Nation's Building News Online: May 23, 2005

Print All Articles Text Version

‘Downsizing’ a Dirty Word for Aging Baby Boomers

Much to their detriment, home builders who are waiting for the first wave of the 77 million baby boomers born between 1946 and 1964 to start retiring may be missing out on a growing market force in the housing industry, according to speakers at NAHB’s Building for Boomers and Beyond Seniors Housing Symposium, which was held May 16-18 in Chantilly, Va.

The 50+ population is looking for new housing, but not within the context of retirement traditionally associated with this age group, symposium panelists said. And although it is difficult to make generalizations about this independent-minded generation, they said, by and large aging boomers do not see themselves trading down but instead expect to be moving up to the best housing they have ever had, even if it means taking out a hefty mortgage to finance their lofty housing aspirations.

“It’s onward and upward all the time” for this oversized and affluent demographic group, said Jack Haynes, executive vice president of the National Builder Division at Countrywide Home Loans.

“Probably the most striking thing we’ve found over the last few years is that many home buyers over 50 are not simply cashing out the equity they’ve built in their family home, nor are they downsizing into a less expensive house or apartment,” Haynes said.

A study conducted by Countrywide in conjunction with NAHB two years ago found that one-fourth of home buyers aged 50 and older were paying more for the home of their golden years than for their previous home, and their new homes were likely to feature next-generation amenities like structured wiring and exterior maintenance services, Haynes said. That trend now appears to be intensifying.

Haynes observed that boomers want a one-story home, which will cost more to build because it takes up more land, an increasingly precious and scarce commodity in many of the urban areas where boomers currently live and expect to stay even as they trade up to new housing. Builders will be able to make up for those higher construction costs, he said, by providing the “extravagant” options and upgrades that boomers demand and will be more than willing to finance.

On the financing side, where Countrywide has expanded into a wide range of mortgage products geared to providing flexibility and enabling buyers to maximize their purchasing power, Haynes said that boomers “aren’t going to be looking to pay cash for their final house.” Even though they will be plunking down large downpayments because of the impressive amounts of equity they have accumulated in their homes in the boom market of the past few years, they will also be trying to retain as much cash as possible to pay for health costs, education or for whatever the reason.

Haynes said that it is surprising for purchasers to be so highly leveraged at this point in their lives, but the boomer generation “is not intimidated by finance.”

Requesting ‘Strange’ Things

Chuck Covell, president of Bozzuto Homes, based in Greenbelt, Md., said that his company discovered the boomers’ propensity for more rather than less quite by accident, when prospective 50+ customers wanted to combine two of the average 1,000-square-foot units available in the first of the four-story elevator buildings that Bozzuto added to its product line in the late 1980s.

Covell said that his empty-nester customers started to request “strange things,” like putting a shower in the master bath and getting rid of the tub.

In preparation for the second building pitched to older buyers, Covell said that he realized that Bozzuto had missed the mark on its standard features. “You have to be a good listener,” he said, “and you have to focus on things you never heard before.”

Unit size remains a critically important factor in the empty-nester housing Bozzuto is building today, said Covell. At a maximum size of 3,600 square feet and a per-square-foot selling price of $500, the condo side of the builder’s Spinnaker Bay project on Baltimore’s Inner Harbor puts the cost of enjoying an urban lifestyle as high as the $1.5-$2 million range, he said, although prices start in the $600s, and the side of the building facing away from the waterfront is rental.

Bozzuto is building age-targeted housing and age-restricted, but baby boomers are not at the age where they see the restricted product as appropriate. There is roughly a seven year difference in the ages of those who are buying the two products, Covell said.

In a market where higher density is being driven by land shortages, moving older buyers to duplexes and condos is not an easy sell because most still want to move to a single-family home. And most of the 50+ group don’t want to move now, he said, because “they haven’t gotten to the point where the home is a burden they can’t handle.”

Concierge services, valet services, dog walkers, elegant finishes and upscale amenities can help create the lifestyle that will draw reluctant boomers, he said. Looking at the homes they will be moving from “provides indications of price points and products they will buy,” he said.

Not Thinking of Retirement

Sharing information that they have gleaned from a three-year focus-group study of baby boomers in the 47-58 age group who are looking to move sometime in the next three years, William Feinberg, president of Feinberg and Associates, an architect and designer based in Vorhees, N.J., and Myril Axelrod, president of Marketing Directions Associates, indicated that the concept of the active-adult community has little appeal but there are approaches that will successfully tap into this market. There are about 30 million Americans who today constitute the leading edge of the baby boom.

“Those on the leading edge aren’t ready to move and they aren’t thinking of retirement,” said Feinberg. “They are looking at real estate as an investment and because they need to move to a new home.”

The idea of retiring and “doing nothing is not for them,” Axelrod said of the boomers, and even if they wanted to retire, only 20% of them are in the financial position to be able to do so, according to AARP. “They’re a Peter Pan generation,” she said. “They feel they’re going to be young forever,” and they are especially averse to moving into a community where they will have to adhere to rules and regulations.

Life Without Chores

Attached housing is problematic for this group, Axelrod said, because they started out their adult lives in apartments and townhouses and have since moved on to “real houses.” The biggest hook for making the difficult sell, she said, is to provide “life-without-chores” services such as a concierge, dry cleaning, window washing and housekeeping. “They know they can’t get this with single-family” and they want to free up their time at a point when they are changing the way they live.

“Their age group has had a tremendously pressured life and they are now entitled to having things easy,” Axelrod said.

Leading-edge boomers are not interested in moving to a smaller home, she said, but they do want to get rid of any parts of the house that are not being used so that they can enjoy bigger spaces in the rooms they use the most. Lots of open space, fewer walls and plenty of flow are selling points.

Buyers from the leading-edge of the boomer generation are also looking for kitchens with lots of light that double as the social center of the home for informal entertaining. “The men are as interested as the women in the kitchen,” Axelrod added. “Kitchens with two work areas give them a chance to get into the act.”

Flex space providing buyers with the opportunity to individualize their home is also a plus, and boomers will spend freely for customized design and amenity features. The only concession that these buyers are willing to make to getting older, she said, is putting all primary living on one floor, and it’s a requirement.

And boomers want to stay close to their home base. “They rejected what their parents did so much,” she said, “but now they are thinking back to what they miss in the hometowns they were running away from. It used to be so much fun when they could go downtown and meet everybody.” This translates into strong demand for social centers, rather than club houses, where they can get together and meet their friends and neighbors before they go out to dinner.

Residents who are working in their homes will be looking for business centers where they can hold business meetings.

Living on Main Street

“We did not hear the word downsizing in any of our focus groups,” said Feinberg. “They were looking for a new home as something to treat themselves with.”

By and large, Feinberg said that the research identified interest in Main Street and village communities located on the fringes of areas in which boomers already live. Architecture must be distinct and diverse. Also viable options for boomers are enclave communities of 25-50 homes that are up-scale and exclusive.

Boomers aren’t interested in sports clubs, but they are enthusiastic about physical outdoor activities such as hiking, biking or fishing built around a natural feature, he said.

Although boomers are opposed to segregating themselves from other age groups in the community, builders are going to have to wait and see if they really want younger generations living next door or two doors away. “How are they going to feel when they have screaming babies and out-of-control teenagers as their next door neighbors?” Axelrod asked. “This is up for grabs.”

The focus group research also identified people who don’t want to live side by side with younger families, but “want to be in the same community where we are all on the same page and have something to share,” she said.

Floor Plans: Beauty and Affordability Times Two

Gateway Crossing — Craftsman Twin Model
(www.pennrose.com)

Blight Takes Flight: Gateway Crossing is being developed through a public-private partnership that has revitalized a blighted and dilapidated HUD housing complex in Hagerstown, Md. Gateway Crossing and developer Pennrose Properties offer for-sale and rental housing to residents making less than the area's median income. The for-sale homes are available as "twins" or duplexes. Single-family detached homes are also available for sale.

The core of the community is Elgin Station, a former train station renovated to serve as the new community center. Residents of Gateway Crossing use the center for day care and community health services, Boys & Girls Clubs meetings and more.

Side-By-Side Family Living: The Craftsman Twin featured here is one of several duplex models available for sale. This 1,400-square-foot home features three bedrooms, a living room, dining room and family room, front and back porches, a kitchen with a full pantry, and a washer and dryer on the bedroom level.  

The Craftsman Twin also is built to be energy-efficient and includes high-rated wall and ceiling insulation, high-performance windows and energy-efficient heating, ventilation and air conditioning. 

In addition to the Craftsman Twin, a smaller, two-bedroom duplex and a four-bedroom single-family detached home are also available for sale.

Ground floor [Click for larger image]

Second floor [Click for larger image]

Shops, Parks and Awards: Gateway Crossing is a multi-year project in the final phase of development and is expected to be completed in less than a year. The 45-acre community on the site of the former Westview Homes site and the West End neighborhood of Hagerstown is located near neighborhood shops, a city park and The New Centre at Hagerstown shopping mall. Earlier this year, Gateway Crossing received a Best in American Living Award gold medal as “best urban smart growth neighborhood/community.”

Ownership and Rental Combined: Gateway Crossing is a mixed-tenure community with about 82% of the homes available for rent and 18% for sale. The community has 290 rental units. All were designed to be affordable to families with incomes of 60% or less than area median income. Gateway Crossing also has 62 for-sale homes. These homes were designed to be affordable to families making 80% or less of area median income.

Glenn Worgan, a vice president at Pennrose Properties, said that Gateway Crossing has been very popular. Everything constructed to date is either fully leased or sold.

Putting It All Together: The $73.5-million, five-year project is being funded by a HOPE VI grant and U.S. Department of Housing and Urban Development (HUD)/City of Hagerstown Community Development Block Grant (CDBG) monies. Low-income housing tax credits from the State of Maryland have been secured for Phases 2, 3 and 4. When all four phases are complete, 210 out-of-date barrack-style public housing units will have been replaced by Gateway Crossing, with approximately four rental units for every one for-sale unit.

Photo by Nicholas Waring, Waring Photography Inc.

Features & Specs

The Craftsman Twin Total Square Footage: 1,400 Two-Story Duplex Three Bedrooms Front and Rear Porches Living Room, Dining room, Family room and Kitchen w/Pantry on Main Living Level Washer and Dryer on Bedroom Level High-Rated Ceiling and Wall Insulation High-Performance Windows Energy-Efficient Heating, Ventilation and Air Conditioning Gateway Crossing community features 45-Acre Community Elgin Station Community Center  Mix of For-Sale and Rental Housing Rents Affordable to Families Making 60% or Less of Area Median Income For-Sale Homes Affordable to Families Making 80% or Less of Area Median Income HOPE VI Development Winner of the Best in American Living Award for “best urban smart growth neighborhood/community”   — The Craftsman Twin: Gateway Crossing, Hagerstown, Md.   Developer: Pennrose Properties (www.pennrose.com ) Architect: David Stembel, Wallace Roberts & Todd, LLC (www.wrtdesign.com)

Will You Be the Next Winner of a Digital Camera?

Sign up three or more of your employees for Nation's Building News and you automatically will be entered in a contest to win a Sony digital camera.

There have been three winners already — the most recent winner is Lee Hyslop, of Cedar Creek Homes in Rockford, Mich. — and you could be next.

To subscribe your employees to Nation’s Building News and be entered into the "Make Your Business Click" contest, visit our contest subscription page by clicking here. 

Subscribe your employees and they will begin receiving valuable industry and business news at their desktops beginning with the very next issue.

Nation's Building News is NAHB's free, online newspaper. Inside, you'll find the latest lumber prices, industry news, builders' tips, lumber prices, problem-solving floor plans and more. For more information or to sign up your employees, click here.

NAHB Accepts Seat on ICC Foundation Board

NAHB recently joined the International Code Council (ICC) Foundation's Board of Governors, becoming the first organization to announce its participation in the group. The ICC Foundation is a subsidiary of the ICC, and its Board of Governors oversees the foundation’s policy decisions.

“There is a great need in our industry to have code officials and builders work together,” said Don Pratt, who was selected by the NAHB Senior Officers to serve as the association’s representative to the board. Pratt, a member of the NAHB Construction Codes and Standards Committee and a builder from Auburn Hills, Mich., said that joining the board is “one more thing that cements the strong relationship” between NAHB and ICC.

The ICC Foundation is chaired by James Lee Witt, CEO of the ICC and former director of the Federal Emergency Management Agency (FEMA), and is organized into four segments, including the Board of Governors, International Advisory Board, International Directors and Technical Advisory Council.  By accepting a seat on the Board of Governors, NAHB will be participating at the highest decision-making level of the foundation.

The foundation’s mission is to reduce the often devastating effects of natural disasters and building tragedies by promoting methods and technologies that encourage the construction of durable, sustainable buildings and homes. To achieve this mission, the foundation plans to support research and development that improves construction methods and techniques for making buildings safer.

NAHB, through its participation on the Board of Governors, will be seeking to promote research that identifies cost-effective improvements and advances in building technology to achieve this goal. Pratt says the foundation’s research can lead to new building techniques that are affordable and will improve the health and safety of homes.

The ICC Foundation also educates consumers, governments and industries about constructing stronger, safer buildings and homes and offers technical services, training and guidance to governments or organizations looking to develop or improve existing building construction standards.

For more information about NAHB’s involvement in the ICC Foundation’s Board of Governors, e-mail Ed Sutton or call him at 800-368-5242 x8564.

Homes: U.K. Went Cold; U.S. Could Too

With little warning and in the advent of rising interest rates on primarily monthly adjustable-rate loans,  housing in the United Kingdom is cooling down and going from a sellers’ to a buyers’ market. Although home price gains in that country have dwarfed those of the U.S. — climbing an average 88% between the fourth quarters of 2000 and 2004, compared to a 35% increase during that time in this country — today’s experiences there could hold a lesson for some U.S. housing markets, especially where there is a higher proportion of buyers using adjustable loans and interest-only loans. Buyers in the U.K. seem to be waking up to the idea that double-digit price gains can’t last forever, and prices have been flat overall, with small increases in some areas and declines in others. “My sense is that the U.K. market is two or three years ahead of the U.S. market,” said John Calverley, chief economist and strategist of American Express Bank in London. The U.K. housing market started to gain steam in the late 1990s, beginning with the higher-priced properties in London and spilling over to virtually every region. “Buy-to-let” became all the rage as investors shifted funds from their traditional portfolios into rental properties. A year ago, everyone believed the supply of houses for sale in Britain simply could not keep up with demand. The supply of houses for sale in March was a third greater than it was a year earlier, according to the Royal Institution of Chartered Surveyors. (www.money.cnn.com)
CNN/Money (5/4/05); Sarah Max

U.S. Warns Lenders to Elevate Standards

Banks and other lenders have been warned by federal banking regulators to be more selective about who can get home equity loans and to review interest-only loans and mortgages that don’t require documenting a borrower’s assets and incomes. The “guidance” came in a joint warning from the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration. For consumers, this could mean it will be tougher to get some sorts of home equity loans, such as those that amount to 100% of a home’s value. Home equity lending rose 79% from $492 billion at the end of 2000 to $881 billion at the end of 2004. With average wages growing slower than inflation, many home owners have turned to home equity loans or lines of credit to make purchases, renovate their residences, consolidate credit and pay medical expenses and other bills they otherwise couldn’t afford. (www.washingtonpost.com)
Washington Post (5/17/05); Kirstin Downey

Species Act Leads to Suits, Not Help

As a prelude to his efforts to provide meaningful reform for the Endangered Species Act, Rep. Richard Pombo (R-Calif.) last week issued a blistering 87-page study contending that the legislation has done a better job of spawning lawsuits than it has of actually protecting threatened or endangered plants and animals. Nearly three dozen lawsuits are now moving through the nation’s courts, the report says, including disputes over the western gray squirrel, the Yosemite toad, the California tiger salamander and Southern California’s unarmored threespine stickleback. The Fish and Wildlife Service, the study notes, is also responding to 40 court orders from earlier lawsuits and has received 36 additional notifications of intentions to sue over 104 species. Of the 1,300 species that are listed as endangered or threatened, only 10 have made a full-fledged recovery, Pombo says. (www.insidebayarea.com)
Fresno Bee (5/18/05); Michael Doyle

State Says Rare Flower Planted to Foil Project

California Department of Fish and Game botanist Gene Cooley said that his agency has concluded that 22 Sebastopol meadowfoam plants found on a 21-acre site proposed for housing development were transplanted from somewhere else to stop the project from moving forward. With just weeks to go before city officials are expected to sign off on the latest draft of the environmental impact report for the 145-unit Laguna Vista site, the meadowfoam finding would have delayed construction by an additional six months or more. “This is a very unusual situation — in my experience, unique,” Cooley said. “I’ve had 25 years of endangered plant experience with state and federal agencies, and I have never known a rare plant to be introduced to a site to thwart development before.” The site has been a source of contention for five years, with opponents citing environmentally sensitive wetlands, traffic and other concerns. Previous studies of the site failed to turn up a meadowfoam. “The flowers happen to grow right inside the property development site,” said builder Scott Schellinger. “They weren’t growing in the 10 acres of open space that we’re going to give (to Fish and Game), where there are pristine wetlands that they could grow in.” (www1.pressdemocract.com)
Press Democrat, Santa Rosa (5/14/05); Mary Callahan

A Bold Step for Pathways — Cobblestones, Bricks Give Entry More Curb Appeal

Home owners in Connecticut have been tearing up old concrete sidewalks leading to their front doors and replacing them with pavers, cobblestones or brick pathways. NAHB Vice President of Research Gopal Ahluwalia has noted that the paver trend is occurring around the country, “especially in upscale markets.” It extends to driveways, as well, he says. These walkways appeal to home buyers, he said, because poured concrete can crack, especially if the bed is too shallow. Aesthetics are also a main reason for the switch, and installations include a gray cobblestone path fanning out gently at either end, a red-brick path, tumbled cobblestones in a fancifully curving path, and dark and light gray cobblestones in a pattern that would befit an Italian piazza. (www.courant.com)
Hartford Courant (5/13/05); Joan De Natale Green

Living on the Fairway

Offering beautiful vistas, low maintenance and a sought-after lifestyle, golf course communities are in high demand and continue to attract home buyers. The total number of golf communities in the U.S. grew from 2,481 in 1999 to 3,047 in 2004, according to the National Golf Foundation. “People like to live in and around golf course communities and will pay a premium price to do so,” said Gopal Ahluwalia, vice president of research at NAHB. “They like the looks of it, the aesthetics of it and the greenery of it. It’s definitely a trend.” Buyers will pay a 10%-15% premium on homes in golf course communities, and half of them do not even play golf, but like the country club setting, Ahluwalia said. Doug McIltrot, a division manager and vice president for Ryan Homes in Prince George’s County, Md., reports “awesome” interest in the homes the company is building in Beechtree, an upscale planned community in Upper Marlboro that will include an 18-hole golf course. “People like the lifestyle that the golf course community offers,” said McIltrot. “There’s the prestige of saying you live in a golf course community, and resale values are also very good.” Single-family homes will start in the upper $500,000 range and townhouses in the mid-$400,000s. (www.baltimoresun.com)
Baltimore Sun (5/15/05); Nancy Jones-Bonbrest

How to Keep a Roof Over Your Head If Home Prices Fall Through the Floor

Provided they have enough money for their next downpayment, ordinary home owners shouldn’t be overly concerned if there is a slump in housing prices. Despite all of the talk of a housing bubble, many places have experienced only modest gains over the past five years. “The housing markets are not that crazy,” says Chris Mayer, director of Columbia University’s Center for Real Estate. “I think it’s a very narrow group of people who should be worried. It’s high-end properties in New York, Florida and a couple of California cities. Outside of that, I don’t think there’s a bubble.” For those who plan on staying in the same area but want to trade up to a bigger home, a slide in prices could have a silver lining. Although a price drop in your current house will hurt, the price of more expensive homes will probably decline even more, making trading up less of a stretch. (www.wsj.com)
Wall Street Journal (5/18/05); Jonathan Clements

Raise a Glass — Wine Cellars, Whether Grand or Modest, Are Racking Up Points

With wine becoming the libation of choice for many occasions, one of the hottest trends in home building these days is the home wine cellar, according to NAHB Vice President of Research Gopal Ahluwalia. A walk-in wine cellar, he says, “is a preferred feature in upscale markets. We are not talking about storing 84 bottles in a closet. We are talking about houses in the $1 million-plus market in metropolitan areas where [extensive wine storage] is common.” When former home builder Keith Knupp began his business nine years ago of designing and building upscale wine cellars in the Atlanta area, he found little or no demand. “But my business has grown incredibly,” he says, “20-fold  at least.” Knupp builds wine cellars that cost $30,000-$200,000 in his 10,000-square-foot shop in Dallas, Ga. He uses hand beams, travertine or limestone floors and old brick or stone to create the aged look that many clients want. Casual wine drinkers, on the other hand, might spend $1,000-$2,000 for an under-counter wine cooler for the kitchen. (www.ajc.com)
Atlanta Journal-Constitution (5/20/05); Tinah Saunders

Growth Pays for Itself in Four Years, SAHBA Finds

According to a new 125-page study commissioned by the Southern Arizona Home Builders Association, the cost of government debt incurred in the Tucson area in providing services and infrastructure to those living in new homes can be paid off entirely after four years. And every year after that, growth is a revenue generator. “Five or six years ago we didn’t know if new homes paid their way,” said Ed Taczanowsky, the association’s president. “This study shows that we are paying our way and then some.” The study, which was conducted by Elliot Eisenberg, an economist at NAHB, found that in the first year after being constructed, the 9,071 new homes for which permits were issued last year in metropolitan Tucson will have resulted in: $11.1 million in local government expenditures to provide public services to new households; $114.5 million in tax and other revenue to local governments; and $149 million in local government capital investment for new infrastructure and equipment. “Home buyers are paying their way,” Eisenberg said. “The home building industry is not freeloading off existing home owners. It is helping them.” (www.tucsoncitizen.com)
Tucson Citizen (5/17/05); David Pittman

Hydrogen Home an Energetic Test

Setting out to build a home that will limit the chemicals, dust and fumes to which his wife is allergic, Bryan Beaulieu, an engineer and inventor, has nearly finished a $2 million home that will run on hydrogen on the side of Scottsdale, Ariz.’s Troon Mountain. The home will trap sunlight in solar panels and convert it to electricity. The electricity will run a washing machine-size appliance called an electrolyzer, which separates water into hydrogen and oxygen. The hydrogen is trapped in high-pressure tanks and run through an electric generator, producing a clean electricity for lights, computers and ceiling fans. “It works just like you use natural gas,” said Beaulieu, “but with no pollution.” Like any volatile fuel, including gasoline and home heating oil, hydrogen can be explosive if not stored properly. Beaulieu used materials native to the desert and strived for resource efficiency, durability and longevity. The home’s floors are limestone; the walls and ceiling are built from cinderblock and clay; and there are no chemicals anywhere, which means no paint, no particleboard and no drywall. The steel on the outside is treated with linseed oil, and the solid walnut cabinets in the kitchen with vinegar and steel wool. (www.azcentral.com)
Arizona Republic (4/29/05); Maggie Galehouse

Letters to the Editor

Good Standard Practice: Use 12 Gauge Cords of 100 Feet or Less

A recent e-mail issue of Nation’s Building News contains an article about how one could safely tie two (or more) drop cords together (“Locking Electrical Cords Together,” May 9). This is not a safe practice and several factors need to be understood.

1. Drop cords come in many configurations and it is very common to find cords on a job site that are made with 14 or 16 gauge wire, and cords that may even lack a UL label. I always suggest the purchase and use of quality drop cords with at least 12 gauge wires (conductors) because of voltage drop. The larger the gauge of the conductor, the less the resistance of the cord’s conductors and the less drop in voltage at the end of the cord. A 16 gauge cord should never be used for distances in excess of 25 feet as a rule of thumb — if it is used at all.
   
   
2. Voltage drop is caused by the resistance of the conductors as the electricity travels down its length. The drop in voltage causes the electric motor in the tool ― or the elements in a heat gun, etc. ― to work harder and thus diminishes the life of the tool. An electrician could perform the calculation to determine the voltage drop on a particular cord length/gauge, but a good idea is to use 12 gauge cords in lengths of 100 feet or less as a standard practice.
   
   
3. The resistance of a conductor also creates heat — can lead to the melting of a cord’s conductors, which can lead to a fire or electrical shock, which can lead to death and/or lawsuits.

Please pass this information along to your readers so you do not encourage bad working practices.

Jim Bowman
J.H. Bowman Electric Co., Inc.
Greensboro, N.C.

Robert Matuga, NAHB director of Labor, Safety and Health, recommends that, if drop cords must be secured together, they should be secured with non-conductive materials such as twine, rope or electrical tape or by tying a knot.

April Starts Hike Puts Housing Back on Track

Housing starts in April climbed 11% to a seasonally adjusted annual rate of 2.038 million units and were 3.6% above the pace of a year earlier, the Commerce Department reported last week.

“After a temporary fall-off in March that appeared to be largely weather-related, housing is back on track,” said NAHB President David Wilson. “Our surveys show that builders remain confident about the market, and mortgage rates remain extremely attractive at under 6%. This bodes well for the housing market in the coming months.”

“Today’s housing report should dispel any further concerns of a soft patch in the economy,” said NAHB Chief Economist David Seiders. “Following lackluster readings in March, the latest employment, retail sales and trade numbers are all better than expected. The economy and housing market are still fundamentally solid.”

Single-family starts last month increased 6.3% to 1.635 million units, roughly equal to the April 2004 pace. Turning in a brisker performance, multifamily housing starts soared 35.2% to an annual rate of 403,000 units, a 17.2% increase over a year earlier.

Construction of new homes and apartments increased 25% in the South, 6.2% in the Midwest and 2.5% in the West. Unusually wet weather put a damper on the Northeast, where housing starts declined 17.8%.

The number of building permits issued last month increased 5.3% to a seasonally adjusted annual total of 2.129 million units.

“Builders are positioned quite well,” said Seiders. “Demand remains strong and inventories are low. We expect housing to remain strong in 2005.”

Anticipate Trends, Make Better Decisions, Improve Your Bottom Line with  ‘HousingEconomics Online’

“HousingEconomics Online,” the online publication from the NAHB Economics Group, is your single source for market analysis, forecasts, housing statistics and more.  Updated regularly, HousingEconomics Online combines scientific research with practical applications in order to provide housing-oriented insights for builders, manufacturers and housing finance professionals and to assist in their business planning.

Available at two levels — Pro and Executive — subscribers can choose the level that best meets their needs. To learn more or subscribe to “HousingEconomics Online,” visit www.housingeconomics.com.

Young Buying Disproportionate Share of New Homes

Households headed by Generation X-ers and members of the so-called “echo-boom” purchased 55% of all newly built homes sold in 2003 and are fast becoming the trendsetters in U.S. housing markets, according to Census reports and a new NAHB analysis of data on buyer preferences.

“A new generation is viewing the housing market from an entirely different perspective than the baby boomers who have traditionally dominated industry trends,” said NAHB Executive Vice President and CEO Jerry Howard. “They’re techno-savvy and are more likely to be house-shopping on the Internet. They have a strong awareness of all their options.”

Gen-Xers in particular are wielding their buying power to shape today’s new-home characteristics and market trends, and “they are twice as likely to purchase new homes in the immediate future as baby boomers and seniors,” Howard said.

American Housing Survey (AHS) data from the U.S. Commerce Department shows that, while households headed by those aged 27-40 (the “Gen-X” generation) accounted for 28% of all U.S. households in 2003, they made 49% of new-home purchases that year. Echo-boomers born after 1979 made 6% of the purchases; baby boomers, 33%; and seniors aged 60 and up, 12%.

Meanwhile, NAHB research on consumer preferences has found that 37% of Gen-Xers and 27% of echo boomers intend to buy homes in the next two years, compared to just 13% of baby boomers and 6% of seniors.

“Previously there was speculation that younger buyers would be more thrifty than their parents with respect to their housing choices, but our research shows just the opposite is true,” said Gopal Ahluwalia, NAHB’s vice president for research.

Among other findings from NAHB:

• Both echo boomers and Gen-Xers say they would like to have a home that is about 50% larger than their current residence, compared to seniors and baby boomers, who said they want only 17% and 22% more space, respectively.
• Only 46% of echo-boomers currently live in a single-family detached house, but 91% want the next home they purchase to be single-family. Seniors, on the other hand, are more likely than any other age group to want to buy a townhouse, although most still prefer the detached option.
• Sixty-one percent of echo-boomers and 67% of Gen-Xers say they would prefer to have four or more bedrooms in their next house, compared to 40% of baby boomers and 26% of seniors.
• Fully 73% and 77% of echo-boomers and Gen-Xers, respectively, say they want nine-foot or higher ceilings on the first floor, compared to 65% of baby boomers and just 54% of seniors.
• In terms of high-tech amenities, echo-boomers are more likely than any other age group to want a home theater, automated lighting controls and a built-in security system.

“In all, we find that the preferences of younger buyers tend toward greater space and more sophisticated amenities than those of their forebears,” said Howard. “Incorporating these preferences in homes that new buyers can afford will be our industry’s challenge going forward, just as tracking these evolving trends will be an ongoing challenge for NAHB.”

Find Out How to Market to Gen-Xers

“Marketing and Selling to Generation X,” available through BuilderBooks.com, gives you the inside scoop on what motives Gen X home buyers. Two Gen-Xers share their insight into this new market niche. This book helps improve sales by serving the needs of this younger generation of home buyers. To view or purchase this publication online, click here, or call 800-223-2665.

Manufacturers Tell Greenspan of Rising Materials Prices

A delegation of NAHB Senior Officers and members of the National Council of the Housing Industry (NCHI) — the Supplier 100 of NAHB, visited Federal Reserve Board Chairman Alan Greenspan on May 17 to bring him up to date on conditions in the nation’s housing industry.

Participants at the closed-door session reported that they expect housing industry performance to remain healthy even as the Fed continues its drive to gradually push up interest rates to a level that has a neutral impact on the economy.

Members of NCHI did, however, voice concern over the rising cost of raw materials, especially steel and petroleum-based resins. Many of the manufacturers of housing industry products said that they will be passing some of those costs onto their customers, a tack similar to what home builders are now doing to keep up with higher construction costs.

Greenspan has consistently reiterated his view that there is no national housing bubble despite the rapidly rising housing prices of the past couple of years, and he said publicly last week that the speculation that exists in some boom markets is unsustainable and will likely simmer down as housing becomes less affordable.

Despite the Federal Reserve’s efforts to drive up interest rates, the decline in affordability in the country’s frothiest housing markets has so far been the result of rising prices rather than higher mortgage interest rates. With inflation remaining low, mortgage interest rates haven’t budged above the 6% level for the past several weeks.

In Freddie Mac's latest weekly survey of mortgage interest rates, the 30-year fixed-rate mortgage averaged 5.71%, down from 5.77% during the previous week and the lowest level since February. Fixed-rate mortgages were averaging 6.3% a year earlier.

“It is remarkable how mortgage rates have remained so low for so long," said Frank Nothaft, Freddie Mac’s chief economist. “But as long as inflation is held in check, there is little or no pressure to push mortgage rates higher. And at the moment, core inflation does indeed seem to be a nonevent.”

NAHB Chief Economist David Seiders and others expect the cost of mortgage financing to move upward in the period ahead.

Representatives from NAHB have met with the Fed chairman over the past 18 years, and Greenspan has been following the industry closely because of its significant contribution to the nation’s economy.

Photos by Herman Farrer

Eye on the Economy

By David F. Seiders, NAHB Chief Economist
The economic ‘soft spot’ is now behind us …

Various data suggested a rather pronounced slowdown in growth of economic activity toward the end of the first quarter, and the “advance” reading on first-quarter growth in real Gross Domestic Product (GDP) seemed to confirm the slowdown pattern.

Revisions to key data for March, along with a series of upbeat readings for April, point toward a significant upward revision to first-quarter GDP growth as well as solid forward momentum in the early stages of the second quarter. Indeed, the much-feared economic “soft spot” now looks like a minor event in the rear view mirror.

Revisions to first-quarter estimates show stronger patterns for employment, residential construction activity and foreign trade as well as less inventory investment (that’s actually good). Reassuring data for April relate largely to the job market, the housing market and retail sales. Everything considered, GDP growth appears headed for about 3.5% for the first half of the year, and that pattern should generate ongoing improvements in the labor market.

The labor market regains solid forward momentum …

Sagging payroll job growth was one symptom of the economic “soft spot” toward the end of the first quarter, and there was considerable apprehension among analysts about another sub-par employment report for April. However, the April report not only revised away some of the apparent weakness in March, it also unveiled a robust picture for April (on a preliminary basis, of course).

The April jobs report raised March payroll employment by 93,000 and then piled on a hefty 274,000 gain for April — an increase that was broad-based by industry. Furthermore, the length of the average workweek rose significantly and the index of aggregate hours worked in the nonfarm business sector surged. In the process, average hourly earnings posted a solid increase and stood 2.7% above a year earlier.

Signals from the household survey also were quite positive in April. The unemployment rate held steady at 5.2% as a solid increase in household employment (598,000) was roughly matched by a solid increase in the labor force (605,000). The labor force participation rate moved up from 65.8% to 66.0% in the process, a healthy signal that may very well be reinforced as the economic expansion moves ahead.

Core consumer price inflation recedes despite high energy costs …

Key measures of core inflation (excluding prices of food and energy) have firmed up considerably since late 2003 as upward pressures have come from rising non-oil import prices, an apparent leakage of oil prices into the core, and gradually rising unit labor costs. Indeed, core inflation percolated upward during the first quarter despite the apparent economic “soft spot” in March.

Recent data on core inflation suggest that prices are by no means running out of control and that earlier inflation concerns may have been overdone. The core Producer Price Index (PPI) was up by 2.6% on a year-over-year basis in April, the same as in March and below the pace of January and February. Of even greater importance, the core Consumer Price Index (CPI) was unchanged in April (month-to-month) and showed a year-over-year advance of only 2.2% — slower than for any month in the first quarter of the year.

Core inflation is now running in a range that presumably is acceptable to Federal Reserve officials. However, policymakers are not about to relax when the economy is in the middle stages of a business expansion and additional price pressures are bound to emerge as the expansion matures.

Economic growth and inflation patterns keep Fed on gradualist policy path …

The reassuring signals regarding growth in real GDP and core consumer price inflation should combine to keep the Fed on a path of “measured” monetary policy adjustments as the central bank continues to remove policy “accommodation” from the U.S. economy.

The Federal Open Market Committee (FOMC) statement of May 3 said that the upside and downside risks to the attainment of sustainable economic growth and price stability should be kept roughly equal “with appropriate monetary policy action.” The recent economic signals suggest that further rate hikes by the Fed definitely are in store. NAHB’s forecast still anticipates another quarter-point rate hike at the June 30 FOMC meeting, a funds rate target of 4% by year-end, and a cyclical high of 4.25% by early 2006.

Long-term interest rates fall back to mid-February lows …

The apparent disconnect between short- and long-term interest rates has persisted despite efforts by the Federal Reserve to “talk up” long-term yields. Thus, the global “conundrum” that Chairman Alan Greenspan described on Capitol Hill in mid-February still is present in the financial markets. Indeed, the 10-year Treasury yield now is back below 4.1%.

Greenspan recently expressed some regret over his earlier use of the word “conundrum,” although he continued to cite international considerations in an attempt to rationalize stubbornly low long-term rates — both in nominal and real terms. In this regard, Greenspan stated, “There is very little doubt that what we are observing is an underlying set of pressures which has been a major factor causing the disinflationary forces worldwide over the last decade, and clearly these forces…are key to understanding why real long-term interest rates are as low as they are.”

It’s obviously hard to understand and forecast long-term interest rates. However, it’s hard to believe that long rates will stay this low if the Fed proceeds along the monetary policy path we’re projecting. Indeed, that outcome would produce a virtually flat yield curve, and that’s often been a major economic complication. NAHB’s forecast currently shows half-point increases in long-term rates by late in the year, compared with full-point increases for the federal funds and 90-day Treasury bill rates.

Housing starts bounce back and forward momentum carries into May …

A sharp decline (nearly 18%) in housing starts was a key part of the economic “soft spot” in March. That decline certainly seemed temporary in view of other available housing data for March, and more-recent indicators suggest that the strong trend in housing market activity still is underway.

The April report on housing starts did not revise away the March weakness but showed a nice rebound (up by 11%) as well as ongoing strength in permit issuance (up by 5.3%). Furthermore, the backlog of unused permits rose to a record level, presaging another strong starts performance in May.

Surveys of home builders and mortgage lenders also point toward strong levels of single-family market activity in May. NAHB’s Housing Market Index moved up to 70 in May, near the upper end of the elevated range that’s prevailed for more than a year. Furthermore, the index of applications for mortgages to buy homes (Mortgage Bankers Association series) moved upward during April and the first half of May (four-week moving average), posting record highs in the process.

The near-term housing outlook has brightened …

Recent housing market indicators, recent signals on overall economic activity and the recent decline in long-term interest rates all point toward ongoing strength in home sales and single-family housing starts, despite persistent tightening of monetary policy by the Fed. We’re now looking for single-family numbers for 2005 that challenge the records of last year.

The condo component of the multifamily sector also seems headed for new records, and NAHB’s first-quarter Multifamily Market Index shows improvements in rental market conditions as well. Our first-quarter Remodeling Market Index also shows great strength, and a record level of homeowner equity (nearly $10 trillion) most likely will support a record volume of remodeling outlays on owner-occupied homes in 2005.

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 May 18 edition. To subcribe to “Eye on the Economy,” click here.

‘HousingEconomics Online’ Provides In-Depth Analysis of Housing Market

"HousingEconomics Online" is a new online publication from the NAHB Economics Group that provides the latest housing economic data, trends and key events shaping the economy. NAHB’s leading economists analyze and synthesize the housing and economic information to provide in-depth analysis of the niches and nuances of the home building market.

"HousingEconomics Online" combines unique scientific research with practical applications providing insights that are original, useful and written in terms that builders, manufacturers and housing finance professionals can understand and apply to their own businesses. To order, visit the www.housingeconomicsonline.com detail page.

This interactive Web site at the executive level provides critical data and information quickly, easily and frequently and includes the following features:

• Home Builders Forecast
• The Desktop Analyst
• Access to NAHB’s Staff of Economists
• Seiders' Report
• NAHB’s Economic & Housing Forecast
• Housing Activity
• Housing Policy Focus
• Multifamily Housing Quarterly
• State & Metro Focus
• Housing Market Statistics

For more details, go to www.housingeconomics.com.

Builders’ Tip: A Jig for Router-Made Moldings

[Click for larger image]

I needed a special molding to complete a baseboard detail but my router table was several hundred miles away on another job. Fortunately, the situation forced me to come up with an alternative method for site-milling trim stock.

I think my new method is faster, more accurate and safer than using a router table — especially if the moldings are narrow and thin.

As shown in the drawing:

• I used a scrap of 2x stock about 1-foot long and about the width of my router’s base.
  
  
• I cut a lengthwise groove near the middle of the 2x, just a pinch larger than the depth and width of my molding stock.
  
  
• Then I used a hole saw to bore a 1-1⁄2-inch-diameter hole that is offset from the center of the groove. This hole accommodates the router bit and it should be to the left of the groove as you face the fixture. It also ensures that the router bit, which turns clockwise, will be turning into the work as you feed the stock into it.
  
  
• Next, I bored a similar hole in the top of my job site workbench to allow the wood chips an escape route.
  
  
• I positioned my router over the hole in the jig and anchored the router to the table with a pair of clamps. The clamps were arranged on opposite sides of the router’s base, in line with the groove in the 2x stock. By sighting down the groove, I could easily adjust the router, both vertically and horizontally, until I had the bit in the exact position that I needed for the molding profile.
  
  

Cutting the moldings is a simple matter of turning on the router and feeding the stock into the groove. In a few minutes I had hundreds of feet of molding. And because the stock was captured in the groove of the jig under the base of the router, my fingers never got near the cutters.

— Bill Young, Berkeley, Calif.

Tips & Techniques provided by Fine Homebuilding.
©2005 The Taunton Press

To request a reprint of this feature, e-mail Mary Lou von der Lancken at Fine Homebuilding. 

Subscribe Your Employees to Nation’s Building News — and a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Icons in Seniors Housing Honored

In recognition of individuals and companies whose leadership and innovation have contributed to the 50+ housing market, the NAHB Seniors Housing Council last week named five Icons of the Industry during its annual Building for Boomers & Beyond: Seniors Housing Symposium in Chantilly, Va.

“The Icons are leaders and visionaries in active adult and seniors housing,” said Randy Reinhart, a Charlottesville, Va.-based custom builder and chairman of the Seniors Housing Council. “The 50+ market is one of the fastest growing segments of the industry, and the 2005 Icons have set the bar for professionalism and have left a lasting impression on our industry.”

The award winners are:

• Active Adult Community Builder — Ara Hovnanian. Hovnanian is president and chief executive officer of Hovnanian Enterprises, the parent company of N.J.-based K. Hovnanian Homes, the eighth-largest home builder in the United States and a Fortune 500 company. In 1994, Hovnanian launched Four Seasons active-adult communities. One of the most visible brands in the industry, there are now 24 Four Seasons communities in eight states.
• Product Manufacturer — Best Bath Systems. The Idaho-based manufacturer started developing bathing units for the mature and physically challenged in 1992. It has focused on offering safe, attractive and affordable products for residential and commercial remodeling and construction.
• Educator — David Peete. Peete is president and founder of the non-profit AIM: The Society of Senior Living Professionals. For 18 years, he has demonstrated a professional commitment to seniors housing through educational and leadership initiatives.
• Service-Enriched Builder/Developer — Penny Pritzker. Pritzker is founder and chair of Ill.-based Classic Residence by Hyatt, a leader in luxury senior living. Her company owns, manages and operates 16 senior-living communities in 10 states. By focusing on the continuum of care, Classic Residence addresses seniors’ needs through innovative wellness, health care, fitness and nutrition programs.
• Lifetime Achievement — Bill Becker.  Becker is president and managing director of the William E. Becker Organization, a N. J.-based strategic marketing, planning and consulting firm that specializes in active adult lifestyle communities. Becker’s clients have sold more than 60,000 units to the 55+ market, ringing up more than $7 billion in sales.

The Icons of the Industry program was sponsored by the Home Fire Sprinkler Coalition.

For more information on the awards, e-mail Taylor Blanchard at NAHB, or call her at 800-368-5242 x8680.

Set Expectations for Your Customers Early — And Often

I have been told recently that 90% of home owners choose a contractor based on price. If that truly is the case, I want to work with the 10% of customers who DO NOT decide by bottom line.

Of course, one of the most important aspects of working with this segment of the customer base is to set proper expectations for the individual customer.

I recently met with a customer and failed to set proper expectations. Luckily the customer was fairly understanding, and we ended up signing a contract anyway. This does not always happen.

In this particular situation, I gave my customer a ballpark estimate without first speaking to my suppliers or tradespeople. I was merely trying to get the customer to understand approximately how much the project was going to cost.

The customer was fine with the initial ballpark. However, as we completed the design, the project became more elaborate. I did not go back and review the initial estimate to see how much some of these changes were going to affect the price.

When all the changes were incorporated and the design was completed, I priced the project very accurately ― about twice the initial ballpark estimate. Talk about an uncomfortable meeting.

As you go through life, you can learn from one of two things — mistakes and embarrassing situations. In this particular project, I learned from both.

I think we are all very similar — we want so desperately to maintain a positive relationship with potential customers that we will put off the bad news for as long as possible. I certainly did.

What I have to realize is that the customer is going to hear the bad news sooner or later. So the best thing to do is set their expectations from the very beginning.

What you have to say may not be what they want to hear, but it is what they need to hear. I have to make a conscious effort to provide information, good or bad, to our customers as soon as possible. I need to modify the ballparks as we go through the design process. I need to set the customers' expectations at all times.

We were able to salvage our project, but it could have cost me a very nice customer and a very nice project. I will try not to make that mistake again and I hope you all will avoid it, too.

Erik Anderson, CGB, GMB, CAPS, is vice president of Anderson-Moore Builders, Inc. in Winston-Salem, N.C. He also currently serves as vice president of the Home Builders Association of Winston-Salem. For more information, contact Anderson via e-mail.

‘Meetings with Clients’ Available at BuilderBooks.com

“Meetings with Clients: A Self-Study Manual for a Builder’s Frontline Personnel,” available through BuilderBooks.com, covers four major issues confronting a builder’s frontline personnel. The manual includes policies, procedures and predictable situations for each issue and provides the step-by-step information needed to successfully master them. To view or purchase this publication online, click here, or call 800-223-2665.

The NAHB University of Housing Offers Designation Programs for Builders and Remodelers

The NAHB University of Housing offers CAPS, CGR, CGB and a variety of other professional designation programs and business management courses that set builders and remodelers apart from the competition. To learn more about NAHB’s designation programs, visit www.nahb.org/designations. For a complete list of all current education offerings, click here.

Earning Through Learning: Education and NAHB

Education is at the very core of NAHB member benefits. But education is more than sitting in classrooms. Education, NAHB-style, is networking, tours, conferences and tradeshows, too.

This experience-based education allows members to get more out of what and how they learn — benefits like expanded marketing, professional development, business development and personal development, to name a few.

At last week’s Seniors Housing Symposium in Chantilly, Va., for instance, one attendee said he learned how to run his business more profitably. He said he attends sessions at symposiums and builders’ shows primarily to learn how he can save his clients money and, in turn, increase his profit margin.

Professional Designations Further Careers

Professional designations offer excellent opportunities to improve skills, advance careers and increase recognition for the designation holder’s commitment to professional growth. “It’s no small coincidence that when you read success stories or read trade publications, the people featured always seem to have some initials after their name,” said Greg Miedema, CGR, CAPS, president of Dakota Builders in Tucson, Ariz. “The letters indicate a deserved designation that’s reflected in their businesses’ success.”

NAHB offers 13 different designation programs designed to hone business skills and provide students with superior training, practical experience and the ability to offer in-depth knowledge to potential clients.

Networking Through 20 Clubs

The 20 Clubs are quickly expanding networking and learning experiences within NAHB. Each 20 Club is comprised of similar sized and types of builders, remodelers or other industry professionals, but from non-competing markets. The idea behind the clubs is for like-minded professionals to meet several times a year, serve as a surrogate board of directors for each other and share experiences — particularly about solving problems, surmounting hurdles and improving business.

Norman Cohen, of NSC Residential, Inc. in Atlanta, said his fellow Builder 20 Club members helped him improve the business side of his company. “I always knew how to build a house, but my 20 Club taught me how to hire people, run a business, manage a business and direct a business,” Cohen said.

Come to the Show, Get in the Know

Trade shows such as the International Builders’ Show, The Remodeling Show and The Design Institute for Builders are great places to meet, learn from and network with professionals in the industry. The shows also provide opportunities to gather the latest information from a variety of industry experts, exchange ideas with others facing similar challenges and build a personal and professional network for the future.

Richard Willhoit, of Estrella Associates, a development and construction firm based in Paso Robles, Calif., comes to the builders’ shows to learn from the experts. “Education provides you with the opportunity to experience things that other people have already gone through — successful or not,” Willhoit said.

“That provides you with the opportunity to take a very short track to success with your own company. NAHB has a great ability to be the nucleus to bring the experts together for you,” he pointed out.

A National Course for Everyone

From sales and marketing to energy efficiency to building technology, NAHB offers  educational courses and seminars on dozens of topics. The programs focus on practical training for newcomers and veterans alike and are designed to help improve participants' businesses and advance their careers.

“Picking up ideas and learning about new trends” is what Karl Balla, of Concept Communities Inc., a condominium builder in northeast Ohio, hoped to glean from the new NAHB University of Housing course, Designing for the Active Adult, he attended at last week’s Seniors Housing symposium.

For information about educational opportunities, visit The NAHB University of Housing Web site or contact the Office of the Registrar at 800-368-5242 x8338 or via e-mail at registrar@nahb.com.

Learn More About The NAHB University of Housing

Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your education pursuits.

Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

Education Calendar

June 13-14	Understanding Housing Markets and Consumers (IRM 1)	Bradenton, Fla.
June 13-15	NAHB/BALA Design Institute for Builders	Denver, Colo.
June 26-28	Concrete Technologies Tour	Kansas City, Mo.
Aug. 9-13	2005 EOC Seminar	Big Sky, Mont.
Sept. 4-6	Certified New Home Sales Professional (CSP)	Reno, Nev.
Sept. 14-16	House Construction as a Selling Tool	Youngstown, Ohio
Nov. 11-13	3rd International Conference of the Americas	Mexico City
Nov. 6-9	2005 Building Systems Councils SHOWCASE	New Orleans, La.
Nov. 11-13	Custom Builder Symposium	New Orleans, La.
Nov. 13-14	National Conference on Membership	Spokane, Wash.
Nov. 17-19	2005 State and Local Government Affairs Conference	Phoenix, Ariz.
2006
Jan. 11-14	International Builders' Show	Orlando, Fla.
March 12-14	National Green Building Conference	Albuquerque, N.M.

Learn More About The NAHB University of Housing

Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your education pursuits.

Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

Institute Assists Communities on Smart Growth

Communities that wake up to the realization that they need to find new ways to accommodate development to solve such problems as a lack of affordable housing, congested highways and crowded schools may be able to profit from tools that are being developed by the Smart Growth Leadership Institute (SGLI).

Although the institute’s Implementation Assistance Program in its first year was only able to provide assistance to nine of the 150 communities that requested it, the experiences and lessons learned from those places will help shape a smart growth Implementation Kit for other localities that are seeking guidance on implementing infill, high-density and other innovative development strategies.

Communities are typically finding that their aspirations for smart growth are being thwarted by existing zoning codes, subdivision regulations, street design standards, building codes and other land development regulations, Harriet Tregoning, SGLI’s executive director, said in a presentation earlier this month at the National Building Museum in Washington, D.C.

Those communities, she said, can profit by having outsiders come in to assess what is standing in the way of a new approach to development, an endeavor that can require political leadership and coordination with many different departments.

Among the communities with which SGLI has worked on implementing smart growth:

• In Mount Joy Borough, Lancaster County, Pa., the positive fiscal impact of new development was the most convincing factor in overcoming subdivision restrictions against higher densities, Tregoning said. SGLI’s audit helped the small Main Street community with a population of 6,765 pass a Traditional Neighborhood Design zone to accommodate smart growth principles.
• In Baton Rouge, La., at the request of a politically sophisticated non-profit community organization, the institute reviewed the city’s comprehensive plan and unified development code to see how they could be made consistent with a “Plan Baton Rouge” downtown revitalization effort. “The economic arguments for how to grow captured the imagination of the government,” she said, and gained the support of the city’s new major.
• In Nashville/Davidson County, Tenn., “one-size-fits-all” subdivision regulations geared to suburban and semi-rural parts of the area have made it difficult to build infill housing in the city’s vibrant urban core. Tregoning said that SLI was successful in helping to pass new development standards tailored to fit the character of different communities. The institute also recommended reforms and a more collaborative process for a system in which Metro Planning has authority over site approvals, Metro Public Works oversees street design; and Metro Water Services signs off on storm water runoff, after the site has already been approved.
• In Orange County, Fla., the institute looked at “retrofitting” the county’s suburban development pattern with infill development that incorporates a mix of land uses and housing types. The county had made exceptions to its zoning ordinance several times to accommodate this type of development, but it never went back to change its zoning or codes. Also problematic, the public works department was putting up resistance on street standards.

Tregoning said she is an advocate of taking relatively small steps and leveraging them. “You have to be able to talk to people about some signs of progress,” she said.

For example, Kentlands in the Maryland suburbs of Washington, D.C. — with its small lots, big houses, skinny streets and alley-loaded garages — changed the standard of development in Montgomery County, she said. Construction of the MCI Center in downtown Washington has spurred 4.5 million square feet of commercial development in the area and 2,300 housing units.

In downtown Tacoma, Wash., a new electric train traveling only 1.6 miles met its seventh year daily ridership projection on its eighth day of operation. “Now private real estate development is revitalizing the downtown,” Tregoning said. “It has changed people’s expectations about the future of that place and real estate investment patterns.”

Working with the University of Southern California and the University of Colorado and with funding from the Environmental Protection Agency, SGLI over the next nine months will be sending its team of experts to provide assistance to four new communities: Chattahoochee Hill County and Fulton Hill County, Ga.; Coconino County, Ariz.; Davis, Calif.; and Greenville, S.C.

A project of Smart Growth America, the Smart Growth Leadership Institute was founded by former Maryland Gov. Parris. N. Glendening to help state and local elected, civic and business leaders design and implement effective smart growth strategies.

Enter the Best in American Living Awards Competition

Entries are being accepted for the 2005 Best in American Living Awards (BALA), the foremost residential design competition in the country.

The competition includes 41 categories — from single-family attached and detached in a variety of sizes to rental developments, custom homes, best community and one-of-a-kind spec homes.

The competition also includes best affordable housing, smart growth, the U.S. Department of Housing and Urban Development Secretary’s Award for Excellence and 14 interior design categories including best kitchen, bath, specialty room, detail and more.

Homes completed or for which the first model opened between May 1, 2004, and July 15, 2005, are eligible for this year’s competition.

The Secretary's Award for Excellence program recognizes design excellence produced through cooperative public/private efforts that expand homeownership opportunities for underserved American families. For more information about the award, click here.

Entry Dates:

• Entry forms and fees due: July 1
• Entry notebooks due: July 15

Several categories in the competition are limited to homes built for sale. Check the BALA/Housing Zone Web pages for details.

Co-sponsored by Professional Builder magazine and NAHB, the BALA design competition is open to builders, architects, designers, developers, land planners and interior designers.

Winners will be announced at the 2006 International Builders’ Show in Orlando, Fla., Jan. 11-14. Winning entries will also be posted on the Professional Builder Web site, HousingZone.com, for up to one year after the announcement.

For additional information and to download a BALA entry form, click here, or contact Colleen McNamara, Professional Builder, at 630-288-8181 or Michelle Persinger Matuga, NAHB, at 800-368-5242 x8343.

Advanced Registration for Design Institute Ends Friday, May 27

Advanced registration for the NAHB/BALA Design Institute for Builders design conference — where the latest in design trends will be explored — is open until Friday, May 27. The NAHB/BALA Design Institute will be held from June 13-15 at the Westin Tabor Center in Denver.

The conference will feature world-class speakers including: Daniel Nahabedian, formerly of The Irvine Development Company and John Laing Homes; Heather McCune, editor-in-chief of Professional Builder magazine; Cheri Meyn , president of The Genesis Group; and Howard Englander, president of The Englander Company.

The conference also will include discussions about the latest in residential housing design trends; tours of award-winning homes and communities displaying cutting-edge architectural design; and opportunities to learn how to profitably apply these design ideas to the homes you build.

In addition, there will be educational sessions and tours, including:

• Approach design as a powerful team. An intensive, hands-on workshop about how to craft architecturally unique home designs as a team.
   
• Learn about design market trends. Case studies of successful projects that focus on the specific market segments for which the homes were created.
  
  
• Tour visionary neighborhoods. Tours are planned for Stapleton, a tapestry of homes, shops, offices, parks and schools in a walkable city; and the largest “built green” community of its kind in North America, Tallyn’s Reach.  

For more information or to register for the Design Institute conference, click here.

Bosch Circular Saws Recalled

The U.S. Consumer Product Safety Commission has announced that Robert Bosch Tool Corp. is recalling 69,000 circular saws because under certain circumstances, the lower blade guard may not function properly, creating a risk of injury as severe as amputation.

The firm has received three reports of malfunctioning lower guards, including one amputation, according to the commission.

The recall circular saws include the BOSCH CS10, CS20 and CS20-XC models, which can be identified on the product nameplate mounted on the top of the motor housing. The recalled models do not have an asterisk (*) in the serial number box. The circular saw uses a 7-1/4-inch blade and has a blue handle and motor enclosure, and a metal guarding system. “BOSCH” is printed on the blade guard.

The recalled saws were sold at Home Depot, Lowe’s and Menards nationwide, as well as at independent hardware retailers and industrial distributors, from February 2004 through April 2005 for between $120 and $150.

Consumers should stop using the circular saws immediately and contact Robert Bosch Tool Corp. to receive a repair kit, which includes hardware and instructions for installation.

To receive information on saw repair, call 800-856-9683 Monday through Friday between 7:00 a.m. and 7:00 p.m. Central Daylight Time. Or, click here.

BuilderBooks.com Offers More Than 250 Books that Help You Build Your Business

BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

Related Companies Founder to Be Honored

The National Housing Symposium held by the National Housing Conference (NHC) next month in Washington, D.C. will focus on how to mobilize support for affordable housing through public housing campaigns.

Cosponsored by the Campaign for Affordable Housing, the symposium will examine key ways for reaching the public and the media with messages related to affordable housing and will highlight several “best practice” examples of successful education campaigns centered on housing activities.

On the eve of the symposium, NHC will honor Stephen M. Ross, chairman and CEO of The Related Companies and chairman and founder of CharterMac as the “2005 Housing Person of the Year” in recognition of his outstanding commitment to and leadership in affordable housing and community development.

Formed by Ross in 1972, The Related Companies oversees a real estate portfolio valued at more than $12 billion. CharterMac, through its subsidiaries, is one of the nation’s leading full-service real estate finance companies, with strong focus on multifamily financing.

Nearly 1,000 industry leaders are expected to attend the annual awards ceremony and dinner, which will be held on June 15 at the National Building Museum.

The symposium will be held on the morning of June 16 at the Jurys Washington Hotel.

For more information, click here, or call 202-466-2121 x221.

Workforce Funding Available for Builders Associations

Under a $4.2 million grant from the U.S. Department of Labor to the Home Builders Institute (HBI), the workforce development arm of NAHB, home builders associations have the opportunity to work with community colleges, secondary school systems, employers and the workforce investment system to improve recruitment in the residential construction trades.

Part of President Bush’s High Growth Job Training Initiative, the program was created to provide trades training through secondary and community college systems in 10 states. Funded under a demonstration grant from the Department of Labor’s Employment and Training Administration, one of the key goals of the project is the recruitment of 2,500 individuals into the trades over the next three years.

The first four associations that will receive funding for the program were announced last month: the Northeast Florida Builders Association in Jacksonville, Fla.; the Tidewater Builders Association in Tidewater, Va.; the York County Builders Association in York County, S.C.; and the Building Contractors Association of the Wood River Valley in Blaine County, Idaho.

HBI is now seeking proposals from home builders associations located outside these four states that are interested in leading training efforts at sites in their areas. Responses to the institute’s Request for Proposals (RFP) must be received by Friday, Aug. 26. The six associations that are selected will be notified and visited by HBI staff. Plans are to have all of these new sites operating by Dec. 1.

For more information or to request an RFP, e-mail John Shortt at HBI, or call him at 800-795-7955 x8924.

Work Clothes Suited for Tough Construction Jobs

Created for the working man by the working man, Riggs Workwear™ by Wrangler® provide a line of men’s shirts and pants that are stronger and last longer than the average work apparel.

Based in Greensboro, N.C., Riggs Workwear by Wrangler is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.

Every seam, pocket and reinforcement of Riggs Workwear has been engineered and incorporated for the working man’s long hours and tough jobs, the clothing manufacturer says.

Durashield™ fabric denim finishing allows for Riggs Workwear fabric fibers to move while it is being worn and during the washing process, reducing abrasion and providing softness without compromising durability. And a room2move™ fit utilizes gusseted construction for easy movement in all directions.

Features that make Riggs Workwear jeans last longer than average include:

• A patented leather tap measure reinforcement protecting pockets from wear and tear
• DuPont Cordura®-lined back pockets in which tools and nails can be carried without fear of tearing through the fabric
• Reinforced seams and panels, especially in the Tradesman and Utility jeans, which have reinforced panels on the legs.
• Innovative Ripstop fabric that provides toughness and protection in a medium-weight material that is comfortable to wear year-round
• Details such as a higher, right-side hammer loop and vents for dirt drop-out

 

This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page.

BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

The Sole Bidder Dilemma

Here’s a simple quiz:

You are a contractor. A well-respected developer asks you for a bid to do some work within your area of expertise. The project scope is well defined. You suspect the developer doesn’t want to be bothered soliciting bids; in other words, you will most likely be the only bidder. You:

A.  Give him your bare-bones, most competitive bid. You want him to really be impressed with your low price so he thinks of you again next time.

B.  Give him a fair, competitive bid, with your standard markup for profit and overhead.

C.   Give him an inflated bid because this is a golden opportunity to reap some extra profit.

I pose this question because it just happened to me (as the developer), twice.

Near-Ripoff One. I hired a surveying firm to prepare a topographic map for an 85 lot subdivision I’m involved with. We decided an aerial survey would be the best way to collect raw data (as opposed to a whole lot of ground surveying). The survey firm recommended subcontracting to an aerial mapping company. I told them fine, but I wanted a bid from their aerial mapper even if they were the only bidder. The bid came in at $9,500, which did not include a new flight — they had recently flown the property and could prepare a data map from that. The bid seemed high, so I asked the surveyors about it. They said no, it was a good number. I said I wanted another bid anyway. They got one and it came in where I expected, at $5,500, which included a new flight.

Now the surveying company had egg on its face. They could tell I was supremely chafed at nearly giving away $4,000 to a company they not only recommended, but further suggested not taking another bid against.

Near-Ripoff Two. I have a short list of specialty contractors I use for small jobs (under $20,000). I like to spread the work around, so I alternate among them as much as possible. Frequently, especially on messy, hard-to-quantify jobs, I don’t ask for more than one bid. Recently I asked one of these companies if they were interested in bidding some road and culvert work. They said sure. I told the owner I really wanted him to do the job, but to please break his bid down so I could be sure I knew I was getting a fair price. He said no problem. When I got the bid, I was surprised at the lack of detail; it was a few line items with lump sums in the right column. I knew the quantities involved, so ran my own numbers and was angry to find his prices were two to three times what they should have been.

Now to answer the quiz question. The best answer is “B” — submit a fair bid with normal markups.

Answer “A” (submit a razor-sharp bid) is not normally a good idea unless you’re desperate to get your foot in the door with a particular client. Razor-sharp bids usually lead to:

• Losing money because stuff invariably crops up you didn’t anticipate
• Change orders, which hack off owners
• A hastily-done job, which leads to poor quality, call-backs and a black mark against your reputation

Answer “B” (submit a regular bid with normal profit and overhead markups) is nearly always the best answer because:

• You should have ample time to do a good job, which is what your client will remember most in the end.
• Good customers don’t mind paying a fair price for a job well done. They understand the concept of “profit” and expect you to make a little; otherwise you may not be there next time around. Bad customers (the ones who don’t pay) don’t understand this concept and are always looking for rock-bottom prices. Let your competition wrangle with these calls.
• You don’t run the risk of the owner finding out you’re greedy. Greed is one of the biggest killers of construction companies and deserves an entire column by itself, which I shall someday write. Clients get very angry when they find out they’ve been had by a greedy contractor. In the two scenarios above, neither of those companies will get a second chance with me, and I will go out of my way to warn others about them.

Answer “C” (submit an inflated bid) is never a good idea. I used to think it was okay in situations where you’re busy enough that you don’t need the work, or where you’re trying not to get a job because the client is suspect. It’s wiser simply not to bid. You live or die by your reputation; the last thing you need is to be known as too high-priced.

In summary, the most successful contractors and consultants I can think of are the Answer “B” types. They always submit fair bids, though not always the cheapest, but their client base is large and fiercely loyal. They understand that good clients want quality and speedy completion, and they are willing to pay a fair price to get it.

Tim Garrison of ConstructionCalc.com, is a professional engineer, author and software producer for the building industry. Send e-mail to buildersengineer@constructioncalc.com. Tim reads every one.

This column cannot be reprinted without permission from the author.

NAHB-Produced Shows on HGTV & DIY — This Week

"I Want That!" on HGTV

Episode: "Floating Vacuum"

•  May 25, 9:00 p.m. ET/PT •  May 26, 1:00 a.m. ET/PT •  May 29, 1:00 p.m. ET/PT

Check out a vacuum that floats on a pocket of air and find out why this makes for a better floor cleaner. Tired of running a hot bath, only to have the water cool before you make it to the tub? A new heated bathtub keeps a hot bath hot. Plus, a new kind of stud finder instantly pinpoints the center of a stud and makes hanging heavy objects safer. And a modern, minimalist high chair could have your baby sitting pretty.

"Dream Builders" on HGTV

Episode: "New Georgian"

•  May 29, 9:30 a.m. ET/PT

A Virginia couple, with Georgian on their minds, recreates an architectural icon. Also, building with boulders: an incredible stone shelter in the Arizona desert. And, exposing the details: a Colorado home with an industrial edge. Plus, treasures from the trash: a new use for broken glass.

"Rock Solid" on DIY

Episode: "Concrete Countertop"

•  May 25, 9:00 p.m. ET/PT •  May 26, 12:00 a.m. ET/PT •  May 29, 9:00 a.m. ET/PT

Dean and Derek, along with guest Hannah Black, of Architectural Concrete Specialties, combine their creative forces to construct a stylish concrete kitchen island. From mixing the mud to precise installation to a polished finish, they'll demonstrate the steps to building a concrete countertop. They will explain as they learn from Hannah how to form a countertop mold like the experts, how to reinforce the base so that it will hold up under the concrete and how to decide the proper ingredients for the desired look.

Builders' Show Specials on DIY and HGTV

"DIY Inside: The Builders' Show"

•  June 12, 3:00 p.m. ET/PT •  June 13, 2:00 a.m. ET/PT

"DIY Inside: The Builders' Show" showcases the latest building materials and helps viewers pick the newest tools and supplies for the job at hand. From heating to hi-tech, viewers learn about practical how-to technologies for the home as hosts Karl Champley and Amy Devers (the hosts of "DIY to the Rescue") give viewers an insiders look at the largest home builders show.

"International Builders' Show 2005" on HGTV

•  June 26, 10:00 p.m. ET/PT •  June 27, 2:00 a.m. ET/PT

Hundreds of exhibitors showcase the latest appliances, materials and technology for the home. Items featured include fabulous fireplaces, the latest home technology, innovative tools and materials, luxury windows and doors, elegant baths and deluxe appliances, and the latest products for the outdoors and for the good life.

The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use.

The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

Endowment Gives University Grant for Affordable Housing

The University of Maryland’s School of Public Policy received a grant from the National Housing Endowment, the philanthropic arm of NAHB, to redevelop the curriculum for its Housing and Community Development Executive Education Program.

The housing and community development program, which began in 1994, gives housing and community development professionals in the public and non-profit sectors, the tools they need to deliver affordable housing in their communities through community-based partnerships.

The program focuses on three areas:

• Housing and community development
• Housing finance
• Asset management

Program courses will help housing professionals:

• Forge new partnerships to deliver effective community-based programs.
• Provide an overview of the field and its critical role in community well-being, including historical context, project and neighborhood development and asset management.
• Understand the opportunities and constraints associated with community-based partnerships.
• Construct and analyze complex financing deals, leveraging resources to build and preserve high quality affordable housing.

More than 2,000 housing professionals from the U.S. Department of Housing and Urban Development, the U.S. Department of Agriculture’s Rural Housing Service (RHS) and state and local finance agencies, public housing agencies and non-profit organizations have already participated in the program.

 “The relationship with the University of Maryland is an important effort to bring the home building community to the table with government housing officials from across the nation in an academic setting that promotes camaraderie and mutual understanding,” said Gary Garczynski, chairman of the National Housing Endowment. “I hope many of our members will take advantage of this wonderful opportunity.”

For more information or to apply to the program, e-mail Elizabeth Hinson, call her at 301-405-6227, send a fax to 301- 405-3737 or visit the program’s Web site at www.puaf.umd.edu/OEP/hcd.htm.

Help Tsunami Survivors Rebuild Their Homes

NAHB and the National Housing Endowment have established the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund to raise desperately needed funds to build permanent shelter for the victims of the devastating earthquake and tsunami disaster in South Asia last year. The fund currently has almost $350,000.

NAHB, have designated Habitat for Humanity International and Shelter for Life International to be the recipients of the fund. Through NAHB donations, Habitat for Humanity will create a Disaster Response Technical Center in one of the affected countries it is serving. Shelter For Life will build a “Home Builders Care Village” of starter homes in Sri Lanka with NAHB funds.

Please Help

Please help by making a tax deductible donation to the Home Builders Care/National Housing Endowment-Tsunami Shelter Fund. Money raised by the National Housing Endowment will be granted to one or more U.S. charitable relief organizations working to help tsunami survivors obtain temporary and permanent shelter.

Please direct your donation check to:

National Housing Endowment
1201 15th Street NW
Washington, D.C. 20005

Checks should be made payable to the National Housing Endowment and, in the memo section, please note the "Tsunami Shelter Fund."

The NAHB Senior Officers have selected Past President Bob Mitchell to oversee and guide this fundraising effort.

For more information, contact Troy Patterson at the National Housing Endowment at 800-368-5242 x8483 or Kym Kilbourne in NAHB Public Affairs, x8447.

Land Development Magazine Covers Trends, Regs, More

NAHB’s Land Development magazine provides in-depth, informative, expert information regarding regulatory and environmental issues, impact fees, land development trends, codes and standards, zoning, community design and other issues affecting land development.

Created for developers, land planners, state and local planning officials and others involved in the land development process, each issue of Land Development magazine offers useful and practical information on topics such as trends in land use, land development, federal environmental regulations, land planning and land design, state and local comprehensive planning, and growth management to help meet the challenges of the ever-changing development industry.

Inside Land Development Magazine:

• Features — Topical discussions by nationally recognized experts on current issues such as market trends, land development financing, land planning and community design, environmental and regulatory issues, infrastructure and more
  
  
• News — Articles on the latest land development industry news including new federal regulations, survey results, legal decisions and new technologies 
  
  
• Excerpts and Book Reviews — Excerpts from valuable resource materials available from BuilderBooks.com as well as reviews of major publishers’ books that are of interest to land developers
  
  
• Consultant Index — An advertising directory of consultants and businesses that provide planning, design, engineering, marketing and financial analysis services to land developers
  
  
• Portfolio — A special design section that details innovative land development projects and award-winning communities and homes
  
  

Land Development is published quarterly and is available for a $40 annual subscription rate. A discount option is available to members of local builders association land development committees, groups or councils for groups of 10 or more.

For more information or to subscribe, visit the Land Development Web page, or call 800-368-5242 x8484.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

The Buzz Behind National Membership Day

The phones have quieted and the three hours of National Membership Day Webcast interviews and features have ended. The day’s successes are being tabulated to determine how many new members have been recruited by state and local home builders associations (HBAs) during NAHB’s annual federation-wide membership drive held Monday, May 23.

Customize Your Computer’s Cursor With the NBN ‘Hammer’

NBN Hammer

Show your pride in the home building industry by customizing your computer’s cursor with the “pounding hammer” cursor that is used in Nation’s Building News.

The customized cursor is available free from NAHB and Nation’s Building News and will work on Windows 95 or newer operating systems.

To begin customizing your computer’s cursor, first download the two hammer graphics needed to make the hammer move:

• Click the following link for the Hamone graphic and save it to your computer.
• Click the following link for the Hamoneover graphic and save it to your computer.{{MORE}}
  
  

Once you have saved both hammer graphics to your computer, follow the steps below according to your Windows operating system. Customizing your computer with the new hammer cursor should take less than five minutes.

Windows XP:

1. Click on the Window's "START" button on the taskbar.
2. Select the "CONTROL PANEL" link.
3. Find the "MOUSE" icon and click it.
4. Select the "POINTERS" tab.
5. Highlight the old cursor you want to change and click "BROWSE." (To make the hammer your primary cursor, highlight “NORMAL SELECT.”)
6. Find the new “Hamone” cursor and double-click it.
7. Click "APPLY" or "OK."
8. To make the hammer cursor “move” when selecting a link or file, highlight a second old cursor you want to change (the suggested cursor is “LINK SELECT”) and click “BROWSE.”
9. Fine the new “Hamoneover” cursor and double-click it.
10. Click “APPLY” or “OK.”
    
    

Windows 95, 98, 98SE, ME, 2000 users

1. Click on the Window's "START" button on the taskbar.
2. Select "SETTINGS."
3. Select "CONTROL PANEL."
4. Find the "MOUSE" icon and click it.
5. Select the "POINTERS" tab.
6. Highlight the old cursor you want to change and click "BROWSE." (To make the hammer your primary cursor, highlight “NORMAL SELECT.”)
7. Find the new “Hamone” cursor and double-click it.
8. Click "APPLY" or "OK".
9. To make the hammer cursor “move” when selecting a link or file, highlight a second old cursor you want to change (the suggested cursor is “LINK SELECT”) and click “BROWSE.”
10. Fine the new “Hamoneover” cursor and double-click it.
11. Click “APPLY” or “OK.”
    
    

To change your settings back to your old settings:

1. Follow the steps above to get to the “POINTERS” tab of your “Mouse” configuration according to your Windows operating system.
2. Highlight the “Hamone” and “Hamoneover” cursor selections.
3. Click “Use Default.”
4. Click “Apply” or “OK.”
   
   

NOTE: NAHB is NOT responsible for misuse or any errors and problems that may be caused by the reconfiguration of the users' pc files. The user understands that he is modifying his computer setup at his own risk.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

GM Discount Available on More Than 80 Vehicles

GM is offering preferred GM Supplier discount pricing to NAHB members on more than 80 General Motors vehicles — including Chevrolet, Pontiac, Buick, GMC, Oldsmobile, Cadillac, Saturn, HUMMER (except H1) and Saab passenger cars, light duty trucks, vans and SUVs — as part of NAHB’s Member Advantage discount program.

The GM Supplier pricing program is available to members who purchase or lease 2004, 2005 or 2006 model-year vehicles.  

Through the program:

• NAHB members can get preferred supplier pricing on all eight GM nameplates.
• GM Supplier pricing is compatible with most current consumer GM incentive programs, including the GM Business Choice program for commercial vehicles.
• NAHB members will receive their authorization codes and program details via direct mail from GM.

For details, go to www.gmfleet.com/nahb.

The GM Supplier pricing program runs through Jan. 3, 2006.

Other Member Advantage Discounts

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org. Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state and national home builders associations.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

Save More With BuilderBooks.com Rewards

BuilderBooks.com is offering it's first-ever Rewards program to provide privileges, savings and rewards to its loyal customers.

Launched at the 2005 International Builders’ Show, the program is available for a $9.95 annual fee.

Reap These Benefits 

• Reward Discounts: Receive a 5% discount at IBS and selected local and regional trade shows.

• Special Offers: Receive exclusive deals available only to Rewards program participants via e-mail.

• Free Rewards:  Show your Rewards card at the BuilderBooks.com store at the International Builders' Show and at selected local or regional tradeshows to receive free gifts. 

• Notification of New Products and Services: Stay up to date on new books and resources for the building industry.

• Quarterly Drawings: Every time you shop during the quarter, your name will be entered into a drawing to win valuable gifts.

• VIP Status: Your status is automatically upgraded to the Gold Level when you spend $2,500 annually. You and a guest will receive access to the BuilderBooks.com Rewards Lounge at the 2006 International Builders’ Show. Enjoy complimentary drinks and more.

Join the Rewards program today and save on the very books and services that build your business. Click here to start saving.

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.

Calendar of Events

June 13-15	NAHB/BALA Design Institute for Builders	Denver, Colo.
June 26-28	Concrete Technologies Tour	Kansas City, Mo.
July 29-31	2005 Summer Executive Board Meeting	Sun Valley, Idaho
Aug. 9-13	2005 EOC Seminar	Big Sky, Mont.
Sept. 7-11	Fall Board of Directors	Reno, Nev.
Oct. 12-15	Remodeling Show 2005	Baltimore, Md.
Oct. 13-15	Sunbelt Builders Show	Grapevine, Texas
Nov. 3-5	3rd International Conference of the Americas	Mexico City
Nov. 6-9	2005 Building Systems Councils SHOWCASE	New Orleans, La.
Nov. 11-13	2005 Custom Builder Symposium	New Orleans, La.
Nov. 13-14	National Conference on Membership	Spokane, Wash.
Nov. 17-19	State and Local Government Affairs Conference	Phoenix, Ariz.
2006
Jan. 11	Innovation in Workforce Housing Awards	N/A
Jan. 11-14	International Builders' Show	Orlando, Fla.
March 12-14	National Green Building Conference	Albuquerque, N.M.
May 10-14	Spring Board of Directors	Washington, D.C.

To view more meetings & events information on the NAHB Web site, click here.

Subscribe Your Employees to Nation’s Building News — and Earn a Chance to Win Digital Camera

Subscribe your employees to Nation’s Building News Online. It’s free, easy and NAHB members who sign up three or more employees will be entered into the "Make Your Business Click" contest to win a digital camera. To learn more or sign up your employees, click here.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB. 

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available 24 hours a day at www.nahb.org. Just click the "Log In" button to get started.

Once you log in, personalize the site to reflect your interests. Simply go to the My NAHB>My Profile page and click the “Edit Content Preferences” link. To learn more about how you can customize My NAHB — including how to customize the links that appear on the Home page ― visit the How to Use www.nahb.org section.