Like many cities nationwide, Louisville faces a housing crisis, with a shortage of affordable, entry-level single-family homes for prospective homeowners. According to the city’s recent housing plan released in 2024, the median home price in Louisville is $242,900, which is affordable only to families earning 100% or more of the Area Median Income (AMI), currently $89,700 for a family of four. To address this issue, Louisville and cities nationwide are increasingly turning to manufactured homes as a solution, recognizing the need to include these homes in zoning for new developments and urban infill projects.
Years ago, Louisville took a forward-thinking approach by permitting manufactured homes, provided they aligned with the architectural characteristics of existing neighborhoods. A dedicated team within the city researched and discovered that factory-built homes could be a viable, affordable housing option. However, the city had yet to fully realize this potential.
Manufactured Housing in Louisville Finds Its Champion
Stacey Epperson, Next Step’s founder and president, recognized Louisville for its proactive steps in removing barriers to affordable housing. Louisville’s Office of Housing and Community Development’s former Director, Marilyn Harris, and the new Director, Laura Grabowski, embarked on a journey to explore whether factory-built homes could meet the city’s housing needs.
In the early 2000s, Marilyn attended a Louisville Manufactured Home Show, but the homes she saw did not meet her expectations. The industry at that time was focused on single-section homes sold on retail lots, and she was searching for homes indistinguishable from site-built homes that could blend seamlessly into urban neighborhoods.
Twenty years later, Marilyn returned to the Louisville Manufactured Home Show and discovered modern, high-quality homes that far exceeded the standards she remembered. Today, these homes not only meet higher quality standards and offer curb appeal but also qualify for Fannie Mae and Freddie Mac loans, making them accessible to a broader range of homebuyers.
Leading the Charge for Affordable Housing
Marilyn Harris, impressed by Next Step’s relentless efforts, sought to ensure these homes were placed on permanent foundations, allowing buyers to qualify for conventional market-rate loans. She spearheaded efforts to support the opening of a new modular plant in Louisville’s underserved West End and launched a demonstration program showcasing how these homes could revitalize vacant city lots.
This initiative required strong leadership and a commitment to shifting perceptions. Marilyn exemplified this dedication. Though she has recently retired, her legacy ensures that future homebuyers in Louisville will have the opportunity to own a greener, more affordable home built in a factory.