Nation's Building News Online: August 15, 2005

Print All Articles Text Version

NAFTA Ruling Should End Canada Lumber Duties

A unanimous decision last week by a North American Free Trade Agreement (NAFTA) panel paves the way for the elimination of a hidden tax that has cost American home buyers and consumers more than $4 billion.

The ruling by the NAFTA Extraordinary Challenge Committee should end a drawn-out, three-year legal battle to overturn punitive tariffs on Canadian lumber shipments, said NAHB President David Wilson.

However, Wilson expressed concern over a statement from the Office of the U.S. Trade Representative suggesting that it might not comply with the ruling. "We urge the Administration to allow this final verdict to be implemented without further delay," he said, "and to immediately rescind the tariffs and return to Canada more than $4 billion in deposits that have been collected."

The U.S. government imposed anti-dumping and countervailing duties totaling 27% on softwood lumber in May of 2002, charging that Canadian imports represented a "threat" to domestic lumber producers. The percentage was subsequently reduced but remained above 20%.

Canada filed appeals to overturn the duties before NAFTA and World Trade Organization panels, which repeatedly ruled that the duties on lumber were inconsistent with international agreements and with U.S. law.

Last August, a NAFTA panel cleared the way for removing the burdensome tariffs on Canadian lumber when it unanimously ruled that there was no evidence to support the contention that Canadian lumber shipments threaten the domestic industry.

Last year's NAFTA verdict found no threat of injury from Canadian imports, which is the legal justification required for the duties to be imposed. It also stipulated that the U.S. was required to refund the billions of dollars that Canada had paid. A NAFTA ruling carries the weight of law in Canada, the U.S. and Mexico.

The domestic lumber lobby convinced the U.S. Trade Representative to file an "extraordinary challenge" under NAFTA, using that unusual procedure to keep the case alive so that duties would remain in effect. This last-ditch effort was unanimously rejected by the bi-national Extraordinary Challenge Committee last week.

Nearly 50 members of Congress have signed a letter to President Bush calling on the Administration to implement the NAFTA Extraordinary Challenge Committee ruling and to adhere to the international agreements that the U.S. has signed.

The letter states that the "current duties, which have been found illegal under both the WTO and NAFTA, deprive Americans of affordable housing, the first step in the American dream. The border taxes should be stopped at once, and past payments given back."

"Now that the legal challenges have run their course, it's time for the Administration to live up to its international obligations and stand up for American families seeking to become home owners by moving quickly to roll back the tariffs and refund all duties paid out by Canadian firms," said Wilson.

For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252.

Subscribe Your Employees — You Could Win 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 five winners already — the most recent winner is Robert Poole, of Poole's Plumbing, Inc. in Raleigh, N.C. — and you could be next.

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

Subscribe your employees and they will begin receiving timely, valuable industry and business news at their desktops beginning with the very next issue. News that can help increase your company's profitability and efficiency. And all it takes is a few mintues of your time.

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.



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.

Pay Raises Remain Weak as Housing Prices Surge

The wages of many public servants — policy officers, teachers, fire fighters and nurses, among others — are not keeping pace with the cost of housing, according to a new study from the Center for Housing Policy, the research affiliate of the National Housing Conference. The study finds that as housing prices rise across the country, a growing number of working Americans cannot afford housing in the communities where they work.

The median price of a home in the U.S. rose 20% in just a year and a half, during a time when raises for key community workers remained weak, even stagnant, by comparison, according to the study.

“This study makes it clear that meeting the housing needs of our nation’s working families is a tough challenge,” said NAHB President David Wilson. “We have an imbalance between demand for housing and supply, and that is driving up prices, especially in the hottest markets. This problem will only get worse unless communities find a way to better match supply and demand.”

The study, “Paycheck to Paycheck: Wages and the Cost of Housing in America,” found that from the fourth quarter 2003 to the first quarter 2005 the cost of a median priced home increased from $186,000 to $225,000, or 20%. At the same time, the annual income needed to qualify to purchase a home grew from $54,855 to $71,354.

Yet, the wages for key community workers such as elementary school teachers, police officers, licensed practical nurses, retail salespersons and janitors in the majority of cities nationwide remained flat and, in some metropolitan areas, significantly below the amount needed to purchase a home.

In addition to the national assessment of housing affordability, the study also compares homeownership and rental affordability findings with median community wages for 63 occupations in 183 metropolitan areas. To access this information on an interactive database, click here.

The 10 least affordable markets are all in California, according to the study, but housing affordability problems are fast becoming a concern across the county.

“Across the nation we are seeing a growing disparity between the skyrocketing home prices of recent years and the minimal increase, if not flattening, in wages for our nation’s community workers,” said Barbara Lipman, the center’s research director. “Additionally, the disturbing trend of retail salespersons and janitors, and those in similar wage groups, paying in excess of what is considered affordable in order to rent a one- or two-bedroom apartment continues in metropolitan areas throughout the country.”

For more information about workforce housing and other housing affordability issues, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

Home Builders Fear Increase in Speculative Buying

In a disturbing trend for builders in north Idaho’s hot housing markets, “For Rent” signs are becoming commonplace in many new subdivisions where investors have been snapping up homes with the expectation of re-selling them for a profit in a year or two and are looking for renters to help pay the monthly mortgage in the meantime. “We know of subdivisions in Coeur d’Alene where more than 50% of the new homes are rentals,” said Jim Frank, president of Greenstone Corp. “We think it’s very bad for home purchases.” Frank said he started noticing the phenomenon about a year ago and that investors had approached him offering to buy 30 new homes at a time in his subdivisions. Last year, he began requiring buyers to sign an affidavit that they intended to live in the home, and after that was found to be unenforceable, buyers must now sign a sales contract under which they agree to sell the home back at its purchase price if it is sold within 12 months. Speculative buying creates a “hidden market” that can potentially whiplash builders, said NAHB economist Michael Carliner. If investors cash out when home appreciation starts slowing, they could create a sudden glut of homes on the market that would be competing with new-home sales and drag their prices down, he said. (www.spokesmanreview.com)
Spokesman-Review, Spokane (8/9/05); Becky Kramer

Builders Brace for Moratorium

Developers and real estate agents are predicting that home prices will rise and that first-time home builders will face a tougher housing market as the result of a six-month moratorium on new subdivisions in Thurston County, Wash. County commissioners imposed the moratorium in response to a state ruling finding that many of the county’s planning policies violate the state’s Growth Management Act, including urban growth areas that are too large, sometimes allowing the development of more than one unit per five acres of rural land and not setting aside enough land for farming. The county’s median home price was a record $228,500 in July. Glen Amendala, president of the Olympia Master Builders and owner of Horizon Home Builders, said that builders with new homes on the market will now probably get an artificial bump in the selling price. “That builder is drooling right now,” he said. “Their houses just went up $5,000 to $10,000 apiece.” He added that, “Every time you add a percentage to the price of a home, you knock out another percentage of first-time home buyers.” Smaller builders who are sitting on property they can’t develop could be driven out of business, Amendala said. And some builders will be forced to turn customers away. “I have six clients who want me to build and I don’t have any land to build on,” he said. (www.theolympian.com)
Olympian (7/21/05); Jim Szymanski

Multifamily Housing Ban Ends

The U.S. Justice Department is investigating a moratorium against the construction of two-family and multifamily housing in east New Orleans that the city council allowed to expire on July 21. In March, Steven Rosenbaum, who is the chief of the Housing and Civil Enforcement Section of the department’s Civil Rights Division, wrote that his office was looking into complaints that the city had violated the federal Fair Housing Act through its restrictive measure. The council had been warned by the city attorney that moratoriums on permits for multifamily housing are most likely to affect poor people “who cannot afford to rent or own single-family homes.” Although a law discriminating against the poor is not necessarily illegal, she said, it is a violation of the Fair Housing Act if the effect of applying the law is to discriminate against minorities or people with disabilities. (www.nola.com)
New Orleans Times-Picayune (8/2/05); Bruce Eggler

A Roof Garden? It’s Much More Than That

Landscapers have been installing a 35,000-square-foot green roof at Silvercup Studios in Long Island City, Queens, N.Y., where parts of the HBO series “The Sopranos” are filmed, in a design that aims to reduce air pollution, control heating and cooling costs, and absorb storm water runoff. Some 1,500 planters are putting 20 different species on the roof in soil that has been engineered to weigh only one-fifth as much as typical dirt. Data collected from the project will be used to convince commercial property owners and developers that green roofs can benefit the bottom line as well as the environment. A 2003 study in Chicago found that a green roof was able to absorb nearly half the water occurring during a downpour and that temperatures were 19%-31% cooler during the hottest hours of the day in July compared with a conventional roof. Low-rise, flat-roof buildings performed best. Green roofs typically cost $8-$10 a square foot, compared to $4-$6 for a regular roof, and local government involvement is critical, proponents say. “Isolated green roofs are expensive insulation,” said Leslie Hoffman, executive director of Earth Pledge. “But when you have a whole community of green roofs, it changes the microclimate of the area and reduces demand for energy.” (www.nytimes.com)
New York Times (8/10/05); Lisa Chamberlain

Ordinance Produces Bland Residential Architecture

A county hillside development ordinance in western Riverside, Pa. will lead to “banality and sameness,” according to local architect Bill Warkentin, who has helped prepare these ordinances in the past and is a founding member of the county’s General Plan Advisory Committee. With the preservation of mostly flat agricultural lands and more than 500,000 acres for multi-species habitat, the hillsides are a “suitable and environmentally appropriate venue for development,” he writes. But the ordinance randomly excludes two-story entries, large glass areas and large chimneys, Warkentin complains, “when such features may be exactly what the owners are seeking to capture the view, accommodate the hillside grade and achieve energy conservation.” The ordinance also stipulates that the colors of homes within 500 feet of a protected ridge must blend into the natural color of the hillside. “However, as to whether summer brown, wintergreen or rock gray ought to be selected, the ordinance is silent. Elsewhere, all homes shall be in earth tones as though Riverside County residents had voted and determined that every hillside home should be the color of a mud hut.” (www.pressenterpriseonline.com)
Press Enterprise (7/31/05); Bill Warkentin

Housing Gives Offices a New Lease on Life

Obsolete offices in the United Kingdom, Spain and Italy are being converted into apartments sought after by the “cappuccino” society that is embracing a return to city living. Realizing that there was a surplus of old office space that might be put to better use, local authorities in London amended the Central Government Planning Policy in January to make it easier to convert offices into apartments. According to the estimates of King Sturge, a real-estate advisory firm, about 30% of the new housing supply in the London borough of Westminster, where Parliament is located, is coming from the conversions of offices, many of them built in the 1960s and 70s. An affordable-housing policy requiring 25%-50% of housing in any new development to be affordable to workers such as teachers and nurses could squeeze developers’ profits and in turn slow down the number of conversions. (www.realestatejournal.com)
RealEstateJournal (8/10/05); Sara Seddon Kilbinger, Wall Street Journal

No Place Like (Upgraded) Home; Remodels Rise With Equity

Thanks to the rampaging real estate market, while property values multiply, millions of home owners are remodeling to protect their investment and improve their living space. Remodeling activity accounts for about 2% of the total U.S. economy, according to the Harvard Joint Center for Housing Studies, and in 2003, home owners and rental property owners spent $233 billion on home improvements — a 52% increase over eight years. People are now renovating with an eye on recouping their costs when they sell. Remodeling magazine’s 2004 Cost Vs. Value Report shows that a home owner can recover about 93% of the $15,000 they spend on a minor kitchen remodel, for example. Some home owners are just trying to keep up with the Joneses and others figure that if their houses are worth double or triple what they paid, their kitchen and baths should match. (www.usatoday.com)
USA Today (8/4/05); Maria Puente

In Outer Suburbs, Lighting Up the Night

In the Washington, D.C. region’s Calvert County, Md., measures to regulate outdoor lighting are at the center of a fight to limit urban sprawl. To some lifelong residents in the region, light pollution is just one more symptom of the transformation of rural outposts into bedroom communities. Growth for them means light from new subdivisions is obscuring the stars in the night sky. For newcomers who are accustomed to city lights, the main problem is that there isn’t enough light at night. A retired aeronautical engineer who moved to the county from Baltimore said that he wasted more than 2 ˝ hours lost on the county’s unlit rural roads one night last winter after he was diverted from a major thoroughfare by a traffic accident. “I found it easier to navigate the California desert than make my way through the pathetically dark roads of Calvert County,” he said. Proposed county regulations would require light fixtures to be aimed down, prevent light from trespassing onto neighboring property and forbid neon-bright commercial lighting after 11 p.m. At least 11 states have adopted similar measures aimed at reducing light pollution. (www.washingtonpost.com)
Washington Post (8/5/05); Amit R. Paley

Put Down the Battle Helmet, Pick Up a Hard Hat

Philip M. Dana
It has now been a year and half since I joined the construction industry as an entry-level field manager after serving our beloved country for 14 years. In my current employment as the director of construction development for Centex Homes, I now get the daily opportunity to look our nation’s finest in the eyes and tell them, “there is a wonderful career for you, and a fantastic life after the military!”

What are the necessary tools that separate the successful from the mediocre in corporate America? What is particularly important for success in residential construction? A strong work ethic, integrity, structure and organizational habits, a yearning for learning, a need for challenges, superior customer service skills and last but certainly not least, a terrific attitude that reflects a results-oriented mentality and the thrill of dealing with a diverse audience on a daily basis.

This list is not comprehensive, but after being in the business for more than a year, I can say that it reflects the most important characteristics of the talent the industry is looking for. And where do recruiters or hiring managers focus their efforts to find these characteristics? Personally, I believe military leadership is a good source for our growing manpower needs in the construction industry.

Centex Homes is a team builder, and as a team builder, it focuses on diversity in recruiting and hiring. As Eric Belsky writes in the July issue of Big Builder magazine, “As population and home buyers diversify, builders’ challenges include a more diverse management mix.”  An ongoing shift in our industry from “construction professional” to “business professional” requires us to be innovative in how we approach our construction teams.

In the Las Vegas market, we generally build with a four-person construction team. The four positions are distinct and defined by experience and job responsibilities. The following is an outline of the job requirements:

  1. Lead Field Manager. This position commands a tremendous amount of responsibility and has overall accountability for the assigned community. Looking at a Navy ship's structure, chief petty officers are the "keel" of the ship. Lead field managers are the "keel" of our organization. This position requires two to three years of experience, regardless of background, and completion of all the requisite Centex Homes training and development programs. This position includes a tremendous amount of interaction with both internal and external customers, along with the primary duties of mentoring the construction team. A college degree is preferred.

  2. Front-End Field Manager. A "front-end" field manager is typically in charge of taking the unit "front dirt to drywall." This position is a person who can "build a house in his sleep" and has a tremendous amount of technical training and experience.

  3. Two Back-End Field Managers. A back-end field manager takes the unit from drywall to sign-off, interacting with numerous vendors and home owners throughout the process. Because of the size and complexity of our units, we usually have two back-end field managers on the team.


We do our best to match the above structure with diverse talent targets to take advantage of team dynamics. Take the lead field manager out of the equation since I stated, "regardless of background." The following targeted talent gets added to the lead's team:

  1. Junior Military Officer (JMO), or Non-Commissioned Officer (NCO).  I prefer JMOs to have at least five years of active duty or NCOs to have at least 10 years active duty, which tells me that they have had more than three duty assignments of varied responsibilities involving management, leadership and accountability.

  2. New College Graduate, or Non-Industry Business Professional. Regardless of the degree, this person would bring a track record of academic performance, involvement in campus activities and a level of expertise in innovative technologies. This person would also bring an immediate desire to be part of a large-company culture and philosophies.
     
  3. Industry professional.  This person will have been a framer, electrician, plumber, etc. for at least two years.


Our Las Vegas construction team has recently achieved this vision in about 60% of our teams, and there is a direct correlation to our key performance measures, which include a heavy emphasis on J.D. Power and Associates customer satisfaction scores. This vision is only one of many efforts to be a diverse team builder, and although the vision of an ultimate four-person construction team is not an official company policy, it is working extremely well in a fast-paced market in a company that facilitates growth without tenure while supporting personnel with comprehensive development plans.

By watching and studying our own division’s performance, I am reminded daily of just how much the tools for success in the military match up with the tools for success in the construction industry.

Our division started with only 5% of personnel with military experience a year ago, and as of last month we had reached 25%. This talent strategy is directly reflected in our division’s ability to focus on the key strategic elements of organizational productivity, reducing construction costs by holding subcontractors accountable, improving our customer satisfaction scores and continuing to build on Centex Homes’ culture of pride with performance.

We have recently received our corporate award of performance, the Centexcellence Award, and are on the cusp of breaking into the top five in market share in our area. With this superior team of talent, we will be able to grow into one of the largest and most productive construction teams in the country.

Philip M. Dana is director of construction development for the Las Vegas Division of Centex Homes and a graduate of the U.S. Naval Academy's Class of 1998. To e-mail him, click here.

Dallas-based Centex Homes is one of the nation’s leading home builders, operating in more than 90 U.S. markets in 25 states. Its brands include Centex Homes, entry-level builder Fox & Jacobs Homes, on-your-lot builder Wayne Homes and resort/second home builder Centex Destination Properties. Centex Homes delivered 33,387 homes in the U.S. in the fiscal year ending March 31. The company is a subsidiary of Centex Corporation (NYSE: CTX), a Fortune 250 company.

Centex Corporation, founded in Dallas in 1950, is one of the nation’s premier companies in home building, financial services, home services and commercial contracting. Centex ranks No. 1 in its industry on FORTUNE magazine’s 2005 list of “America’s Most Admired Companies.”

Letter to the Editor: Housing Bubble Conclusions

I am fascinated by the varying perspectives on the perceived housing bubble. It seems incredible that so many enlightened and educated individuals can observe the same set of circumstances and arrive at polar-opposite conclusions.

While I try not to subscribe to an extremist view on any matter that is open to interpretation, I base a lot of business decisions on common sense and a gut feeling after consuming as much information about the matter as I can.

In that light, I do agree with some of Neil Barsky’s points in his Aug. 1 article (“What Housing Bubble?”) However, I believe that there are several important points that should not be ignored or discounted:

  • There are regional housing markets that have experienced significant changes far beyond the national averages, and with a change in the local economy, this would not be the first time in history that Florida, for example, could experience a real estate bust.

  • It is naive to dismiss the investor presence in the condo market or the impact a bust in that segment would have on the rest of residential real estate. I have yet to see well-founded numbers on the percentage of investors in condos. The few projects that have offered new product with a limitation on resale or recapture on profit from resale have seen a huge slump in sales.

  • Just as in the cowboy days preceding the S&L crisis, it is unwise to discount the negative effect that interest-only and 125% mortgages and come-on entry rates will have on the market. One of the saving graces of real estate is that it is not an immediately liquid asset and, unlike stocks, is less likely to be purchased or sold on impulse. That being said, what happened on the West Coast some short 12 years ago is a reminder that real estate is not immune to significant swings driven by fear.


Do we as a country have so short a memory that we’ve forgotten the true cost of the S&L crisis and what it did to both the commercial and residential markets?

Common sense tells me that auto leasing and gimmicks to lower upfront mortgage payments only serve to entice the average consumer to spend more than he or she probably should, and will eventually come back to haunt the consumer.

Victor Lohmann
Innovative Designs of Dania Inc.
Dania Beach, Fla.

Eye on the Economy

By David F. Seiders, NAHB Chief Economist
The economic expansion still looks healthy despite revisions to history …

Benchmark revisions to the national economic accounts for the 2002-2004 period show slower growth of real Gross Domestic Product (GDP), slower growth of labor productivity, stronger growth of unit labor costs and higher rates of inflation. While these are all negatives for the U.S. economy, the economic recovery/expansion since the 2001 recession still looks quite healthy and there’s still plenty of room for growth.

GDP growth for the first quarter of this year still stands at a highly respectable 3.8% pace, but the Commerce Department’s “advance” estimate for the second quarter shows a slowdown to 3.4% (a bit below our projection). This estimate may very well be revised upward but, in any case, the composition of second-quarter GDP has set the stage for a solid rebound in the third quarter of the year.

The labor market continues to expand and compensation strengthens …

The labor market report for July was quite upbeat, showing strong growth of payroll employment, a pickup in the labor force participation rate and maintenance of a 5% unemployment rate. The report also showed a significant increase in average hourly earnings, good news for workers but a factor that may feed into unit labor costs and inflation down the line (depending on the pace of productivity growth).

Growth of labor productivity in the nonfarm business sector slowed to a year-over-year pace of 2.3% in the second quarter while hourly compensation (including benefits) grew at an elevated 6.7% pace and labor cost per unit of output was up by 4.3 percent ― the fastest rise in five years. These developments definitely kept concerns about core inflation on the front burner.

Energy prices surge again but 'core' inflation remains under control …

Crude oil prices have been hitting record highs in recent weeks and the price of gasoline at the pump has climbed to new records as well. Even so, spending by businesses and individuals has moved ahead nicely, a least partly reflected in record sales of SUVs and other light trucks in July. We’re betting that energy prices will not seriously weaken the U.S. economy during the 2005-2006 period, although there’s certainly the risk of a major supply shock in an already tight market.

The core components (excluding prices of food and energy) of the Producer Price Index (PPI) and the Consumer Price Index (CPI) decelerated to some degree in June. The Fed’s favorite inflation gauge — the core price index for Personal Consumption Expenditures ― showed a year-over-year rise of 1.9% in June, down from other recent readings, and the market-based version was up by only 1.6 percent. Even so, both versions were up by 2% on a year-to-date basis, at the upper end of the Federal Reserve’s apparent comfort zone for both 2005 and 2006, and the recent increases in unit labor costs suggest additional upward pressure on core inflation down the line.

The Fed continues to raise short-term rates at a 'measured' pace …

Fed Chairman Alan Greenspan delivered the Federal Reserve’s semi-annual Monetary Policy Report to the Congress on July 20 (Senate) and July 21 (House of Representatives). Greenspan’s testimony displayed a good deal of optimism about the economic outlook, noting that policymakers expect “sustained economic growth and contained inflation pressures.” In the process, Greenspan stressed that the Fed’s baseline outlook “will require the Federal Reserve to continue to raise short-term interest rates."

As expected, the Federal Reserve hiked short-term rates by another 25 basis points at the conclusion of the Aug. 9 meeting of the Federal Open Market Committee (FOMC), raising the federal funds rate target to 3.5% and pushing the bank prime rate to 6.5%. The FOMC continued to describe monetary policy as “accommodative” and suggested that upward rate adjustments will continue “at a measured pace.” The FOMC’s assessment of recent economic activity, as well as the characterization of risks to the near-term outlook, reinforced the Fed’s concerns about core inflation and highlighted the Fed’s “obligation to maintain price stability.”

Long-term rates firm up but only moderate increases lie ahead …

Greenspan devoted a large part of his July 20-21 monetary policy testimony to the substantial decline in long-term interest rates that’s accompanied the Fed’s progressive increases in short-term rates since mid-2004 — a pattern he described as “without precedent in our recent experience.”

Back in February, Greenspan characterized the behavior of long rates as a “conundrum,” but he now seems much more confident about the fundamental factors at play. He cited four key factors that are restraining long-term rates: low inflation expectations, smaller risk premiums for inflation uncertainty, smaller term premiums for holding long-term securities (because of lessened volatility in the economy), and a global excess of intended saving over intended investment.

Despite these fundamental restraints, long-term rates have moved up significantly in recent weeks, aided and abetted by a surprise revaluation of the Chinese currency that provoked questions about the future of Chinese central bank investment in dollar-denominated assets. The 10-year Treasury yield now is close to 4.4%, up from 3.94% at mid-year, and we expect this rate to exceed 5% by mid-2006. The long-term home mortgage rate should show a similar pattern of change.

The housing market charges through mid-year …

The housing market turned in another strong performance in the second quarter, and the third quarter started out on a high note as well. Total housing starts held firm in June at a 2.004 million pace and starts averaged more than 2 million units for the second quarter as a whole. The housing production component of GDP (residential fixed investment) grew at a robust 9.8% pace in the second quarter, a bit above the first-quarter rate.

Home sales maintained strong forward momentum through June. Sales of existing single-family homes and condo/co-op units both hit new records on a national basis, and all regions but the Midwest posted record numbers. In the new-home market, sales were a record 1.37 million units in June.

Surveys of home builders and home mortgage lenders show that strength in the single-family sector extended into July. NAHB’s Housing Market Index was 70 in July, within the elevated range that’s prevailed for the past year, and the index of applications for mortgages to buy homes (Mortgage Bankers Association series) gravitated upward to a new record during the month.

House price appreciation strengthens further in the second quarter …

Home price appreciation has been unusually strong for the past five years and truly exuberant for the past two years. The most recent repeat-transactions data from the Office of Federal Housing Enterprise Oversight (OFHEO) showed a 10.26% year-over-year gain in the purchase-only measure for the first quarter (excluding refinancings). Other sources of data suggest that the rate of home price appreciation accelerated further in the second quarter of the year.

Price appreciation was quite rapid in the existing-home market during the second quarter, and prices of both single-family homes and condo/co-op units were up by about 15% in June (year-over-year basis). The median price of new homes sold in June was down a bit from a year earlier, but this decline reflected shifts in the regional composition of sales and in the mix of home sales by price range. In this regard, there’s no evidence to suggest that builders are cutting prices to maintain sales volume.

Fannie Mae’s analysis of its own portfolio data (a major input to the OFHEO system) suggests that national home price appreciation accelerated in the second quarter ― at least in the “conforming” market financed by Fannie Mae and Freddie Mac. Fannie’s analysis shows a year-over-year price advance of 14.1% (excluding refinancings), a figure that suggests OFHEO’s second-quarter estimate will turn out to be a cyclical high.

Compositional changes are underway in the housing sector …

Despite record home sales, the nation’s homeownership rate has lost some ground recently while vacancy rates for rental apartments have fallen significantly. Indeed, the absolute number of home owners has stagnated following a strong uptrend while the number of renters has been on the rise following years of serious erosion. These are early signs of fundamental adjustments to the volume and composition of housing market activity in the U.S.

Healthy employment growth is fueling strong growth of renter households while rapid rates of house price appreciation are eroding the affordability of homeownership, particularly in the high-priced Northeast and West regions. Furthermore, a historically high vacancy rate for single-family homes suggests that a significant portion of recent record home sales has gone to investors that are holding units vacant prior to resale in pursuit of capital gains.

The changing balance of affordability between renting and owning, along with the large number of vacant single-family homes, should lead to some erosion of home sales and single-family housing starts before long, and the upper price ranges are likely to be affected the most. We expect this process to be encouraged by a rising interest rate structure as well as by more discipline in ARM lending and some fall-off in speculative home buying.

Housing is headed for a 'soft landing' in 2006 …

NAHB’s forecast continues to project gradual erosion of home sales and housing starts, along with a slowdown in house price appreciation, before the end of this year. We anticipate a “soft landing” for the housing sector in 2006, followed by an extended period of housing production around our long-term forecast level — an annual average of about 2 million units (including manufactured homes).

NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Aug. 11 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
  • 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.



Don’t Miss NAHB’s Fall Construction Forecast Conference

See what's on the horizon for the housing industry at the semi-annual gathering of the country's premier economists and finance experts. Get the latest forecasts on housing starts, project budgets and other economic bellwethers at the Fall Construction Forecast Conference on Oct. 19 at the National Housing Center in Washington, D.C. Visit www.nahb.org/conference for more information.

Builders’ Tip: How to Easily Expand Circular Holes

Click for larger image

Because hole saws rely on a pilot bit to guide them, it’s pretty tough to enlarge an existing hole. There’s no wood for the pilot bit to bite. But there are ways to get around the problem.

  1. One solution, as shown in the accompanying drawing, is to use a wooden plug as a pilot.

  2. Using a hole saw the size of the existing hole, cut a plug from a piece of scrap wood.

  3. Extract the plug from the hole saw and impale it on the pilot bit of the larger hole saw. Make sure the plug extends below the plane of the saw’s teeth.
     
  4. Insert this rig into the hole that needs enlarging and drill away.

The plug won’t fall off because the twist of the pilot bit tries to screw its way further into the plug. By the time it does, the larger saw has established its own kerf.

― Don Reinhard, via e-mail

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.



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 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.

Registration, Immobilization Help on Equipment Thefts

A vigilant home owner in Long Beach, Calif. promptly called the police to alert them to the theft of a Bobcat S-250 skid steer loader from the front of her house on June 24, leading to apprehension of the thieves shortly after they had loaded the machine onto a truck, according to the August newsletter of the National Equipment Register (NER).

The perpetrators attempted to flee the area by driving their vehicle into the patrol car and then setting off for the freeway, which they entered against oncoming traffic. The pursuit ended when pieces of stolen equipment fell off the truck, and the Bobcat was recovered.

The home owner was able to inform NER about her actions from an NER registration decal on the truck, and she received a reward for her contribution to its recovery. The loader was owned by a national equipment rental chain whose entire fleet is registered with NER.

The register collects information on selected equipment thefts and recoveries, and provides the following theft prevention tips involving anchoring and immobilizing equipment:

  • Equipment that has to be left on site should be anchored with either a chain or cable that can be brightly painted as a deterrent.

  • Removing wires or the battery and lowering all blades or buckets can help immobilize large equipment.

  • It is worth considering installing theft prevention devices on higher-risk or more expensive equipment to disable the fuel, hydraulic or electrical systems.

  • The tires on portable equipment can be removed if it is not being used regularly. This also helps protect the tires.

  • Disabling or removing the hitch will help protect towed equipment or trailers.

 

Aging in Community ― Cohousing for the 55 and Over Market

Cohousing is gaining in popularity among seniors.

Elder cohousing is collaborative housing specifically targeting those 55 and over and offers a close-knit community lifestyle that many older adults are seeking. In an AARP/Met Life Mature Market study, 22% of respondents indicated they would be interested in “building a new home to share with friends that included private space and communal living areas.”

Cohousing communities are designed to promote opportunities for neighbors to chat and interact. Automobiles typically are parked on the perimeter of the cohousing neighborhood.

Much like multigenerational cohousing, elder cohousing typically includes a common house for optional group meals that community members help prepare several times a week. There also are common vegetable and flower gardens that community members tend, and courtyards and pedestrian pathways that draw residents together.

While private spaces and communal living areas are important elements of many traditional senior living facilities as well, unlike those facilities, the members of an elder cohousing neighborhood own their own home and a piece of the community property. They also keep their estates and bank accounts intact.

Managing Their Own Neighborhoods

With elder cohousing, as with cohousing in general, residents manage their own neighborhood ― a process that also improves community relations and fosters communication and friendship. Lifetime skills are shared and utilized. Friends can live next door to one another and spend time together.

Several major medical studies conducted by Harvard and Yale have shown that people who have strong social connections with others live longer, healthier lives.

Housing options are being introduced to promote social connections — and to allow long-term care. Elder cohousing communities include studio apartments and suites in shared common houses, a multi-use clubhouse, space for an aging-in-place assistant to live onsite and space in a common house for more care.

A Collaborative Lifestyle That Works

Largely because of the efforts of the Elder Cohousing Network (www.ElderCohousing.org), at this year’s White House Conference on Aging in December elder cohousing will be one of the 11 proposed solutions to “respond to the urgent need for increasing housing choices for aging in place by 2010.”  I believe elder cohousing holds particular promise for multifamily builders and fills a need for baby boomers seeking housing alternatives that provide both autonomy and the support of neighbors and friends who really care about them.

As a developer, I am aware of the financial aspects of cohousing. Our company, the Wonderland Hill Development Company in Boulder, Colo., has completed 15 multi-generational cohousing projects in Arizona, California, Colorado and Washington. We charge a developer’s fee and receive a substantial percentage of the profit on the project.

Because cohousing projects are typically at least 70% pre-sold before construction begins, finding financing from lenders is relatively easy. I also have set up Wonderland Hill to support and partner with other developers and builders who are interested in becoming part of this growing niche market.

Cohousing is a lifestyle that works. After a decade of building cohousing, my wife, Brownie, and I have decided to live in a cohousing neighborhood, so for the first time I am developing the community I will be moving into ― Silver Sage Village (www.SilverSageVillage.com), a 16-household mixed-income neighborhood in Boulder.

As group members we are enjoying building friendships with our future neighbors and designing how we will be using our common facilities. We discuss how we want to continue to live fully and be engaged in social and civic life. We even talk about how we want to age and die.

Elder Cohousing Resources

To help other builders and developers understand the elder cohousing concept, an Elder Cohousing “Getting Started” workshop will be held in Boulder on Sept. 22-25. For more information, visit the workshop Web site or e-mail the workshop sponsors at info@eldercohousing.org, or call 303-413-8066.

Jim Leach is president of Wonderland Hill Development Company based in Boulder, Colo., the nation’s largest cohousing developer with 15 communities in Arizona, California, Colorado and Washington. His company has won numerous awards for energy-efficient construction and innovation in community design and he is developing Colorado’s first elder cohousing neighborhood, Silver Sage Village. For more information, visit the company Web site at www.whdc.com, or call him at 303-449-3232.



Seniors Housing Publication Set Available at BuilderBooks.com

Save 15% when you purchase “The Seniors Housing Publication Set” through BuilderBooks.com. Receive one copy of “Boomers on the Horizon: Housing Preferences of the 55+ Market,” “Marketing Seniors Housing” and the “Best of Seniors’ Housing News.” This publication set is a must-have for anyone serving the active adult market. To view or purchase this publication set online, click here, or call 800-223-2665. 

Forum to Focus on Preserving Affordable Housing Stock

Preservation of the nation’s affordable housing stock is the topic of a Sept. 7 Issues Forum that will be presented by NAHB’s Housing Credit Group (HCG) in Reno, Nev. in conjunction with the association’s fall board of directors meeting.

HCG is a group of builders, developers, lenders and syndicators who are involved in using Low Income Housing Tax Credits to build affordable housing.

At this year’s forum, Housing Credit Certified Professional Sara Newsom, president of Compliance Consulting Services, will be discussing preservation challenges such as the difficulty of combining housing managed under one program (project-based Section 8) with housing managed under another (Section 42) that has different requirements for certifying resident eligibility.

While in most cases Section 8 residents meet eligibility requirements for housing under Section 42, making certain that they do requires a full application, verification and certification process. And since Section 42 also requires annual recertification — in all likelihood on a different schedule — the community’s managers may be facing two sets of recertifications every year.

Experts recommend recertifying everyone at once at the next Section 8 due date, even if it’s not yet required for the original Section 42 residents. That changes the Section 42 effective date, which is flexible, to the Section 8 date, which isn’t.

Other fine points involved in such situations can trip up managers of tax-credit properties, producing serious financial consequences. But with the right information, provided by experts in the field, everything works out.

For more information about the HCG Issues Forum on Affordable Housing Preservation, including an agenda and online registration, click here.

Can You Make a Living at Aging in Place?

Aging in place is a growing trend. But is the market for this kind of specialized remodeling deep enough to build an entire business model upon it?

David Dickinson, CAPS, of In Your Home of Portland, Ore., believes so.

He and his partner founded In Your Home two years ago so they could work solely with aging adults who want to remodel their homes so they could age in place, and also to work in situations in which aging adults move into the homes of family members who then remodel their homes accordingly.

“We started specifically to address aging-in-place needs and do more than just straight-forward remodeling,” said Dickinson.

They provide bathroom and kitchen aging-in-place modifications as well as larger remodeling projects. But In Your Home also offers minor repair and maintenance work.

“In our experience, when the health of one spouse declines — especially the man — ongoing household upkeep becomes a problem,” Dickinson explained. “When seniors sell their homes, they get less than their money’s worth because they couldn’t maintain the house and small problems like roof issues became large ones.”

Explore Non-Traditional Marketing

While many older adults want to age in place, only a small percentage proactively seek out home modifications while they are healthy. Marketing is a challenge.

“Beyond traditional advertising, we speak at fraternal organizations and offer talks on aging,” said Dickinson. “Another thing we do is buy homes in 55-plus communities and redo them with a current view on aging in place requirements.”

In Your Home recently completed a home that now has two accessible entrances, upgraded lighting, a rehabbed bathroom with a low-threshold shower and other improvements.

“We made it like a new house,” Dickinson said. “People like the idea that the home is already done and ready for them to move in.”

Ready-remodeled homes also help potential customers better visualize some of the changes they are considering for their own homes. Dickinson said these homes, “clearly convey that it’s ok to think about these things and that it’s wise to think about these things.” Customers can clearly see that “planning for the future doesn’t mean turning your home into a nursing home.”

Network With Other Aging-In-Place Services

Davidson also works with other aging-in-place services including insurance agents, estate planners and home health providers. He gets valuable information that helps him with his customers. It also lets the other service providers know that he is available to offer aging in place solutions to some of their clients.

Davidson strongly recommends networking with other, complementary providers.

Focus on Education and Sensitivity

Davidson believes that educating the client is the key to growing this segment of your business. “We often get ‘Oh I don’t need that,’ when really, it’s something they should have,” he said.

Sensitivity and client relations are especially important. “If you’re the kind of person who’s easily frustrated by demanding clients or you are not that good at customer care, aging in place is probably not the right niche,” said Dickinson. “There’s an above average amount of handholding. Sometimes you need to make decisions for them.”

So while Davidson does not recommend aging-in-place work for every remodeler, there is a growing need for aging-in-place solutions that can become a healthy part of your business — if not your whole business.



The NAHB University of Housing Offers Designation Programs for 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.



Who Will Be the Next Remodelor™ of the Month?
 

The Remodelor™ of the Month (this link is accessible to Remodelors™ Council members only) award program is underway. Don't miss your opportunity to be named the Remodelor™ of the Month. 
 
The program groups local councils from different states into designated months. There will be two “wild card” months that will allow the council’s members-at-large to participate in the program. A winner will be chosen each month and that winner will then be automatically included in the nominations for the Remodelor™ of the Year award.
    
This is a great opportunity for local councils and members to get involved and submit their “best of the best” members to compete with other councils. The national Remodelors™ Council will send out press releases and highlight each winner in ReNews, the Remodelors™ Council e-newsletter.

 



'How to Find a Professional Remodeler' Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering valuable advice to your customers on the process of selecting a remodeler. The brochure guides consumers from the dream to the reality of having their homes remodeled by skilled and trained professionals. Sections include what to look for in a professional remodeler, what questions to ask and signs of a professional remodeler. To view or puchase this publication online, click here, or call 800-223-2665 to order.
 
 
 

 

Teaching Industry Classes Brings Added Rewards

Hundreds of home builders, remodelers and others in the industry are serving as NAHB instructors in a variety of industry-oriented continuing education courses. And while it’s true that teaching costs most of these instructors time away from their businesses and leisure activity, they teach because they find it rewarding.

“Each time I instruct a class, there is a spark that has the potential to light a candle inside one of my students,” said Gian Hasbrock, MIRM, CMP, of WOWISM, a sales and marketing division of Sanderling Homes based in Duck, N.C.

Hasbrock began teaching in 1999 and is now a full time instructor. “I realized that the fulfillment I get from helping others is the best job I could ever have,” he said  

Jud Motsenbocker, CGR, CAPS, teaches as many as 30-40 seminars annually. Teaching enables him to network with industry peers across the country. It has also allowed him to improve his own business. He now knows his own company has all the proper business systems in place and that this has given him the flexibility to adapt to any industry trends and changes quickly, if needed.

Hal Von Nessen, MIRM, and the president of RESH Marketing in Columbia, S.C., finds teaching a rewarding challenge. “I know of no better way to challenge yourself than to teach,” he said. “I cannot imagine not teaching.”

How to Become an NAHB Instructor

The first step in becoming an instructor is to take the course you’re interested in teaching and fulfill all the requirements.

The next step is to take NAHB’s Train the Trainer course. This intensive program specifically addresses effective presentation skills and helps prospective instructors develop a comprehensive set of teaching techniques.

For the final step, you will be required to submit a written explanation of your expertise.

Depending upon past experience, however, all of these steps may be waived by an evaluation committee.

For more information, e-mail Tara Occhipinti at NAHB, or call her at 800-368-5242 x8153.

Education Calendar

Sept. 4-6

Certified New Home Sales Professional (CSP)

Reno, Nev.

Sept. 14-16

House Construction as a Selling Tool

Youngstown, Ohio

Oct. 10

Working With and Marketing to Older Adults (CAPS)

Baltimore, Md.

Oct. 11

Home Modifications

Baltimore, Md.

Oct. 11

Risk Management and Insurance for Building Professionals (GMB)

Baltimore, Md.

Oct. 11

Sales & Marketing for Remodelers

Baltimore, Md.

Oct. 12

Introduction to Business Management

Baltimore, Md.

Oct. 12

PREP: Your First Step to CGR

Baltimore, Md.

Oct. 12

Quality Construction (GMB)

Baltimore, Md.

Oct. 15

PREP: Your First Step to CGR

Baltimore, Md.

Nov. 3-5 

3rd International Conference of the Americas

Mexico City 

Nov. 6-9

2005 Building Systems Councils SHOWCASE

New Orleans, La. 

Nov. 9

Cast-in-Place Concrete Foundations

New Orleans, La.

Nov. 10

Building With Insulating Concrete Forms

New Orleans, La.

Nov. 11-13

Custom Builder Symposium

New Orleans, La.

Nov. 11

BAR: Your First Step to CGB

New Orleans, La.

Nov. 11

Introduction to Business Management

New Orleans, La.

Nov. 11

Quality Construction (GMB)

New Orleans, La.

Nov. 13

BAR: Your First Step to CGB

New Orleans, La.

Nov. 11-13

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.

Judges Provide Feedback to EnergyValue Award Applicants

Six judges have been named by the NAHB Research Center for the 11th annual EnergyValue Housing Award (EVHA) program, which honors builders who voluntarily incorporate energy efficiency into the design, construction and marketing of their new homes.

This year’s awards will be presented at the 2006 International Builders’ Show (IBS) in Orlando. Categories include affordable, custom/demonstration, factory-built, production and multifamily housing in hot, moderate and cold climate regions.

The judges — who specialize in the fields of engineering, construction, design and marketing — provide those entering the competition with valuable feedback from the review of their applications.

On this year's judging panel are:

  • Walt Auburn is assistant director of the Maryland Energy Administration (MEA) and is responsible for the development and implementation of residential energy-efficiency programs. In that position for four years, Auburn has secured numerous grants from the U.S. Department of Energy and Environmental Protection Agency to educate Maryland consumers, businesses and builders about energy efficiency. He has been a certified Residential Energy Services Network (RESNET) Energy Rater since 2002 and has worked in a wide variety of energy, housing and environmental management positions for 30 years.

  • Steve Baden is executive director of RESNET and has more than 25 years of experience in the residential energy-efficiency field, including 18 years working with home energy ratings and energy mortgages at both the state and national levels. He has received “Lifetime Achievement Awards” from the U.S. Department of Energy and RESNET.

  • Walt Holton for the past 11 years has served as president of Holton Homes, a 100% ENERGY STAR builder specializing in high performance homes with a strong emphasis on energy conservation. His company was recognized as the ENERGY STAR “Builder of the Year” in 2001 and 2003. In his concurrent role as president of First General Services of the Treasure Valley, Holton has expertise in building repair, heating and cooling system design, and the installation of high-efficiency equipment.

  • Dr. Ali A. Jalalzadeh-Azar, as a senior engineer, has led research on combined heat and power (CHP) at the National Renewable Energy Laboratory. Since joining the laboratory in 2001, Jalalzadeh has initiated and conducted numerous analytical and field study projects and he received an ASHRAE Crosby Field Award in 2005 for his recent papers on CHP.

  • Michael Lubliner works with the Washington State University Extension Energy Program and is nationally recognized for his research and program implementation efforts on site-built and manufactured housing, ventilation, indoor air quality and HVAC. Lubliner has been involved with energy conservation and renewable energy for more than 25 years and has provided expert technical review for the EVHA program for the past eight years.

  • Peter L. Pfeiffer, FAIA, founding principal of Barley and Pfeiffer Architects, has been specializing in green building practices since 1987, practicing throughout the United States and Canada. Pfeiffer is recognized for his life-long accomplishments as a pioneer of environmentally sensitive architecture and has received many professional accolades, including NAHB National Green Advocate of the Year in 2003.


Judges are beginning their independent reviews of the entries following the close of the application period on Aug. 8 and will meet as a group in early October to select the winners.

The winners will be announced at the awards presentation in Orlando.

The EnergyValue Housing Award program is coordinated by the NAHB Research Center in partnership with the U.S. Department of Energy through the National Renewable Energy Laboratory, and NAHB.

For more details on the program and previous winners, click here. Or e-mail  Dr. Kevin Mo, EVHA program manager, or call him at 800-638-8556 x6210.

Online Program Designs Basement Walls

An engineering program on the Concrete Foundation Association's (CFA) Web site allows users to design a basement wall using CABO 95, IRC 2000, UBC, BOCA 97 or ACI-318-99 codes.

This service is free for the association’s members and costs non members $25 per visit.

The Concrete Foundation Association has introduced an online engineering service to manipulate the design of basement walls.


The system allows users to manipulate the wall design for the desired height, thickness or required reinforcement, beginning with a particular design based on a few basic parameters. When the design satisfies the model code that has been selected, it can be printed out and used as a worksheet or blueprint or for submission.

If engineering approval is required, the user can access economical engineering by faxing the design to the company that designed the software. It will be reviewed within 24 hours and returned with an approved design and engineering stamp on it. CFA members can receive this service for $125, non-members for $250.

“What we are very close to unveiling at the present time, through final revisions to the format, is a similar application for retaining walls,” says Jim Baty, technical director of CFA, which is headquartered in Mount Vernon, Iowa. “Retaining walls would be designed exclusively to ACI-318, the general design code for the concrete construction industry.”

Since all retaining walls contain reinforcement, the program just tells the user the degree to which reinforcement is required. It provides parameters indicating what the configuration of the retaining wall and its footing design must look like. Color indicators show the user which requirements have not been met.

The primary strength of these two programs is their ease of application, says Baty. “Users are impressed with how easy it is to manipulate, design or investigate a multiplicity of designs,” he says.

To use the system successfully, users do have to provide accurate information about soil conditions, which can be obtained through soil testing or soil classification. “If a user makes an incorrect assumption as to their soil conditions, then it can grossly affect the performance of the wall,” says Baty.

CFA provides its members with access to a network of companies with a common interest in continually improving the quality of foundations, their businesses and industry technology.



SHOWCASE Comes to the Big Easy in November

Join NAHB’s Building Systems Councils for the 20th anniversary of SHOWCASE, the ultimate NAHB resource for the systems-built housing industry, from Nov. 6-9 in New Orleans. For presidents, CEOs and other decision makers from the nation’s leading concrete, log, modular and panelized home building companies, SHOWCASE features education sessions, networking, exhibits and more. Visit www.nahb.org/SHOWCASE to register or for more information.

CRAFT Students Complete Pre-Apprenticeship Training

Seven students enrolled in the Home Builders Institute's (HBI) Project CRAFT training at the South Pines Academy in Pembroke Pines, Fla. received their Pre-Apprenticeship Training Certificates (PACT) and graduated from the program last month, three with their GEDs.

 
Project CRAFT (Community, Restitution, Apprenticeship-Focused Training) is an industry-sponsored construction trades, skills training and job placement program for adjudicated youth.
 
Among the well-wishers attending the commencement ceremony was state representative Matthew Meadows, who spoke eloquently about a young boy who worked in the orange groves on weekends, going up and down a ladder, dumping oranges in boxes from a canvas bag. When the boy returned home on Sundays, he would give his mother his $45 in earnings, and she would let him keep $5. “This young boy,” said Meadows, “was me. If I could make it, so can you.”
 
In recognition of the example he set for other students, his leadership abilities, his skills attainment and his kindness to classmates and staff, one of the graduates, Steven, earned the “HBI Gold Shirt,” which is the highest recognition an HBI trainee can receive at the South Pines Academy and one that conveys increased responsibilities instead of privileges. Steven also spent his time at Project CRAFT successfully studying for his GED test.
 
Steven thanked the South Pines Academy and HBI for their support in helping him make it through the program. Using sign language, he also thanked “the woman who means the most to me,” his mother, who is hearing impaired, and thanked his instructors for their encouragement.
 
Steven will start work with a garage door installation company in Port St. Lucie later this month.
 
“Some of you may be going back to school or may just not know what you want to do just yet,” Bill Paul, an HBI trustee and a Tampa builder, told the graduates. “One thing you should take away today is the knowledge that if you decide to go into the building business some day, you have learned the basics here with HBI.”
 
“And with more than one million new jobs forecast for the next decade,” Paul added, “your skills, talent and ambition will be welcome by our industry.”
 
Project CRAFT is funded in Florida by the Department of Juvenile Justice (DJJ) at the Avon Park Youth Academy, the Thompson Academy and the South Pines Academy in Pembroke Pines. The award-winning program also operates as a DJJ community-based initiative in Orlando and Tampa, with another soon to open in Clearwater.
 
HBI, the workforce development arm of NAHB, has offered trades education, training and placement programs for the residential construction industry for more than 30 years.
 
For more information on Project CRAFT, e-mail Dennis Torbett at HBI, or call him at 800-795-7955 x8908.

 

Carpentry Abilities Tested at SkillsUSA Competition

The Home Builders Institute (HBI), the workforce development arm of NAHB, put carpentry skills in the spotlight at the 40th annual SkillsUSA Championships, which were held June 21-24 in Kansas City, Mo.

More than 4,600 of America’s most promising young career and vocational students competed for national recognition at this year’s competition.

Sponsored by HBI, the carpentry contest at SkillsUSA recognized the abilities of 51 champions representing each state and Puerto Rico at the secondary level and 27 winners from the post-secondary category.

For the past 10 years, Keith Albright, HBI’s vice president for Job Corps operations, has chaired the Carpentry Technical Committee, which is responsible for designing the competition and recruiting vendors to supply building materials and awards for the winners.

Among the generous donors was Lowe’s Home Improvement, whose ongoing relationship with HBI has given many young people a head start in the building industry. The hard hats worn by students during the assembly process were donated by the Home Builders Association of Greater Kansas City.

Competitors were provided with blueprints; precisely rationed materials, including nails and screws; and six-and-one half hours to construct a project with wood and steel partitions, rafters, stairs, interior finish and a concrete column form.

Mark McGill from Walpole, N.H. placed first among the secondary competitors and William James of Newark, Del. earned top honors in the post-secondary contest.

For more information on HBI and the SkillsUSA competition, e-mail Keith Albright at HBI, or call him at 800-795-7955 x8911.

Companies Support SkillsUSA Training Efforts

Bosch Power Tools and Accessories and U.S. Gypsum Corporation are two of the 1,000 national corporations, trade associations, and business and labor unions providing support for SkillsUSA, an organization serving 280,000 high school and college students and instructors in training programs.

Both companies are members of the National Council of the Housing Industry — the Supplier 100 of NAHB.

At the SkillsUSA National Championship in Kansas City, Mo. in June, Bosch served as the main sponsor for the building–oriented Team Works competition, donating more than $100,000 to this year’s event.

Participating in the competition were more than 30 student teams of four from across the country at both the high school and college level. Working on building a portion of a house, students collaborated to demonstrate their skills in residential carpentry, plumbing, electricity and masonry.

In addition to being judged on the construction results, the teams received points for safety practices and procedures, a written and oral presentation, timeliness of work and how they managed the ordering and inventory of tools and materials.

USG Corporation has been partnering with SkillsUSA for a fifth year with a three-day “Construction Solutions: Building America’s Construction Workforce” training program for building trades instructors.

In two sessions last month, 40 instructors affiliated with SkillsUSA through vocational schools and community colleges participated in a comprehensive product-training course focused on advanced drywall installation and finishing.

More than 160 educators have completed the course since 2001, and they have shared their skills with more than 6,000 future contractors. The teachers receive a variety of resources and information to teach proper drywall techniques, including “The Gypsum Construction Handbook.”

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.

NAHB-Produced Shows on HGTV & DIY — This Week

"I Want That!" on HGTV

Episode: "Floating Vacuum, Heated Bathtub"

  Aug. 17, 8:30 p.m. ET/PT
•  Aug. 18, 12:30 a.m. ET/PT
  Aug. 21, 1:00 p.m. ET/PT
•  Aug. 21, 8:30 p.m. ET/PT
•  Aug. 22, 12:30 a.m. ET/PT

 

If anything could make housework fun, it might be a hovering vacuum cleaner. 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: "Geometry House, Into the Woods"

•  Aug. 21, 9:30 a.m. ET/PT

 

See how points, lines and angles shape a unique home in Virginia. Also, a house in Northern California blurs the line between indoors and out. From an old gold mine springs a 14-karat community in the Colorado Rockies. And, finally, panels that make building in isolated places a "tropical" breeze.

"Rock Solid" on DIY

Episode: "Quarry Survival Tips"

Aug. 17, 9:00 a.m. ET/PT
Aug. 18, 12:00 a.m. ET/PT
Aug. 21, 9:00 a.m. ET/PT

 

Derek and Dean share insider tips and practical advice on not only how to survive a trip to the quarry, but how to make it a successful and fruitful adventure. Exploring the vast corners of a quarry, they take viewers inside the yard areas regular visitors would never see — like cutting and polishing shops. They also give tips on quarry layout, examine new products on the market, visit showroom displays, sample bins and talk the "quarry talk."

 "Assembly Required" on DIY

Episode: "Post and Beam (Part 2)"

Aug. 21, 2:00 p.m. ET/PT

 

During this second of two episodes, a New England crew continues to struggle with inclement weather and a family pushes forward to build their post and beam home before ski season.

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 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.

Media Training, Presentation Skills Offered at Reno

Leaders of local and state home builders associations and their members have an opportunity to learn the latest interviewing and public speaking techniques through NAHB’s Spokesperson Training program.

“I now know how to handle the unexpected calls,” said Autumn Frank, vice president of Stewart Title of California and a Spokesperson Training graduate.

“I learned several techniques and strategies to better handle press interviews and respond to questions about the housing industry,” said Bruce Hancock, of Hancock Construction in Nashville, Tenn. and the president of the Home Builders Association of Middle Tennessee. “Almost immediately following the training, I had an interview with a local newspaper and was able to put the skills I learned into action. I would absolutely recommend the training to anyone who speaks to the media or deals with the general public.”

Offered during the fall board of directors meeting in Reno, Nev. and the International Builders’ Show in Orlando, Fla., Spokesperson Training is an on-camera training program created to help members effectively develop positive industry messages and employ strategies to convey those messages in media interviews, testimony and other public speaking engagements.

The program includes two different one-day seminars:

  • Interview skills — helps participants master strategies for broadcast and print interviews, including message development
  • Presentations skills — focuses on how to organize and deliver a speech or presentation and handle questions and answers

At Fall Board Meeting in Reno

 

Interview Skills
Interview Skills

Wednesday, Sept. 7
Thursday, Sept. 8

At the Builders' Show in Orlando

 

Interview Skills
Interview Skills
Presentation Skills

Monday, Jan. 9
Tuesday, Jan. 10
Wednesday, Jan. 11

Each seminar is led by professional communication consultants who have more than 30 years of experience training NAHB members on the critical issues they face every day.

The fee for the Interview Skills class at the fall board of directors meeting is $425 per person for each one-day seminar. There will be a price increase beginning with the seminars to be held at the builders’ show. This increase will be announced after the fall board of directors meeting.

More than 15,000 NAHB leaders have taken Spokesperson Training since the program was strted in 1979. It is available to any NAHB member who wants to learn the ins and outs of using the news media to carry a message to the public.

Registration is accepted on a first-come, first-served basis. To reserve space, e-mail Niki Clark at NAHB, or call her at 800-368-5242 x8061.



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.

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 tsunami disaster in South Asia last year. The fund currently has raised more than $360,000.

NAHB has 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.

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.

NAHB Fall Board Meeting in Reno Sept. 7-11

 

  OFFICIAL MEETING NOTICE OF
THE NATIONAL ASSOCIATION OF HOME BUILDERS
BOARD OF DIRECTORS

The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Fall Board of Directors Meeting, which will be held in Reno, Nev. on Sept. 7–11, 2005.

Meetings will be held at the Hilton Reno Resort and Casino. The fall board program will identify the exact time and place of each scheduled meeting.

Wednesday, September 7

Subcommittees, Task Forces, Working Groups Meetings
National Vice Presidents
State Representatives
Executive Board Meeting

Thursday, September 8

Committees, Subcommittees and Councils Meetings
Past Presidents' Council
National Housing Center Board of Governors
2006 Leadership Meeting (TBC)

Friday, September 9

Committees, Subcommittees and Councils Meetings
2006 Presidential Advisor Meeting
Budget & Finance Committee
Nominations Committee
National Housing Endowment
Resolutions Committee

Saturday, September 10

Area Caucuses 1-15
Joint Executive Board, Budget & Resolutions Committee Meeting
Board of Directors Meeting

Sunday, September 11, 2005

Board of Directors Meeting

Save on Dell™ Computer Products

Dell, the world's leading computer systems company, offers discounts to NAHB members on an  array of products designed to meet the technology needs of your company. Discounts are available on:

  • Dell Dimension™ Desktops — Affordable computing with the latest processor and peripheral technology.

  • Dell OptiPlex™ Desktops — Dependable, for network environments and easy manageability.

  • Dell Precision™ Workstations — Powerful performance with high-end graphics, certified for workstation-class applications.

  • Dell Inspiron™ Notebooks — Powerful affordable technology, ideal for personal or small business networks.

  • Dell Latitude™ Notebooks — Performance and style, optimized for business networks.

  • Dell PowerEdge™ SC Servers and PowerVault™ Storage — Affordable, high-performance technology solutions.

  • Dell Printers — Crisp, professional document output at a great price.


To learn more, or to order, go to: www.dell.com/smb/NAHB.

Contact the Dell Association Sales Representative at 888-577-3355, Monday-Friday, 7 a.m.-8 p.m. (CT) and Saturday, 8 a.m.-5 p.m. (CT).

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 www.nahb.org/ma.



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.

Calendar of Events

Sept. 7-11

Fall Board of Directors

Reno, Nev.

Sept. 27

Multifamily Leadership Board Fall Meeting

Washington, D.C

Oct. 12-15 

Remodeling Show 2005

Baltimore, Md. 

Oct. 13-15

Sunbelt Builders Show

Grapevine, Texas

Oct. 19

Construction Forecast Conference — Fall

Washington, D.C.

Nov. 1

2006 Awards of Excellence: Building Excitement

Washington, D.C.

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. 11-13

National Conference on Membership

Spokane, Wash.

Nov. 17-19 

State and Local Government Affairs Conference 

Phoenix, Ariz.

2006

 

 

Jan. 10

Best in American Living Awards (BALA)

Orlando, Fla.

Jan. 10

National Housing Endowment Builder Achievement Award for Outstanding Community Service

Orlando, Fla.

Jan. 10

National Housing Endowment/Home Builders Care Project of the Year Award

Orlando, Fla.

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 and 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.