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Cement Crunch Throws a Wrench in Home Building
Builders in Florida are bracing for a worldwide cement shortage. Inventory has been drastically reduced at suppliers, forcing builders to slow their production schedules. The Florida Concrete and Products Association blames China's construction frenzy for the shortage, although the opening of two new mills in the state could alleviate the crunch. The Florida Department of Transportation's Maryemma Batchelder has heard of significant jumps in home prices in response to the cement shortage. (www.bradenton.com)
Bradenton Herald (05/05/04) P. 1; Joseph, R.P.
Green Gets Real
Green construction is popping up in affordable developments in many cities as builders begin to understand its benefits to lower-income residents. Home owners achieve substantial cost savings with energy-efficient appliances, heating systems and windows and plumbing fixtures that use less water, among other things. One home owner in the South Bronx neighborhood of New York City is able to heat his three-family, 4,000-square-foot building for just $225 per month due to the energy-saving features installed by developer Les Bluestone. However, many developers balk at eco-friendly projects because of the costs involved as well as the difficulty of persuading buyers to pay more money upfront to take advantage of long-term savings. A number of state and local governments have responded with incentive programs for developers willing to adopt green building practices. For instance, builders in New Jersey receive as much as $7,500 for energy-saving features; while those in California are forced to embrace green construction if they hope to win tax credits for low-cost housing. (www.nytimes.com)
New York Times (05/06/04) P. D1; Rich, Motoko
Homes More Affordable in First Quarter
Lower home prices, coupled with income gains, boosted the National Association of Realtors' housing affordability index from 138.7 in the fourth quarter of 2003 to 144.1 during the first three months of this year. The national median home price reached $170,800 in the first quarter, but NAR reports that the average family earned enough to purchase a residence costing $246,100. Dwellings are still affordable in the current quarter, according to NAR, despite recent jumps in mortgage rates. (www.investors.com)
Investor's Business Daily Online (05/04/04) P. A2
Taking Basements to the Next Level
Today's home owners are taking the finished basement to a new level in order to maximize space without a more expensive above-ground addition. Before basement projects can commence, home owners must consider water problems and take care to install multiple sump pumps and dehumidifiers, keep gutters clean and make sure water flows away from the foundation. They also must decide how to heat the area, with options including radiant and zoned heating. Radon tests are recommended as well. Experts say the most popular basement projects involve saunas, lap pools, bowling alleys, home theaters complete with seating and concession stands, dance floors, weight rooms and wine cellars. Some even want extra bedrooms or in-law apartments in the basement. These improvements can range in price from $18,000-$40,000 for a basic playroom to more than $100,000 for more extensive work. Do-it-yourself projects typically cost less, but experts urge home owners to leave all but the painting to professionals. (www.jsonline.com)
Milwaukee Journal Sentinel (05/02/04) P. 1N; Ivey, Jo-Ann
Home Buying Getting Out of Reach in Some Metro Areas
Research by the Fannie Mae Foundation on the affordability of homeownership concludes that median-priced housing remains within financial reach of buyers in Philadelphia, Atlanta and Houston but is drifting away from working families in Chicago, Denver, Seattle and the nation's capital. A home at the median price — which neared $169,000 nationwide last year while the median income was at $54,500 — already has become unaffordable for New Yorkers, Bostonians and residents of Los Angeles and San Francisco, according to the study. The escalation in property prices combined with stagnant incomes has particularly strong implications for public workers, notes Fannie Mae Foundation President and CEO Stacey Stewart, who says such employees could find it next to impossible to purchase homes in the markets where they work. (www.ap.org)
Associated Press (04/29/04) Ludwin, James H.
After Years in the Suburbs, Many Blacks Return to City Life
In a reversal of past housing trends, upper- and middle-class African Americans increasingly are seeking a return to inner-city neighborhoods after years of living in the suburbs. Some experts say the trend reflects the failure of America's suburbs to provide a welcoming integrated environment for many black families, while others say it is also an attempt on the part of African Americans to reclaim their roots in the city communities where they were raised. While the interest in moving to the city is growing among African Americans, Rice University sociology professor Stephen Klineberg notes in a recent poll of Houston-area families that four times as many white suburbanites are looking to relocate to the city this year than were the year before. The movement of both white and black middle-class families into inner-city communities is transforming cityscapes across the country, in cities such as Pittsburgh and Atlanta, as land values and development projects are on the rise. However, the trend is creating conflict between long-time residents and the newcomers who are changing the face of their neighborhoods. In Houston's Third Ward, for example, local activists are campaigning against the changes by urging existing residents not to sell their homes to developers. "We want to find people who will make this community better by becoming part of its fabric, not by changing its fabric," notes Rep. Garnet Coleman, who represents the Third Ward and other surrounding communities in Houston. (www.csmonitor.com)
Christian Science Monitor (04/29/04) P. 1; Axtman, Kris
Investing in Outdoor Upgrade, From Landscaping to Decks
Home owners in many areas are spending a significant amount of money on landscaping and other outdoor projects, averaging $317 per family last year. Decks and patios are the most valuable improvements, allowing home owners to recoup more than 100% of their investment when they sell. In addition, the American Homeowners' Association estimates that top-notch landscaping will add another 7%-15% to a property's resale price. The most attractive landscaping, according to experts, involves regional styles, low-maintenance gardens, natural fences, trellises, ponds and fountains. Home owners also are increasingly interested in balconies, outdoor lighting and upscale front doors. As for outdoor kitchens, some are shelling out as much as $25,000 on outdoor ovens, bars, sinks, grills, fireplaces and seating. (cbs.marketwatch.com)
CBSMarketWatch.com (05/01/04) Gerencher, Kristen
Remodeling Growth Slows
Harvard University's Joint Center for Housing Studies reports that remodeling expenditures rose 2.5% in the first quarter, down from a 7.7% growth rate during the same period of last year. The decline can be attributed to higher interest rates. Even with the drop in activity, however, home owners spent an unprecedented $125 billion on improvements in 2003; and directors at the Joint Center expect strong home resales, income gains and the improving job market to continue to fuel the remodeling market. "101 Cost-Effective Ways to Increase the Value of Your Home" author Steve Berges believes home owners will concentrate on projects that enhance the appearance of their dwellings as interest rates edge up. He recommends that those interested in high-yielding improvements consider adding storage sheds, garages, home offices or pantries; installing new faucets, appliances and flooring; repainting; and purchasing new window treatments, furniture and accessories, among other things. (cbs.marketwatch.com)
CBSMarketWatch.com (04/29/04) Kerch, Steve
Innovative Boston-Area Buildings at a Green Standard
City planners, property owners and developers in the Boston area are showing an increasing interest in environmentally friendly and energy-efficient "green" building techniques. The Genzyme Corporation recently opened its headquarters in a new green building in Cambridge, MA, as construction began in Boston on the new Biosquare Research Building D, also a green project. Green building aims to reduce consumption of energy and other resources by using sustainable materials, recycling waste and providing inhabitants with easy access to public transportation. These methods require special materials and trained experts, and therefore green buildings can cost between 1% and 16% more to develop, but supporters say the buildings are less costly in the long run because they operate more efficiently and attract quality renters. Several Massachusetts communities have made green building a priority by providing builders and property owners with incentives, such as making the permit process easier for buildings with green features. In addition, Boston Mayor Thomas Menino has appointed a task force of owners, engineers, contractors and other professionals to make recommendations for a city-wide green building policy by this fall. For buildings to officially qualify as "green," they must register with the U.S. Green Building Council, which rates buildings according to its Leeds standards (leadership in energy and environmental design). The group has certified about 100 buildings since 2000 and is currently evaluating about 1,200 more. (www.nytimes.com)
New York Times (04/28/04) P. C5; Diesenhouse, Susan
The Home's Emotional Center
Kitchen designs now focus on more than just cooking, with the comfort of relatives and friends who gather there now taken into consideration. For many families, this room is used as an entertainment space or place to relax at the end of the day. In response, dining areas and breakfast nooks are being filled with sofas, upholstered benches, chairs or stools with cushioned seats and contoured backs and coffee tables to encourage lengthy gatherings. Removing other dining areas — such as a breakfast room or stools at the kitchen island — also fosters close relationships among family members, as they are forced to eat together in the same room and table. (www.philly.com)
Philadelphia Inquirer (05/02/04) P. K1; Walsh, Michael
Extended-Family Option? Think Privacy, Respect
For the over 2 million American households in which an elderly parent lives with an adult son or daughter, finding an affordable home with enough space and privacy to accommodate all occupants can be a difficult task. One option that is becoming increasingly attractive for multigenerational families is to purchase a custom-built home with two master bedroom suites. According to industry estimates, the extra suite typically increases the price of the residence by about $20,000. Experts advise adult children to provide their elderly parents with enough private space to make them feel comfortable and independent. "It can be very difficult to balance the privacy needs of the senior against the privacy and needs of the adult child and his or her family," cautions geriatrician Dr. Cheryl Woodson. Families should take a number of factors — including health and financial concerns — into consideration when making the decision to combine living spaces. Experts say multigenerational living arrangements are often short-term as these factors change over time. (www.chicagotribune.com)
Chicago Tribune (05/02/04) Adler, Jane
Housing Boom Lifts Forest-Products Industry
Strong housing demand has boosted first-quarter profits for a number of timber companies, including Louisiana-Pacific Corp., Boise Cascade Corp. and Georgia-Pacific Corp. First-quarter net income at Louisiana-Pacific, for instance, surged from $1.5 million during the same period last year to $110 million. Low interest rates and mild weather in the West and Midwest fueled home building activity during the first three months of the year and drove up lumber and plywood costs, which Bank of Montreal timber analyst Stephen Atkinson believes will cool when activity slows in the traditionally slower fall season. Despite the recent jump in mortgage rates, backlogs at many of the nation's builders will help the industry retain profitability during the next several quarters. (www.wsj.com)
Wall Street Journal Online (04/29/04) Carlton, Jim
Rising Interest Rates Can Benefit Real Estate, Too
Rising interest rates do not have to spell doom for the real estate industry and actually can offer some positives, according to Standard & Poor's analysts, who note that mortgage companies have less cause to worry about loan prepayments since refinancing will be less attractive to consumers. With the refi decline, in turn, private mortgage insurers could see fewer defaults on policies that cover lenders on lower downpayment loans, considering that most refinancing borrowers do not need the coverage because they have substantial equity. Higher rates also do not necessarily mean a dramatic slowdown in business for home builders and real estate agents as long as jobs and incomes are rising, too. Moreover, the performance of real estate investment trusts should improve because rates advance as the economy improves, which means that office buildings and hotel rooms will be in greater demand. (cbs.marketwatch.com)
CBSMarketWatch.com (04/27/04) Kerch, Steve
Mortgage Bankers Predict Healthy Real Estate Market Through 2006
Mortgage Bankers Association Chief Economist Doug Duncan believes low inflation will prevent significant hikes in interest rates during the coming years. He predicts that 30-year mortgage rates will hover around 6% at the end of 2004 and climb to a little higher than 7% by the end of 2006. The decline in refinancing activity will cause a drop in originations from $3.8 trillion in 2003 to $2.57 trillion in 2004, $1.96 trillion in 2005 and $1.85 trillion in 2006. However, purchase loans will rise from $1.27 trillion in 2003 to $1.38 trillion in 2004 and $1.42 trillion in 2006. While home prices continue to appreciate by about 4% annually over the next few years, MBA forecasts resales to slip 1.7% this year and to fall nearly 7% in 2005. By historical comparisons, however, sales activity will still be robust. (www.copleynews.com)
Copley News Service (04/26/04) Woodard, James M.
Move-Up America Links Builders to New-Home Buyers' Brokers
With the help of Move-Up America, builders in Austin, Houston, Dallas, Fort Worth, San Antonio, Atlanta, Charlotte and Tampa know for sure whether prospective buyers are on track to sell their current home in time to purchase one that they have under construction. Move-Up America engages in what is called home buyer contingency management, pairing new-home buyers with a brokerage agent to sell their existing property at a discounted commission rate of 1.5%. The individual agent working for the buyer of the resale dwelling earns a 3% commission, and the new-home buyers are given a rebate equivalent to 3% of their sale profit. Move-Up America monitors the sale process and gives builders frequent updates, letting them know if the purchase contract should be cancelled because the buyers are having difficulty selling their current residence and/or with obtaining financing. "We are kind of the builders' eyes on the real estate market," explains company co-founder Clay Woodard. The company's clientele typically consists of builders of large residential developments that construct 100-plus units annually, such as Ryland Homes, Beazer Homes, Morrison Homes and Wilshire Homes. (www.inman.com)
Inman News Features Online (04/26/04) Roberts Jr., Glenn
The Rich Demand Quality, A Designer Says
Affluent home buyers want quality, but Florida-based interior designer Tamara Tennant told attendees of the recent International Builders' Show that this class of customer does not want quality defined by builders or designers. Though these buyers can afford residences encompassing tens of thousands of square feet, many choose smaller-scale designs with room for family gatherings and so-called "committed-purpose spaces" and "stay-at-home interiors." Interior designer Marc Thee insists, "They want efficiency, functionality and useable luxury." Among the features that insiders say are preferred by today's wealthy buyers are low ceilings, casitas or separate guest houses, and central courtyards and other spaces that merge the interior and exterior. Single-story dwellings with towers, rustic finishes, warm colors and minimal details are also popular among rich buyers as they focus on simplifying their lifestyles. (www.philly.com)
Philadelphia Inquirer (04/25/04) P. J1; Heavens, Alan J.
Bungalows With a Higher Power
Vacant churches are dotting the landscape in many cities and rural areas as church membership declines or congregations consolidate. The buildings often are given to immigrants looking to establish worship spaces. However, developers in some cities are putting these empty churches to use as museums, nursing homes, restaurants, art galleries and housing. A developer in Denver, for instance, shelled out $2 million to renovate an aging Methodist Episcopal church that now offers a dozen condominiums — one costing as much as $600,000. Developers in Washington, D.C.; Greenville, S.C.; Nashville; and San Diego have completed similar projects. Some churches are even converted into single-family homes, like the Nazareth United Church of Christ in New Orleans. The church was purchased by landscape architect Alan Mumford for $90,000, renovated for $135,000, and recently sold for nearly $330,000. Stained-glass windows, high ceilings and other design elements are generally preserved during the conversion process. (www.usatoday.com)
USA Today (04/23/04) P. 3A; El Nasser, Haya
Open Your Mind to the Home Automation Era
Information Society Technologies' HOMETALK project involves an open-source home automation and networking platform that links previously unconnected machines — ovens and phones, for example — via a homogenous reference point or Residential Gateway, which can deploy this technology convergence through the required hardware and software protocol stacks. "We offer it back in open-source in order to allow for input by other parties and to quickly gain adoption by developers," explains inAccess Networks CEO Christos Georgopoulos, who notes that creating a standard platform and integrating the developer community is the HOMETALK partners' goal. HOMETALK includes speech-enabled graphical user interfaces so that user interaction is more natural; the system can be controlled from a PDA or garden-variety telephone by either programming or uttering into the handheld the HOMETALK-based system's desired functions. "The central control/automation engine of HOMETALK [called HERMES] includes a scheduler...It can register alarms that the user sets directly through the telephone by performing voice recognition," explains HOMETALK's Jan Sedivy. With voice recognition, elderly and handicapped people could perform tasks that would otherwise be impossible or difficult on the platform. HOMETALK's advantages include lower development time, a common language and the potential to concentrate on value-added service rather than connectivity. The platform will be tested in Madrid and Athens between June 2004 and May 2005. (istresults.cordis.lu/)
IST Results (04/22/04)
Strategies for Success
Most whole-house contractors, which conduct home-performance tests and undertake shell and HVAC improvements, have gained their knowledge from energy-efficiency programs, according to a study. There are a number of strategies these professionals can employ to succeed in an uncommon trade. For example, those who have achieved success have done so by forging partnerships with practitioners in other trades, imposing inspection fees to attract serious clients and weed out the merely curious and implementing a hands-on customer-service approach. Allowing home owners to take measurements and perform certain tasks with the contractor lets the clients see the home's problems firsthand and helps to seal the deal. When presenting home owners with project estimates that are more costly than they anticipated, some contractors have been able to secure jobs by immediately providing finance options. Moreover, successful contractors perform only essential diagnostic tests during the inspection process and conduct others during or after installation, saving themselves both time and money. Training is also important; and most whole-house contractors depend on apprenticeship programs, conferences and print materials to prepare their workers. (www.homeenergy.org)
Home Energy (04/04) Vol. 21.2, P. 24; Knight, Bob; Thomas, Gregory
Xerox Offers Speedy Multifunction Device
Xerox recently rolled out two multifunctional printers, the WorkCentre M20 and M20i. The machines merge color printing, copying, scanning, faxing and e-mail capabilities. Both are equipped with ID Card Copy to copy double-sided documents onto one side of the paper; ScanSoft's PaperPort SE 9.0 to convert scanned documents into PDF files; and ScanSoft's OmniPage SE 2.0 to transform documents into an editable format. The higher-end M20i also boasts compression technology to scale-down files for speedy delivery via email or fax. The M20 and M20i are priced at $1,649 and $2,199, respectively. (www.smallbusinesscomputing.com)
Small Business Computing Online (05/03/04) Muse, Dan
Color Laser Printer Product Face-Off
Technology expert Scott Koegler recently tested out three color laser printers — the HP Color Laser 3500n, Konica Magicolor 2350EN and the Lexmark C510 — to determine how they handle typical printing jobs like letters, Web pages and rudimentary brochures. Each printer can be purchased for around $1,000; and they are all in the same class in terms of speed and general abilities, are network ready and have UBS connectors. Attaching the printers to a LAN is easy and makes the capability ideal for small business networks. However, Koegler says the HP Color Laser 3500n prints color pages a lot faster than either of the others, because it applies all four printer colors all at once, instead of separately. (www.smallbusinesscomputing.com)
Small Business Computing (04/27/04) Koegler, Scott
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