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Building Materials Makers Miss Out on Housing Boom
Despite record levels of residential construction, manufacturers of wallboard, carpeting, roofing, insulation and other basic materials have not enjoyed a significant windfall. Added manufacturing capacity during the housing boom of the late 1990s, recent home builder consolidations and builder access to alternative, less-expensive products can be blamed for their inability to hike materials prices. According to builders, stable materials costs have kept home prices down even as land costs and permit fees have risen. However, prices of lumber and engineered-wood products surged last year — but only in response to wildfires and ramped-up demand following Hurricane Isabel. (www.wsj.com)
Wall Street Journal (02/03/04) P. B8; Carlton, Jim
Green Houses in St. Augustine Will Save on Energy Costs
In St. Augustine, FL, the St. Johns Housing Partnership will team up with World Island Builders to erect 32 single-family homes priced between $103,000 and $117,000 near the downtown area. Low-income buyers will benefit from $20,000-$25,000 in downpayment assistance from the housing partnership as well as green building techniques designed to make occupants healthier and minimize the effects of development on the environment. According to St. John Housing Partnership Executive Director Bill Lazar, the homes at Hancock Place will be energy-efficient and use landscaping to reduce water consumption. Green building aims to preserve the health of residents with materials that produce fewer chemicals, ventilation systems to provide fresh air and designs that take advantage of natural light. The U.S. Green Building Council has established a new chapter in North Florida so area builders can learn more about the strategy, which Jacksonville-based engineer Mark Gelfo says slashes long-term operational and maintenance costs. Stetson University's Eugene M. & Christine Lynn Business Center is the only structure in Florida to be certified by the council's Leadership in Energy and Environmental Design (LEED) program, but two others in Alachua County are currently being considered for certification. (www.jacksonville.bcentral.com)
Jacksonville Business Journal (02/02/04) Penland, Dolly
Risk Doesn't Deter Growth in Fire-Prone Areas
Despite the recent wildfires in California that killed 25 people and destroyed more than 3,600 homes, experts anticipate even more growth in fire-prone areas in the future. Scores of residents are fleeing to the wilderness to escape crowded cities, purchase vacation retreats or find low-cost housing. The forest lifestyle is popular in other states as well, but it is more dangerous in California and the Rocky Mountain states — Idaho, Montana, Wyoming, Utah, Colorado, Nevada, New Mexico and Arizona — due to dryer climates and lax enforcement of restrictions intended to minimize fire risks. California residents living within the "wildland-urban interface" must clear the brush surrounding their dwellings and use certain roofing materials, among other rules; but officials in the Rocky Mountain states have not imposed any such mandates. According to California's forestry department, 7.2 million homes are located in high-risk areas. Insurers in California avoid home owners who refuse to comply with fire standards, and rapid growth has prompted those in the Rocky Mountain states to follow suit. (www.usatoday.com)
USA Today (02/04/04) P. 12A; Ritter, John
Homes: Ownership Reached Record Levels in '03
A Census Bureau report documents a new peak in U.S. homeownership levels. Propelled largely by historically low mortgage rates, the number of Americans who owned their homes bumped up from 68.3% in the fourth quarter of 2002 to 68.6% at the end of last year. The minority homeownership rate, meanwhile, climbed to unprecedented levels for both the fourth quarter and for 2003 as a whole, the Census Bureau added. (www.chicagotribune.com)
Chicago Tribune (02/04/04) P. 3-2
Builders Advance Plan to Create Affordable Housing
The Long Island Builders Institute wants New York lawmakers to pass a bill that would boost densities for residential projects of five or more units for developers that set aside 10% of the units for lower-income residents. The group has released a report entitled "Homebuilders' Blueprint for Producing More Reasonably Priced Homes," which calls for higher densities in return for affordable housing; encourages the development of special districts with housing for seniors, entry-level workers and first-time home buyers; and supports tax abatements for first-time buyers as well as multi-level strip shopping centers with housing components. According to Long Island Builders Institute Executive Vice President Robert Weiboldt, "Affordable housing can be done attractively, clustered on smaller parcels of land that use fewer roads and provide more open space." However, without higher densities, he insists that builders will be forced to cater to upscale home buyers. Low-cost housing is a major issue on Long Island, considering that home prices have surged 81% since 1999 and continue to outpace income gains, which have drifted up just 14% in comparison. Builders expect school districts and incorporated villages with minimum lot sizes of one or more acres to reject their proposals. In related news, U.S. Rep. Steve Israel (D-Huntington) soon will introduce legislation that would offer financial assistance to home buyers in communities home to firms with $5 million-plus contracts from the Department of Defense or the Department of Homeland Security. (www.nytimes.com)
New York Times (02/01/04) P. K6; Paquette, Carole
Concrete Now a Lofty, Funky Design Concept
The 2004 New American Home, unveiled at the recent International Builders' Show in Las Vegas, attempts to bring the loft into the suburbs. According to architect W.A. "Lex" van Straten, the loft could pave the way for high-density, single-family, suburban development. The $1.8 million model home covers 5,180 square feet and incorporates an insulated concrete form (ICF) foundation, copper roof shingles and a steel-frame roof with structural insulated panels to guarantee better energy efficiency than traditional wood-frame dwellings. In fact, heating, cooling, hot water and lighting will cost 46% less in the New American Home. Other features include numerous types of concrete flooring, mosaic tile, a media room, a wine cellar, a galley kitchen, an outdoor kitchen and fireplace and a reflecting pool. Despite the upscale finishings, the residence still has an industrial feel complete with the exposed ductwork seen in lofts in Chicago, Philadelphia and other cities. (www.philly.com)
Philadelphia Inquirer (02/01/04) P. J1; Heavens, Alan J.
More Buyer Input by Design
A growing number of builders are letting home buyers participate in the design process, according to NAHB research executive Gopal Ahluwalia. Today's buyers know more about design trends than those in the past because of the Internet, television and print publications; and many want the chance to personalize their dwellings. Buyers will actually seek out builders that offer flexible designs, which have been made easier with technology. San Francisco-based architect Richard Hunt already communicates with clients via fax, e-mail and Web cameras; and he believes that online sketches are on the horizon. Buyers want more involvement when it comes to interior design, mainly because community associations impose rules regarding exterior paint colors and architectural styles. New Jersey architect Peter Pivko speculates that buyers also leave the exterior to the builder in order to maintain the home's curb appeal and preserve its resale value. (www.sunspot.net)
Baltimore Sun (02/01/04) P. 1L; Snodgrass, Lucie L.
Companies Join With Congressional Leaders to Launch Internet Access Campaign
One Economy's "Bring IT Home" campaign aims to provide high-speed Internet access, online portals and other technology tools to the 12 million people currently living in government-subsidized housing. The program works with developers to include technology in affordable housing designs and calls for state governments to include the costs of Internet access in household operating budgets, much in the way that utilities are. "Our goal is to maximize the efficiencies of the Internet and create a means to get low-income families online rather than standing in line," remarks One Economy CEO Rey Ramsey. The non-profit organization is partnering with Cisco Systems, eBay, the Fannie Mae Foundation, Freddie Mac, Microsoft, Verizon, Yahoo! and others to accomplish its goals. So far, officials in Alabama, California, Iowa, Kentucky, Missouri, Nebraska, New Mexico, Ohio, Oregon, Pennsylvania, South Dakota and Wisconsin have changed their housing policies as a result of the campaign. (www.usnewswire.com)
U.S. Newswire (02/02/04)
Nevada Test House Cuts Energy Usage by 42 Percent
Architect Sarah Susanka designed a demonstration home in Nevada that incorporates numerous energy-efficient features, such as a photovoltaic solar-panel system, air conditioning and heating ducts under the floor, placement of installation for the most energy savings and a steel-coated roof with reflective material. The Home by Design offers energy savings of 42% compared to a regular home. The building of homes in the area based on the design could reportedly allow Nevada Power to abandon a plan to launch a 150-Mw power plant in the region. (www.chicagotribune.com)
Chicago Tribune (01/31/04) P. 21; Edwards, John G.
Printers: Small Office, Shoestring Budget
For small business owners dealing with tight budgets and increased demand, PC Magazine tested 17 affordable laser printers and compared them in terms of cost, quality and efficiency. Color laser printers have become popular among small businesses, especially as they decline in price. The low-cost models tested by PC Magazine include monochrome, color and multifunction lasers ranging from under $300 to $750. While the cheaper models lacked stacking, sorting and double-sided printing functions, they all boasted high-quality images and top speeds. (www.pcmag.com)
PC Magazine (02/03/04) P. 16; Metz, Cade
E-mails That Sell
E-mail advertising and promotion can be a tricky technique for many sales representatives, but following specific guidelines can make e-mail advertising more successful in garnering new clients and selling other services to existing clients. For instance, experts suggest remaining professional in e-mail, addressing the client as Mr. or Mrs., unless otherwise informed, and sales reps should always check spelling and grammar before sending an electronic communication. Short promotions can be concise, offer a coupon or trial period for specific services or just inform potential and current clients of the latest products, but those messages should be tailored to the needs of the client. ValPak's Judith Deal cautions reps never to give out too much information in e-mails, saying they should only provide customers with the information they need or request. Moreover, reps should be cautious about the language they choose when sending out promotional materials via e-mail; managers should ensure they are not giving out pricing information or using overly aggressive language that could scare off potential clients. Finally, sales representatives should be intent on building a rapport with customers, complete with a feedback loop and phone and face-to-face meetings. (www.sellingpower.com)
Selling Power (02/04) Vol. 24, No. 1, P. 46; Atlas, Steve
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