“Our new solar carport system not only serves as a cost savings tool but also as a pivotal example of Clayton’s commitment to sustainable building and innovation,” said Gavin Mabe, director of engineering and technology at Clayton. “Our team is very proud to further promote our national green building initiative by creating clean renewable energy that our facility will use to build hundreds of homes every year.”

The new solar power system has the potential to help Clayton Sulphur Springs’ team save just over $24,000 per year in energy costs. To enhance the company’s team member experience, the solar panels were installed in the parking lot to provide shade for team member vehicles and ensure a safer ground location for long-term maintenance of the solar carport system.

“We hope this new solar panel system will serve as a test for further renewable energy enhancements across Clayton,” said Don McCann, general manager of Clayton Sulphur Springs. “Our company is dedicated to tapping smarter, sustainable energy sources and innovative technology to create a cleaner building process for our Clayton Built® homes.”

The solar carport installation is part of ongoing efforts to utilize sustainable building and innovation practices at Clayton. The Clayton Sulphur Springs facility, along with all 40 Clayton off-site home building facilities around the nation, have earned ISO (International Organization for Standardization) 14001 registration for their sustainable building practices. This highly regarded registration helps ensure that sustainable building guidelines are implemented to promote green practices that increase recycling, reduce energy use and decrease landfill waste.

© 2020 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Acquisitions Clayton Homes

Clayton Homes Acquires Ninth Site Builder

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Berkshire Hathaway’s Clayton Homes, the leading builder of manufactured homes, is quickly becoming a big player in the site built home business. Clayton has acquired Highland Homes, a Florida home builder that is the ninth home builder acquired by Clayton in just three years.

In its 23rd year, Highland, which is based in Lakeland, Florida, is headed by the father and son team, Bob and Joel Adams. Both will be staying on to run the company under Clayton.

The builder will join Clayton Properties Group, a division of Clayton Home Building Group that is based in Maryville, Tennessee.

Highland’s focus is on the low and midprice market, which fits with Clayton’s market approach for its site built homes.

“We are thrilled to join Clayton Properties Group’s family of builders,” said Joel Adams, Highland Homes’ executive vice president, in the statement. “The partnership with Clayton opens up tremendous opportunity for our team members to continue our focus on building high-quality, affordable homes in Central Florida with a strong emphasis on customer experience and market growth.”

Ranked 75th on the 2018 Builder Magazine’s Builder 100 list, Highland built 800 homes in 2018, and is aiming to construct 980 in 2019.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Acquisitions Clayton Homes Special Report

Special Report: Kevin Clayton Transforms Clayton Homes

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“Would you believe where we are after just three years,” Kevin Clayton, president and CEO of Clayton Homes, says about the company’s move into the site builder business.

It’s a business that Clayton is growing rapidly, and he just acquired Highland Homes in early May, a Florida home builder that is the ninth home builder acquired by Clayton in just three years.

It’s all part of an increasing emphasis on site built homes for the low and midprice market, notes Kevin Clayton.

“It’s a market that has an average price point of $318,000, Clayton says, “which is well under the national average of over $400,000.”

Clayton Homes, which runs its site builders under its Clayton Properties Group, a division of Clayton Home Building Group that is based in Maryville, Tennessee, is already ranked 18th on Builder Magazine’s Builder 100 list and rising fast.

Clayton Homes has been named “Builder of the year” for 2019. It’s an award that really pleases Kevin Clayton.

“To think we weren’t even in that business three years ago,” Clayton says proudly.

Clayton is looking to acquire more site builders, but notes they must meet four criteria.

“First, the owner must be willing to stay around and work,” Clayton says. “Second, they must have survived the last recession; third, they must focus on building low and midprice houses, and fourth, but not least, they must be customer focused and really care about the customer experience.”

Clayton Homes was founded in 1956, by Kevin Clayton’s father Jim Clayton, and Kevin Clayton has led the company since 1999, when he took over from his father.

Acquired by Berkshire Hathaway in 2003 for $1.7 billion, Clayton Homes has grown into a diverse builder offering traditional site built homes, modular homes, manufactured homes, tiny homes, college dormitories, military barracks and apartments.

Improvement in Manufactured Homes

Kevin Clayton is also positive about his manufactured homes business, which he emphasis use the same 30-year shingles as a traditional site built home.

“We don’t have metal roofs anymore,” Clayton says. “Our manufactured homes have a lifespan that’s the same as a site built home.”

Clayton is also building a new type of manufactured homes, for now dubbed New Class Homes, which meet Fannie Mae and Freddie Mac standards. By qualifying, borrowers have lower down payment requirements and lender fees. The homes qualify for a MH Advantage loan, and must be “designed to meet specific construction, architectural design and energy efficiency standards,” according to Fannie Mae.

The move dramatically reduces the amount of down payment borrowers have to come up with. MH Advantage loans require a 3 % down payment, down from 5% previously. In addition, Fannie Mae does not charge its 50-basis-point loan-level price adjustment for manufactured housing loans.

“New Class Homes represent only a couple of percent of our revenues right now,” Kevin Clayton says, but he sees lots of rooms for growth.

The overall manufactured home business is strong.

“The manufactured home business is up 6-7 percent this year,” Clayton says.

Clayton emphasized the environmental advantages manufactured homes, which produce far less waste than traditional site built homes.

“All our 42 facilities are ISO 14001 certified, which is all about environmental standards,” Clayton says.

ISO 14001 is the international standard that specifies requirements for an effective environmental management system.

Clayton has moved much of its supply chain in-house, building more of its own components.

“We build our own windows,” Clayton notes.

Why Consumers Buy Manufactured Homes

It’s a type of housing that opens home ownership to a broad range of consumers that are locked out of housing market as traditional home prices have skyrocketed.

“Fifty percent of people we help with a home would not qualify for Fannie Mae or Freddie Mac mortgages,” Clayton says.

A big part of that access to homes is the greatly lower price point. A manufactured home can be purchased for $69,000 and has an average cost of only $116,000 with land.

“In rural America there’s not a lot of apartment options,” Kevin Clayton notes. “Many of our customers have been living with family, and are looking for an affordable way to live on their own.”

Clayton especially notes the popularity of manufactured homes for five-acre ranches.

“Where there’s land, we shine!”

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.