On Saturday, May 11th, 2024, something happened in my hometown of Hagerstown, Maryland, that many people in the offsite construction industry believed could become a turning point for HUD-code housing in America. Kensington Woods officially opened as the first new community in the country to feature CrossMod homes on permanent foundations in an R1 residential-zoned neighborhood.
For those unfamiliar with the concept, CrossMods were supposed to bridge the gap between traditional manufactured housing and site-built homes. These weren’t homes sitting in leased-land communities or tucked away in special zoning districts reserved only for manufactured housing. This was different. The lots would be owned by the homeowners themselves, just like a traditional subdivision. More than 200 lots were planned, and the vision sounded impressive.
I attended the grand opening that day along with top HUD officials, industry leaders, and several longtime friends from the offsite construction world. There was optimism in the air. People smiled, shook hands, posed for photos, and talked about how this development might help change public perception about factory-built housing.
At the time, it honestly felt like the beginning of something important.
The Promise of CrossMod Housing
The CrossMod concept had all the ingredients the industry said it needed. Permanent foundations. Attached garages, even though the ones in Kensington Woods didn't have them. Drywall interiors. Higher roof pitches. Front porches. Features designed specifically to make these homes blend into conventional neighborhoods and qualify for more traditional financing.
The bigger goal, however, was something much deeper than cosmetic upgrades. The industry hoped CrossMods would finally erase some of the stigma attached to manufactured housing by placing these homes into neighborhoods where site-built homes had traditionally dominated.
Kensington Woods looked like the perfect test case.
The location was good. The homes looked attractive. The infrastructure was in place. Industry support was strong. If CrossMods were ever going to prove themselves in a traditional residential setting, this appeared to be the moment.
But sometimes the market has other ideas.
One Year Later
About a year after that grand opening, I drove back through the community to see how things were progressing. I expected to see " Sold " signs, landscaping, kids’ bikes in driveways, maybe a few residents grilling hamburgers in the backyard.
Instead, most of the homes still had “For Sale” signs in front.
Very few appeared occupied. A couple eventually sold over the following months, and at one point, another new CrossMod home was added to the development. But the momentum many expected never really materialized.
That alone was surprising.
Then came the bigger surprise.
The Development Changed Direction
Last month, I drove through Kensington Woods again and almost thought I had entered the wrong development.
New roads were being paved. Construction equipment was everywhere. Crews moved quickly from lot to lot. But these weren’t CrossMods being installed.
These were two-story IRC-code tract homes being built by a national home builder.
And they were going up fast.
In fact, the speed of construction was one of the things that immediately caught my attention. The first three homes seemed to appear almost overnight compared to the slow pace surrounding the original CrossMod launch.
Meanwhile, a couple of the original CrossMod homes still sat there waiting for buyers.
At that moment, it became obvious something had changed behind the scenes.
What Happened?
I don’t yet know the full story. Somewhere along the line, the original developer appears to have encountered problems or made a business decision that shifted the project's direction. I plan to learn more because developments like this matter for the future of offsite housing.
But standing there, watching conventional tract homes replace what had once been promoted as a groundbreaking CrossMod community, raised some difficult questions.
Was it pricing? Financing? Consumer perception? Appraisal challenges? Marketing?
Or was it simply that buyers still preferred traditional site-built homes when given the choice?
The truth may end up being a combination of all of them.
A Missed Opportunity
What makes this story especially disappointing is that Kensington Woods had the potential to become a national showcase project for CrossMod housing. The industry desperately needed a success story that could point to real consumer acceptance inside a conventional residential subdivision.
Instead, the development appears to have quietly pivoted away from the very concept that made it unique.
That doesn’t necessarily mean CrossMods can’t succeed elsewhere. But it does suggest the path forward may be far more difficult than many people wanted to believe.
One successful subdivision could have opened the door for lenders, appraisers, zoning officials, and national builders to take another serious look at the concept. Instead, this development may become another example of how difficult it is to change decades of consumer perception and market behavior.
Modcoach Observation
The offsite industry sometimes falls in love with the idea of what should work before the market decides if it actually will. CrossMods looked great on paper. Industry leaders supported them. Government officials promoted them. The homes themselves were attractive. But buyers still have the final vote, and they cast it with their wallets.
What happened at Kensington Woods doesn’t mean innovation failed. It means the industry still hasn’t completely figured out how to convince enough traditional homebuyers that factory-built housing belongs beside conventional homes in America’s subdivisions. Until that changes, the dream of CrossMods becoming a mainstream housing solution may continue to struggle, one development at a time.
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