As high housing prices continue to challenge many Kentuckians seeking to own a home, the Kentucky Energy and Environment Cabinet is working with Next Step, a Louisville-based nonprofit organization, and the Kentucky Manufactured Housing Institute (KMHI) to demonstrate the role modern manufactured homes can play in providing affordable, high-quality, and energy-efficient housing across the commonwealth.

This effort comes following a statewide policy change that inhibits local governments from passing regulations that create discriminatory requirements for manufactured housing that are not required of site-built homes. Additionally, this project aligns with Governor Andy Beshear’s Energy Strategy, which emphasizes lowering energy costs for Kentuckians, expanding access to energy-efficient housing, and strengthening local communities through practical, market-ready solutions.

Today’s manufactured homes blend quality, efficiency and affordability, making them an attractive option for many prospective homebuyers, including first-time buyers and aging homeowners seeking to downsize into a more accessible home. Manufactured homes are built using a process-based construction approach that offers more predictable timelines and a controlled environment, reducing delays and preventing damage or material loss due to weather and other factors.

Additionally, energy efficiency standards and building codes for manufactured homes have improved significantly over time. Many older manufactured homes were built before modern efficiency requirements and often have limited insulation, inefficient windows, and outdated heating and cooling systems.

According to the Department of Energy (DOE), manufactured homes built before 1980 consume an average of 53% more than all other types of homes. In contrast, today’s manufactured homes are built to much higher performance standards, with better insulation, tighter building envelopes, high-efficiency HVAC systems, and ENERGY STAR® appliances, resulting in lower energy use and reduced utility bills.

The DOE Efficient New Homes standard (formerly Zero Energy Ready) sets even higher energy-efficiency requirements. The DOE has extensively studied manufactured homes built to these different standards. Their findings show that during the cooling season, Efficient New Homes use about half the energy of ENERGY STAR homes. For heating, ENERGY STAR and Efficient New Homes use similar amounts of energy, both requiring about one-third of the heating energy used by homes built only to the U.S. Department of Housing and Urban Development (HUD) code, which represents the minimum standard for manufactured homes today.

There are several financing options available for today’s manufactured homes, many of which offer interest rates and loan terms comparable to traditional site-built homes, including 30-year fixed-rate mortgages. New manufactured homes may also qualify for government-insured lending programs, such as Federal Housing Administration (FHA) and Veterans Administration (VA) loans. Through this partnership, Next Step is supporting Kentuckians by providing online and local homebuyer counseling services and connecting prospective buyers to its national lender network. Reach out to Next Step today.

Interested in learning more? Next Step offers a free homebuyer guide with checklists and budget worksheets, as well as a tool to help identify down payment assistance opportunities. You can find even more homebuyer tools and resources in their Resource Library.

Ready to see manufactured housing in action? Throughout 2026, Next Step and KMHI will showcase modern manufactured homes across Kentucky, inviting local officials and the public to tour homes that meet the DOE’s Efficient New Homes standards (formerly Zero Energy Ready) and are equipped with solar components. Sign up for the Office of Energy Policy’s newsletter to be notified when these tours are announced, or email Hailey Mullins at hailey.mullins@ky.gov for more information.