Nothing Concrete
A global shortage of the powder used to manufacture such concrete items as slabs and driveways has caused a slowdown in residential building activity in Georgia and elsewhere. Orders for concrete that once took two to three days are now taking well over a week — no small setback, considering how the residential construction industry already has to deal with such factors as inclement weather and contractor schedules. In 2003, approximately 38% of the cement Georgia builders used was for home building, trailing only Florida — at 47% — on a national comparison level. In general, the U.S. market also is hampered by China, which is on an even bigger building spree now that its economy is booming and is snapping up 640 million tons of cement each year. While analysts speculate that American demand for cement could decline if mortgage rates rise or if docking fees fall, mortgage rates actually have fallen — defying an artificial hike by the Federal Reserve — in response to reduced inflationary pressures. (www.ajc.com)
Atlanta Journal-Constitution (07/08/04) P. 1E; Stafford, Leon
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Apartment Market Improves, But New Units May Slow Sector
Reis Inc. reports that the average apartment vacancy rate in the country's 61 top metro areas declined from 7.1% in the first quarter to 6.8% in the three-month period ended June 30. Absorption reached positive levels in the second quarter, as the number of apartments rented during the period surpassed the number that were vacated. Reis researchers forecast that a surge in new apartment development likely will cause the sector's vacancy rate to increase to at least 7.1% by the end of this year — the highest level since 1986 — as the sector continues to deal with fallout from earlier in the decade, when a weak job market coupled with increased homeownership thanks to lower mortgage rates torpedoed much of the multifamily stock in the nation. Looking closer at the second quarter, Reis lists Norfolk, Miami and New York among the markets that logged the largest increases in rent growth in year-to-year comparisons. (www.wsj.com)
Wall Street Journal (07/08/04) P. B2; Smith, Ray A.
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Cities Rethink Public Housing
In Detroit, developers are planning a couple of specially designed low-income housing projects that feature homes and services for not only senior citizens, but also for the grandchildren that many of them are rearing. The projects are similar to ones already up and running in such other cities as Boston and Buffalo, with similar developments on the rise or nearing construction in Baltimore, Chicago, Cleveland, Nashville, New York City and Sacramento. Donna Butts, executive director of a nationwide advocacy group for grandparents, states, "The apartments in Boston, for example, are built for both age groups, so that you have grab bars in the bathrooms and covers for the electrical outlets." For many, these so-called "grandfamily developments" are attractive not only because of their affordability, but also because they foster a community support system of baby sitters and playmates for the grandkids. (www.newsday.com)
New York Newsday (07/07/04) Schwisow, Adrienne
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A Home of Their Own
Census data shows that homeownership rates soared 21% between 1993 and 2003 for female-headed households with two or more residents, while creeping up just 0.74% for single female households. According to research analyst Allegra Calder of Harvard University's Joint Center for Housing Studies, higher incomes, delayed marriage plans and underwriting standards that bend to include non-traditional households have made it possible for women to join forces for home purchases. Women who prefer some privacy generally opt for duplexes; condominiums; or three-, six- or 12-flat buildings. Many are discovering that property management is not as difficult as they had originally thought and are sinking their money into multifamily buildings to generate rental income. Though not all co-ownership arrangements work out, the most successful ones involve plenty of communication and planning. Experts urge group buyers to speak with an attorney prior to the purchase to establish land trust agreements that allow them to avoid probate court if one owner dies. They also would be wise to formulate partnership agreements that cover insurance, expenses, investments and the possibility of default, among other things. Frequent meetings also are recommended so that maintenance and other issues can be addressed on a regular basis. (www.chicagotribune.com)
Chicago Tribune (07/07/04) Mikkelson, Katherine
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Developer Plans Energy Efficient Village
Developer Alan Hoffman hopes to build 735 single-family homes, townhouses, so-called "live-work" units and multifamily structures outside of Santa Fe, N.M. Oshara Village also will feature 235 acres of open space and a commercial component that will give residents the opportunity to live, work and play in a single location. The project will involve passive-solar construction to lower utility bills and the reuse of water in community gardens and other open spaces. Subsidized affordable housing — as well as units priced from $250,000 to $300,000 — will be available, and Hoffman will encourage the creation of homes in varying architectural styles by restricting each builder to six lots spread throughout the development. (www.ap.org)
Associated Press (07/07/04)
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Surprise: Mortgage Rates Are Falling
Mortgage rates started to climb over the past couple months due to expectations that the Federal Reserve would soon boost short-term rates coupled with worries about inflation and reports of an economic rebound. However, indications of weaker job growth drove the average 30-year mortgage rate down to 6.12% on July 7, after reaching 6.49% in May. Additional housing starts and renewed demand for mortgages are expected as a result of the dip in rates, which already has lured some borrowers from adjustable-rate loans to fixed-rate products. Mortgage Bankers Association Chief Economist Doug Duncan believes that rate volatility will make it more difficult for borrowers to gauge the rate cycle, but he expects that rates will remain generally low until the bond market reacts to upcoming reports about economic growth and inflation. (www.wsj.com)
Wall Street Journal (07/08/04) P. D1; Simon, Ruth
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Study Concludes Productivity Is Up, Just Not Enough
Haskell Co. Chairman Preston H. Haskell says that the 30% increase in construction productivity over the past 40 years is not good enough to keep up with other industries, and he has published a study that finds that costs in dollars per square foot for similar buildings have fallen. Haskell's view goes against the popular metric of civil engineering professor emeritus Paul Teicholz, who found that the industry's productivity declined, on average, almost 0.5% per year between 1964 and 1998. Haskell says that the measure of constant contract dollars does not correctly measure the tangible output of the construction industry or take into account enhancements in quality or the performance of buildings. He believes that the real cost of construction materials and the use of newer, lower-cost materials has reduced the cost of real materials by 25% over the past four decades. Gilbane Building Chairman and CEO Thomas Gilbane Jr. says that he agrees with Haskell, noting that projects are being completed more quickly and with higher quality. The Civil Engineering Research Foundation is putting together a collaborative effort to find the best way to measure construction productivity. (www.enr.com)
ENR (07/05/04) Vol. 253, No. 1, P. 18; Tuchman, Janice L.
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Bill May Give Tax Break to Builders
A bill that has been passed by the Michigan House of Representatives and is now pending in the Senate would allow builders developing single-family homes or condominiums to receive the principal residence property tax exemption, also known as the homestead property tax exemption. Under the existing law, residential builders and developers must pay the non-homestead property tax rate on newly developed properties until they are sold. This extra cost ends up being passed on during settlement to the consumers who buy the real estate that was taxed under the higher non-homestead rate. The new law, therefore, would reduce costs for both builders and home buyers. The legislation was sponsored in the House by Republican Reps. Joe Hune and Chris Ward and is also being supported by the Michigan Association of Home Builders, the Michigan Association of Realtors® and the Home Builders Association of Livingston County. State Sen. Nancy Cassis says the Senate Finance Committee is not likely to conduct a hearing on the legislation until fall, at which time the bill's impact on state tax revenues will be considered. (www.detnews.com)
Detroit News (07/06/04) Ramsey, Duane
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Two-Way Streets: How Britain and the U.S. Are Looking Up to Urbanism
U.S. cities and newer British towns are similarly developed, with planners and architects from each country drawing inspiration from the other. "We used to visit each other's places frequently," notes Andres Duany, who helped found the Congress for the New Urbanism in the United States in 1993. Duany and other American planners modeled many projects on British garden cities and new towns established after World War II. British architect Ebenezer Howard based the garden cities he helped develop on the informal plots and landscaped roads he saw while working in Chicago in the late 1800s. However, the United States uses planning codes to quickly approve projects; while British officials depend on less efficient, informal guidelines. As a result, Duany believes the British planning system has slowed development and sparked an affordable-housing crisis. (www.guardian.co.uk/guardian)
London Guardian (07/07/04) P. 2; Hetherington, Peter
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Build It, They Will Haul It Off
Sacramento, CA's home construction boom has ignited a wave of thievery, as construction sites are being robbed of equipment and other items. Between 15,000 and 16,000 homes are being built annually in the six-county Sacramento area. California is fourth in the United States in terms of frequency of heavy equipment thefts. Overall, the value of stolen heavy construction equipment in the nation has been around $1 billion annually. There are many valuable items at home construction sites that can easily be resold, including lumber, appliances and carpeting. Home construction sites also frequently lack neighbors to report questionable activity. Some builders have hired security guards or are installing security cameras in an effort to deal with the problem while others have turned to just-in-time deliveries to close the window of opportunity. (www.sacbee.com)
Sacramento Bee (07/05/04) Louey, Sandy
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Service Base Drives June's Job Growth
The U.S. Labor Department reports that hiring in the construction industry was flat in June as white-collar and service professions led the nation in job growth last month. The construction industry was responsible for much of the employment gains in the United States during the downturn because of the strong housing market. Over the past three months, the construction industry has added some 120,000 jobs. However, as mortgage rates start to increase, and as the housing industry slows, hiring in the construction sector is expected to decline. (www.usatoday.com)
USA Today (07/05/04) Kirchhoff, Sue
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A Place to Live, Or a Place for Living?
Many new developments feature computer intranets that make information about community activities, home owner association meetings,and nearby development plans, among other data, accessible to residents. Developers of Grand Hampton in New Tampa, FL, are expanding on the traditional intranet by using profiles to help residents of the 1,100-home community locate others who share their interests. Grand Hampton's intranet and clubhouse are examples of "third places," a concept coined by sociologist and author Ray Oldenburg. According to Oldenburg, people spend much of their lives in their homes and workplaces as well as third places like cafés, salons and other community gathering spaces. Oldenburg shuns zoning laws that prohibit the mixing of residential, commercial,and retail components; rather, he notes, third places create a sense of community, foster relationships among residents of all ages and offer entertainment. (www.shns.com)
Scripps Howard News Service (07/05/04) Stark, Judy
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House Coating Better Than Paint for Heat Protection
Florida-based Textured Coatings of America has adapted military technology for residential use and created a reflective house coating that aims to replace exterior paint. It reflects 60% more ultraviolet rays than conventional paint, cooling the home's surface temperature by upwards of 40 degrees. Unlike paint, the coating does not fade; seals out moisture; protects wood siding from deterioration; and does not have to be frequently reapplied. Given that the coating must be applied with a professional-grade sprayer, it is not a recommended project for do-it-yourselfers. (www.ap.org)
Associated Press (07/05/04) Bradley, David
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New Cell Phones Get Tiny Keyboards
Cell phone manufacturers are adding miniature keyboards to their devices to facilitate text messaging, e-mail and Web surfing. Both Motorola's A630 and Nokia's 6810 come with keyboards that are revealed when the phones are flipped open. Users can also type messages on any flat surface using Samsung's tiny laser projector, which uses Bluetooth technology to inform the phone of every keystroke. (www.usatoday.com)
USA Today (07/01/04) Maney, Kevin; Baig, Ed
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Thumbs Up for HP's Pocket PC
PDA users who have difficulty writing with the traditional stylus might want to consider Hewlett-Packard's new iPAQ h4355, which features a thumb keyboard for the composition of e-mail messages and personal notes. The device is the only one of its kind to include a built-in keyboard, and it also boasts built-in backlighting, rounded keys and a longer battery life than other Pocket PCs. Moreover, it is equipped with both Wi-Fi and Bluetooth technologies to facilitate wireless Internet connections. The $450 device comes with pocket versions of various Microsoft programs and a tool that displays all applications in use. (www.SmallBusinessComputing.com)
Small Business Computing (07/01/04) Miller, James Alan
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