Nation's Building News Online: September 1, 2003Print All Articles Text Version |
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Hefty Price Increases Posted for OSB and Plywood, But May Be Short-LivedHome builders in different parts of the country have been reporting hefty increases in the cost of Oriented Strand Board (OSB) and plywood. Economic analysts at NAHB are hopeful that prices will begin to ease within a few months, but builders may be facing some unpleasant surprises in the short term. In its Aug. 22 report of structural composite panel prices, Random Lengths noted that, “OSB’s historic price run reached stratospheric levels as producers aggressively raised quotes, often several times per day. One trader’s observation, ‘It’s a frenzy again,’ was affirmed throughout the distribution chain and across the U.S. and Canada.” The Producer Price Index showed a 43.6% increase in OSB prices from the start of this year through June. Price increases have intensified over the summer. Partly to blame for the price escalation of OSB have been out-of-control forest fires in British Columbia that have halted some harvesting activity in the province. There also have been reports that the U.S. Defense Supply Center in Philadelphia recently purchased about 20 million square feet of plywood for shipment to Iraq. That is still a fairly small amount; annual consumption of plywood in the U.S. totals about 16 billion square feet. Strong demand for single-family housing in the U.S. has continued to bring down inventory levels and attempts to meet demand and rebuild inventories have produced some panic buying. “I think the price hikes will end and be partially reversed in the next few months, provided that we don’t have a big hurricane,” said NAHB economist Michael Carliner. “Once the fires are out,” added Carliner, “their short-term effect may actually be to increase supply as damaged trees are harvested, but that’s not happening yet, and may not happen.” On the larger issue of reversing troubling countervailing and anti-dumping duties on Canadian lumber imports, NAHB First Vice President Bobby Rayburn reports that the association is continuing to make headway against the U.S. Commerce Department’s finding that Canadian lumber producers are subsidized. While plywood and OSB are not subject to punitive duties, the continuing lumber trade dispute has contributed to price increases for framing lumber. In the most recent development in this ongoing issue, an Aug. 13 ruling by a bi-national North American Free Trade Agreement (NAFTA) panel rejected 19% U.S. countervailing duties. Current duties of more than 27% on Canadian lumber shipments to the U.S. include 8% anti-dumping duties. For further information, or to report concerns over rising wood product prices, e-mail Michael Carliner or call him at 800-368-5242 x8376.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Building News Coast To CoastZero-Lot Homes Growing in PopularityU.S. Census data indicates that the median lot size for a new single-family house has declined from 9,750 square feet in 1992 to 8,612 sq. ft. last year. At the same time, however, floor space in new homes grew slightly. "The consumer is willing to accept smaller lot size . . . but not smaller homes," explains Gopal Ahluwalia, vice president of research at NAHB. Given this American desire for more living space, which clashes with the shrinking availability of single-family urban lots in this country, zero-lot line homes are becoming increasingly popular. More and more home owners — especially baby boomers whose children have struck out on their own and busy young professionals — no longer have the time or inclination to maintain a big back yard and instead are turning to residences built directly on the edge of the lot's outer perimeter. These properties tend to have small front or back yards and just a thin strip of grass as a side yard; and they generally are built only about 10 feet apart with a shared fence separating them. The choice of floor plans for this brand of homes is expanding, according to industry insiders, but living in a zero-lot home is not for everyone. Experts say prospective buyers should take into consideration the fact that they will have less privacy and less room for children or pets to play. Their side view most likely will be limited to a tall fence, the wall of their neighbor's house and possibly even a view into their neighbor's windows. Moreover, the close proximity of the homes increases the risk of fires spreading. One solution to address the lack of privacy, at least, is to purchase a zero-lot property that has staggered windows or privacy fences; or consider putting up plantation shutters of heavy window treatments. Going Green on TopGreen roofs — also known as living roofs — feature thin gardens that lower building temperatures in hot cities while absorbing and filtering rainwater to minimize pollution and erosion in water systems. Some green roofs are used as gathering places, while others are meant to be admired from afar or intended only for their functional uses. The roofs are layered with copper and a gel to capture rainwater for use by the sedums and other plants that do not set deep roots or require a significant amount of rain and soil. Most importantly, the roofs must have adequate drainage systems to keep plants alive during downpours and avoid the problems associated with ponding water. Industrial, commercial, government and multifamily buildings are good candidates for green roofs; but they also can be placed on top of single-family homes with the use of costly, sophisticated hardware and pre-grown plants. Though these roof-top gardens cost 30% more than standard bitumen roofs, they have longer lives because damaging ultraviolet rays do not touch the roofing material. Commission Seeks Limits on Future Cul-de-SacsCommissioners in Lawrence, KS, want to replace cul-de-sacs with linear streetscapes in order to foster relationships among neighbors. "They [cul-de-sacs] certainly are inconsistent with the traditional 'front porch' idea of a neighborhood," remarks Commissioner David Schauner. To minimize battles between developers and residents, commissioners also say neighborhood associations should be forced to take part in the planning process. Energy conservation laws for new buildings and additional bike and pedestrian paths are among the city commission's other goals. Popularity of SUVs Driving Larger Home-Garage TrendNow that sport utility vehicles are gaining in popularity, the standard two-car, 21-foot-by-21-foot garage is no longer large enough to accommodate a family's vehicles. Although Cadillac Escalades, H2 Hummers and other SUVs actually can fit in the traditional garage, their massive size leaves home owners little leftover space for bicycles, lawnmowers, work benches, sports equipment and other items. A growing number of custom-home builders are responding by making three-car, 22-foot-by-22-foot garages with nine-feet-high door openings the new standard. If there is room on the lot, home owners can add an unattached three-car garage as well. Builders can even make luxury, two-story garages with hydraulic lift systems to easily accommodate four cars, but most home owners would find it cost-effective to simply purchase more land and expand. Straw Bales Make Cozy WallsStraw bale homes, using either a load-bearing design or a post-and-beam configuration, represent an energy-efficient alternative to traditional stick-built dwellings. The bales are placed in the walls for insulation, significantly lowering utility bills, and covered with plaster. However, the straw must be kept dry; large overhangs can be used to safeguard against water damage. The addition of radiant floor heating, large windows and energy-saving appliances, among other components, can maximize the home's energy-efficiency. Straw homes also are quite affordable, with the bales costing only several hundred dollars. The Dirt on MudroomsToday's mudrooms, also called family workshops or home information centers, are no longer small areas or "back halls" where family members rid themselves of dirty shoes. They are now separate rooms where members of a household store sports equipment and other items, leave messages and even lounge on window seats to relax. Experts attribute the trend to low interest rates, which have made the cost of adding a mudroom only slightly more expensive than floor plans that do not include one; the need for a room between the home and the garage; less space in the laundry room; and the desire for more belongings. Modern mudrooms can incorporate top-quality architecture; hardwood, tile, limestone or slate floors; radiant floor heating; sinks; pet-cleaning areas; message boards; seating areas; fireplaces; closets; and storage lockers. Some builders are even making the mudroom — which usually provides access to a back or side entrance to the home — a standard amenity. Cities Provide Incentives to Increase Urban Multifamily DevelopmentAcross the country, cities are providing a wider range of tax, economic, financial and regulatory incentives in an effort to boost multifamily housing development in urban settings — which ordinarily presents financing challenges. Demand for central business district space is largely being driven by working professionals who want to be closer to where they work downtown. A growing number of empty nesters who have the desire to live closer to city activity and cultural outlets also are fueling the increased interest in rental apartments located in central business districts. Such cities as Dallas, Denver and St. Louis have even gone so far as to develop downtown historic districts, with developers utilizing special tax credits to purchase historic properties for multifamily adaptive reuse projects. Such efforts preserve the exterior façade of the buildings but completely redesign and upgrade the interiors. Other cities are stepping up their efforts to attract more middle- and high-income individuals to live in the city. Among the incentives now being offered are increased parking allowances. Small Businesses Adopting Residential Broadband?ACNielsen and Pacific Internet, an Australian Internet provider, recently teamed up to evaluate how small companies in Australia use high-speed Internet access. The broadband barometer study estimated that 206,780 out of 655,000, or 41%, small companies had access to high-speed Internet as of June 2003. "It suggests that, despite popular opinion, small businesses are decisive and swift when assessing and adopting new technologies," says Pacific Internet Australia Managing Director Dennis Muscat. Among businesses with 20 to 49 employees, DSL boasted 49% penetration, compared to 8% for cable. Nevertheless, for firms with five or fewer employees, dial-up was the most favored method of connectivity, with DSL penetration at 18% and cable penetration at 17%; satellite connectivity was the least adopted technology. Muscat notes that because of small office/home office (SOHO) installations, "there is little differentiation between home and business connectivity needs." The survey also indicated that city and rural businesses tend to use broadband differently — 76% of small city-based firms used firewalls, compared to 67% of rural firms. City-based firms also implemented more virtual private networking and remote access, even though these technologies may be more essential in rural areas. The Threat's in the E-mailBusiness productivity can be enhanced by the Internet and e-mail, but productivity losses can result if companies do not include Internet and e-mail access in their network security plans. To safeguard against security breaches, experts urge companies to use layered technology; install anti-spam filters; create acceptable-use policies to cut down on the amount of time employees spend managing junk mail; and implement filters that prevent workers from accidentally or deliberately leaking critical information. Virus scanners should also be used to keep costly viruses from wreaking havoc. Xerox Hologram-Like Discovery May Aid Security of DocumentsOften companies resort to the use of holograms and watermarks to authenticate their documents, symbols and devices that cannot be merely copied with a scanner or copier, but Xerox is about to go one step further with Glossmark. The newest technique will be incorporated into laser printers, allowing companies to mark their documents with hologram-like images on their documents, which only appear when viewing the page at certain angles. If the new device is successful, companies will no longer have to have paper custom made to prevent illegal reproductions or forgeries. The new printers would allow smaller companies to have the same protections as larger corporations, and Xerox is hoping that the new discovery will spur its sales and market share in spite of the faltering economy. Glossmark can be personalized, according to Xerox scientists, but the product is still in the developmental stage, and the company hopes to develop strategies to keep the new technology out of the hands of counterfeiters. We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Anti-Growth Proposal Raising Concerns in FloridaConcerns are growing in Florida over a petition drive that would put on the state’s Nov. 2, 2004 ballot a constitutional amendment requiring voter approval of changes to local growth plans. The Florida Hometown Democracy at latest count had only collected about 5,500 signatures towards the roughly 500,000 it needs to submit its proposal to a statewide vote. However, the Sierra Club recently weighed Anti-Growth Proposal Raising Concerns in FloridaConcerns are growing in Florida over a petition drive that would put on the state’s Nov. 2, 2004 ballot a constitutional amendment requiring voter approval of changes to local growth plans. The Florida Hometown Democracy at latest count had only collected about 5,500 signatures towards the roughly 500,000 it needs to submit its proposal to a statewide vote. However, the Sierra Club recently weighed into the debate, indicating that it is mobilizing its 30,000 members in the state to support the amendment. If passed, the amendment would stop growth and undermine the economic vitality of the state by derailing the residential real estate and construction industries, said Denise Wallace, president of the Northeast Florida Builders Association (NEFBA). “These industries are the bread and butter of our economy and have helped keep our state afloat during the recent economic downturn,” said Wallace. Based on NAHB analysis of the local economic impact of home building, Wallace said that the 10,600 single-family permits issued last year in the Jacksonville area represented the creation of 26,000 full-time jobs, $841 million in wages and $450 million in combined federal, state and local revenues and fees. “That’s not including the economic benefits from commercial, heavy industrial and multifamily construction and other segments of the economy that benefit indirectly from the industry,” she said. The amendment “is just a move under the guise of causing no more growth in the state of Florida,” said Michael Reitmann, executive director of the Lee Building Industry Association. Industry leaders across the state are stressing that members of the public currently have the right and several opportunities to be heard in the land-use process. A July 30 editorial in the South Florida Sun-Sentinel said that there would be several negative repercussions if the amendment became law. Among them:
NAHB staff members are currently working with builders in Florida to ensure that the no-growth proposal is defeated. This story is based on reports by Michael Bonts, communications director for the Northeast Florida Builders Association. Housing SnapshotMortgage interest rates last week inched up for the second week in a row, but compared to a year earlier fixed-rate loans were about the same and ARMs were about 50 basis points lower. Freddie Mac Chairman Frank Nothaft noted that despite rising mortgage rates, refinancings still accounted for about half of all mortgage applications. A Commerce Department report last week of a 0.8% increase in consumer spending and a 1.5% jump in disposable income in July presented good evidence that the Bush Administration's ambitious tax cuts are starting to work their magic. Economic growth in the second quarter grew at an annual rate of 3.1%, revised upward from an earlier estimate of 2.4%. This was a big improvement over anemic 1.4% gains in each of the two preceding quarters, and suggested that the economy is moving closer to generating new jobs. Mortgage Interest Rates30 Year Fixed Rate: 6.32\% Housing Starts: Jul. 2003Total: 1.87 million\% New Home Sales: Jul. 2003 *1.165 million Existing Home Sales: Jul. 2003 *6.12 million * Seasonally Adjusted Annual Rate Building for Tomorrow Starts With Accommodative Housing PoliciesEven in the best of economic times, new housing has been a temptation for towns, cities, counties and states that are looking for the financial resources to pay for the infrastructure without antagonizing taxpayers. Unfortunately, this is the worst of fiscal times for our governments, and that’s why home builders have been working doubly hard to ensure that it doesn’t become open season on new home buyers. The major contribution of housing to the strength of the nation’s economy has been hard to miss over the past couple of years. That story has been splashed across the front pages and covers of newspapers and magazines. It has been at the top of the evening news. Housing was the focus of the Bush Administration as it devised a strategy to boost the country’s economic growth to its full potential. And housing is at the very center of today’s increasingly successful effort to produce jobs and stimulate the economy. At the local level, the economic power of housing is equally strong. Unfortunately, it’s a story that no-growthers, for various selfish reasons, don’t want to hear. Inadequate infrastructure is just one more excuse to slam the door on what communities need to do to accommodate growth, ensure economic vitality and deliver a high quality of life. Trends over the past 50 years or so haven’t made the job any easier. People expect more from their government, but they aren’t necessarily willing to pay for it. In states like California and some major metropolitan areas, piling impact fees and other assessments on the backs of new home buyers has taken a terrible toll on housing affordability. Increasingly, the men and women who serve these communities can’t afford to live in them, and that is a clear indictment of policies that seek to saddle new home buyers with costs that rightfully should be shared by all. In a recent informal poll in Nation’s Building News Online, roughly three-fourths of those responding said that governments are relying too heavily on new housing to pay for infrastructure costs. But the poll also found some basis for encouragement: many communities do spread the costs fairly and a small, but growing number, are finding innovative ways to finance the infrastructure. A new NAHB publication, “Building for Tomorrow: Innovative Infrastructure Solutions,” identifies many of the most promising alternatives for financing, building and managing infrastructure. Here are just a few of the examples in the publication of how new approaches can help solve infrastructure needs and avoid turning a cold shoulder on housing:
This NAHB publication is full of innovative strategies, and it is available to NAHB members (click here). Not all of the ideas are suitable for every situation, and there can be challenges in implementing them. But for enterprising jurisdictions, successful application of the right infrastructure strategies can yield significant benefits for local governments and their citizens. The bottom line: Communities that succeed in finding ways to provide good housing at the same time as they meet their infrastructure needs are where American families will want to live in the coming decades. Those that continue on the path of driving up housing prices will increasingly become places that most people would rather avoid.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Builders Care About Saving TreesBy Patrick S. Sullivan Builders and land developers often are perceived as being anti-tree when the exact opposite is usually true. The reason builders and land developers get stuck with the bad guy image is because the issue is far more complex than what people understand. What most people see vividly when new homes are built is land being graded. Frequently in the process, at least some of the trees on that site are taken down. That is painfully visible to those who drive by and give the site a fleeting glance. Thus, the builder or land developer gets blamed for tearing down trees, to the presumed detriment of the community. What most people don’t see is the truth — builders save almost every tree that is worth saving. It makes economic sense to do so. Buyers usually like mature trees on their lot or next to their lot. Builders know that. But government often requires underground utilities, sidewalks on both sides of a street, wider streets than necessary and removal of most slopes. All of these regulations require vegetation to be bulldozed. Many times, builders and land developers would like to avoid this, but they can’t. Back to poor John. The government’s tree replacement ordinance will require John to plant the trees somewhere else since they won’t fit on his lot. The estimated cost is $100,000. The government doesn’t care. It just wants the trees. John is arguing that the government can’t tell him where to plant the trees off his site. This matter was not resolved at deadline. It will be interesting to see how it turns out. Not only do builders and land developers generally want to save trees, but they are doing a pretty good job of it. Let me give you some facts to back that up. First, consider that an engineering firm in Columbia, MO, studied the rapidly growing areas around St. Louis from the 1960s to the late 1990s. During the 30 years of rapid growth, the study found that there was actually a 31% increase in total tree canopy in the growing areas studied in St. Louis, St. Charles and Jefferson Counties. That 31% increase is not included in Missouri’s forest acreage, which has been increasing, not decreasing. In Missouri’s forested areas, there have been perhaps two million or more acres added over the past three decades. And nationally, measured by cubic feet, America has been growing more trees than it has been harvesting every decade since the 1930s. The 12 Northeastern states — among the most densely populated in the nation — regained almost 26 million acres of forest between 1907 and 1997. That, in turn, has created an explosion of wildlife. The Wall Street Journal reports that “more people live in closer proximity to more wild animals in the eastern U.S. than at any time in history anywhere on the planet.” Black bears, white-tailed deer, wild turkeys and numerous other animal populations are not being threatened by human land use, but rather, the mushrooming populations of these wild animals are bringing them more and more into conflict with their human neighbors. So, let’s take some credit for all the trees that are being saved and planted. The facts show that we’re gaining substantial tree canopy, even with land clearing for new homes. In the meantime, John Trojnacki waits and wonders. Patrick S. Sullivan is executive vice president of the Home Builders Association of Greater St. Louis. This article was reprinted from the association’s publication, “Builder News.” We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. New Home Sales Headed for a Banner YearSales of new single-family homes in July declined 3% from an upwardly revised 1.20 million-unit sales pace in June, but they were still the second highest on record. New houses were sold at a seasonally adjusted annual rate of 1.165 million in July, the Commerce Department reported on Aug. 26, as buyer demand remained strong because of favorable financing and solid gains in house prices. “This is shaping up to be the best year on record for home sales” said NAHB President Kent Conine. Coinciding with the lowest mortgage rates in more than four decades, June will probably turn out to be “the high-water mark” for home sales in the current housing cycle, Conine said. However, “builders obviously continued to see lots of demand in July,” he said, including demand from “buyers who jumped off the fence as mortgage rates moved upward.” Based on the latest home sales report and surveys of home builders in August, David Seiders, NAHB’s chief economist, predicted that “we are clearly heading toward a million-plus year for new-home sales — which would be a first for our industry. The Commerce Department also reported that the median price of a new home for sale in July was up 9% from the same month a year earlier. A harbinger of robust housing production levels as the year continues, the inventory of new homes for sale remained thin in July, with a 3.5-month supply at the current sales pace. The months’ supply was unchanged from the prior month. Sales declined 21% in the Northeast and 16.3% in the West on the heels of big gains in June. Sales were up 17.3% in the Midwest and 1.1% in the South, which is the largest regional housing market in the country.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. July Existing-Home Sales Smash RecordSales of existing single-family homes rose to a record seasonally adjusted annual pace of 6.12 million units in July, the National Association of Realtors® announced on Aug. 25. The median price of the existing houses sold in July was $182,100, which was 12.1% higher than the same month a year earlier. David Lereah, the association’s chief economist, speculated that some of the upward sales momentum came from buyers who had been straddling the fence until they saw mortgage interest rates starting to head up and decided to buy before those rates moved even higher. “However,” Lereah said, “given the strong underlying demand for housing from a growing number of households, it’s hard to gauge just how much ‘fence jumping’ may have accounted for the sales record.” The inventory of existing homes for sale in July dropped to a 4.4-month supply at the current sales pace. Sales climbed 7.7% in the Northeast, 7% in the South, 3.9% in the Midwest and 1.9% in the West, the Realtors® reported. Mortgage rates on 30-year loans, which have been moving up and down in a narrow range in recent weeks, have been averaging close to 6.3%, the Realtors® said, which is a pattern they expect to continue into 2004.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Eye on the EconomyDavid F. Seiders, NAHB Chief Economist It’s now clear that the economy was gaining a good bit of momentum as the second quarter drew to a close, and available evidence for the third quarter points toward the acceleration in economic growth that was, until recently, purely a forecast. On Aug. 28, the Commerce Department revised second-quarter GDP growth upward to 3.1%. Growth in the third and fourth quarters appears to be headed into the 4%-5% range. If output grows at these rates, some improvement in labor market conditions is inevitable later this year even if growth in labor productivity (output per hour) remains strong. A better job market, in turn, will revive consumers’ assessments of economic conditions and help buoy consumer spending. The "present situation" component of the consumer confidence index (Conference Board series) slipped to a cyclical low in August, reflecting ongoing concerns about the job market. But history shows that this series can rebound rapidly when the labor market (which typically lags behind GDP) firms up. The housing market charges into the third quarter … The housing market certainly is part of the overall pattern of economic strength moving into the third quarter, following a robust performance in the first half of the year. Total housing starts hit a 17-year high in July (1.87 million units at an annual rate) and single-family starts hit a 25-year high (1.52 million). Starts of multifamily units slipped a tad (to 351,000) but still were above the averages for the first two quarters of the year. Single-family builders are simply striving to keep up with robust demand for homes, and inventories of homes for sale are at historic lows (3.5 months’ supply at the end of July). Indeed, merchant builder sales of new homes hit a record 1.2 million units in June (seasonally adjusted annual rate) and were off less than 3% in July (the second highest month on record). Sales of existing homes hit a record high in July (6.12 million) and total sales (new plus existing) stood at a record 7.28 million for the month. NAHB’s survey-based Housing Market Index staged a solid increase in early August, signaling ongoing strength in the single-family market. The Mortgage Bankers Association's weekly survey of lenders shows that applications for mortgages to buy homes slipped during the first three weeks of the month from the record high in late July, but this series remains quite strong on an historical basis. Thus, the single-family housing beat apparently goes on despite the jump in long-term mortgage rates from their historic lows in June, and the multifamily sector still is hanging in there despite high vacancy rates and low absorption rates in market-rate rental housing. The strong close to the second quarter, and the strong housing indicators for July and August, have residential fixed investment (RFI) poised to deliver another solid contribution to GDP growth in the current quarter. RFI contributed more than one-third of overall GDP growth in the first half of the year, and another positive contribution is in the cards for this quarter as well. Mortgage refi's contract but housing equity still is accessible … Refinancings of home mortgages soared to a record pace in June as long-term mortgage rates sank to 45-year lows, and the refi market has shrunk dramatically since then as rates have rebounded. Indeed, the refi share of mortgage applications has fallen from more than three-fourths to about one-half during this period, and further declines are likely. The massive refinancings that occurred when mortgage rates were falling have strengthened household balance sheets and lowered debt-service burdens, and those effects will endure. The contraction in refi activity, of course, has squeezed a key channel of low-cost access to housing equity, and this development has potential negative implications for remodeling and consumer spending in general. But it’s worth remembering that large amounts of accumulated housing equity typically are tapped when existing homes are bought and sold, and the sales outlook remains quite good. Furthermore, home owners obviously can use home equity loans to access housing equity, and these loans typically have interest rates tied to the bank prime (the prime, in turn, is tied to the federal funds rate). The prime rate has not risen at all since June, and Fed policy is likely to hold this rate at 4% well into 2004. Long-term rates now are reasonably well behaved … The jump in long-term interest rates from the June lows (about 140 basis points for the 10-year Treasury yield) certainly has been enough to rattle the nerves of financial market participants and economic forecasters alike. But much of the rate rebound represented a snap-back from unsustainable lows that were based largely on unrealistic expectations about Fed policy — including expectations that the Fed would use unconventional monetary policy tools to drive long-term rates downward. Indeed, the abrupt rate adjustment seemed to run its course by the end of July, and long-term Treasury yields have shown little change, on balance, since then. It’s entirely possible that long-term rates will hang around current levels over the balance of this year and even into 2004. The Fed has virtually committed to keep short-term rates stable for quite a while, the term structure of Treasury yields already has a very steep slope (more than four percentage points) and inflation fears should not invade the bond market for some time. Reflecting all these factors, NAHB’s forecast shows a 10-year Treasury yield that does not deviate far from the current 4.5% range through mid-2004 (on a quarterly average basis). Beyond that point, Fed tightening and some firming up of the inflation picture should take rates up further, and large federal budget deficits promise to be an aggravating factor as well. The mortgage finance system is performing very well … As we expected, the spread between the long-term home mortgage rate and the 10-year Treasury yield has narrowed as the rate structure has moved upward, reflecting lower probability of early prepayments on mortgage investments. The spread has narrowed by about 25 basis points so far. Further narrowing is likely to develop in the months ahead, helping to absorb the impact any further increases in long-term Treasury rates has on housing. The mortgage finance system also is equipped with a wide range of alternatives to the standard fixed-rate loan, and adjustable-rate mortgages (ARMs) tied to short-term market indexes have been gaining in stature as the yield structure has steepened. The MBA reports that ARMs accounted for nearly one-fourth of applications for home mortgages in the third week of August, up from 13% of the market when long-term rates bottomed out in June. History shows that the ARM "shock absorber" can provide considerably more cushion to the single-family market if long-term rates should rise more than we currently are projecting. 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 Aug. 27 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.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Systems-Built Housing Is on the RiseSystems-built housing activity continues to gain ground, according to two independent assessments of the industry. The systems-built housing industry is poised to grow 1.2% annually through 2005, according to the Cleveland-based Freedonia Group. About 100,000 new homes are constructed each year using log, modular or panelized systems, Freedonia estimates. When “stick” builders who use some form of panelization are included, building system technology is being employed in almost 40% of the new homes currently being constructed, the group says. The systems-built approach is also gaining in popularity among new home buyers, according to a second study, which was released by Fred Hallahan, principal of Hallahan Associates in Baltimore and an associate member of the Building Systems Councils. Modular home sales increased 11% last year, Hallahan reported, compared to an 8% increase in the pace of new home sales overall. Single-family and townhome modular production set a record last year, surpassing the 36,000-unit mark, up from the 32,000-unit range during the previous four or five years, Hallahan said. Regionally, Hallahan’s findings showed that the south Atlantic states accounted for 28% of all modular home sales in 2002, followed by the Great Lake states (22%), the mid-Atlantic (18%), New England (12%) and the Midwest (10%). North Carolina was the most popular state for modular homes sales for the fifth consecutive year, according to Hallahan, followed by New York, Michigan, Pennsylvania and Virginia. Sales increases were especially brisk in New England, said Hallahan, rising by as much as 20% in some states. “Maine, in particular, is seeing some very strong increases,” he said. “Virginia is up 19% and South Carolina is up 12%.” The full results of Hallahan’s study were reported in the July/August issue of Building Systems Magazine. For more information about the systems-built housing industry, click here, or call the Building Systems Councils at 800-368-5242 x8576.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Post Office Easing Mailbox Retrofit RequirementResponding to strong opposition from NAHB and others in the building industry, the U.S. Postal Service has tentatively agreed that it will not require building owners to retrofit wall-mounted mailboxes to meet revised specifications for making them larger, tougher to break into and more weather resistant. However, the service may still require retrofitting when building owners decide that old mailboxes need to be replaced. Responding to complaints about identify theft; cramped, damaged mail; mail carrier injuries from sharp mailbox parts; and increased parcel service, the post office hopes to finalize new mailbox specifications by next spring. The draft specifications would require all tenant boxes to be at least three-inches high by 12-inches wide and 15-inches deep. A minimum number of small and large parcel delivery lockers also would be required, based on the number of units being serviced. Meeting the new specifications will require significant amounts of additional space in multifamily buildings. NAHB continues to oppose any requirements for retrofitting existing buildings because the process can be costly and impractical. The association may also challenge the requirement for parcel lockers in new buildings and is voicing concern that the Postal Service hasn’t provided enough information to weigh the costs of the new requirements. Professional maintenance of the boxes may also be necessary because of improved locking systems, which would add further to the costs of the new specifications. NAHB is currently reviewing the initial draft of the specifications and continues to seek additional input from member builders and their architects on the draft specs themselves and the timeline for implementing them. E-mail Jeff Inks in NAHB Construction, Codes and Standards, or call him at 800-368-5242 x8547.
Pillars Conference Showcases Multifamily Industry and Issues To learn more about a variety of issues that affect multifamily professionals, join us for the 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala, the premier educational and networking event of the year for the multifamily industry. For more information or to register for this event, click here. We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Good Management Can Stamp Out Apartment Meth LabsManagers of a multifamily building who discover they have walked into an apartment that is being used as a laboratory for the manufacturing of methamphetamine should hold their breath, back out of the unit and touch nothing, including light switches or canisters, advises Phil Wayne, president of Philip B. Wayne Consultants, which specializes in reducing crime for the multifamily industry. Otherwise, they risk contaminating themselves or surrounding apartments and even creating an explosion, Wayne warns. “Your shoes may be contaminated from walking into the apartment, so don’t use your vehicle, or go to the office or into another apartment with those shoes on,” he says. “Use your cell phone or ask a neighbor to call the police. Stay where you are or move to a neutral location until the police arrive and give you further directions.” For safety and liability reasons, Wayne says, the clean-up should be conducted by Hazmat-trained, independent contractors who are under the direction of the police or fire department. If the lab was in operation for only a few hours, a simple, standard apartment turnaround involving painting, cleaning and shampooing should be sufficient. More serious contamination will require the walls to be washed and special cleaning for carpets and cabinets, at a typical cost of $5,000-$8,000. In the most severe cases of contamination, everything in the apartment will need to be removed, including the carpet, sub deck, drywall, electrical wiring, cabinets and woodwork. Hazmat companies have electronic metering devices that can determine the extent of the contamination. The property will often have to be cleaned at the owner’s expense. Wayne tells his clients that the best way of dealing with the problem is to prevent it from happening in the first place by adopting good management practices. Preventative action includes:
Pillars Conference Showcases Multifamily Industry and Issues To learn more about a variety of issues that affect multifamily professionals, join us for the 2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala, the premier educational and networking event of the year for the multifamily industry. For more information or to register for this event, click here. We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Don’t Mix Personal Funds and Company Finances (If You Can Help It)As a QuickBooks® ProAdvisor and construction accounting consultant, I often run across owners of small businesses who don't take the time to separate their personal finances from their company finances. When asked, they reply with comments such as, “It’s my company. I earn the money. I spend the money.” Or, “It’s all my money, isn’t it? What’s the difference whether I take personal money out of the company account or use money from my personal account to pay for the company?” Yes, it is your money. But mixing “oil and water” (company and personal finances) can cost you in taxes, and you could find yourself managing your business less effectively or efficiently because you are relying on a less accurate picture of your company’s operations. Granted, as a small business owner you cannot always avoid mixing personal and company finances. The key, however, is to be sure to track, keep accurate records and clearly identify all your transactions. Here’s why:
Accurately Record Business and Personal Transactions When recording financial transactions, your primary goal should be to report all company-related activities in company accounting records and to accurately identify and post company-funded personal transactions. The easiest way to keep company and personal expenditures segregated is for you (the company owner) to limit all personal financial transactions to personal accounts and to place company assets and liabilities in your business name. On the personal side, for example:
On the business side, create business transactions using your company name for the following situations:
Also, take a regular paycheck and show it as a company expense (which you could record as “reduce cash, increase expense”). Or, if you receive draws (or distributions of income), you should assign the check to an equity account as a reduction of equity, so that it does not reduce your income (which you could record as “reduce cash, reduce equity”). What to Record When You Mix 'Oil and Water' Although the above scenario is the ideal situation, I often encounter owners who regularly co-mingle their business and personal funds. The resulting accounting challenge, then, is to clearly identify and correctly record personal transactions. The best way to approach recording a personal transaction is to first understand the specific circumstances surrounding it so that you can then properly record it. Here are some examples of personal transactions and notes regarding how they could be recorded in your accounting system. When you pay. In each instance, you, the owner, contribute something of value to the company, and the transaction should be recorded that way. For example:
When the company pays. Here are some examples on how to record when the company contributes funds to you or pays out funds on your behalf:
Company's contribution Could be recorded as: You receive a draw or distribution of income. "Reduce cash, reduce equity" (depending on type of company) as follows: The company pays your (or your family’s) personal expenses. Decrease cash, and increase loan due from owner [current asset] or reduce equity, as shown above You receive a temporary short-term loan from the company. Decrease cash, increase loan due from owner [current asset] You receive a long-term loan (should also be formally documented). Decrease cash, increase loan due from owner [other asset] If you’re not sure about how to identify or record a personal transaction, ask yourself questions and/or try to find original paperwork for individual transactions to determine underlying circumstances. For example, try to determine:
If you still don’t know how to record the transaction, do the following:
Keep 'Em Straight Taking the time to investigate, understand and properly record transactions as they occur throughout the year will save your tax accountant considerable time and frustration at year-end. More importantly, it will especially pay off for you as you access your daily accounting and operating data. You will receive far more benefits from those "oil and water" (company and personal) transactions when they are recorded correctly and you can easily identify them in your current financial reports. Diane C.O. Gilson, CPA, CIA, is a Certified QuickBooks® ProAdvisor and MasterBuilder ProAdvisor, author, trainer and construction accounting coach. She is a frequent speaker at The International Builders’ Show and The Remodelers’ Show. Her firm, Info Plus Accounting, offers bookkeeping and support services to construction companies. For more information, call her at 734-544-7620 or via e-mail at help@InfoPlusAcct.com.
Accounting with QuickBooks Pro® Available Through BuilderBooks.com Get the maximum benefit from your accounting system with "Accounting with QuickBooks Pro® for Home Builders and Remodelers," available through BuilderBooks.com. It includes a CD-ROM with a trial version of QuickBooks Pro®. To view or purchase the book online, click here, or call 800-223-2665 to order. Want more information about effectively managing 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 Has Books About Business Management and Customer Service BuilderBooks.com offers a variety of publications about business management. 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.
Let us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Productive Direct Mailing: It’s All in the DetailingNothing is more disappointing than pouring your resources and budget into a direct mailer only to get a lackluster response. Success in direct mail depends on many things. Here are five simple trade secrets that can help you in your next endeavor.
While calculating response rate is never an exact science, you can easily increase your odds of success and work toward better results by adhering to the above guidelines. More Tips About Direct Mail Success
Sending prospects mail that is heavy, a strange shape or includes a premium can boost response by 75%. To better understand your target market, build a buyer profile by taking "inventory" of current owners. The bigger the owner base, the better the buyer profile. Guideline: Try to use 1,000 owners as a minimum base. Experts agree that people need to see or hear your message at least seven times before they actually buy. Once a recipient opens your mail piece, you have approximately 11 seconds before the decision is made to respond or discard. Amy Tharrington is president of Maximum Design & Advertising, Inc., an award-winning, advertising and design agency that specializes in real estate marketing. Headquartered in Wilmington, NC, Maximum provides successful sales and marketing solutions for projects nationally. Tharrington can be reached at 800-609-0930.
Subscribe to NAHB's Sales & Marketing Ideas Magazine For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales & Marketing Ideas magazine. Call 800-368-5242 x8192 to subscribe or order a copy. Visit www.nahb.org, keyword: NSMC to learn about membership benefits of the Nationals Sales and Marketing Council and the Institute of Residential Marketing. BuilderBooks.com Has Sales and Marketing Publications 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.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. There Are Three Good Reasons to Earn an NAHB Designation1. It Makes a Strong Statement A commitment to industry education makes a very strong statement. It tells your clients that in order to offer them the best possible service you are willing to invest your time in staying current with the latest developments in the industry. It tells your employees that the continuing education that is essential for professional advancement in your company is required of the boss as well. It tells your business partners — trade contractors, vendors, bankers, accountants — that you are a cut above the competition and that you understand the long-term benefits of investing in industry education. And it tells your family that you are willing do whatever it takes, including “going back to class,” in order to be the best provider you can be. 2. It Provides Access to a Network of ExpertsYour classmates will become your board of directors. As small business owners, we do not have a personnel, marketing or information technology department to use as a resource when we need help. We do, however, have the friends and the peers we have come to know through our builders association. The friends I have made through the many designation classes I have attended have helped my business. They understand my business and the challenges it faces because they are builders themselves. These are the professionals who will be there when you need them, and they are a whole lot friendlier than any corporate IT department. 3. It Provides an Industry-Specific EducationThe process of earning NAHB credentials provides you with the specific information you need to prosper in the industry. Earning a college undergraduate and even a graduate degree doesn't focus on the skills that apply directly and specifically to your type of business. When you are working on your NAHB designation, you don't just take a sales and marketing class. You take “Sales and Marketing for Remodelers." A class in project management won't be generic; instruction will be broken down into "Off-Site” and “On-Site.” “Job Costing for Dry Cleaners” and “Profit Margins for Street Sweepers” is not going to help you. Click here for more information on NAHB’s designation programs. They are the best in the industry and they will get you started today on the construction-specific education that you and your business deserve. Michael Strong, CGR is the vice president of Brother's Strong, Inc. in Houston, which was named the 2003 Texas Remodeler of the Year. He is a member of the Remodelors™ Council Board of Trustees and served as the 2001 chair of the CGR Board of Governors. In addition to his CGR, he also has a BA, MA and MBA, and plans on completing his GMB requirements next year.
SHOWCASE 2003 Features the Latest About the Building Systems Industry To learn more about the future of the building systems industry, including the most innovative ideas and exciting trends, attend SHOWCASE 2003 from Nov. 2-5 in Hot Springs VA. For more information or to register for Building Systems Councils SHOWCASE 2003, click here. Let us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Navy Announces Privatization Project for Pacific NorthwestThe U.S. Navy recently released a presolicitation notice for a large military housing privatization project for six installations in the state of Washington that will involve design, development and 50-year management of approximately 1,800 homes for military families and the demolition of more than 300 homes. An Aug. 27 announcement of the project in Federal Business Opportunities includes a link where interested parties can register to receive further notification. The Navy follows a two-step qualification process that requires registration. In the first step, interested parties submit a Request for Qualifications (RFQ). The Navy then evaluates those requests and will invite no more than four applicants to respond to the second step, which is a Request for Proposals. To register for the solicitation, N68711-03-RP-03M01, click here. The Navy's announcement said that the RFQ/RFP was expected to be posted around Aug. 26, and it is available in electronic format only. For further questions, e-mail Bill Renner at NAHB or call him at 800-368-5242 x8597.
Let us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Forget What You Used to Know About the Retirement Market“Retirement” has taken on such new meaning that all of our ideas about when people retire, what they want out of their retirement years and where they’ll live need to be reexamined. What Do We Know About This Market? First, we know that today’s retirees are active and that there is no one age at which people stop working. People are retiring early at 50-years-old and many are still working full-time past the age of 70. And even if they are not working full-time, home-based consulting businesses, part-time work, active volunteer schedules and recreational pursuits are keeping older persons busy from sunrise to sunset. Second, we know that family units are changing. Just when the kids are finally gone, Mom moves in. Or it’s time to retire but there are still teen-agers in the household because of delayed child bearing or a second or third marriage. Third, despite what we are hearing about the unprecedented wealth of the current generation of 60- to 70-year-olds and the wealth that boomers will inherit, we also know that more than one-third of all households headed by someone over 65 have an annual income of less than $25,000. Active Home Buyers Present Challenges Building for active adults poses several specific challenges. First, older new home buyers do not usually move because they need to. They aren’t looking for better schools or relocating for a new job. They are discretionary buyers.
Second, this market is not homogenous. Prospective buyers in this market are more individualistic. Many belong to target audiences such as wealthy ethnic groups and multi-generational families that should not be overlooked. And buyers in today’s retirement market tend to be looking more for new exciting opportunities than pursuing a life of leisure. Third, there are many more options for retirement living. Retirement used to be limited to remaining in the family home; moving to a smaller home in a warmer climate or near family members; moving to a condo or apartment, especially if a spouse was deceased; and ultimately, as needs dictated, moving into a nursing home. Added to the options available to today’s “over-55” market are: renting or purchasing an apartment or single-family home in a conventional, age-qualified or age-targeted community; moving to an attached villa, town home, condominium, apartment or detached single-family house; finally building or buying one’s “dream” home; establishing several homes to escape cold winters and hot summers while still remaining close to family and friends; buying or renting a downtown apartment in the center of cultural and recreational activities; or buying or renting a unit that offers resort amenities, meal plans and whatever supportive services might be needed for the rest of a person’s life. To our surprise, we discovered in our research a significant number of “empty nesters” purchasing four- and five-bedroom, 4,000-square-foot luxury homes. This is no longer a one-dimensional “move-down” market.
Fourth, there is no historic precedent for what is occurring in the retirement housing market today. Until recently, most existing “active adult” prototypes relied on buyer relocation to Arizona, Nevada or Florida. And many of the characteristics that made retirement communities in those states a success — climate, land availability and financing for the lifestyle infrastructure that needs to be in place to attract discretionary buyers — are difficult to apply to other parts of the country.
A burgeoning second home market has also been helping to reshape what older persons want and need in their primary residence. Will second homes become primary residences for retirees who don’t want to move away from an already established base of friends, services and family traditions?Will older buyers consider dual residences so that they can stay in a familiar setting yet take advantage of another location offering seasonal weather or recreational advantages? While much has been written about baby boomers, no one really knows the answers to these questions because their options and preferences are still emerging. We have some ideas about where this market is headed. We know, for example, that maintenance-free homes in smaller “at-home” communities may sound like a good option. But what we really know for sure is that the housing baby boomers want won’t be what their parents wanted, and it probably won’t be what the current generation of “active adults” wants either. Finally, older households are going to be responding to idiosyncrasies in the local market when they decide where they want to live. When marketing to older persons, you need to create the desire to move to a new home. You’re competing with the home in which your target buyer is already living, a place to which they have probably grown strongly attached over the years. In focus groups, older respondents will often tell us that they want a new home that’s the best place for them, not their children. It’s their turn in life to fulfill some of the desires they have been working for. They will base their home buying decisions on their aspirations, not their needs, even though they may be better able to articulate what they need than what they desire. Since “all real estate is local,” the particular idiosyncrasies of the local real estate market will shape what is considered a dream home in that location. Several major universities with strong alumni loyalty are finding that it involves homes on, or near, the campus with an active interchange between the two. Ethnic mores (particularly as they relate to family expectations), the number of military retirees or other affinity groups, existing familiarity with active adult products and regional differences all influence what the older adult market will buy. Sorting It All Out Figuring out what older buyers want is not going to be an easy job. But there are approaches that will help you start zeroing in on the many opportunities this emerging market has to offer, and that will be the topic of the second, and concluding, part of this article in the upcoming issue of Nation’s Building News.
Doris Payne, a gerontologist, is the senior consultant at Marketscape Research and Consulting, which is based in Chula Vista, CA. She and her colleagues work nationally with home builders to assisting them in designing, answering questions and making decisions about conventional and seniors for-sale and rental housing. Payne is a member of the NAHB Seniors Housing Council and was a speaker at the 2003 Seniors Housing Symposium. She can be reached by e-mail or at 619-934-1816.
For more information about seniors housing and 50+ market, visit the NAHB Seniors Housing Council Web site at www.nahb.org/seniors. To join the Seniors Housing Council, click here or contact Jeff Jenkins at 800-368-5242 x8292 or jjenkins@nahb.com. We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Builders to Train Dallas Youths in Construction TradesAdjudicated youths at the Dallas County Youth Village outside Dallas will receive construction trades training and job placement assistance under a contract recently awarded to the Home Builders Institute (HBI), the workforce development arm of NAHB, by WorkSource for Dallas County. HBI will be implementing its award-winning Project CRAFT program (Community Apprenticeship-Focused Training) to train some 40 youths, ages 16-19, at the Dallas facility over the next year. Project CRAFT improves educational levels, teaches vocational skills, places graduates in industry jobs and reduces recidivism among adjudicated youths. HBI will be partnering with SER — Jobs for Progress, a Dallas-based non-profit that promotes the development of the nation’s Hispanic workforce. SER will provide employability skills training, case management and some job placement support. “We are so happy to have Project CRAFT in Dallas — it’s about time,” said Patsy Smith president of Herman Smith and Company and a member of HBI’s Board of Trustees. “This program has been recognized by the U.S. Congress, the U.S. Department of Labor and the U.S. Department of Justice as one that really works,” said Smith. “Project CRAFT helps some of the hardest-to-serve young people restart their lives, and they do so in an industry that needs qualified people.” HBI’s Project CRAFT programs are currently operating in New Jersey, Tennessee and Florida. For more information on Project CRAFT, e-mail John Hattery at HBI, or call him at 800-795-7955 x8916.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. New Line of Insulation Is Formaldehyde-FreeJohns Manville reports that its formaldehyde-free insulation reduces consumers’ concerns over indoor air quality and is easier to install. Headquartered in Denver, Johns Manville, a Berkshire Hathaway company, is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB. The manufacturer says that since its formaldehyde-free product line was introduced last year, workers who are handling its fiber glass building insulation are complaining less about itchy hands and discomfort. Home builders and do-it-yourselfers have noted that ComfortTherm® encapsulated formaldehyde-free building insulation is easier to work with and takes less time to install. Johns Manville has replaced its formaldehyde-based binder with an acrylic binder, which has eliminated concerns about formaldehyde where it is installed and in the factories where it is made. In addition, the company says that its insulation is made with an average of at least 25% less recycled content, which reduces the amount of materials in the nation’s landfills by 90,000 tons a year. Johns Manville cites research showing that 79% of home owners are willing to pay a premium for household products that reduce their concerns about indoor air quality. The new line of insulation was recently named a Most Valuable Product in Building Products magazine; was included in BuildingGreen’s “Top 10 New Green Building Products;” was named an Architectural Record editor’s pick and an editors’ choice in ProSales magazine; and won an ACE award, sponsored by Architecture magazine.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Women Building a Legacy One House at a TimeBy Donna Bosley Women Build recruits, nurtures and trains women to build and maintain decent, affordable housing in a supportive environment. As with all Habitat houses, Women Build houses are constructed with volunteer labor and donations of money and materials. The houses are sold to partner familes at no profit and they are financed with no-interest loans. Women Learn Home Building Skills
Women Build is not about excluding men, but about including women! About 50% of Habitat’s volunteer force is made up of women, yet women often account for less than 15% of the work done on the construction site because they haven't received adequate training. "With Women Build, women from all walks of life are discovering they can build a house and transform the lives of other women and their children," says Fiona Eastwood, manager of Habitat's Women Build. "A Women Build site provides a comfortable learning environment where women can have fun and gain skills they can apply in their own lives, while helping another family have a home of their own," Eastwood says. " Women don't just build houses — they build homes." Women who participate in the builds learn skills that enable them to maintain their own homes and to be less dependent on friends and relatives for even minor repairs. This new independence is often reflected in other parts of their lives as well. “Before I got my house, I would quit when things got hard,” says Dani Day, the owner of a Women Build house in Denver. “I wanted to continue my education but thought I’d never have the money. After getting the house, I realized that I could afford to go to school; there had to be a way.”
Substandard Housing a Threat to Children In May 2001, with a week-long, five-house blitz-build in Denver, Women Build launched Women Building a Legacy, a nationwide program to address substandard housing and its effects on the health and well-being of children. The initiative invites women celebrities and women from all walks of life to help build new homes for low-income families that include children whose health and potential is threatened by substandard housing. Safe, decent housing is critical to a child’s health and development, yet more than 12 million children in the U.S. live in poverty housing. A study by Habitat for Humanity of East King County, Redmond, WA, found that:
A History of Involvement The Women Building a Legacy program follows the First Ladies Build program, in which women governors and state first ladies participated in building Habitat homes with women crews. Houses were built in every state, and many of the first ladies have continued their involvement with Habitat. Women crews have now built more than 350 houses in the United States. NAHB Women’s Council members also have a long history of involvement in Women Build and other Habitat programs, with many local councils regularly helping to build homes, recruit volunteers and raise funds for the program. Clearly, Women Build offers women the opportunity to be a part of the solution, “one house, one family at a time.” Get involved and make a difference in the lives of our most precious resource — our children. Donna Bosley is a founding member of the Woman Build Steering Council for Habitat for Humanity International. She is currently the Habitat liaison for NAHB and the Women's Council, and serves as president of the board of her local affiliate.
Be Part of the Solution To learn about Women Build events in your area, click here. Women builds were completed last week in Trenton, NJ, and San Francisco, and one is being completed in Lawrence, MA, on Sept. 3. Here are some of the events that will be taking place in upcoming weeks:
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. New York Focuses on Associate Member Retention and Recruitment With NAHB HelpWhen the New York State Builders Association (NYSBA) decided to initiate a statewide effort to better serve its associate members, it turned to NAHB’s Affiliate Services and Membership departments for help. Working together, NAHB and NYSBA explored new ideas to further enhance the role and impact of the state’s associate council. NAHB provided NYSBA staff with guidance and resources about recruitment and retention, increasing associate and builder member involvement and on recognizing associates at the local level. NYSBA staff then worked closely with the associate members and staff at the state and local levels to ensure that the new information was communicated and would continue to be shared with members. Now all members, and specifically associate members, receive a stronger message about the benefits of membership. NYSBA has seen an increase in both builder and associate member involvement as well as greater recognition of members throughout the state. NYSBA admits it's got a long way to go in achieving its goal, but it’s on the right track. For more information about the associates council at NYSBA, contact Phil LaRocque or Beverly Lewinsky at 518-465-2492. For information on NAHB’s Affiliate Services or Membership departments, call 800-368-5242 x0.
Save 15% on Payroll Processing with Paychex® NAHB members save 15% on payroll processing charges and 401(k) and Sec. 125 set-up fees with Paychex. In addition to employee payroll checks and statements, Paychex produces accounting records and management reports, tax payment notices and payroll tax returns. Call 800-729-2439 for complete details. Identify yourself as an NAHB member and use Member Advantage code 5685. 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.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Mexico Is Focus of International Housing ConferenceBuilders and building product suppliers looking to tap the lucrative and growing Mexican housing market will gain practical advice and make valuable business connections at NAHB’s upcoming International Housing Conference of the Americas. Taking place in Mexico City, Oct. 16 - 18, the conference is expected to attract key players from both sides of the U.S.-Mexico border. Mexico currently confronts pent-up demand for 6 million homes. The market is expected to grow at 4.5% per year, with an estimated value of US$6.7 billion by the end of 2005. Mexican builders plan to build more than a million new low- and middle-income homes a year for the next three years. Mexico President Vicente Fox has set a goal of meeting the housing needs of 45 million new households by 2030. “NAHB’s 1st International Housing Conference of the Americas can help U.S. and Mexican companies identify opportunities to help reach Mexico’s housing goal,” says NAHB President Kent Conine. NAHB is now accepting online registrations for the event. Click here to register and find more information. “Now is the time for members of the home building industry to learn about the Mexican market,” Conine says. “With one-on-one meetings, education sessions and ample networking opportunities, NAHB hopes the conference will pave the way for collaboration between builders and suppliers from both nations.” Conference sessions will feature industry experts leading discussions on the latest building concepts, housing and design trends, building efficiencies and technologies, green building, building codes and work-site safety, marketing strategies, Mexico's emerging mortgage finance system and more. The conference is designed to appeal to a broad range of participants, including U.S. and Mexican builders, manufacturers, suppliers, financial representatives, architects and designers. Attendees will gain valuable information, insights and contacts in the Mexican housing market. To read the agenda, click here; to download a brochure, click here. NAHB has co-located the conference with EXPO CIHAC, Mexico’s largest housing and construction-industry trade show, which features over 500 exhibitors, including more than 70 U.S. companies — and typically attracts over 60,000 visitors. For additional information, e-mail Matt Monjan or call him at 800-368-5242 x8419.
BuilderBooks.com at EXPO CIHAC, Has Publications in Spanish BuilderBooks.com will be participating in EXPO CIHAC. BuilderBooks.com also offers a variety of Spanish language publications. To view or purchase these publications, click here. We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Survey Aimed at Improving Arbitration ServicesBuilders who use the American Arbitration Association (AAA) can participate in a survey designed to improve the services of that organization. At a time when arbitration is becoming an important alternative for resolving disputes, NAHB is working with the National Construction Dispute Resolution Committee (NCDRC) to encourage the use of dispute avoidance and resolution in the construction industry and to help AAA become more responsive to industry needs. Along with NAHB, there are about 20 other construction industry organizations that are members of NCDRC. The committee is conducting the survey as part of its mission to provide comprehensive guidance to AAA. Those who use AAA services, along with their attorneys, are strongly encouraged to complete the survey. To participate, click here.
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Boost Your Marketing Through These Awards ProgramsProud of your work? Show it off and give your marketing efforts a boost by entering one of these award programs:
We Want to Hear From YouLet us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you. Calendar of Events
To view more meetings & events information on the NAHB Web site, click here.
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