Petersburg embraces factory-built homes to boost affordable housing

Modernized manufactured homes are helping fill the gap for starter homes in the city.

Mar. 13, 2026 at 11:36am

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In Petersburg, Virginia, developer Tom Heinemann is building dozens of factory-built homes on vacant lots, targeting low- and moderate-income families. These updated manufactured homes, which are placed on permanent foundations, offer more affordable housing options compared to traditional construction. The city has embraced this approach, even though manufactured homes have historically faced stigma and been confined to trailer parks. With the housing shortage driving up prices, Petersburg sees these factory-built homes as a way to provide starter homes and help more people build wealth.

Why it matters

Across the country, cities and states are grappling with a shortage of affordable housing. Manufactured homes offer a faster and more cost-effective solution, but have long been stigmatized. Petersburg's embrace of these updated factory-built homes on permanent foundations shows how they can help fill the gap for starter homes and provide more accessible paths to homeownership, especially for lower-income families.

The details

The new factory-built homes in Petersburg's Delectable Heights neighborhood don't look like stereotypical mobile homes. With pitched roofs, front porches, and permanent foundations, they blend in with the surrounding single-family homes. Developer Tom Heinemann is putting up dozens of these homes, which are built off-site and then assembled on vacant lots. The homes are being rented out to low- and moderate-income families, with an option to buy after 15 years. Compared to traditional construction, the factory-built approach is nearly half the cost per square foot and allows for faster development. While some cities have been resistant to allowing these types of homes, Petersburg officials granted approval after Heinemann explained they would be on permanent foundations, not mobile.

  • In December 2025, resident Kennisha Missouri moved into one of the new factory-built rental homes.
  • In 2026, an additional 10 new factory-built homes are being sold directly to buyers in Petersburg.

The players

Tom Heinemann

A developer with MH Advisors who is putting up dozens of factory-built homes on vacant lots in Petersburg, targeting low- and moderate-income families.

Kennisha Missouri

A resident who moved into one of the new factory-built rental homes in Petersburg in December 2025, finding the spacious home to be a more affordable option than her previous apartment.

Howard Myers

A former mayor and current city councilman for the Delectable Heights neighborhood in Petersburg, where the factory-built homes are being constructed.

Kenston Fields

A Petersburg resident who recently decided to buy one of the factory-built homes, impressed by the quality and price.

Rachel Siegel

An expert from the Pew Charitable Trusts research and policy organization, who notes that manufactured housing can help fill the gap for affordable starter homes.

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What they’re saying

“Room to raise their kids, walk to school and all of those amenities that people generally like about single-family homes, but bring it to people who ordinarily would be in a three-story walk-up or a town house or apartment.”

— Tom Heinemann, Developer

“Like I designed it myself. I love it.”

— Kennisha Missouri, Resident

“Starter homes that were built in the '50s and '60s just aren't made today. Manufactured housing really can fill that gap very well, without subsidy, which is unique for this type of housing.”

— Rachel Siegel, Pew Charitable Trusts

“I was sold the moment I walked in. It's beautiful. Could have fooled me.”

— Kenston Fields, Resident

What’s next

Lawmakers in Virginia have passed legislation to relax zoning restrictions on manufactured homes, and sweeping federal housing legislation could further boost the industry by eliminating the requirement for a permanent chassis. These changes could make it easier for factory-built homes to expand into suburbs and cities, helping to address the nationwide shortage of affordable starter homes.

The takeaway

Petersburg's embrace of modernized manufactured homes shows how these factory-built options can provide more affordable housing options and pathways to homeownership, especially for low- and moderate-income families. As cities and states grapple with housing affordability challenges, this approach offers a scalable solution that can help fill the gap for starter homes without requiring public subsidies.