Digital Homes
The concept of the networked home — a living space characterized by "ambient intelligence" where digital devices intuit and respond to user needs — is growing in popularity thanks to a surge in broadband adoption, the development of more user-friendly technology and a shift to more entertainment-oriented PCs concurrent with the rollout of more PC-like consumer electronics. Networking a home extensively is an expensive proposition, and hurdles such as standards incompatibility and navigating through a mire of wires or wireless software codes still need to be overcome. Nokia, Sony, Hewlett-Packard and other companies founded the Digital Home Working Group in June to deploy guidelines to establish interoperability between networked devices. Digital home residents interviewed by BusinessWeek explained that their desire for technology depends on its ease of use and how it empowers the user. The living room is becoming the hub of the digital home: The growth of DVDs is spurring consumers to upgrade their living room technology to create a more movie theater-like experience; cable and satellite companies and content suppliers hope to make a mint by supplementing this experience with on-demand movies and games delivered via the Internet, while PC makers think that "entertainment PCs" will reenergize sales. Wi-Fi, in conjunction with mobile devices, is allowing Internet access to migrate out of the study and into the bedroom, while automated climate control currently has little appeal for modestly-budgeted consumers. Manufacturers say there has been less enthusiasm for a digital kitchen because women are less willing than men to deal with technology implementation headaches; nevertheless, Sears and other retailers see potential in enhancing kitchen appliances such as ovens and refrigerators with radio-frequency identification tags, remote diagnostic systems and other technologies. Another trend poised to affect the move toward the digital home is e-health, in which high-tech gadgets and network connections are being tested and used for assisted living: Certain e-health applications may show up in the bathroom, such as toilets that measure sugar levels in urine and transmit the data to physicians over the Net. (www.businessweek.com)
Business Week (07/21/03) No. 3842, P. 58 Edwards, Cliff; Weintraub, Arlene
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Hot Time in the City for Second Homes
A new survey by the National Association of Realtors® reveals that second-home buyers are focusing more on city properties and that investment is the motive behind such purchases. The NAR poll found that 66% of secondary residences purchased during the first quarter of 2003 were located in cities or suburbs, up significantly from the typical 16% of second-home purchases in such locales. While beach vacation condos or getaway cabins in mountains generally account for 56% of second-home purchases, NAR found that property in resort or recreational areas accounted for only 12% of second-home purchases during the quarter. The NAR research additionally revealed that the median price for secondary residences was a relatively low $150,000, offering further evidence that buyers were focusing on second homes in cities as rental properties. (www.usatoday.com)
USA Today (07/15/03) P. 1B; Fogarty, Thomas A.
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New Kids on the Block
The 25-and-under American demographic, which traditionally has underpinned the market for rental housing, has surfaced as the fastest-growing home buying segment of the population in the past 10 years, according to the National Association of Realtor®'s interpretation of Census data. Largely as a result of the lowest home-loan rates seen since before they were born and relaxed mortgage underwriting standards, the number of home owners under the age of 25 has doubled from 792,000 in 1993 to 1.5 million today, the Census numbers show. While that still adds up to a mere 2% of the overall home buying community, experts say the rapid growth could reflect emerging optimism among Generation X-ers, who have garnered a reputation as cynical and risk-averse. While people under 30 traditionally delay homeownership until they wed, many today — tired of paying rent and eager to invest their money somewhere other than the stock market — are not waiting for marriage to make the shift. (www.wsj.com)
Wall Street Journal (07/18/03) P. B1; Leung, Shirley
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You Must Be 55 to Apply
Contrary to popular belief, not all retirees sell their family homes for more modest dwellings in warmer locales. In fact, NAHB and Countrywide Home Loans have found that one-fourth of senior home buyers purchase more expensive retirement abodes, many of which are close to their long-time homes. Three-quarters of buyers aged 50 and up, meanwhile, want to live in low-maintenance communities with plenty of amenities. To meet this demand, builders are constructing so-called "active adult" communities in cities all over the country. The properties in these communities are being equipped with gourmet kitchens, media rooms, home offices, high-speed Internet and other upscale features. "People are seeing more of these properties and realizing they are not just for geezers," says Margaret Wylde, president of ProMatura Group, a research firm specializing in the senior market. "They attract people who want an active lifestyle." (www.kiplinger.com)
Kiplinger's Personal Finance (07/03) Vol. 57, No. 7, P. 83; Franklin, Mary Beth
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Douglas County Leads Nation in Percentage Housing Growth
The U.S. Census Bureau on Thursday revealed that the greatest housing growth between 2001 and 2002, in terms of percentage, occurred in Colorado's Douglas County. The area saw an 8.3% increase in the number of residential units. Like the rest of the U.S. counties in the Top 20 list, it started with less than 100,000 homes. Colorado also made the cut as the Census Bureau named the states with greatest percentage of housing growth in the past two years. Its housing inventory grew by 2.9%, outperformed only by Nevada — which gained 4%. The new Census data show that fringe markets just outside of major cities in the U.S. South and West, including Douglas County, are expanding their housing supply at a rapid clip. (www.casperstartribune.net)
Casper Star-Tribune (WY) Online (07/18/03) Tsai, Catherine
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Adoption of New Building, Fire Codes Caught Up in Politics
California Assemblyman John Campbell (R-Irvine) wants United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry special representative Sidney Cavanaugh and lobbyist Barry Broad removed from the governor-appointed Building Standards Commission. Campbell argues that Cavanaugh and Broad's recent votes as to which new building and fire codes should be implemented statewide highlight their loyalty to labor unions. The commission must choose between the International Code Council or the National Fire Protection Association standards, the latter of which is favored by plumbers and firefighters unions and received both Cavanaugh's and Broad's votes. Campbell insists, "Building standards codes should be set on the basis of trying to get the best safety for the lowest cost, and they shouldn't have special-interest lobbying ... or lobbyists involved." Campbell thinks the Fire Protection Association codes would cost too much money in terms of additional staff and the use of certain materials and methods. He also points to the more than $3 million in contributions Gov. Gray Davis has received from the plumbing industry in the last five years. However, Broad and Cavanaugh — who helped pen both code books — noted that their votes would be based on endorsements by the state fire marshal. (www.latimes.com)
Los Angeles Times (07/16/03) P. B7; Vogel, Nancy
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Reliable Source Shoots Down Predictions of Real Estate Crash
While the red-hot housing and mortgage markets have kept the U.S. economy afloat for the past few years, a bevy of prognosticators now are flooding bookstands and other media outlets with warnings of a real estate price bubble on the verge of bursting. In its three-year Macroeconomic and Housing Finance Outlook, however, the Mortgage Bankers Association of America concludes that no such bubble exists. The group's chief economist, Douglas Duncan, explains that interest rates will rise gradually next year as the economy slowly picks up steam; the anticipated increase in mortgage rates is then expected to cool home sales and mortgage activity — but not enough to hurt residential values, which are slated to slow somewhat but not to crash. MBA's outlook gains high marks for credibility, since the Atlanta Federal Reserve Bank recently singled out the industry group's forecasts as the most accurate among 70 Blue Chip Survey organizations from 1986 to 2001 that remain active. (www.mysanantonio.com)
San Antonio Express-News (07/16/03) P. 1E; Hendricks, David
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The Home of the Future Is 'Universal'
Universal design makes homes more accessible to seniors, disabled persons and children while creating a more spacious, secure dwelling. According to a report from the Center for Universal Design, "Accessible and universal designed housing allows families to live together in preferred places instead of facing the emotional and economic costs of moving or institutionalizing a family member." By incorporating universal design into new housing, home owners can live comfortably without having to take on costly remodeling projects down the road. No-step entrances, wider doorways and lower light switches and outlets are some of the most common elements of universal design. Many builders have already successfully implemented the principles of universal design and use them as a selling point. However, as legislation mandating these features becomes more widespread, those that have not yet already done so will be forced to follow suit. (www.copleynews.com)
Copley News Service (07/14/03) Woodard, James M.
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A Porch for Nearly All Seasons
Despite the continued popularity of backyard decks, because of fears over the West Nile virus, which is transported by mosquitos, more and more home owners are turning to enclosures. NAHB reports that about 50% of the dwellings built two years ago had porches, and Qualified Remodeler magazine notes that an estimated 500,000 porches are built onto existing residences each year. Many of these are three-season porches — also called sunrooms or Florida rooms — featuring insulated walls and screened windows as well as electrical outlets to give home owners a space that can be used from spring through fall. Sunrooms run between $10,000 and $15,000 or more, according to one estimate; but home owners who are simply replacing a screened-in porch could spend as little as $2,000. (www.freep.com)
Detroit Free Press (07/13/03) Shine, Dan
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Getting Clubby
Taxpayer-funded recreation centers have long served as the social and recreational companions of large-tract subdivisions, golf-course housing developments and retirement communities. In recent years, however, rec centers and their limited amenities increasingly have been replaced by private clubhouses that mimic the country-club experience. These multi-level community buildings include different areas for relaxation, dining and socializing as well as separate space for hobbies and fitness. Builders catering to a specific market also are fine-tuning their clubhouses to fit the needs of different buyers. A clubhouse at a retirement development, for instance, might include a convenience store and bank to minimize trips for its aged residents; while a community geared toward families with children might feature a daycare center as part of the clubhouse's amenities. Without taxpayer money, developers finance construction and maintenance of these community structures with sales profits, membership fees and a share of the home owners association dues each month. Ultimately, the responsibility of running and maintaining the clubhouse or community center is turned over to the home owners association itself. (www.washingtonpost.com)
Washington Post (07/12/03) P. F1; Dietsch, Deborah K.
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New City Guidelines Expected for Homes
Officials in Grand Prairie, TX, plan to issue new building standards in an attempt to create attractive communities that maintain their value. Builders will be encouraged to construct homes of a certain size, space them farther apart, place the garage in back, use more brick and stone on the outside of the dwellings and incorporate numerous styles and designs. According to chief city planner Kevin Lasher, "It's sort of an accumulation of elements we put in single-family planned developments in the past that seemed to bring about a type of environment or development that is physically attractive and which we want to achieve in the future." Though the standards are not mandatory, Home Builders Association of Greater Dallas Government Relations Director Paul Cauduro believes they could raise home prices and hurt custom builders who will be unable to use the latest energy-efficient and high-tech products that their customers prefer. Cauduro believes local governments should instead focus their efforts on providing a number of different housing types. (www.dallasnews.com)
Dallas Morning News (07/13/03) P. 1Y; Sandoval, Stephanie
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Online Bookkeeping
While some business owners remain wary of compromising their accounting information, others have taken advantage of more secure technology to improve the efficiency of their accounting using Web-based accounting products. Online accounting enables business owners to perform accounting functions from remote locations, and experts say the new technology includes features to keep accounting information secure. Some online accounting products, like Intuit Inc.'s QuickBooks' Online Edition, are hosted through Web sites by applications service providers, who can monitor the security of information 24-hours a day. Roberson Neal & Co. Certified Public Accountant Katherine Polk says businesses that use online accounting have fewer hardware requirements, and Wizard Business Solutions Vice President of Sales and Marketing Christopher Upson points out that online accounting software can help businesses save time and money. Peachtree Senior Product Manager Chuck Corcoran says the company's Web accounting products are not only more convenient and flexible, but can help businesses improve their quote and inventory processes, and become more productive. Despite these benefits, producers and users of online accounting products acknowledge that some business owners still have security concerns about transmitting their private accounting information via the Internet. (www.triad.bizjournals.com)
Business Journal of the Greater Triad Area (07/14/03) Somerville, Leigh
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Refresh or Refurb?
Faced with older computers, small businesses need to decide whether they will replace or upgrade them, since older machines often lack the computing power necessary for today's applications. Moreover, support for Windows 98/SE will cease on Jan. 16, 2004, after which Microsoft will not provide patches or fixes for flaws or vulnerabilities. Replacing computers with Windows XP computers offers several benefits for small businesses, and mid-year is the best time to do so, says Aberdeen Group analyst Peter S. Kastner. "Windows XP Pro Service Pack 1 is out in the field and working well indeed," says Kastner. Small businesses that purchase XP can take advantage of buying off-the-shelf software applications and setting it up internally, according to Microsoft's Windows division lead product manager Greg Sullivan. He says XP allows businesses "to leverage current IT trends" such as software integration via Web services, and Windows XP is also valuable when used with local- and wide-area networks and wireless networks. Nevertheless, for some firms, upgrades are enough to fulfill computing needs, which would entail the purchase of an internal hard drive or an add-on USB/Firewire external hard drive to boost storage capacity and performance. Companies many want to consult Microsoft's Web site to view the minimum CPU requirements for various operating systems. (www.sbcmag.net)
Small Business Computing Online (07/03) Fusco, Patricia
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