Nation's Building News Online: June 23, 2003Print All Articles Text Version |
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Harvard Report Finds the Decade Is Shaping Up as Another Strong One for HousingAnother strong decade is shaping up for the nation's housing industry, according to a report from the Joint Center for Housing Studies of Harvard University released last week, although the economy's anemic growth has taken a toll and has helped to cloud the industry's near-term outlook. The annual Harvard report, “The State of the Nation's Housing: 2003,” predicts that household growth in the U.S. may well exceed 12 million between 2000 and 2010. Vigorous household growth — along with strong demand for second homes and healthier rental markets — suggests that housing production during this decade “should exceed the 16.1 million units built and manufactured between 1991 and 2000,” the report says. While the job losses that have afflicted the economy in recent years have created near-term vulnerabilities for parts of the housing industry, a significant decline in house prices is not one of them, according to Harvard's housing researchers. “While surging home prices have sparked fears of a housing market collapse,” says the report, “widespread price declines are unlikely because home prices in most areas have increased in line with income growth.” Over the past 15 years, more than half of the nation's 100 largest metropolitan areas have not experienced a single year of declining nominal home prices; but 58 of them have seen yearly prices adjusted for inflation fall by 10% or more at least once since that time. “In about a third of these locations, however, the real home values of owners who bought at least two years before the peak exceeded their purchase prices even at the bottom of the real declines,” according to the report. The report adds that, “strong home price appreciation has increased home values, providing fully 88% of mortgage borrowers with equity of 20% or more in 2001.” Although a weak economy contributed to rising mortgage delinquencies and foreclosures in 2001 and 2002, “serious delinquency rates on conventional loans are still under one-half of one percent,” the report notes. As for soft rental markets, “the problems arise largely from the weakness of the economy and should subside once a sustained expansion begins.” Some home owners with the lowest incomes “could ultimately face the loss of their homes,” if the economy continues to shed jobs, the report warns. In its forecast for strong household growth during this decade, Joint Center housing analysts expect immigrants to account for more than one-quarter of the net increase and minorities two-thirds. Household growth will be concentrated in western and southern states, but the fringe areas of most of the large metropolitan areas across the country should see strong housing production in response to the growing employment opportunities in those locations. Building News Coast To CoastNew Drywall Resists Mold, MildewThis month marks the release of USG Corp.'s Humitek, a drywall with a biocide to safeguard against mold and mildew. Though its initial price is likely to be double that of conventional drywall, Humitek is similarly installed and finished. Despite the higher price tag, the product should sell quickly in areas plagued by high humidity. DensArmor Plus, another mold- and mildew-resistant product manufactured by Georgia-Pacific, keeps moisture away with inorganic glass fibers. As these and similar products are introduced to the market, prices should come down. While products like Humitek and DensArmor Plus are useful in eliminating mold and mildew, USG officials say more needs to be done to protect materials and equipment from the elements during the building process. Builders Offering Money to SchoolsIn Durham County, NC, Larry Thomas and R.L. Hovarth Associates Inc. are among the home builders offering to make monetary donations to the local school system as a way to help mitigate school overcrowding resulting from their projects. County attorney Chuck Kitchen sees no problem with such agreements, provided that commissioners are not illegally approving rezoning requests based on money. The county has proposed a bill that would require builders to pay $2,500 in impact fees for each single-family home and $1,500 for multifamily buildings, but challenges from local builders and real estate agents have kept the legislation from making it out of the General Assembly. According to the Homebuilders Association of Durham and Orange Counties, the impact fees would boost home prices by as much as $3,000 and unfairly saddle new-home buyers with the financial burdens of development. Though officials commend developers for trying to resolve the overcrowding issue, they believe a standard fee that encompasses all projects is necessary. The county scrapped plans to implement impact fees two years ago because it would have cost $750,000 annually to reimburse developers of low-cost units, but the current plan would create a separate policy for affordable housing. Future Home Builders Look to 'Bank Land' Before It's GoneAccording to "Your New Home" co-author Alan Fields, a growing number of people are purchasing land years before they plan to build their dream or retirement homes out of fears that the booming housing market and dwindling land supply will leave them with few options in the future. However, there are more costs and considerations involved in such a land purchase; and prospective buyers should study them carefully before proceeding. First, Fields recommends viewing the local government's long-range land-use plan to avoid parcels zoned for business or commercial use or those in areas that could eventually see major improvements or restrictions. Land buyers also should be aware of building restrictions if the plot is a subdivision, whereas vacant lots or undeveloped areas afford more freedom. Conducting geographical and environmental tests on soil and groundwater are important, meanwhile, especially if the land was once used for farming or industrial purposes and could require costly cleanups. In addition, land buyers could be forced to shell out a significant amount of money on infrastructure if the area has yet to be developed. Buyers will also pay higher mortgage interest rates and fees because of the added risks assumed by the lender; and while standard home owner's insurance policies offer coverage for vacant lots, additional insurance is needed if the property is not considered vacant or the buyer is a renter. Single Women Buy Into HomeownershipThe National Association of Realtors® estimates that single women accounted for 18% of first-time home buyers last year, up from 15% in 2001. In contrast, only 7% of buyers in 2001 and 9% in 2002 were single men. NAR industry-trend specialist Walter Molony says an increasing number of single women are making home purchases because they view homeownership as a safe investment and have better access to mortgages than in the past. In fact, low interest rates, the emergence of low downpayment loans, scaled-back underwriting standards and new rules that let them factor child support into their incomes have made the process easier for single women. Cincinnati-based Realtor® Steven Lowenstein believes single women outpace single men in terms of homeownership because they undertake more extensive home searches. NAR research also reveals that single women make up nearly half of all condominium owners — which Lowenstein attributes to the presence of other singles, exercise rooms and other amenities in condo and townhome developments. Affordable Housing Bill Set AsideThe New York Senate recently tabled an affordable housing bill sponsored by Assemblyman Thomas DiNapoli (D-Great Neck) and Sen. Michael Balboni (R-East Williston) until more towns and villages make their voices heard. Under the proposed legislation, 10% of the units in subdivisions with five or more units would be reserved for lower-income families; and developers would have to contribute to an affordable housing fund if they cannot offer low-cost housing on a particular site. Local housing activists oppose the decision to stall the bill as more and more young workers leave the area in search of affordable shelter. In fact, Long Island Association President Matthew Crosson notes that the number of 25- to 34-year-olds living on the Island fell by 18,000 in 2001. Moreover, Long Island Builders Institute Executive Vice President Bob Weiboldt says more than 100,000 low-cost units must be built over the next decade to meet demand. His organization backs the proposed measure, which supporters hope will win Senate approval when the legislature convenes this fall. 'Urban Villages' Lifting OffMixed-use developments, also described as self-contained villages or walkable communities, are cropping up in small Utah towns as a means to curb urban sprawl. Though some believe urban villages are designed for dense cities, Maryland town planner Mike Watkins is convinced that they are a viable option in any locale. Parkway Crossing — which presently is being built near Utah Valley State College in Orem — will offer its 6,000 student renters a church meeting place, a call center, a grocery store, eateries and retail stores. Aside from attending classes, the students could meet their daily needs without ever leaving the village. Still, it is unclear whether the market can support the added retail and office space. According to Ralph Epstein, manager of the successful mixed-use Riverwoods complex, "This is a relatively small market, with a terrific amount of retail space, and there are fewer and fewer tenants who want to come here." Building Limits OK'd in HarfordOfficials in Harford County, MD, a Baltimore suburb, have passed a six-month suspension on residential subdivisions with more than five units. The measure aims to buy a county task force more time to propose ways to ease school overcrowding. The county council is still waiting to see if County Executive James M. Harkins will approve the moratorium. Harford is not the only Maryland county worried about crowded schools, traffic and rapid development. In fact, Carroll County issued a one-year freeze on subdivisions governed by its adequate public facilities law earlier this month; and Howard County has delayed the construction of more than 1,000 homes. Planners in Anne Arundel County, meanwhile, are considering new rules that would force developers to improve intersections. Harford County Councilman Dion F. Guthrie introduced a bill in March to prohibit residential development if enrollment at the affected school is above 100% of its capacity, down from the current 120% limit; but it is being stalled for six months as a task force comprised of city council members, home builders and others examine the existing adequate public facilities laws. Local home builders oppose the moratorium because they say it would hurt the local economy as well as businesses and subcontractors. Beatle-Mania Infests Desert HomesDevelopers are using a number of marketing strategies and sparing no expense to attract baby boomers, whose numbers have hit 39.5 million nationwide. Shea Homes, for instance, has built "The Beatles House," a model home at its Trilogy at La Quinta community in California, complete with electric guitars, framed albums, Beatles watercolors and "Let It Be" yard art. Other companies, meanwhile, are spending millions on golf courses and other amenities as well as posting floor plans on the Internet. With many retirees looking to stay close to home, a growing number of developers are focusing on Minneapolis, Detroit, Chicago and other non-traditional retirement locales. In California, development is moving farther into the desert, where land could be quickly depleted if acquisitions remain at their current pace. Del Webb, for instance, is making monthly land purchases to the tune of $100 million. Builder's Opportunism Hits Nail on the HeadLennar Corp., one of the nation's leading home builders, saw new-home deliveries skyrocket 25% to 7,385 in the fiscal second quarter; while its average sales price rose 8% to $257,000. In addition to low interest rates, the company's success can be attributed to rapid acquisitions; a marketing program that gives buyers a choice between custom or standard options; new mortgage and insurance offerings; and its expansion into San Diego, Miami and other urban areas. In fact, the company's decision to purchase discounted land in San Francisco after the tech bust has proven profitable; and it has moved into California's rural Central Valley as well. Citigroup Smith Barney analyst Stephen Kim suspects that Lennar's plentiful land supply will keep the company afloat when real estate activity slows. The builder owns a two-year supply of land and has another three years of business in land options, which it can easily let go if the market takes a turn for the worse. Built Solid; Housing Market Still Sizzling After a Record 2002Nicolas Retsinas, director of the Joint Center for Housing Studies at Harvard University, says the housing market "has almost been the superhero of the economy" because of the strength it has displayed during the economic downturn. The center released a new report naming 2002 as the strongest year ever for the housing market as new highs for the homeownership rate, home sales, residential investment, aggregate equity and total mortgage debt were all reached last year. Doug Duncan, senior vice president and chief economist of the Mortgage Bankers Association of America, adds that refinancing — which allows home owners to lower monthly payments, shorten loan terms or take cash out — has been the option of choice for many people who are not ready to relocate. Although 2002 was also a record-breaking year for foreclosures, Duncan says the figures can be misleading because New Jersey, New York and other states with long foreclosure processes pushed the average higher. Now Rooms Come in Super SizeAs part of today's "McMansion" trend among home builders, residences often are built with multi-story entrance halls or with no interior walls to break up the foyer, living room and dining room. These and other expansive spaces can be difficult to decorate because traditional furnishings are too small and can get lost in the vast amount of open space. Interior decorators say the key is to blend scale, color and light. Rooms can be brought to a more manageable size with the use of bright colors and low-hanging ceiling fixtures; and large-scale antique furniture, tapestries and landscape paintings more easily fill the space. Huge chandeliers can be used to center ballroom-sized areas, and some designers use a number of lighting sources to illuminate various parts of the room. Designers also divide larger rooms into several spaces and concentrate on each section separately. Design pros say well-proportioned rooms need few furnishings, such as a single table with a flower arrangement, to create the desired effect. However, poor architecture can make the job more difficult — especially when builders do not consider how home owners will clean high windows or replace bulbs in lighting fixtures. Habitat for Humanity Builds Experimental HomeHabitat for Humanity has built a low-cost, experimental home in Lenoir City, TN, with 48 solar panels and a multi-functional water heater. The home — likely the most energy-efficient one ever constructed by the organization — features walls, floors and a roof made from prefabricated insulated panels; energy-efficient appliances, windows and doors; air ducts; and a water heater that controls humidity levels in the crawl space and pumps cool air behind the refrigerator. As a result, the home owners paid under $43 per month on electricity during the winter and expect more cost savings from the solar panels. Given that low-income families set aside up to 14% of their incomes for heating and cooling costs, David Garman of the Department of Energy believes the home works well for Habitat. Though green building techniques tend to dramatically boost home prices, the residence boasts a price tag of just $124,000, including the solar panels. NAHB reports that 13,000-plus homes meeting its green-building standards were built in 2002 alone, compared to less than 19,000 total built between 1990 and 2001. Best Firewalls for Small BusinessesBusinesses of all sizes need firewalls to ensure Internet security, but small operations face a challenge in trying to choose options in a market that offers a range of products. Gartner's Richard Stiennon recommends appliances, saying that small businesses would be best advised to choose firewall applications instead of software firewalls, and that embedded firewalls — which do not always block IP-level attacks — are appropriate only for groups that need to shield more than one host. Additionally, Chris Christiansen of IDC argues that small companies should avoid implementing a firewall on mail servers or other types of servers hosting general-purpose applications, and he stresses the importance of proper customer service from vendors or VARs, given that the majority of firewalls are misconfigured. Considering the elements of products, George Sluz of Symantec notes the primacy of virtual private networking, intrusion detection and security and stateful packet filtering, as well as VPN encryption for groups with personnel who use the system from outside the office. Businesses are choosing firewalls with a specific application focus, with some being particularly interested in spam control, and security plans are introducing wireless LANs as well. Christiansen emphasizes the importance of realizing that firewalls are a portion of network security and should not stand in place of intrusion-detection components or vulnerability assessment. Firewall vendors include WatchGuard, SonicWALL and Symantec. Borderware Technologies' MXtreme Mail Firewall offers spam protection, and WatchGuard has new Firebox SOHO 6 Wireless products that join wired and wireless security under one application. An Overview of iBuilderSucceed's iBuilder offers a suite of four products for small and mid-sized businesses to present, sell, process and track their products online. The suite features back-end, front-end and marketing tools, and Succeed President and Chief Executive Omar Sayed says it can be used to link a company's online and offline business efforts. The SiteBuilder tool includes a variety of Web site templates, as well as an image gallery, an HTML editor, Web hosting, dedicated support and other management tools. StoreBuilder has a catalog manager for inventory and sales tracking and management, more than 40 payment gateways and a tax tool that calculates sales taxes based on the business location. In addition, StoreBuilder's iBuilderLink software aligns the company's online sales information with accounting data in QuickBooks 2002 or 2003. TrafficBuilder, meanwhile, helps users market their site and monitor productivity with tools that send information to the leading search engines and an E-Mail Marketing Center. Finally, AffiliateBuilder lets retailers establish and maintain affiliate programs, putting the registration process online. Low Mortgage Rates Not Enough to Solve Affordability Woes, NAHB President SaysThe low mortgage interest rates that have helped produce banner years for the nation's housing markets aren't a cure-all for the affordability problems that remain a major stumbling block for many working families, NAHB President Kent Conine told a press conference at PCBC® 2003 in San Francisco last week. “Despite record-low interest rates and record new home sales last year, many people are still finding it difficult to become home owners or to find affordable rental housing,” Conine said. The problem is particularly acute for minority families, whose rate of homeownership lags behind the national average of almost 69% by about 20 percentage points, he said. Federal legislation — H.R. 839 in the House and S. 198 and S. 875 in the Senate — would address this imbalance, he said, by providing a homeownership tax credit to developers and investors who build or substantially rehabilitate homes for sale to moderate- and low-income buyers. “This legislation would aid economically distressed areas by creating new jobs and it would close the homeownership gap for minorities by increasing the supply of affordable homes for sale,” said Conine. He added that the Bush Administration supports the tax credit, which is “good public policy and good for the economy.” The tax credit would produce some 50,000 new and rehabilitated homes, annually, creating 120,000 jobs, $4 billion in wages and $2 billion in taxes and fees. This would more than offset the $2.4 billion that the Treasury Department estimates the tax credit would cost over five years, he noted. Reminding reporters that June is National Homeownership Month, Conine said that homeownership “has long been, and remains to this day, the cornerstone of the American Dream and one of the defining characteristics of the American way of life.” Housing SnapshotThe catalysts for faster growth are in place, and this summer could bring the long-awaited economic turnaround. The $350 billion tax package is in place, and taxpayers will start seeing some of its benefits next month. The Federal Reserve is expected on Wednesday to lower its federal funds interest rate to the lowest level since the second term of President Eisenhower. In the meantime, housing keeps churning out more good news. Freddie Mac Chief Economist Frank Nothaft is projecting that 2003's mortgage originations will grow to $3.3 trillion, a 30% leap from last year's record. Close to one-half of all single-family debt outstanding at the end of 2003 will have originated this year, he said, and families are expected to extract $100 billion from their equity. Construction has created some 83,000 jobs since February. Mortgage Interest Rates30 Year Fixed Rate: 5.21\% Housing Starts: May 2003Total: 1.73 million\% New Home Sales: Apr. 2003 *1.028 milliion Existing Home Sales: Apr. 2003 *5.84 million * Seasonally Adjusted Annual Rate Too Many Communities Make Building Housing a StruggleThere's no doubt about it. These are good times for America's home building industry. With mortgage interest rates at their lowest levels in modern history, housing production and sales have been healthy and home building for some time has been the bright star in an otherwise lackluster national economy. The news has been so good, in fact, that it may come as a surprise to many how much of a daily struggle it has become in too many parts of this country to build affordably priced housing for our growing population. When communities sit down to discuss such local concerns as the environment, economic growth and infrastructure needs, too many times housing is scorned. We're forced to come in through the back door, which is a crying shame because housing deserves a central role in addressing all of those concerns. Instead of making an honest assessment of housing needs, too many localities these days are turning their backs and embracing no-growth policies that are a quick fix but ultimately a ticket to nowhere. Unreasonable restrictions are placed on the use of land for housing. Zoning and development codes that are out of date and out of step with the housing wants and needs of families are locked into place. And new home buyers are saddled with inequitable impact fees and other exactions to finance facilities and services that politicians are afraid to ask the general population to pay for. This is National Homeownership Month, and that makes it an especially appropriate time to take a closer look at housing needs of the men and women who live and work in our communities. When we're doing a good job of meeting those needs, that's good for our neighborhoods, our businesses, our institutions, our entire way of life. But when we're struggling to provide affordably priced housing, there are enormous economic and social implications that sooner or later will start taking a heavy toll. Something is wrong when our school teachers, our police officers, our fire fighters and the many, many workers who provide us with goods and services every day can't afford to live within a reasonable distance of their workplaces; when single-parent families — who constitute a growing portion of our households — can't stretch one income far enough to pay for decent housing in a decent neighborhood; or when family breadwinners have to choose between paying the rent and meeting other necessities. These are among the telltale signs of housing in crisis. They are symptomatic of elected officials who are apathetic, at best, about adopting policies to alleviate constraints against providing for one of the most basic human needs. While the depth of today's housing crisis varies in different parts of the country, it is of epidemic proportions and should be a serious concern for everyone. Over the coming decade, the U.S. population is projected to increase by 24 million people. During that period, an average of one million new households are expected to be formed each year. These are some of the solutions that will help ensure that there is a sufficient supply of new housing to meet demand:
Today’s enduring low mortgage rates provide a window of opportunity for increasing the ranks of the nation's home owners, especially among minority families whose rate of homeownership is far below the national average. But even in the very best of times, housing affordability will remain an elusive goal as long as local jurisdictions fail to recognize that their policies are a major part of the problem. New EPA Web Site Can Help You Understand Housing RegulationsBy Marty Mitchell That's why I want to let you know about a new Web-based tool from the Environmental Protection Agency (EPA) — the Construction Industry Compliance Assistance Center — that was designed to provide quick, easy-to-understand information on major environmental laws that apply to the construction industry. This is one site that I can highly recommend, because NAHB helped to build it. If you find the site is not perfect, the EPA welcomes your suggestions. The EPA is also looking to our industry, our associations and our members to provide feedback that will help improve the information appearing on this site. That's a good approach, and it's working. For example, NAHB has provided the EPA with the most up-to-date, state-by-state specifics on storm water Phase II permits — one of the agency's regulatory priorities — so that builders across the country can get themselves up to speed on the new requirements by downloading the information. Visit the site, and you will find sections on storm water, solid wastes such as construction debris, hazardous waste, air, wetlands, endangered species and green building. The center also provides links to sites with additional information. The center is currently being expanded to include a special compliance summary that will help builders identify the environmental rules that apply to their specific construction project by clicking on pertinent categories. In a pilot project, this feature is currently available to builders in Virginia. The site's three environmental “resource locators” and its two “information tools” can provide information on state and local regulations and permit requirements pertaining to storm water, endangered species, state wetlands, hazardous waste and asbestos. Most of the resources available through the center are free. The center is being developed and managed by the National Center for Manufacturing Sciences in conjunction with NAHB and the Associated General Contractors of America, the American Road and Transportation Builders Association, the Golf Course Builders Association of America and Associated Builders and Contractors, Inc. We may not always agree with the effectiveness of the many regulations we have to deal with these days from local, state and federal agencies, but we can't comply with them if we don't understand them. The Construction Industry Compliance Assistance Center is one step in the right direction, and I invite you to check it out. For more information on the center, e-mail Seth Heminway at the EPA or Paul Chalmer at the National Center for Manufacturing Sciences. Marty Mitchell is chair of the NAHB Environmental Issues Committee. Roundtables Identify Concerns for Affordably Priced HousingRoundtables in Milwaukee, Philadelphia, Providence and San Diego conducted by the National Housing Conference (NHC) in the spring and fall of 2002 have identified day-to-day concerns over meeting critical housing needs at the local level. A report of findings from the roundtables, “Four Windows: A Metropolitan Perspective on Affordable Housing Policy in America, 2002" was published in March. Appearing at a Workforce Housing Symposium in Washington in early June, which was sponsored by the Homeownership Alliance in observation of National Homeownership Month, Conrad Egan, executive director of the NHC, cited four local concerns that deserve being included in discussions of federal housing policy:
“The watchword we hear is ‘flexibility,’” Egan told the housing symposium. “Federal programs are too constrained, rigid and too prescriptive.” He added that federal programs should do more to encourage cooperation among different jurisdictions. Association Health Plans Approved by the HouseLegislation that would allow as many as 2 million working families who are currently uninsured to obtain health coverage and would help alleviate skyrocketing health care costs facing America’s small businesses and their employees passed the House last week with the endorsement of NAHB. H.R. 660, the “Small Business Health Fairness Act,” “provides the right remedy by allowing small businesses to band together through associations to purchase quality health care at a lower cost,” said NAHB President Kent Conine. The bill, which would enable small businesses to lower health costs and provide new coverage options, has received strong support from the Bush Administration. Labor Secretary Elaine Chao said that the association health plans that the legislation would create are “a centerpiece of President Bush’s agenda to expand health insurance opportunities for all Americans” and that they would reduce the number of uninsured workers in the country. Two days before the vote, NAHB participated in a press event on Capitol Hill hosted by the bill’s original co-sponsors — Reps. Cal Dooley (D-CA), Ernie Fletcher (R-KY), Sam Johnson (R-TX) and Nydia Velázquez (D-NY). On the eve of the vote, NAHB sent a letter to every member of the House urging them to support the bill. The legislation was approved by a vote of 262-162. A new survey by the Center for Studying Health System Change shows that health care costs rose nearly 10% and that health insurance premiums climbed by 15% last year, which was the largest annual jump in more than a decade. Association health plans could help home builders and other small businesses reduce their health insurance costs by an estimated 15%-30%. To read this legislation, click here, and enter H.R. 660 into the box at the upper left. Major Push Urged to Address Unmet Rural Housing NeedsA broad partnership of federal government agencies, government-sponsored enterprises, state and local governments, for-profit entities and non-profit groups is needed to provide affordably priced housing in rural parts of the country, Bobby Rayburn, first vice president of NAHB, told the Housing and Community Opportunity Subcommittee last week. “The existing rental stock is aging and requires extensive rehabilitation, and access to competitively priced credit for potential home buyers, as well as builders, remains a problem in many rural areas,” Rayburn testified. He cited several initiatives to help solve the problem:
Photo by Herman Farrer Builders Support Commerce Plan on Canadian LumberA new Commerce Department proposal to clarify the definition of market-based pricing of Canadian timber is an important step toward eliminating tariffs on lumber coming into the U.S., according to NAHB First Vice President Bobby Rayburn. While NAHB believes that Canadian lumber is not subsidized, a clearer pricing system in Canada would be in the best interests of all parties in the current dispute over the import duties, Rayburn said. Under the Commerce Department proposal, the Canadian provinces would adopt open, market-based systems for timber sales. Once those were phased in, the U.S. would rescind the 27% countervailing and anti-dumping duties that were imposed last year on Canadian lumber shipments. “We strongly oppose any new measures that would impose a border tax or quotas on Canadian lumber because this would just substitute one tax on American consumers for another,” Rayburn added. NAHB continues to maintain, however, that the best way to ensure free lumber trade is for Canada to continue its legal appeals of the duties before the World Trade Organization and North American Free Trade Agreement. Canada has already scored significant victories in its bid to break down trade barriers, and is likely to win its legal challenge to the U.S. tariffs, Rayburn noted. Bipartisan resolutions in both chambers of Congress call for Canada's legal cases to proceed expeditiously in support of “open trade between the United States and Canada on softwood lumber free of trade restraints that harm customers.” Congress Votes for ‘No Taxation Without Respiration’The nation's home builders applauded the House's passage last week of H.R. 8, the “Death Tax Repeal Permanency Act of 2003,” noting that a permanent repeal of the tax would be a help to small, family-owned businesses. Under the current law, which was enacted in 2001, the estate tax is being gradually phased out until it disappears entirely in 2010. But it comes back to life in 2011, when the entire estate tax cut sunsets. While reductions in the tax are welcome, builders would prefer no death tax at all and many are saying that the scheduled cuts in the tax over this decade make planning their estates more difficult. If they don't keep up with changes in the schedule, nearly half of their estates can be lost to federal taxes after they die. Jerry Howard, executive vice president and CEO of NAHB, said that the estate tax “has placed a burden on the heirs of family-run home building companies,” and he added that some business heirs even have to liquidate company assets to pay for the tax. “The death tax is a threat to the future viability and growth of family-owned businesses,” Howard said. He said that the issue is of particular importance to the housing industry, which is comprised largely of small businesses, and that NAHB will be encouraging the Senate to pass similar legislation. To read the legislation, click here, and type H.R. 8 in the box at the upper left. Two Million Acres in Northeast Threatened With Federal OversightThe Congress is considering legislation that would place more than two million acres spanning New Jersey, New York, Pennsylvania and Connecticut under federal oversight, disrupting the housing supply for hundreds of thousands of families. H.R. 1964, the “Highlands Stewardship Act,” contains extreme land preservation provisions and development restrictions that would harm local economies in the affected area and deter as many as 300,000 people from living there, Stephan Shaw, a New Jersey builder and developer who served as 2002 president of the New Jersey Builders Association, said last week. On behalf of the New Jersey builders and NAHB, Shaw testified before the House Resources Subcommittee on National Parks, Recreation and Public Lands. The geographic region affected by the legislation stretches from western Connecticut across the Lower Hudson River Valley and into northern New Jersey and east-central Pennsylvania. The area is home to more than 1.4 million people and it is adjacent to one of the most populous metropolitan regions in the country. Under the legislation, a new Office of Highlands Stewardship would have the authority to approve and dispense land preservation grants for the region. The bill proposes an annual $25 million authorization for land acquisition. Citing state planning figures showing that about one million of New Jersey's households live in sub-standard, overcrowded housing for which they pay too much, Shaw said that H.R. 1964 would increase land and housing costs. “This would prohibit people from living in a home of their choice, in a setting of their choice and at a price they can afford,” he said. Shaw added that there are already several federal programs that can help local communities and states preserve open land. These include the U.S. Forest Service's Forest Legacy Program and Land and Water Conservation Fund, and the National Resources Conservation Service's Farmland Protection Program. To read H.R. 1964, click here, and enter the bill number in the box at the upper left. Photo by Herman Farrer Senate Considering Workforce Investment Act ReauthorizationFollowing House approval last month of H.R. 1261, “The Workforce Reinvestment and Adult Education Act of 2003,” a Senate subcommittee last week held hearings in preparation of its own version of the reauthorization of the Workforce Investment Act. Present at the Senate Subcommittee on Employment, Safety and Training of the Committee on Health, Education, Labor and Pensions were Chairman Michael Enzi (R-WY), and Senators Patty Murray (D-WA), Edward Kennedy (D-MA) and Christopher Dodd (D-CT). Sigurd Nilsen, director of education, workforce and income security issues for the General Accounting Office, fielded questions on the successes and failures of rural and urban One Stop programs in providing skilled labor to small businesses. The One Stop program coordinates federally funded employment and training services under a single system. Nilsen recommended changing how the performance of Workforce Investment Act (WIA) programs is measured. “WIA’s performance measurement system may be causing some clients to be denied services and does not provide an accurate picture of WIA’s effectiveness,” Nilsen testified. A panel of representatives from local workforce boards in Florida, Pennsylvania, Virginia, Washington and Wyoming voiced similar concerns. Home Builders Institute, the workforce development arm of NAHB, is watching the legislation closely because it helps local and state home builders associations access WIA funds and works with state and local workforce boards to help implement workforce development programs for the construction industry. HBI is the largest training contractor in the Department of Labor's Job Corps program, which is authorized by WIA. A number of other HBI programs receive funding from programs that are authorized by WIA. HBI’s Project Craft/Nashville receives funds from the WIA-authorized Youth Activities Office. And its Doors to Success program for women veterans is funded by the Veterans’ Employment and Training Service, which is also authorized by WIA. The full Senate is expected to vote on the bill before it departs for its August recess on July 25. To read this legislation, click here, and enter H.R. 1261 into the box at the upper left. Housing Starts Rise in May Despite Rainy WeatherBuilders increased the pace at which they started work on new homes and apartments in May to a seasonally adjusted annual rate of 1.73 million units, the Commerce Department reported last week. Housing starts were up 6.1% from the previous month, but NAHB President Kent Conine suggested that they might have been even higher had it not been for the unusually wet weather that dampened activity in the East and parts of the Midwest and West. The annual rate of single-family housing construction climbed 1.5% in May to 1.38 million units as low mortgage interest rates and solid house-price performance continued to stoke home buyer demand. Multifamily starts, which can show significant volatility from month to month, swung up by 29.2% to a 354,000-unit rate in May. The year-to-date construction totals are running ahead of last year's excellent pace in both the single-family and multifamily housing sectors. NAHB Chief Economist David Seiders said the association's latest surveys have found confidence among builders that sales prospects for single-family homes will remain strong. “In addition,” Seiders said, “rising backlogs of unused building permits are a good sign that we'll see even more gains in building activity once certain regions begin to see drier weather conditions.” Regionally, starts rose in the Midwest, South and West by 14%, 7.4% and 0.7%, respectively. The Northeast posted a 1.3% decline, which most likely was related to the weather. The issuance of building permits was up 3.7% to a seasonally adjusted annual rate of 1.79 million units. That was the strongest pace since December. NAHB is projecting 1.7 million housing starts for 2003, about the same as last year. Builders Confident as New Single-Family Home Sales Head for Another RecordThe confidence of the nation's home builders in the market for new single-family homes rose in June back to where it was before concerns over the war in Iraq start taking a toll on the economy. NAHB’s Housing Market Index (HMI), a key monthly measure of builder confidence, moved up to 62, five full points above a revised reading of 57 in May. Any number over 50 indicates that more builders view sales conditions as good than poor. NAHB Chief Economist David Seiders credited the surge in confidence to the best mortgage interest rates “in many decades” and solid appreciation in housing values. “In many markets, the biggest concern builders have is that buyer demand is outstripping the supply of lots available for development,” he said. Builders' ratings this month of current single-family home sales rose five points to 67; traffic of prospective buyers rose six points to 46; and sales expectations for the next six months rose a single point to a reading of 70, which is the highest level since November. “All the fundamentals are in place for a very healthy new-home market, and builders are solidly optimistic about the remainder of this year,” Seiders said. “Expectations have fully rebounded, and NAHB's forecasts now anticipate that 2003 sales will exceed last year's record-breaking total.” Spotlight on: CincinnatiLocal HBA: By Darrell Leibson, president of the HBA of Greater Cincinnati Vital Stats:
Outlook for 2003:
Biggest source of concern for builders:
Market trends:
Eye on the EconomyDavid F. Seiders, NAHB Chief Economist The major geopolitical uncertainties weighing on the economy presumably had receded into the background by the time President Bush announced the end to major military operations in Iraq on May 1, clearing the way for economic fundamentals to shine through the fog. It’s fair to say that accumulating evidence of post-war economic performance contains some promising components, but the eagerly awaited post-war surge is not yet upon us. Available economic indicators for May and early June suggest that overall economic growth has stabilized at a sub-par pace while the labor market has continued to deteriorate, albeit at a less alarming pace than earlier in the year. Ongoing growth in labor productivity (output per hour) is continuing to generate positive growth in economic output in the face of payroll job losses, but it’s hard to view that pattern with real enthusiasm. Market “pre-conditions” for an economic rebound have continued to strengthen … The most promising economic news still is concentrated in fundamental "pre-conditions" for economic expansion. Energy costs have continued to recede from pre-war highs. The stock market has continued to post solid gains (on balance), restoring some wealth to decimated household portfolios and lowering the cost of equity capital for corporate America. At the same time, long-term interest rates have continued to recede to lower and lower records, and quality spreads in corporate bond markets have closed down further. The dollar has continued to gravitate downward on foreign exchange markets, providing support to our trade balance (with a lag) and practically forcing foreign central banks (including the European Central Bank) to cut their interest rates. Economic policy is working hard to stimulate the economy … There’s already a huge amount of monetary and fiscal policy stimulus in place, keeping the economy from falling back into recession, and more stimulus will be coming on line by the end of June. The recently passed Jobs and Growth Tax Relief Reconciliation Act of 2003 (the third tax-cut bill for the Bush Administration) is heavily front-loaded and should provide substantial stimulus beginning in July as tax withholding is phased down and "advance refunds" of expanded child tax credits begin to hit mail. Furthermore, federal spending will be ramping up as the Department of Defense begins to spend emergency war-time appropriations enacted in March. On the monetary policy front, it’s now virtually inevitable that the Federal Reserve will cut short-term interest rates at the conclusion of the FOMC meeting on June 25. (NAHB is projecting a quarter-point cut in the federal funds rate target to 1.0%) Indeed, a drumbeat of Fed statements since the last FOMC meeting on May 6 has reinforced deep Fed concerns about potential price deflation in the U.S. as well as the willingness of our central bank to buy more "insurance" against a Japanese-style disaster. At this point, the Fed must cut the short-term rate in order to preserve the decline in long-term rates achieved through its public pronouncements. Rate declines continue to buoy homeownership while draining demand from the rental market … The stunning declines in the interest rate structure have bestowed benefits on all components of the housing sector by lowering costs for producers, home buyers and owners of rental properties. It’s clear, however, that the greatly enhanced affordability of home buying has provoked a sizeable shift of housing demand toward ownership of single-family and condo units at the expense of market-rate rental accommodations. The strength of single-family housing certainly has been impressive. Permit issuance and starts of new units both recorded nice increases in May, and a sizeable buildup in the backlog of unused permits (because of unusually wet weather conditions) bodes well for starts in June. Furthermore, NAHB’s Housing Market Index showed substantial strengthening of home-builder sentiment in early June, and the Mortgage Bankers Association’s weekly index of home mortgage applications climbed to a new record by mid-June; indeed, new records were posted for both home purchases and mortgage refinancings. Supply-demand imbalances in market-rate rental housing (excluding subsidized low-income rental housing) are starkly evident in climbing vacancy rates for apartment buildings with five or more units and in eroding market absorption rates for newly completed units in such buildings. Starts of new multifamily units have weakened modestly in recent quarters, but the pace of completions has not yet tapered off — pointing toward market imbalances and rent concessions for some time. NAHB’s forecast profiles have been revised a bit … Recent events and revised policy prospects have provoked some changes to NAHB's forecasts for housing and the economy over the balance of this year and in 2004. We’re still forecasting a nice rebound in economic growth and the job market after mid-year, but the near-term prospects have been trimmed back. The inflation and interest-rate patterns have been trimmed for the entire forecast period, and the Fed is a more friendly force in this pattern. Housing starts have been boosted a bit in the process, and the single-family share of the total now is higher. Indeed, the 2003 forecast now has single-family starts and home sales above the excellent performance of 2002. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his June 18 e-newsletter. To subcribe to “Eye on the Economy,” click here.
Want more economic information? Find it in our publications. Find more in-depth information in our three economics publications, Home Builders Forecast, Housing Market Statistics and Housing Economics. All are availaible by subscription.
To learn more or to order any of these three NAHB economic publications, visit the Economics Publications Information section of the NAHB Web site or call 800-223-2665. Training Is Key to Safety on the Job SiteWith Occupational Safety and Health Administration and workers’ compensation requirements pushing builders to do more and more to protect everyone on the job site, developing and delivering a safety and training and education program is of top importance for builders and remodelers, NAHB is advising its members this June, which is National Safety Month. “A full safety training and education program must be set up to ensure that all your workers, subs, vendors and invited visitors know exactly what safe work practices you require,” according to training materials developed by NAHB and the NAHB Research Center in conjunction with OSHA. With the current labor situation, builders and subcontractors cannot assume that their workers know how to properly and safely operate power tools or pneumatic nailers or what chemicals on the job site they need to watch out for. Builders should consider the following pointers in their efforts to train and educate their workers:
NAHB's “Construction Safety Program Manual: A Guide for Home Builders and Contractors” is a practical guide for developing a comprehensive safety program for your building company. Available from BuilderBooks.com, the publication includes a model safety program on disk that can be easily customized and adapted to meet the safety needs of your business. For more information, e-mail Robert Matuga at NAHB or call him at 800-368-5242 x8507.
Free safety training seminars and materials are available. NAHB and the NAHB Research Center, Inc. have developed a six-hour safety training seminar entitled, “Recognizing the 'Big-Four' Safety Hazards for the Home Building Industry.” For information about when and where this course is being offered, click here. BuilderBooks.com offers a variety of publications online about safety and OSHA in English and Spanish editions. To view or purchase these publications online, click here. Habitat Homes in Syracuse Are Energy-EfficientThis spring, Syracuse Habitat for Humanity, Inc. dedicated four single-family homes that feature energy-efficient appliances, ventilation systems and lighting. Engineers at the NAHB Research Center, on behalf of the national Partnership for Advancing Technology in Housing (PATH), recommended several energy-efficient home building technologies for the Habitat homes. NAHB researchers also tested the homes’ building envelopes and heating ducts to ensure that the technologies would provide greater energy efficiency and comfort while reducing the home owners’ energy costs. The homes include a high-efficiency furnace, R-19 walls and R-39 attic blown-in cellulose insulation, a high-efficiency water heater, low-e windows, a timed ventilation system and precise insulated concrete foundational panels. While Habitat projects typically address the initial costs of becoming a home owner, with the involvement of PATH the Syracuse homes are also helping to address utility and other operating costs that can pose a barrier to homeownership. Supported by the Department of Housing and Urban Development, PATH is a public-private partnership that is dedicated to accelerating the development and use of technologies that improve the quality, durability, energy efficiency, environmental performance and affordability of the nation’s housing. Because the homes qualify for the New York State Energy Research and Development Authority's Energy Star program, the home owners will receive a $500 incentive and Habitat for Humanity will receive $1,000 per house. The homes have been rated 40% more efficient than homes built under the 1993 Model Energy Code standards. Carrier Corporation sponsored two of the homes; Nationwide Insurance and the Fayetteville-Manlius Consortium of Churches sponsored the other two. “The involvement of NAHB Research Center staff was an extremely positive experience for us,” said Suzanne Williams, executive director of Habitat’s Syracuse chapter. “We very much appreciated their knowledge of Energy Star program requirements, and their willingness to introduce new technologies into the project.” The Syracuse project is part of “The Houses That Congress Built,” a national building partnership involving members of the U.S. House of Representatives, the National Partners in Homeownership and Habitat for Humanity International. To date, more than 400 members of Congress have participated in building Habitat homes in their own congressional districts. Rep. Jim Walsh (R-NY), chairman of the VA-HUD and Independent Agencies Appropriations Subcommittee and a strong supporter of the PATH program, participated in the Syracuse project. For more information on the project, e-mail Craig Drumheller at the NAHB Research Center, or call him at 800-638-8556. Pillars Award Winner Provides Tips on Leasing CentersCrest at Lone Tree in suburban Denver — the winner of the 2003 Pillars of the Industry award for best leasing center — obviously knows how to create an effective leasing center. Applicable to sales centers for condominiums and even single-family houses, as well, here are suggestions from its developers:
Carmel Partners developed this project, and Kephart Architects, Denver, designed it.
Mark your calendars now for the 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala. Join us March 28-30, 2004, in Palm Springs, CA. Summit to Look at Assessments of Tax-Credit HousingNAHB Multifamily is preparing a seminar to assist users of the Low Income Housing Tax Credit who are having problems with local jurisdictions that are treating them the same as owners of market-rate properties when it comes to taxes. In their efforts to provide affordable rental housing, developers who use the credit already have to deal with a considerable amount of regulation, and rents of tax-credit properties cannot be raised to compensate for higher tax assessments from localities. NAHB's Housing Credit Group will host a summit on local tax assessment of Low Income Housing Tax Credit properties in Boston on Sept. 17, the day before the start of the NAHB Fall Board of Directors Meeting. Through a series of moderated panel discussions, topics addressed by the summit will include the value of tax credits, capitalization rates, restricted versus market rents and options when negotiating with local assessors. For more information, or to register, e-mail Greg Brown at NAHB or call him at 800-368-5242 x8207. Automate Your Selection and Change Order ProcessesThe sixth in a series of tech talks for builiders Technology can help you stay on top of the umpteen variables associated with managing selections and change orders. However, as I have continued to stress throughout this tech talk series, good systems must come first. Before you even think about automating your selection and change order processes, you need to determine the functionality of your processes by first doing these two things:
Both of these processes depend upon your company determining, and your employees adhering to, the selections that will be provided and then presenting a consistent message to your clients. We’ve all heard about sales people promising customers the moon while knowing full well that the production department can’t deliver it. If sales and production don’t agree on the process, automating the system will not make it more efficient. Automated systems definitely will help you standardize the presentation, but the computerized controls need to facilitate good communications among everyone involved in the process — the customer, the design center, and the sales, contract administration and construction management departments must talk to each other. Communications Comes First It’s a good idea to develop communication plans that go hand-in-hand with your processes for managing selections and change orders before automating your processes. Even better, build your communications right into your systems. The following lists the typical steps involved in processing a change order. Notice how many people have to be kept in the loop:
When you calculate your markup, make sure you factor in the overhead costs for each step in your process. For example, in Step 7, above, I recommend collecting a non-refundable deposit for the change if you don’t collect the full amount. If the customer decides not to swap sliders for casement windows after all, the deposit means you won’t have to absorb the costs for the prep work already completed by your estimator and project manager. How to Fold Technology into the Process A good change order system also reduces cycle time and improves construction quality, customer service and your bottom line. If, instead, your system compromises any of these areas, you need to re-examine it. Some software packages have the ability to integrate all the contract-to-closing processes — including selections and change orders. However, many rely on proprietary databases.
Whether you automate your processes or not, make sure you respond to input from all team members — especially customers — as soon as possible. Communication really is a two-way street. Earlier Articles in This Series
Next: Improving scheduling and your cycle time
Bill Allen is president of W.A. Allen Consulting and a member of NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, WA, provides information technology consulting services and process management assistance to the home building industry. Allen can be reached at 425-885-4489 or via e-mail. Or visit the W.A. Allen Consulting Web site.
Want more information about using technology in your business? NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications. BuilderBooks.com also offers a variety of publications about computer technology. To view or purchase these publications online, click here. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org. University of Housing Offers Courses on Customer Service and Business Management The NAHB University of Housing offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here. New Jersey Protects Habitat of Long-Gone Queen SnakeBuilders in New Jersey are pointing out that there is a problem with the recent addition of queen snakes to the Department of Environmental Protection's (DEP) list of endangered species: Not one of them has been found in the state for more than 25 years. “So, even though the queen snake is not in New Jersey, we are protecting its habitat,” writes Nancy Wittenberg in the June 10 issue of Dimensions, the newsletter of the New Jersey Builders Association. The newsletter advises New Jersey builders that they may find that they are prohibited from certain activities and use of a site may be limited if there is a stream inhabited by crayfish running through it. Queen snakes are aquatic, and they eat crayfish. Wittenberg notes that permits and approvals are increasingly being held up because of the state's habitat protection efforts. Protected wood turtles, pine snakes, eagles and barred owls are showing up on many development sites. In the case of the queen snake, “DEP has decided to protect the habitat of a species that does not live in New Jersey,” writes Wittenberg. “What's next, mastodons?” Workforce Development Is Another Great Member BenefitI spent a full morning last month in Simpsonville, KY, visiting a training program at the invitation of former NAHB President Shirley Wiseman Lach. Joining us was a colleague and friend, her local EO, Todd Johnson of the HBA of Lexington. For years, I had heard about NAHB’s workforce development arm, the Home Builders Institute (HBI) and the training it offered at the Department of Labor's Job Corps centers. For years, I had heard Shirley, also an HBI trustee, talk about Job Corps and the "kids." However, my knowledge of the program was rather limited. That made my visit to the Whitney Young Job Corps Center not just a trip to a training facility, but a truly enlightening experience. Here is a program, where NAHB, through HBI, is teaching young people the craft trades. Every year, HBI staff trains and places more than 2,000 youths enrolled in Job Corps in industry-related jobs. Through real-life, hands-on training, these young people learn a skill and earn a second chance. HBI has programs in seven trades — carpentry, facilities maintenance, electrical wiring, painting, plumbing, brick masonry and landscaping — on 66 Job Corps campuses in 39 states. During our visit to the Whitney Young campus, we met the instructors and students in carpentry and facilities maintenance classes. I was impressed with the attention and effort given to the soft skills that are so critical to a young person's ability to not only get a job, but to grow and to succeed. These instructors are not only teaching a skill and passing on a craft, they are helping to build self-esteem and in many instances, rebuilding young lives torn apart by personal challenges and adversity. Let's not forget another outcome of their efforts — they are helping address the housing industry's critical need for qualified workers. We also learned that many HBI programs on Job Corps campuses work closely with the industry. NAHB members volunteer as mentors and guest speakers, donate training equipment, embellish the curriculum or provide internship opportunities for the students. Of course, many also will employ the young graduates. HBAs and HBI programs have also collaborated in community service activities as well as home show exhibits and job fairs. Conversely, HBI instructors participate in HBA activities at no cost, such as taking their students to the local HBA's monthly meeting. An initiative currently in its pilot stages would establish NAHB Student Chapters for HBI students on Job Corps campuses. There are innumerable linkages and opportunities for HBAs and members that want to become involved with their local HBI Job Corps programs. The visit helped me understand why NAHB and HBI have partnered with Job Corps for 29 years. I thank Shirley for sharing the program with us and I know there is so much more to learn. I would encourage home builders associations to reach out to HBI Job Corps programs in their areas, to help our members tap into the enormous resource these young people represent to the home building industry nationwide. Bob Weiss is president of the Home Builders Association of Kentucky and chairman of the NAHB Executive Officers Council.
Save Up to 20% on Postage Costs with Pitney Bowes Members can eliminate time-consuming trips to the post office for stamps or to weigh packages while also saving up to 20% on postage costs with Pitney Bowes Personal Post™ postage meter. For more information, or to order, visit Pitney Bowes on the Member Advantage page of the NAHB Web site, or call toll free 888-253-7900 and mention Reference #9999 99 101. To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here, or send a blank e-mail to membersavings@nahb.com. Go to www.nahb.org to explore the numerous advantages associated with membership in your local, state and national home builders association. Active Adult Marketing Involves Five Key ElementsMany companies encounter a steep learning curve in their marketing for active adult buyers. On the whole, these buyers are well-educated, savvy, demanding and value-conscious. They are also affluent (and many have sterling credit), flexible, and, with proper communication, a pleasure to deal with. Based on our experience, your overall marketing strategy should include the following elements: 1. Quality
2. Clarity
3. Honesty
4. Understanding
5. Customer Service
Steve McKenna is president of Mignatti Companies, a fourth-generation residential and land development company that builds active adult, single-family, and multifamily communities in central New Jersey and suburban Philadelphia. McKenna can be reached by e-mail or call him at 215-947-2800. A longer version of this article appeared in the Winter 2003 issue of Seniors’ Housing News, a quarterly magazine from the NAHB Seniors Housing Council. For more information about the council and its member benefits, click here, or e-mail Jeff Jenkins or call him at 800-368-5242 x8292.
BuilderBooks.com offers a variety of publications about seniors housing online. To view or purchase these publications, click here and type "seniors housing" in the search box. Learn more about marketing and building for the 50+ seniors housing market at Seniors Housing Symposium 2004. Mark your calendar and plan on joining us on April 14-16, 2004, in Chicago. Ask a MIRM — About The Best Way to Train Your Sales StaffBy Daniel Levitan, MIRM There is no single “best” way, but the following are recommended:
Every sales team member should enroll in the CSP course, which is an essential introduction to the concepts of properly selling new homes. The two advanced CSP programs — “House Construction as a Selling Tool” and “Essential Closing Strategies” — provide wonderful additions to the basic knowledge and skills that every salesperson needs. There are several excellent professional sales trainers who can work with your staff through off-site seminars, on-site presentations and one-on-one training. Sales expertise can also be found in books, audiotapes and videos. NAHB’s convention and regional builder conferences offer outstanding sales programs. Remember that the performance of your sales staff will only be as good as the sales management. The sales manager should be in the field, visit the communities on a regular basis, personally assist the sales staff in making sales and not be sitting in the home office doing paperwork. Daniel Levitan, MIRM, CMP, CSP, SHMS, RAM, CPB, is president of Levitan & Associates, a Florida-based firm providing marketing and strategic consulting to builders, developers and lenders throughout the country. He is a past president and multi-term trustee of the Institute of Residential Marketing, a past three-term trustee of the National Council on Seniors Housing and winner of the Bill Molster, John P. Hall and IRM’s Excellence in Education awards. He can be contacted by e-mail, or phone him at 954-473-4244.
For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales and Marketing Ideas magazine. Call 800-368-5242 x8192 or click here to subscribe or order a copy. Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing. BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here. University of Housing Offers Sales and Marketing Designations The NAHB University of Housing offers designation programs specifically for sales and marketing professionals. For more information on these programs, click here, or call 800-368-5242 x8EDU. Registration Discounts Available for Building Systems ShowcaseEarly-bird registration discounts for SHOWCASE 2003 — the only NAHB annual event devoted to the technologies and methods of building systems — are available through Aug. 1. Expanded educational sessions and a roundtable lunch are two highlights of this year's SHOWCASE, which will be held Nov. 2-5 at The Homestead in Hot Springs, VA. Other highlights include:
For more information about the SHOWCASE and reserving hotel rooms, click here. For sponsorship and exhibition information, e-mail Marlene Adams at NAHB or call her at 800-368-5242 x8208. Exterior Composite Trim Outperforms WoodMiraTEC® Treated Exterior Composite Trim, like other composite trim products, provides higher yields than wood and its price and availability don’t fluctuate like wood. According to its manufacturer, Craftmaster Manufacturing, Inc., it also provides some unique advantages. Headquartered in Chicago with a manufacturing facility in Towanda, PA, CMI is a member of the National Council of the Housing Industry, the supplier 100 of NAHB. Among the advantages of MiraTEC®:
MiraTEC® has been on the market for nearly five years, and it has been embraced by builders and remodelers because it has no knots; it’s easy to cut, paint and nail; and it won’t split or crack like wood. The product is backed by a comprehensive 25-year warranty. Catfish Tournament an Annual Charity Event in FloridaThe Northeast Florida Builders Association (NEFBA) Charitable Foundation is making plans for its Seventh Annual “Catch Bubba” Catfish Tournament and Bar-B-Q in Jacksonville on Oct. 18. Money raised at the event goes to the Downtown Ecumenical Services Council to provide emergency food and financial assistance to local families in need. Over 5,800 families have been helped by the local charity. Last year, it brought groceries to 2,700 homes, and helped 486 families with utility and rent payments. The tournament can accommodate as many as 200 contenders for a top prize of $5,000 if they hook Big Bubba, which weighs over 400 pounds. If Big Bubba doesn’t take the bait, a prize of $3,000 is awarded to the person who reels in the biggest fish. The association’s charitable foundation supplies the fish and organizes the event, which last year attracted more than 550 spectators. Since it was founded in 1986, the NEFBA Charitable Foundation has provided services and assistance to more than 100 individuals and groups. |