The NextGen project seeks to identify alternative methods, materials, and building systems for manufactured homes by working with an industry advisory group and other experts. HUD developed the project in response to the rapid growth of manufactured housing in suburban and urban infill locations and to demands to make these homes more closely resemble conventional housing. HUD plans to encourage the manufactured housing industry to construct the NextGen prototypes to further evaluate the innovations.

The uses envisioned for the two models differ from the typical market pattern, in which single-section (SS) manufactured homes are likely to be purchased by first-time homebuyers and double-section (DS) models are purchased by retirees. The NextGen SS design is intended to be purchased by retirees and to be built on moderate-sized plots in land-lease communities or subdivisions in the southeast United States. An add-on porch and garage visually closes off the front of the lot, creating a private side yard. This yard is made more private by eliminating windows on one sidewall of each unit. The living room faces the street.

The NextGen DS is designed for first-time buyers, especially in the northeast and north-central regions. It is planned for an urban infill site and designed to fit in among older homes. The pointed roof is hinged and raised on site, creating a usable second floor and requiring the addition of a stairway. The prototype includes a basement.