Boomers Remodel Empty Nests Their Way
Rather than move to Florida or convert their children's rooms into sewing rooms, more and more empty nesters are undertaking upscale remodeling projects. In fact, Harvard University's Joint Center for Housing Studies reports that baby boomers accounted for 56% of the $131.5 billion spent on remodeling in 2001. "People used to retire, go to Florida and get the apartment on the 39th floor with the killer view," remarks "House to Ourselves" co-author Todd Larson. "Now boomers are a force that's making things happen in the building industry." A number of baby boomers are spending upwards of $40,000 or more to upgrade their kitchens, master bedrooms and bathrooms; and Westport, CT-based architect Matthew Schoenherr has seen them pay $60,000 to $1 million to give their less costly, post-World War II homes the quality and detail of older dwellings. Others are moving from the family home to one that better fits their needs and interests. (www.usatoday.com)
USA Today (03/21/03) P. 5D; Charkalis, Diana McKeon
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Home Performance With Energy Star
Nearly all of the 50,000-plus homes that received the Energy Star rating last year were newly constructed, but the Home Performance With Energy Star program continues to succeed in making existing residences more energy efficient. Though programs vary from state to state, each features a fuel-neutral whole-house approach and an inspection to determine the thermal and mechanical efficiency of the property's attic, basement, walls and heating and cooling systems. Each also incorporates air filtration, duct leak, combustion safety and other diagnostic tests; best-practice installation; and quality assurance, such as Building Performance Institute (BPI) certification and accreditation. Contractors involved in the program make recommendations to increase the home's energy efficiency, such as the installation of energy-saving lights, insulation, windows and HVAC equipment. Based on the success of programs in New York and Wisconsin, the trend is catching on elsewhere in the nation. Some use BPI certification to maintain the quality level of contractors, while others employ inspection protocols following mandatory training. Pilot programs are currently underway in Fresno and San Jose, CA; and Home Performance With Energy Star could soon be launched in the Southeast, the Southwest and the Pacific Northwest as well. (www.homeenergy.org)
Home Energy (04/03) Vol. 20.2, P. 6; Rogers, Mike
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Smart Home Development Opens in Signal Hill
Each of the 51 smart homes in Comstock Homes' Westbluff Estates, located in Los Angeles' Signal Hill community, features a structured wire package by Home Tech Works. The technology will allow home owners to install several phone and fax lines, a security system and surround sound in the family room as well as distribute cable or satellite television throughout the home. In addition, home owners will save money because family members can use the Internet simultaneously and all computers and peripherals can be connected to a single network. Sales and Marketing Director Tabassom Ayazi says home owners can view the models or take a smart home seminar to learn about the available systems and create a smart home that fits their needs. According to Home Tech Works CEO Erik Vidrio, “Comstock Homes is demonstrating that builders can readily and cost-effectively embrace smart home technology.” (www.iwire.com)
Internet Wire (03/18/03)
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Earth-Friendly Offices Could Be Greener Still
Brandywine Realty Trust reports that its so-called "green" office park in King of Prussia, PA, consumes 35% less energy than a standard office complex. While such earth-friendly buildings are nothing new, they do represent one of the hottest trends going in the construction industry. Today's green architecture offers more options than similar buildings erected in previous decades. In addition, they look more like non-green buildings, no longer sporting unsightly solar panels or made of rough-hewn logs. Brandywine, which ranks as the Philadelphia metro area's largest office landlord, has become widely regarded for its conventional suburban office parks. While the green building program adds between 7% and 10% to total building costs, Brandywine's strong belief that there was an untapped market in Pennsylvania for such structures prompted it to proceed with the King of Prussia project. The company hired architect David Schoenhard, who followed the recommendations of the U.S. Green Building Council. Almost all of the construction material came from suppliers within a 500-mile radius of the site, including recycled steel and carpets and wall fabric made with ground glass. (www.philly.com)
Philadelphia Inquirer (03/14/03) P. E1; Saffron, Inga
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Second Wave Baby Boomers to Keep Housing Healthy
Mortgage Bankers Association of America chief economist Doug Duncan and other analysts anticipate a slowdown in the housing sector this year, but baby boomers and consumers between the ages of 35 and 44 are expected to keep the market healthy as they reach their prime home buying years in the next couple of decades. In fact, Stern, Stewart & Co. partner Al Ehrbar says demand for housing is strong among the second wave of baby boomers — many of whom were locked out of the market in the 1980s due to exorbitant interest rates. Fannie Mae chief economist David Berson agrees, noting, “About 3 million baby boomers have yet to become first-time home buyers, so there is plenty of room for the market to grow.” For the short term, however, Duncan foresees a dip in sales this year — down about 2% for new homes and 3.5% for existing dwellings. (www.austin360.com)
Austin American-Statesman (03/15/03) P. F1; Novak, Shonda
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War Would Test Statute Governing Terror Insurance
The impending war with Iraq could test the new federal terrorism-insurance bill, which has substantially reduced the chances that another act of terrorism would bankrupt any single insurance firm. However, the legislation is far from a cure-all should a disaster of Sept. 11 proportions occur again stateside. For property valued at $100 million and up, the Insurance Information Institute reports that only about 20% of the owners are now paying for terrorism coverage; however, most of the buyers own trophy buildings that are considered the most likely targets of future terrorist actions — meaning that the industry's exposure may be much greater than suggested. Perhaps the most expensive line of coverage for insurers is workers' compensation, as a company with 1,000 workers killed in a single building could produce claims of as much as $400 million. (www.wsj.com)
Wall Street Journal (03/18/03) P. A8; Oster, Christopher
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Fed Rates Unchanged Pending War's Effects
The Federal Reserve's Open Market Committee decided to leave the overnight interest rate at its 40-year low of 1.25%, although it indicated that it is prepared to cut the rate further if the war with Iraq negatively impacts world financial markets. The Fed believes the threat of war and the boost in oil prices have hindered economic recovery; but once concerns about the war diminish, the central bank expects low interest rates and ongoing productivity growth to allow the economy to pick up steam. However, economic uncertainties caused the Fed to hold off on its usual post-meeting statement regarding whether or not the risks of economic weakness and inflation are balanced. Even if they were forced to reduce the target interest rate to zero, Fed officials insist that they could prop up the economy by targeting two- or five-year Treasury yields or another longer-term rate; buying enough securities to pump a sufficient amount of money into the banking system; and slashing the interest rate on loans given to financial institutions by regional Fed banks. (www.washingtonpost.com)
Washington Post (03/19/03) P. E1; Berry, John M.
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Front and Center
A custom front door can distinguish a home from similar residences in the same neighborhood or become the finishing touch on a restoration project. Home owners can purchase a common pine, fir or hemlock slab door with standard patterns and moldings from a home center; but they will have to hire a custom craftsman or furniture maker for a top-quality frame-and-panel door in a variety of materials, sizes and styles. Frame-and-panel doors can expand and contract depending on the season because the panels are placed into grooves in the frame; and though many craftsmen will use rot-resistant wood dowels to join the frame, mortise and tenon joinery is the strongest and most durable. Home owners should also ensure that their craftsman uses weather-proof glue; strong finishes, such as waterproof epoxy or urea resin; as well as exterior enamel paint, oil varnish or marine varnish that will protect the door from the elements. Doors made out of mahogany, Spanish cedar and redwood hold up in all types of weather and do not rot. Meanwhile, home owners can add creative touches like hand-beveled glass panels, stained glass, carvings, copper paneling and custom grilles, among others. The doors will open and close more smoothly and last longer with ball-bearing butt hinges; and housing them under overhangs, pent-eaves or porch roofs will preserve their appearance and strength. Custom front doors range in price from about $2,000 to more than $4,000, but home owners can jazz up their home with custom interior doors for $500 to $1,000. (www.pbs.org/wgbh/thisoldhouse)
This Old House (03/03) No. 66, P. 50; Binzen, Jonathan
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