A wall assembly is manufactured for supporting an exterior covering of a structure. The wall assembly includes a frame assembly including a top member and a bottom member spaced from the top member. The frame assembly further includes a plurality of vertical members spaced from each other and coupled to and extending between the top and bottom members. The plurality of vertical members each have an exterior surface configured to face an exterior of the structure. A rigid foam layer is directly coupled to the exterior surface of the plurality of vertical members. A sheathing layer is coupled to the rigid foam layer opposite the plurality of vertical members with the sheathing layer configured to receive the exterior covering.