Clayton Homes
| Company type | Subsidiary |
|---|---|
| Industry | Manufactured housing, Modular homes |
| Founded | 1956 |
| Founder | Jim Clayton |
| Headquarters | Maryville, Tennessee , United States |
Key people | Kevin T. Clayton (President and CEO) |
| Products | Manufactured homes, Modular homes, Mortgages, Insurance |
Number of employees | 16,000 (2019) |
| Parent | Berkshire Hathaway |
Clayton Homes stands as the foremost manufacturer of manufactured housing and modular residences within the United States. It functions as a fully owned subsidiary under the umbrella of Berkshire Hathaway, headed by Warren Buffett.
The firm’s main office is situated in Maryville, Tennessee. Its principal divisions encompass Clayton Home Building Group, Clayton Properties Group, Vanderbilt Mortgage, 21st Mortgage, along with the insurance provider HomeFirst Agency. These entities collectively support Clayton’s vertically integrated business approach, merging home construction, financing, and insurance services to enhance its market foothold and stimulate growth.
Kevin T. Clayton holds the position of President and CEO, responsible for guiding strategic direction and managing operations across construction, manufacturing, and financial sectors. Through its corporate framework and broad service portfolio, Clayton Homes sustains a competitive edge in the manufactured housing marketplace.
History
Established in 1956 by Jim Clayton', the company initially specialized in refurbishing and reselling pre-owned mobile homes. A decade later, in 1966, it inaugurated its first retail location in Knoxville, Tennessee. The company expanded its operations by founding a mortgage division in 1974 and initiating a manufacturing arm in 1975. Clayton Homes went public on the New York Stock Exchange in 1983 and earned recognition on Forbes list of best small companies from 1989 through 1992. In 1999, Jim’s son Kevin Clayton took over as CEO after serving in multiple leadership capacities.
By 2002, revenue reached $1.2 billion, preceding the acquisition by Berkshire Hathaway in 2003 for $1.7 billion—a pivotal event that reshaped its corporate structure and global reach. Following this merger, the company’s shares were removed from public trading. Revenue escalated to $3.66 billion by 2007. In 2008, Clayton Homes divested its land-lease communities segment to Yes Companies LLC to concentrate on subdivision development and introduced the energy-efficient i-house line.
By 2009, over 1.5 million homes had been sold under the Clayton brand alongside the launch of the cost-effective eHome model. The company encountered legal challenges in 2011 concerning formaldehyde emissions in portable classrooms supplied for disaster relief but refuted any allegations of misconduct. In 2015, accusations arose regarding discriminatory lending practices; Warren Buffett publicly defended the company’s lending strategy and overall business model.
Growth initiatives continued through collaborations and acquisitions: working with Oak Ridge National Laboratory and Skidmore, Owings & Merrill on pioneering 3D-printed housing; acquiring Chafin Communities based in Georgia (2015), Goodall Homes from Tennessee (2016), and River Birch Homes located in Alabama (2016). Additionally, Clayton partnered with nonprofit organization Next Step to create affordable modular housing solutions in Texas.
In 2016, Clayton entered the tiny home sector with its "Low Country" prototype, garnering media attention for advancing affordable housing innovation. By July 2017, Clayton Properties Group acquired Harris Doyle Homes in Birmingham, Alabama, reflecting an increased emphasis on site-built homes priced below $250,000 across vital markets such as Atlanta, Nashville, Kansas City, Denver, and Birmingham.
In 2019, Clayton Homes teamed up with advertising agency Made to launch the "Prefabulous" campaign aimed at boosting brand presence and dispelling misconceptions about manufactured housing. As of 2021, Clayton Properties Group ranked eighth on Builder Magazine’s Top 100 U.S. home builders list with $2.98 billion in gross revenue—demonstrating ongoing expansion and effective leadership within the industry.
Operations
Clayton Homes manufactures residences under a variety of brand names, such as Buccaneer Homes, Cavalier Homes, Clayton Homes, Crest Homes, Giles Industries, Golden West Homes, Karsten Company, Marlette Homes, Norris Homes, Schult Homes, and Southern Energy Homes. Its retail divisions include Oakwood Homes, TruValue Homes, and Luv Homes. In 2016, the company expanded by acquiring G&I Homes, a family-owned business headquartered in New York.
By 2019, Clayton operated 40 manufacturing plants and maintained more than 350 retail locations throughout the United States, employing around 16,000 individuals. The firm produces approximately 50,000 homes each year—accounting for nearly half of the industry's total output—by constructing them off-site in sections that are later assembled at the final location. Clayton has also adopted environmentally conscious practices at its facilities; for example, it recycles waste materials to minimize landfill impact and has cut water consumption by 50% at its Bean Station plant in Tennessee through efficiency improvements.
Philanthropy
In 2015, Clayton Homes introduced the Patriot home model and partnered with Hope for the Warriors, an organization dedicated to supporting veterans. That January, Clayton contributed $33,600 to the group, which assists veterans from all military branches including post-9/11 active duty personnel as well as National Guard and reserve members. In May 2016, the company increased its philanthropic involvement by donating $100,000.
By 2019, Clayton Home Building Group had become a founding sponsor of Hope for the Warriors' Warrior’s Compass Suite initiative, committing $300,000 to help veterans transition into civilian employment.
Additionally, Clayton Homes works alongside Family Promise by donating multiple homes annually to families experiencing homelessness. In 2021 alone, the company provided $450,000 and three prefabricated homes to support efforts aimed at preventing homelessness.