Nation's Building News Online: March 20, 2006

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Green Building Barrels Into the Mainstream Market

After several years of slow but steady growth across the country, the green home building movement — which applies innovative and environmentally sensitive construction techniques and products to reduce energy and water consumption and improve residential comfort and safety — is barreling into the mainstream, according to a survey of NAHB members in late January and early February by the association and McGraw Hill Construction.

Preliminary results released during NAHB’s Green Building Conference in Albuquerque, N.M. on March 12-14 showed that there was a 20% increase in 2005 among those in the home building community who are focusing their attention on green building issues and that their ranks are expected to increase by another 30% this year.

“Green home building is at a tipping point among the builder population,” said Harvey Bernstein, vice president of Industry Analytics and Alliances for McGraw-Hill Construction. “The data indicates 2006 to 2007 is the time frame from which the builder population moves from a majority less involved to more involved with green building.”

Ray Tonjes, chairman of the NAHB Green Building Subcommittee, noted that the study opens new ground and new business opportunities for NAHB members. “NAHB has been in the vanguard of the voluntary movement to increase the efficiency and quality of the American home,” he said. “This study suggests a viable path for the home building community to educate the public about green building and deliver a product that responds to the needs of the buyer as never before.”

Bernstein predicted that green building will boost its market share from $7.4 billion and 2% of housing starts last year to $19-$38 billion and 5%-10% of residential construction activity in 2010. “Within 10 years, everybody’s going to be building green,” he said.

According to the survey results, the leading reason that builders are considering green is that “It’s the right thing to do,” Bernstein said, an indication of the industry’s strong links to the community. Of those polled, 92% identified this factor as a very or somewhat important influence behind the decision to go green. Other prominent influences include: lowering lifecycle costs, such as energy efficiencies and productivity increases, 87%; staying ahead of the competition, 82%; expanding business with customers who are interested in green building, 82%; and limiting exposure to liability on such issues as water leaks and mold, 78%.

The leading factors triggering building firms to expand their green home building activities were identified in the survey as: increases in energy costs and utility rebates, 88%; consumer demand, 88%; superior performance, 87%; codes, ordinances and regulations, 86%; and competitive advantage, 83%.

Starting costs and the unwillingness of consumers to pay additional costs for a green home were identified as the leading obstacles to firms becoming involved in green home building, rated as important by 82% and 79% of those surveyed, respectively. Also important were: uneducated consumers, 79%; codes, ordinances and regulations, 72%; and a lack of awareness among consumers of green products, 70%. Only 39% said that the perception of green building as a fad and not something here to stay was a significant obstacle.

Asked to indicate the importance of specific green home building options, NAHB members participating in the survey identified high-efficiency HVAC equipment as the top item, with 92% responding that it was important. That was followed by low E-glass windows, 89%; HVAC for indoor air quality, 90%; more energy-efficient appliances, 88%; reduced air infiltration, 86%; hi-performance engineered wood products, 84%; above-code energy programs, 82%; the minimization of site disruption, 82%; water-saving utilities such as dish and clothes washers, 75%; storm water mitigation, 74%; formaldehyde-free finishes, 73%; and water-conserving fixtures and faucets, 73%.

Other highlights from the survey findings:

  • Upgrading to green building increased the total cost of a project by an average 10.6%. However, for builders active in green building, the perceived cost increase was an average 8.7%, compared to an average of 11.1% for those not involved.

  • Green building certification programs have yet to take hold in the residential market; only 3% of respondents said they were certified and 80% said they were not. Nevertheless, 80% of builders starting 10 homes a year or less and 71% of those starting more said they would be interested in participating in voluntary green home building certification.

  • Ninety-five percent said they were using green friendly building materials; 80% reported using OSB rather than plywood; 79% said they were using engineered wood such as Tgi and glulam as an alternative to dimensional lumber; and 54% said they were reducing their construction waste.

  • Eighty-nine percent responded that they were doing something to preserve natural open space; 67% said they were minimizing disruption to existing vegetation; and 64% said they were preserving natural water drainage ways.

  • Eighty-eight percent said they were taking steps to reduce air filtration in their homes; 77% were using high-efficiency HVAC equipment to achieve this; and 58% said they were using overhangs.

  • Unlike commercial builders, home builders were able to readily name leading brands of green products in various categories: 80% were able to name a brand in the house wrap category, where Tyvek was most frequently named (66%); 76% knew an insulation brand, 29% naming Owens-Corning; 75% were able to name a door and window brand, 15% citing Andersen and 11% Pella; 70% named an HVAC brand, 17% Trane and 12% Carrier; and 67% knew a wood framing brand, 13% Trus joist, 9% TJI and 8% Boise Cascade.


Bernstein said that his staff was busy compiling the survey data right up to the Green Building Conference, and a final report should be available in roughly the next couple of months.

The following are green building resources from McGraw Hill:


For information about the "NAHB Model Green Home Building Guidelines," click here.

For more information about other NAHB resouces on green building, e-mail Calli Schmidt, or call her at 800-368-5242 x8132.

NAHB Resources Available After Disasters in West, Midwest

As natural disaster struck parts of the West and Midwest earlier this month, NAHB members deployed association resources to reach out to their communities in the aftermath.

In less than a week’s time, 100 twisters touched down in five states from Oklahoma to Illinois and 840,000 acres of land were burned in Texas and New Mexico. Twenty-two were initially reported dead, thousands were evacuated from their homes and millions of dollars in property damage was sustained — $6 million dollars worth alone at one Kansas university.

"In the aftermath of Missouri's storms last week, many home owners found themselves searching for reputable contractors as they began the rebuilding process," said Vickie Muldoon, executive officer of the Home Builders Association of Jefferson City. "Home builders associations across the state are a great place to turn for recommendations. Our local association has about 300 members and a limited staff, and NAHB helped me tremendously by putting together a public service announcement to inform the public that we are out here to help them avoid fly-by-night contractors. The public relations staff was great to work with, creating a strong message to broadcast on our area radio stations."

Available free online at www.nahb.org/disasterresources, NAHB Disaster Resources are geared to providing both local consumers and building industry members with the critical information they need to rebuild homes, businesses and the community.

Resources include:


Other resources include information such as government assistance links, relevant insurance information and information from FEMA, Red Cross and the Small Business Administration on disaster recovery.

NAHB’s Public Affairs staff can also assist with public service announcements that warn consumers of fly-by-night contractors in areas where this has become a concern.

For more information, e-mail Kym Kilbourne at NAHB, or call her at 800-368-5242 x8447.

Employees Wanted: NAHB Launches Online Career Center

  
With this issue of Nation’s Building News, NAHB is launching an online building industry-oriented career center that will provide members with a cost-effective recruiting solution that makes locating qualified candidates and advertising open positions faster and easier.

The career center can be found on:

  • NAHB's Web site by visiting www.nahb.org/careers
  • Nation’s Building News "NAHB Career Center" section. The career center is now a regular feature of Nation's Building News. 

The career center was created in collaboration with ConstructionJobs.com, a leading employment resource for the construction, design and building industries.

NAHB members will receive a 20% discount off of standard rates for job postings. For a complete listing of all rates on the NAHB career center, click here.

Career center features that give members a competitive edge include :

  • More than 28,000 construction and engineering candidates
  • More than 2,500 new resumes posted monthly
  • More than 150,000 visitors to the center per month
  • Dedicated customer service

Nation’s Building News readers can visit the site by using the NAHB Career Center tab at the bottom of the issue’s headlines, or by going to the NAHB Web site or www.nahb.org/careers.

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Real Estate Rates Could Hit 7% by Summer

High energy prices, growth in wages and the continuation of the economic expansion appear to be nudging the Federal Reserve from a neutral monetary policy to one that is restrictive, according to Lou Barnes, a mortgage broker and nationally syndicated columnist based in Boulder, Colo. If Barnes is right, many economists — those who had been expecting the Fed to be finished with its string of incremental increases in interest rates on March 28 when it boosts its federal funds rate to 4.75% — will be wrong. Barnes calls an increase to 5% in May a “sure-thing” and is predicting that a climb to 5.25% in June is “probable” along with “an ultimate stopping point higher than that.” Approaching each of the upcoming Fed meetings, he believes that long-term mortgage interest rates are likely to go up a quarter-percent at a time. “That would mean 6.75% mortgages in April, 7% in June and then higher, until something breaks,” he says. (www.inman.com)
Inman News (3/10/06); Lou Barnes

Top Luxury Home Builder Entering Atlanta Market

With a contract to buy 194 acres in Woodstock for a 361-home development, Toll Brothers, the nation’s leading builder of luxury homes, has signaled its entry into the Atlanta market. The Horsham, Pa.-based company operates in 21 states, including the Carolinas and Florida, and sold $5.8 billion worth of homes in its 2005 fiscal year. Homes in the project will be priced in the $300,000s and higher, according to Richard McCloud, Woodstock’s planning director. Atlanta, generating more than 72,000 single-family building permits annually, has an advantage in attracting builders because it has remained affordable, especially in comparison to markets that have experienced huge price spikes such as South Florida, California and the Northeast. It also has a strong market for luxury housing, according to several experts. Atlanta’s average home price rose just 5.4% over the past year, compared to 13% nationally, according to Jeff Humphreys, director of economic forecasting at the University of Georgia’s Selig Center. Over the past five years, the city’s housing prices have gone up by 27.6%, less than half of the 57.7% price rise reported nationally. (www.bizjournals.com/atlanta)
Atlanta Business Chronicle (3/13/06); Lisa R. Schoolcraft

Where Did All the Children Go?

Between 2000 and 2004, all eight metropolitan regions on the West Coast, from Seattle to San Diego, lost middle-class families because of high-priced housing, and the trend is threatening to reshape many of the nation’s major cities. On the East Coast, middle-class families have been making an exodus from the New York region and Boston to points south, leaving the Washington, D.C. area in a buffer zone that has been losing middle-class families with children to the Sunbelt but picking up some from the Northeast, according to William Frey, a demographer at the Brookings Institution. More than half of San Francisco’s firefighters, police officers, emergency medical workers, nurses and teachers live outside the city, according to local statistics. Facing a median house price of $780,000, some firefighters, who work 24-hour shifts, commute to the city from as far away as Montana. Black families have been leading the charge, but their white counterparts are not far behind. San Francisco lost 45% of its black children from 1990 to 2000, according to the Census. Those under 18 account for just 14.5% of San Francisco’s population, the lowest percentage of children of any major U.S. metropolis. Next on the list are Boston, with 19.7%; Washington, 20.1%; Miami, 21.8%; Atlanta 22.3%; and New York 24.3%. (www.washingtonpost.com)
Washington Post (3/19/06); John Pomfret

Such a Deal: Buy a House, Get a Car Free

Free car leases are among the many perks sellers are tossing in to move homes in the Detroit metro market, where prices are falling in many areas and listings have skyrocketed. “We’re doing whatever we can to get them to buy,” said Bob Mitchell, director of development for Seville Homes. In the past, the builder offered 52-inch TVs, a stove-refrigerator-microwave package and a $2,500 gift certificate for furniture as buyer incentives. Now it is planning to allow its buyers to move into a new home without paying closing costs, providing a downpayment or making a mortgage payment for the first six months if they finance through LaSalle Bank. Home prices in Michigan dropped 10% last year compared to the previous year, according to Real-comp II, and the average time homes have stayed on the market have been climbing. An NAHB survey of 500 builders in January found that 41% of them were offering free appliances, 31% were paying closing costs and 15% were paying up-front financing. (www.detnews.com)
Detroit News (3/13/06); Tenisha Mercer

Odds Vary on Chances of Enacting GSE Bill in '06

Jerry Howard, chief executive officer of NAHB, puts the odds of Congress enacting stronger regulations for Fannie Mae, Freddie Mac and the Federal Home Loan Banks this year at “considerably less than 50-50.” In a recent survey of a group of political experts, Kenneth Posner of Morgan Stanley found “the average views of our expert panel imply a 37% probability” of GSE reform legislation in 2006, but a cumulative probability of 76% by 2009, suggesting that something will eventually happen on this issue. Howard doesn’t see good odds on a GSE bill passing this year unless the center of gravity tilts toward the House version, which doesn’t have the Senate bill’s contentious limitations on the portfolios of Fannie Mae and Freddie Mac. The catalyst for action, according to political analysts at Lehman Brothers, would be a decision by Senate Banking Committee Chairman Shelby to engage in bipartisan discussions on portfolio language. The bill’s prospects for this year will also be compromised by a tight congressional election-year schedule. (www.djnewswires.com)
Dow Jones Newswires (3/15/06); John Connor

Area Builders Yank Thieves’ Welcome Mat

More last-minute deliveries, rather than having fixtures and materials sit at a construction site, are among the measures home builders have been taking to limit construction site thefts in the Toledo, Ohio area, where they have been on the rise. Thefts of building materials such as lumber, copper pipes, furnaces and windows cost millions of dollars annually, driving up insurance rates and home prices, and delaying construction schedules, according to NAHB. Construction materials are a target because they can be easily used in other houses. Barb Metusalem, vice president of Brooks Insurance Agency in the city, said most of the theft claims from builders are for furnaces, water heaters, tools, kitchen cabinets, windows and drywall. But most builders decide to absorb the loss unless it is big, holding thefts to only about 5% of builder claims. Bailey Stanbery, of Stanbery Homes, says he has had materials or items stolen from five unfinished houses in the area and a sixth vandalized over the past 12 months. To prevent the theft of wood and materials, he is building walls and ceiling frames in a private warehouse, and then shipping them to the site as needed. Furnaces, water heaters and other valuables aren’t placed in a house until doors and locks have been installed. (www.toledoblade.com)
Toledo Blade (3/12/06); Jon Chavez

NAHB Pushes in Senate for Association Health Plans

Last week, after more than a decade of debate on the topic and little or no Senate interest, the Senate Health, Education, Labor and Pensions (HELP) Committee took up the issue of whether bona fide trade associations should be allowed to offer health plans to their members across state lines.

HELP Committee Chairman Mike Enzi (R-Wyo.) introduced S. 1955, the “Health Insurance Marketplace Modernization Act,” and the bill was approved by the panel on March 15 by a vote of 11-9.

The measure, which contains several provisions to address the crisis of the uninsured, including association-sponsored health plans (called “small business health plans” in this version of the legislation), bears some resemblance to legislation passed by the House of Representatives in 2005. However, many differences remain between the House and Senate versions on how the plans would operate.

“NAHB’s members appreciate the effort undertaken by HELP Committee Chairman Enzi and co-sponsors Senators Conrad Burns (R-Mont.) and Ben Nelson (D-Neb.) to address the crisis of the uninsured by investigating methods of providing opportunities for thousands of small businesses across the nation to get access to plans,” said NAHB President David Pressly.

NAHB, which has championed association health plan legislation during the past several years, sent a letter to the full HELP Committee prior to the markup supporting the committee’s efforts to address the issue.

As the measure advances through the legislative process, NAHB will continue to work with key senators to address significant differences between S. 1955 and S. 406 regarding self-funding measures for association health plans, state licensing provisions and stipulations that call for certain "benefit mandates.” The goal is to refine S. 1955 as it moves to the Senate floor in order to make it economically practical for trade associations to offer association health plans to their members.

“We hope that the marketplace changes championed by the Senate legislation will ultimately provide small businesses with more choices, better access and more stability in health insurance plans,” said Pressly, who noted that more than 43 million Americans are currently uninsured, almost 60% of whom are employed by small businesses.

Kentucky Builder Cites Skyrocketing Health Premiums

Custom home builders Sue and Barry Jenkins, who own Keystone Custom Homes based in Prospect, Ky., say that their health care premiums have skyrocketed during the past two years, and that effective association health plan legislation is necessary to rein in runaway costs.

“In the last two years, our premiums have shot up $440 per month, and as of May 1 we will be paying $760 a month for a family health plan,” said Sue Jenkins. “We appreciate NAHB’s diligent efforts to urge Congress to enact association health plan legislation that would help our family and countless other small businesses across the country to access greater health insurance options and lower premiums. Congress needs to act quickly to address this urgent matter.”

Small Businesses Can’t Keep Up With Costs

“If we transform health insurance to a market where small employers and family-owned businesses can demand better benefits at better prices, insurance companies would be forced either to keep up with the competition, or lose their market share,” Sen. Enzi said.

“With the help of a diverse group of senators and business groups representing small business, we’ve bridged the gap between small business proponents of traditional AHPs and state-based interests worried about the prospects of dramatic regulatory changes in health insurance markets,” Enzi added.

Noting that health care premiums are experiencing double-digit growth annually, Sen. Nelson said the bill is vital to help small businesses cope with soaring health care costs. “Small businesses can’t keep up with the costs. As a result, fewer employers are offering health coverage and fewer employees are covered. This action by the HELP Committee today is the first step in addressing this problem.”

While the panel’s passage of S. 1955 marks the first time that legislation referencing association health plans has cleared a Senate committee, the full House has approved its version of association health plan legislation eight times, acting most recently last July, with passage of H.R. 525, the “Small Business Health Fairness Act.”

President Bush, a strong advocate of association health plan legislation since the time he first entered the Oval Office, on March 10 reiterated his support for this concept.

“AHPs make a lot of sense. I am a strong backer. I believe small businesses ought to be able to pool risk across jurisdictional boundaries, so they can get the same benefits from larger risk pools that big companies get,” Bush said.

The Senate bill is expected to be considered on the Senate floor sometime during the end of April or in early May.  Upon passage, it would have to be reconciled with the more widely-supported House bill. Major differences between the two versions could potentially slow down the bill’s progress.

To read the Senate legislation, click here and enter S. 1955 in the box at the center of the page.

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

NAHB Fights for Property Owners in Flood Insurance Bill

Acting to keep the National Flood Insurance Program (NFIP) solvent, the House Financial Services Committee on March 16 approved H.R. 4973, the “Flood Insurance Reform and Modernization Act of 2006.” The measure would allow the NFIP to borrow up to $25 billion from the U.S. Treasury to pay insurance claims and would make other changes to the program to reduce the need for future borrowing.

The Federal Emergency Management Agency (FEMA), which runs the NFIP, estimates it will need $24 billion to pay off claims resulting from the devastating destruction caused last year by Hurricanes Katrina and Rita.

Separate legislation approved by the House and Senate would raise FEMA’s borrowing authority from the Treasury to $20.8 billion, up from the current ceiling of $18.5 billion. The agency has warned that it will exhaust its current borrowing authority in coming weeks and would then be forced to stop payments to flood claimants.

NAHB’s succesful lobbying against several amendments during the House panel’s consideration of the legislation will result in significant savings for millions of property owners.

Of particular note, an amendment that would have eliminated subsidized premiums on all NFIP properties was soundly defeated by a vote of 45-10. The Congressional Budget Office estimates that entirely eliminating all subsidies would boost average premiums by about 150%.

However, the committee-passed bill does contain a provision to phase-out NFIP subsidies for vacation homes, second homes and commercial properties.

H.R. 4973 would also:

  • Increase the amount FEMA can raise rates in any given year from 10% to 15%.

  • Commission a study by the U.S. Comptroller General to review mandatory purchase requirements for the natural 100-year floodplain and home owners with non-federal loans. Coverage is currently mandatory for all federally-backed loans.

  • Raise the 1994 coverage limits for residential flood insurance policies from $250,000 (structure) and $100,000 (contents) to $335,000 and $135,000. Non-residential properties would see an increase from $500,000 to $670,000.

  • Direct FEMA to report to Congress twice a year on the financial status of the NFIP.

  • Require FEMA to conduct a comprehensive review of the nation’s flood maps — including mapping of the 500-year floodplain — and to report its findings to Congress.


H.R. 4973 now moves to the House floor, where NAHB will continue to support common-sense reforms that represent the interests of the housing community.

In the Senate, Banking Committee Chairman Richard Shelby (R-Ala.) has indicated that his panel plans to advance a flood insurance overhaul measure in the next few weeks.

Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain coverage.

More than 20,000 communities nationwide participate in the NFIP and the program currently covers approximately 4.8 million policyholders.

To read the House legislation, click here and enter H.R. 4973 in the box at the center of the page.

For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.

NAHB Members to Carry Concerns to Lawmakers on May 10

Builders seeking the rare opportunity to walk the halls of Congress with their colleagues and to meet with their lawmakers to discuss issues of concern for the housing industry won't want to miss the association's most important grassroots activity of the year — the NAHB Legislative Conference on May 10, a day-long event coinciding with the spring board meeting.

“For any builder who is concerned about their bottom line, attending the Legislative Conference could be the best decision that they make this year,” said NAHB President David Pressly, who has set a goal of expanding builder participation by at least 10% this year. “This is your chance to speak directly to your federal representatives on Capitol Hill, and communicate the challenges that you and your business face every day. Don't miss this once-a-year opportunity to really make a difference.”

Decisions that affect a builder’s business are being made every day in the halls of Congress. Environmental regulations, tax policy, soaring health care costs and many other issues can add thousands of dollars to a firm’s annual operating budget, and Congress weighs in on each and every one of them.

Bridgette Evans, EO of the Missoula BIA in Montana, recalls that her participation in last year’s Legislative Conference was an invaluable experience. “Of the meetings I attended while in Washington, the visit to Capitol Hill was the most beneficial,” says Evans. “It is good to see that we really do make a difference when we meet with members of Congress and their staffs. With this knowledge, I was able to go back to my board and the membership and feel confident when recruiting people to donate time to work on an issue." 

Sharon Larson, EO of Brookings Regional BA in South Dakota, voices similar sentiments. "A person can receive all of the e-mails and legislative alerts that come from NAHB, but not really 'get it' until they have heard first-hand how builders and home owners are affected on a daily basis,” she says. “Hopefully, we were able to make a difference that day, but in addition to that, I think having the ability to reference that meeting in my correspondence has been very useful."

The NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line.

Attending the 2006 Legislative Conference offers an unparalleled opportunity to:

  • Lobby members of Congress to protect your business
  • Establish lasting relationships with your elected federal officials
  • Share builder concerns in a national forum in Washington, D.C.
  • Learn the latest policy developments on the key issues affecting your business
  • Demonstrate your industry’s commitment to responsible policies, pragmatic reforms, effective programs and providing the resources necessary to meet our nation’s ongoing housing needs
  • Network and share business strategies with your peers
  • Learn how to be an effective advocate for your business and your industry
  • Make your views known on Capitol Hill
  • Do your part to ensure that NAHB’s issues are heard by Washington policymakers
  • Galvanize a united front on Capitol Hill


Your participation can make a difference. In these challenging times — when other interest groups are clamoring to push their agenda in Washington — a strong builder turn out on May 10 will send a powerful message to members of Congress:  Housing must remain a national priority!

Come to Washington and show your members of Congress the great work you do back home in building your communities. Urge your lawmakers to adopt sensible policies to enable your business to thrive and allow the nation’s home builders to fulfill their mission of providing safe, decent, affordable housing to all Americans.

For more information and to register for NAHB’s 2006 Legislative Conference, click here; or e-mail Jessica Boyce, or call her at 800-368-5242 x8334.

Housing Production Cools in February

After a 16% climb in January largely attributable to unseasonably warm weather, total housing starts cooled in February, declining 7.9% to a seasonally adjusted annual rate of 2.12 million, the Commerce Department reported on March 16.

Single-family home construction dipped 2.3% to 1.8 million units last month, and from an unsustainably high pace of 460,000 units in January, multifamily starts fell 30.4% to an annual rate of 320,000.

“The underlying market fundamentals remain solid,” said NAHB President David Pressly. “Job and income growth are moving ahead at healthy levels. Today’s starts numbers are another indicator that points towards an orderly cooling down process for the housing market in 2006.”

“So far this year, housing starts have received a boost from unusually mild winter weather, even in February, and we expect to see these numbers move further down in the months ahead,” said NAHB Chief Economist David Seiders. “Indicators that measure housing demand — home sales, applications for home mortgages and our own survey of single-family builders — show that the cooling process has begun. Furthermore, single-family permits, which are less affected by weather than single-family starts, have been trailing down gradually from their highs last fall.”

Seiders added that the evolving slowdown is actually a healthy development and should not lead to any major contraction in the housing markets.

“Last year’s record-level of housing starts and double-digit price appreciation were unsustainable, and they encouraged many investors and speculators to enter the market,” he said. “With demand slowing, we expect to see price appreciation also falling back into the single-digit range, and that will discourage short-term speculators from jumping into the market. We anticipate another solid year for housing in 2006, with new-home construction and new home sales down about 7% from last year’s all-time highs.”

Regionally, construction of new homes and apartments in February was down 23.5% in the Northeast, 10.4% in the Midwest and 11.2% in the South. Starts rose 7.9% in the West.

The number of total building permits issued last month fell 3.2% to a seasonably adjusted annual rate of 2.145 million. Single-family permits fell 3% to 1.639 million, while multifamily permits increased 1.1% to 532,000. 



Where Are the Top 100 Metropolitan Areas for 2006?

HousingEconomics Online,” the online publication from the NAHB Economics Group, is your single source for market analysis, forecasts, housing statistics and more. In-depth analysis, detailed Excel tables and overviews are available for all metro forecasts.

To learn more or subscribe to “HousingEconomics Online”, visit www.housingeconomics.com



Attend the Spring Construction Forecast Conference in April

Plan to attend NAHB's Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry.

For more information, visit www.nahb.org/cfc.

 

 


 

Give Us Your Perspective on the NAHB Economics Blog

Give your economic perspective on NAHB's economics blog, “Seiders on Housing,” an informal Internet-based forum dealing with economic issues, housing trends, survey research and other topics affecting the housing sector of the economy.

Log onto the blog at http://nahbblog.blogs.com and get direct access to NAHB Chief Economist David Seiders' expert opinions, projections and responses. Then let Seiders know what you think.

Builder Confidence in Market Inches Down in March

The NAHB/Wells Fargo Housing Market Index (HMI) has moved down one point this month, indicating that housing demand and sales are gradually cooling from overheated levels to a more sustainable pace.

"Today's HMI provides the latest evidence of a predicted and orderly cooling process for the nation's single-family new-home market, which easily hit record highs in 2005," said NAHB President David Pressly.

Noting that the confidence gauge has remained within a narrow two-point range for four consecutive months since declining from its peak in mid-2005, NAHB Chief Economist David Seiders attributed March's slight downshift to eroding affordability conditions as well as a gradual withdrawal of investor demand in some areas.

"Rising interest rates and high rates of home-price appreciation have raised the bar for homeownership to beyond what some families can reach," he noted. "Meanwhile, a retreat of short-term investors from certain markets is helping restore equilibrium between supply and demand."

Derived from a monthly survey that NAHB has been conducting for nearly 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales, sales expectations for the next six months and the traffic of prospective buyers, with any number over 50 indicating that more builders view sales conditions as good than poor.

The March HMI registered 55, down from a revised February reading of 56, with one-point declines in the index’s single-family sales and prospective buyer components and a two-point drop in the six-month sales outlook. Both the current and expected sales remained well in the positive range, at 60 and 62, respectively.

Regionally, builder confidence this month slid everywhere but the Midwest, which remained the gloomiest part of the country despite a seven point index gain, to 39, from February. While the confidence of builders in the West skidded six points in March, it remained the highest of the four regions, at 67. The Northeast was down two points to 55 and the South down four points to 58.


Want to Know the Housing Starts Through 2014?

Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more.

To learn more, visit www.housingeconomics.com.



Attend the Spring Construction Forecast Conference in April

Plan to attend NAHB's Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry.

For more information, visit www.nahb.org/cfc.



Give Us Your Perspective on the NAHB Economics Blog

Give your economic perspective on NAHB's economics blog, “Seiders on Housing,” an informal Internet-based forum dealing with economic issues, housing trends, survey research and other topics affecting the housing sector of the economy.

Log onto the blog at http://nahbblog.blogs.com and get direct access to NAHB Chief Economist David Seiders' expert opinions, projections and responses. Then let Seiders know what you think.

2005 Permits Look Good in Atlanta, Phoenix and Houston

With the Atlanta, Phoenix and Houston-area markets leading the way, single-family home building permits reached a record 1.681 million in 2005, up 4.3% from the previous annual record of 1.613 million set in 2004, according to preliminary year-end figures by the U.S. Census Bureau. Single-family permits have been up for four consecutive years.

The Atlanta metro region topped the nation with 60,950 single-family building permits in 2005, followed by Phoenix with 53,960 permits and the Houston’s 51,130.

“The first three quarters of 2005 produced a record year in terms of volume of sales for our firm, and we are very optimistic about 2006,” said Bobby Lunceford, president of Bob Lunceford Properties, Inc. based in the north metro Atlanta market.

Lunceford noted that his company built 19 homes in 2005, versus 16 in 2004, and that he expects to significantly increase output in the coming year.

“We had a slightly sluggish fourth quarter where we had to carry over inventory into the new year, but we’ve established a construction pace where we believe that sales will support a volume of 30 homes in 2006,” he said.

As for the overall Atlanta market, Lunceford is predicting another solid year, with housing production edging 2-3% below 2005 levels.

Doug Cotter, president of the Greater Atlanta Home Builders Association, is also bullish about the region’s outlook in 2006.

“The niche markets are still doing real well in Atlanta,” he said. “We’ve seen a little bit of a slowdown, but I equate it from going 90 miles an hour with your hair on fire to just going 90 miles per hour,” he said.

Cotter, a builder-developer who is president of Cotter Homes and Cotter Properties and Development, also foresees another solid year for his business. “We built about 50 homes last year in a price range of $400,000-plus, and so far this year, we’ve had our best first quarter ever on the building side.”

“I’m optimistic, yet guarded,” he added. “In Atlanta, just as in many other areas of the country, government regulations are slowing down land development, which will further slow down lot supply.”

Paced by a resurgent energy sector, moderate home appreciation rates and a growing population, Houston continues to be a strong market for home builders, according to Randy Bayer, GMB, president of the Greater Houston Builders Association.

“The west side of Houston in Katy is the energy corridor, home to Shell Oil, BP Amoco, ConocoPhillips and dozens of independent oil companies,” said Bayer, a custom builder and president of Bayer Homes, which constructs homes priced at $600,000 and up. “I am selling most of my houses to executives relocating to the Houston area. The expansion of Interstate 10 and the opening of the Westpark Tollway all the way to the Katy area county line has allowed more people to travel out to the western suburb of Houston.”

Bayer built nine homes last year, up from four in 2004, and expects to construct nine to 12 houses in 2006.

“Houston created 42,500 new jobs in 2005 and we are predicting 50,000 new jobs for the city in 2006,” he said. “For 17 straight years, housing starts in Houston have gone up from the previous year. And appreciation rates remain at a reasonable 5% annually, which keeps the Houston area affordable. Plus, many Hurricane Katrina victims are relocating to the area, helping to boost multifamily occupancy rates and single-family starts.”

On a personal note, Bayer said he recently sold his own home to a Katrina evacuee who has been permanently relocated to Houston and is now working for the U.S. Postal Service.

 

 

 

 

2005 Permit Usage

 

Rank

Metro Area

Permits*

 

1

Atlanta-Sandy Springs-Marietta, Ga.

60.95

 

2

Phoenix-Mesa-Scottsdale, Ariz.

53.96

 

3

Houston-Sugar Land-Baytown, Texas 

51.13

 

4

Dallas-Fort Worth-Arlington, Texas

49.32

 

5

Riverside-San Bernardino-Ontario, Calif.

45.79

 

6

Chicago-Naperville-Joliet, Ill.-Ind.-Wis.

36.73

 

7

Las Vegas-Paradise, Nev.

30.36

 

8

Tampa-St. Petersburg-Clearwater, Fla.

27.43

 

9

Orlando-Kissimmee, Fla.

26.52

 

10

Wash.D.C.-Arlington-Alexandria, Va.-Md.-W.Va.

25.32

 

11

Miami-Fort Lauderdale-Miami Beach, Fla.

23.08

 

12

Cape Coral-Fort Myers, Fla.

22.21

 

13

New York-No. New Jersey-Long Island, N.Y.-N.J.-Pa.

19.99

 

14

Charlotte-Gastonia-Concord, N.C.-S.C.

19.35

 

15

Jacksonville, Fla.

18.61

 

16

Seattle-Tacoma-Bellevue, Wash.

17.70

 

17

Denver-Aurora, Colo.

17.59

 

18

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

17.18

 

19

Austin-Round Rock, Texas

17.08

 

20

Los Angeles-Long Beach-Santa Ana, Calif.

16.40

 

21

Sacramento-Arden-Arcade-Roseville, Calif.

15.76

 

22

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

15.09

 

23

San Antonio, Texas

14.62

 

24

Nashville-Davidson-Murfreesboro, Tenn.

14.06

 

25

Raleigh-Cary, N.C.

13.95
*Thousands 

For a complete listing of 2005 permit usage, provided in Excel format, click here. 



Where Are the Top 100 Metropolitan Areas for 2006?

HousingEconomics Online,” the online publication from the NAHB Economics Group, is your single source for market analysis, forecasts, housing statistics and more. In-depth analysis, detailed Excel tables and overviews are available for all metro forecasts.

To learn more or subscribe to “HousingEconomics Online”, visit www.housingeconomics.com



Attend the Spring Construction Forecast Conference in April

Plan to attend NAHB's Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry.

For more information, visit www.nahb.org/cfc.



Give Us Your Perspective on the NAHB Economics Blog

Give your economic perspective on NAHB's economics blog, “Seiders on Housing,” an informal Internet-based forum dealing with economic issues, housing trends, survey research and other topics affecting the housing sector of the economy.

Log onto the blog at http://nahbblog.blogs.com and get direct access to NAHB Chief Economist David Seiders' expert opinions, projections and responses. Then let Seiders know what you think.

NAFTA Panel Finds No Grounds for Lumber Tariffs

The nation’s home builders on March 20 called on the Bush Administration to rescind punishing tariffs on Canadian lumber imports following a unanimous ruling by a North American Free Trade Agreement panel that Canada does not subsidize its lumber industry.

“This marks the sixth time in the past three years that a NAFTA panel has found no justification for the U.S. to be imposing countervailing duties on Canadian lumber shipments into the American marketplace,” said NAHB President David Pressly. “It’s time for the U.S. to honor its legal obligations by eliminating these border taxes that are unnecessarily raising the cost of housing and refunding to Canada the duties that have been collected.”

Currently, there is an 8.7% countervailing duty on Canadian lumber imports and anti-dumping duties average about 2.1%.

The U.S. government imposed countervailing and anti-dumping 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 on two separate occasions but remains above 10%.

U.S. law permits countervailing duties to be imposed only if a foreign supplier is benefiting from subsidies and U.S. producers are being injured, or threatened with injury, as a result.

On March 17, the NAFTA panel determined that the subsidy is below 1%, which under U.S. law means that the lumber imports are not subject to duties.

The U.S. has until April 27 to file an appeal to the decision. Last week’s ruling has no effect on anti-dumping duties.

Several NAFTA panel decisions have unanimously determined that the Commerce Department was using flawed calculations to reach the conclusion that Canadian lumber is subsidized. And on Aug. 10, a NAFTA Extraordinary Challenge Committee upheld an earlier NAFTA ruling that found no threat of injury from Canadian imports. It also stipulated that the U.S. was required to refund the billions of dollars of duties that Canada has paid to date.

Although a NAFTA ruling carries the weight of law in Canada, the U.S. and Mexico, the Administration has failed to implement decisions that invalidate the lumber duties and return all duties paid out by Canadian firms.

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

Builder's 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.



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.

Production Builders: NAHB Has a Web Resource Page for You

NAHB has new business managment resources for production builders who build more than 25 homes a year. The resources can be found on the NAHB Web site at www.nahb.org/pb.

Production builders who build more than 25 homes a year now have an NAHB Web page for NAHB Business Management Resources — www.nahb.org/pb.

The page contains nearly 150 resources, and new resources are being added regularly. This resource is for NAHB members only.

Resources include specific strategies to increase margins, tools to measure your home building company’s progress, resources for hiring and retention and ideas to improve your business processes

Among the recently added members-only resources are:

New resources — including: how to sell more homes with the construction-perm (CP) product; how to make more money by controlling the mortgage finance process; building efficiencies through better technology; reducing financing costs; and maintaining business control with a mortgage joint venture — will be added later this year.

These resources are being added through the support of American Home Bank, which is working with NAHB’s Single Family Production Builders Committee to sponsor some of the Web section’s content.

More Ideas Wanted

Production builders who build more than 25 homes a year are invited to provide ideas for new business management tools that they would like to see added to the production builder resource page.

E-mail Natalie Holmes at NAHB, or call her at 800-368-5242 x8461 with ideas.



NAHB Technology Solutions Directory Now Online

NAHB’s Technology Solutions Directory — an easy-to-use directory that enables builders, remodelers, contractors and other industry professionals to find information on software and IT solutions and services for their businesses — is now online. The directory is sponsored by the Business Management & Information Technology Committee

Software and technology solutions providers interested in being listed can sign up for:

  • Enhanced Listing — Listing includes company name, URL, e-mail address, mailing address, phone number, company/product description, company logo. Click here for more information.
     
  • Standard Listing — Listing includes company name and phone number. Click here for more information.


For more information, e-mail Wil Heslop at NAHB.

The Technology Solutions Directory is solely for educational and informational purposes.  Nothing in the directory should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the listed software, IT service or the software/IT vendor.  The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained in this directory.



NAHB Has More Than 250 Resources to Help You Run Your Business More Profitably

Go to NAHB's Business Management Tools Web pages (available to NAHB members only) for instant access to more than 250 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more.

Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources.

Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your association's Web site the place to go for the information and guidance that members need to succeed.

 


 

Subscribe to NAHB’s Business of Building e/Source

NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. 
 
Business of Building e/Source is available free to NAHB members and their employees.
 
To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.

 

Marketing Automation — Selling More Without Spending More

By Steven Lewkowitz, Pivotal Corporation
During the housing boom, you may have found yourself swimming in a sea of leads from the Internet and other sources. But you most likely were merely treading water when it came to effectively assembling, assessing and managing this potentially valuable marketing information.

Builders in a hot market may be able to beat their competition with less than perfect lead-stroking. In cooler times, however, mishandled leads can translate directly into lost sales.

Although it’s shaping up to be a modest slowdown, the cooling housing market is an opportunity for builders to shift from processes that worked in times of heady growth and gear up for when the going gets tough.

One way to do this is by automating more of your marketing functions. Automation can help you manage leads more effectively — without spending more — always a smart business decision.

Say ‘Hello’ to Marketing Automation

Marketing automation encompasses various technology solutions all designed to facilitate the planning, execution, management and tracking of your marketing activities — everything you do from traditional print advertising, to direct mail and e-mail, sales events and promotions.

Marketing automation includes event management solutions, planning tools, marketing analysis programs and more.

It’s about doing more with less: running more campaigns, reaching more prospects and collecting more leads — while minimizing costs.

Ultimately, marketing automation is about selling more homes faster and at a lower cost of sales.

Leveraging the Internet, Saving Precious Marketing Dollars

Good marketing automation systems help users manage and analyze the totality of their marketing initiatives, whether these are advertisements in print newspapers, glossy brochures sent by mail or in-person sales center events.

One of the greatest advantages of automated marketing systems is that they allow builders to maximize the potential of the lowest cost marketing channel: the Internet.

No longer a novelty, the Internet is now a vital tool for home builders. Keep in mind that builders aren’t just using the Internet for marketing because it’s cost effective, either. Builders are using the Internet because that’s where the home buyers are.

A recent study conducted for the NAHB Institute of Residential Marketing (IRM) found that not only did Internet-using consumers value online resources highly in their home buying search, they found them the most useful, the most important and the resources they were most likely to use in future home searches. National Association of Realtors® research also indicated that 77% of home buyers use the Web when looking for a home.

But the push toward more use of online channels is not driven purely by the consumer. Builders reported in the IRM study that the Web was the source of their best-quality leads.

The Picture Is Clear

Builders who neglect or insufficiently utilize online channels are passing up an obvious and relatively inexpensive vehicle for reaching the majority of potential buyers.

To learn more about how to effectively use technology to get the most from your marketing dollars, visit the the Institute of Residential Marketing on the NAHB Web site.

Steven Lewkowitz is professional services director of the Homebuilding and Real Estate Group at Pivotal Corporation. Pivotal offers the industry-leading Pivotal Homebuilder Front Office. For more information, e-mail Lewkowitz, or call him at 732-297-4060.

 


 

NAHB Has More Than 250 Resources to Help You Run Your Business More Profitably

Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to more than 250 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more.

Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources.

Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.

 


 

Subscribe to NAHB’s Business of Building e/Source

NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, visit www.nahb.org/BoB on the Members Only side of the NAHB Web site.

Baby Boomers Ready to Rejuvenate 50+ Housing Market

The 50+ housing market will receive a rejuvenating lift from baby boomers, who won’t be shy about letting builders know what they want and won’t be grudging when it comes time to pay for it, according to participants in an NAHB teleconference for the news media earlier this month.

“Boomers have a strong preference for homeownership,” NAHB Chief Economist David Seiders said, and the rising numbers of members of this group heading into the traditional retirement years will be boost demand for new housing.

Although many boomers and older Americans say they would prefer sitting tight and aging in place in their current homes, the demand for housing created specifically for graying Americans is strong. According to numbers from the U.S. Census Bureau’s American Housing Survey, 6% of all housing starts in 2003 were age-restricted or age-targeted. “As the boomers age, that number will grow,” said Seiders.

Georgia-based builder Norman Cohen reported that he is finding that buyers in his company’s active adult communities are demanding more and more options. “Our customers are not looking for cookie-cutter homes,” he said. “They want upgrades and options. We have about 300-400 pre-priced options, and we find that buyers come up with options we haven’t even considered. And they are willing to pay for them. They’ve sold their previous home and they have the money to get what they want.”

Cohen, chairman of NAHB’s 50+ Housing Council, added that “most 50+ buyers are not looking for a new place to live, but for a change in lifestyle.” Aging home owners don’t want to have to worry about maintaining their homes. Cohen’s company, Camelot/Signature Development, builds what he calls “lock it and leave it” communities, where all the painting, gutter cleaning, landscaping and other maintenance are taken care of.

Although there is a segment of the market looking for “destination communities,” most of the 50+ home buyers Cohen has been seeing want to stay within five miles of where they used to live, or near their grandchildren or other family.

In another trend reported during the teleconference, age-restricted communities are rapidly losing the stigma that used to be associated with them.

“When my company began building active adult six years ago, ‘age-restricted’ had a negative connotation, but now that’s changed,” said Cohen. “It’s a positive because a lot of 50+ buyers want to be in a community with people like themselves. So many people are interested in it that it doesn’t concern me about advertising age-restricted as a feature because people are seeking it out.”

Seiders predicted that the demand for age-restricted housing, which is allowed under a 1995 exemption to the Fair Housing Act, will keep growing.

For more information, e-mail Elizabeth Landry at NAHB, or call 800-368-5242 x8680.


Time is Running Out to Register for the 50+ Housing Symposium

Do you want to learn more about the fastest-growing segment of the housing market? You still have time to register for Building for Boomers & Beyond: 50+ Housing Symposium 2006, April 24-26 in Phoenix.

The seniors housing symposium is the premier educational and networking event for industry professionals who serve the burgeoning 50+ market.

For more information and to register, click here.



Find Out What Boomers Want

Boomers on the Horizon: Housing Preferences of the 55+ Market,” available through BuilderBooks.com, can help you better build and market homes to this age group.

Capitalize on the niches, needs and opportunities of this rapidly growing market by learning their preferences. To view or purchase this publication online, click here, or call 800-223-2665.

To learn more about the 2006 50+ Housing Symposium, which will be held April 24-26 in Phoenix, click here.

Learn How to Market and Sell to the 50+ Home Buyer

With America’s 50+ population estimated to hit 100 million by the year 2010, and the first generation of baby boomers turning 60 this year, the active adult market represents one of the fastest-growing segments of the housing industry.

Building for Boomers & Beyond: 50+ Housing Symposium 2006, held April 24-26 in Phoenix, will give attendees the keys to tap into the success of this market.

The symposium offers a variety of sales and marketing-related courses focused on capturing the attention of the 50+ home buyer:

  • Boomers: Who They Are and How to Reach Them
    This course provides insights about understanding boomers’ hot buttons and will show you how to create advertising that will get their attention and create the buzz you want.

  • Launch Marketing
    Learn what really goes on behind the scenes of an event to make it wildly successful. Learn how to ensure success and build a strong launch team.

  • Sales Secrets that Produce Results
    Maximize every selling opportunity by utilizing the latest new home sales approaches that help you connect with the customer’s agenda.

  • What’s Different About Selling to Active Adults?
    Active adults want an entirely different buying experience than their home buying counterparts. Hear how selling to active adults requires a paradigm shift in traditional sales techniques.

In addition to the sales and marketing program, the symposium offers courses in:

  • Design and development
  • Multifamily
  • Operations
  • Planning


To learn more about the symposium, visit Building for Boomers & Beyond: 50+ Housing Symposium 2006 on the NAHB Web site.

Pre-Registration Ends April 7

Pre-registration for the 50+ Housing Symposium ends Friday, April 7. On-site registration is $100 more. To register online, click here.

Hotel reservations are available at the symposium rate through Wednesday, March 22. Call 800-HILTONS (800-445-8667) for a hotel room.



Find Out What Boomers Want

Boomers on the Horizon: Housing Preferences of the 55+ Market,” available through BuilderBooks.com, can help you better build and market homes to this age group.

Capitalize on the niches, needs and opportunities of this rapidly growing market by learning their preferences. To view or purchase this publication online, click here, or call 800-223-2665.

Attend Upcoming Multifamily Conference in Scottsdale, Ariz.

 

The NAHB Multifamily Pillars of the Industry Conference will be at the Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch on April 2-4. Onsite registration is available.

Attend the Multifamily Pillars of the Industry Conference, the premier event for the multifamily industry, on April 2-4 in Scottsdale, Ariz.

Online registration is closed, but onsite registration is available.

The conference focuses on best practices and real-life lessons presented in case studies on the finance, design and development of rental apartments and condominiums.

Among the session topics to be presented are:

  • Affordable housing
  • Mixed-use communities
  • The maturation of the condo cycle
  • Marketing tactics
  • Planning for and managing escalating construction costs
  • Emerging design trends


For a complete listing of concurrent sessions at the conference, click here.

The conference will be at the Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch

For more information about the conference, click here.

Directories Provide Remodeler Listings for Consumers

Two directories on the NAHB Web site are geared to helping consumers find remodeling companies.

Managed by the Remodelors™ Council, the “Directory of Professional Remodelers,” allows consumers to locate “professional home remodelers” who are members of the council at-large or through a local home builders association.

The Remodelors™ Council’s directory is promoted through the nahb.org consumer Web pages, House Beautiful Kitchen and Baths and House Beautiful Remodeling magazines and other public relations efforts, with more promotions on the way. (For more information on the benefits of joining the Remodelors™ Council, click here.)

Managed by the NAHB University of Housing, the "Builder and Remodeler Designation Directory" takes prospective customers to listings of local home builders and remodelers who have obtained the CGB, GMB, CGR or CAPS designations. Additionally, builders can search this directory for Certified Graduate Associates (CGAs). To be included in this directory, an NAHB member must hold one of the above mentioned designations and be in good standing.

If you are unable to find your company in these directories and you meet the listing qualifications, you should seek assistance:

  • If you believe you should be listed on the Directory of Professional Remodelers and you are a member of the Remodelors™ Council, e-mail  Barbara Drobins, or call her at 800-368-5241 x8271.

  • If you believe you should be listed on the Builder and Remodeler Designation Directory and cannot find your listing, e-mail Gevenia Blair of call her at x8155.


If you need to update your information:

  • For The Builder and Remodeler Designation Directory, e-mail Gevenia Blair, or call her at 800-368-5242 x8155.

  • For The Directory of Professional Remodelers, contact your local home builders association, which is the source of all the data that is listed.

 

Enter the Best in American Living Awards Competition

2005 BALA Best One-of-a-Kind Custom Home: Thompson Custom Homes of Houston

Entries are being accepted for the 2006 Best in American Living Awards (BALA), the foremost residential design competition in the country. Builders, interior designers, architects, developers and marketing and real estate professionals are invited to enter.

The competition includes 41 categories — from single-family attached and detached in a variety of sizes to rental developments and custom homes, plus categories for interior design, communities and neighborhoods, affordable housing, smart growth and others.

Homes completed or for which the first model opened between May 1, 2005 and July 15, 2006 are eligible for this year’s competition.

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, winners will be announced at the 2007 International Builders’ Show Feb. 7-10 in Orlando, Fla.

Winning entries also will  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 Judy Brociek, Professional Builder, at 630-288-8184 or Michelle Persinger Matuga, NAHB, at 800-368-5242 x8343.

Past Winners

A total of 92 award winners in 41 categories were chosen from more than 390 entries in last year's competition. Winners were featured in the January 2006 issue of Professional Builder. To view the winners as posted in an e-book on the Professional Builder Web site, click here. One 2005 winner is pictured below.

2005 BALA Best in Region and Best One-of-a-Kind Custom Home: Thompson Custom Homes, Saratoga Springs, N.Y.

Designations Should Be the 'Norm' for Our Industry

 

 

Scott Sevon, CGR, CAPS, GMB
Sevvonco, Inc.

Nation’s Building News recently talked with Scott Sevon, CGR, CAPS, GMB, and president of Sevvonco, Inc., a custom home builder and remodeler based in Palatine, Ill., about the value of his professional designation.  

What designations do you hold?

CGR, CAPS, GMB

Have you ever won a customer or a job because of your NHAB designation?  

Yes, we have. Actually one of our clients is quoted in the new Remodelors™ Council CGR brochure. 

How has your designation tangibly benefited your career?  

The designations have kept me and the firm current. The ongoing education refreshes us and continues to teach us how to be better builders and remodelers.

Doctors and surgeons must keep up their education and training — and so do we. 

How have you promoted designations among your peers? Your home builders association?  

Whenever I speak to one of our non-certified members or at meetings, I do promote the need for designations.

Each time I introduce myself, I always use my certifications. This always perks interest in non-certified members.

When I sign in on attendance sheets, I also list my certifications for all to see.

Lastly, whenever a member wants to know more about designations, I try to mentor them and guide them into starting their own paths.  

Why should consumers ask for designations from their builders? 

I hope it becomes a norm in the industry for consumers to want to hire only professionals in our industry.

When we go to doctors, surgeons, accountants and attorneys, we seem to always request or view their degrees and designations. Why shouldn't we do the same in our industry? If our professionalism through designations were more evident in the media, hopefully consumers would ask for only graduated professionals.

Why did you choose to pursue a designation through NAHB? 

Again, to be better rounded and educated, and to bring more professionalism to myself and the firm.

By taking the courses and educational programs and continuing education that The NAHB University of Housing provides, constantly monitors and updates, we are always kept ahead of the learning curve.

Many of my friends and peers at NAHB have one or more designations, which sparked my interest long ago to obtain my designations and certifications. Also, because NAHB is the largest and strongest federation of builders and remodelers in our great nation.



Start Your Professional Designation Today

A designation shows your own commitment to improving your skills while showing your customers your commitment to the profession.

To learn more about the HCCP designation and to begin the road to receiving this or one of the 13 other NAHB professional designations, visit www.nahb.org/designations.

Education Calendar

April 2-5

2006 NAHB Multifamily Pillars of the Industry Conference and Awards Gala

Scottsdale, Ariz.

April 24-26

Building for Boomers and Beyond: 50+ Housing Symposium 2006

Phoenix, Ariz.

April 27

Construction Forecast Conference — Spring 2006

Washington, D.C.

May 21-22

Building Systems Councils Modular and Panel Plant Tour

Appleton and Wausau, Wisc.

June 5-7

2006 NAHB/BALA Design Institute for Builders

Charlotte, N.C.

June 11-13

Building Systems Councils Concrete Tour & Conference

Phoenix, Ariz.

Aug. 1-6

2006 EOC Seminar

Uncasville, Conn.

Oct. 20-22

National Conference on Membership

San Antonio, Texas

Oct. 25

Fall Construction Forecast Conference

Washington, D.C.

Oct. 27-29

Custom Builder Symposium

Las Vegas, Nev.

Nov. 5-8

Building Systems Councils SHOWCASE

Miami, Fla.

Nov. 9-11

State & Local Government Affairs Conference

New Orleans, La.


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 educational 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.


Register Now for the Design Institute

At the NAHB/BALA Design Institute for Builders, you'll learn the latest in residential housing design trends from the industry's top professionals, tour beautiful award-winning homes and communities that display the best in cutting-edge architectural design, and learn how to profitably apply these design ideas to the homes you build.
 
The Design Institute will be held June 5-7 at the Westin Charlotte, Charlotte, N.C.
 
To register and for detailed information, visit www.nahb.org/designinstitute.
 


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.

Twelve NAHB Green Building Award Winners Announced

Green building pioneer Ron Jones of Santa Fe, N.M. was named Builder Advocate of the Year at the 2006 National Green Building Awards Gala on Sunday, March 12 during NAHB’s 8th Annual National Green Building Conference in Albuquerque, N.M.

“Ron served as charter chairman of the NAHB Green Building Subcommittee and has worked tirelessly ever since to help bring green building into the mainstream,” said NAHB Green Building Subcommittee Chairman Ray Tonjes, a custom home builder in Austin, Texas.

Other awards announced last week included:


“As consumers show greater interest in homes that employ energy efficiency, resource conservation and sustainable building, these experts help expand green building from a niche market by giving prominence to housing affordability,” Tonjes said. “What our winners bring to traditional construction is a better knowledge of green building science so that all home builders and home buyers can benefit.”

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-358-5242 x8132.

Roadside Ditch Regulation Sparks Builder Lawsuit

Citing a new rule that runs contrary to the goals of the federal Clean Water Act and threatens housing affordability by adding excessive and costly regulatory burdens to home building, NAHB on March 17 filed suit against the U.S. Army Corps of Engineers over the so-called “Philadelphia Ditch Rule.”

The rule directs Corps officials in the Philadelphia District to treat all upland ditches as navigable waters of the United States, triggering their regulation under the federal Clean Water Act.

“This action is not only unnecessary but contradicts the wording of the act itself,” said NAHB President David. Pressly.

“Once again, we find ourselves explaining to federal authorities what their own rules mean,” Pressly said. “You can’t regulate a roadside ditch like you do the Mississippi River.  It’s excessive, it’s expensive, and ultimately, it’s reflected in the cost of new homes.”

Furthermore, the Corps issued the ditch rule without appropriate notice, preventing property owners and other advocates from commenting on the rule, the suit says.

NAHB maintains that under the Clean Water Act, upland ditches are regulated as “point sources.” The association asked the District Court to “declare the final Philadelphia Ditch Rule to be unlawful” and to “enjoin the Corps from relying on the Ditch Rule in making its jurisdictional determinations.”

“We all work to abide by the environmental regulations that guide home building and support the goals of the Clean Water Act. But this ditch rule is just uncalled for,” Pressly said.

The association has also filed friend-of-the-court briefs in two cases heard last month by the Supreme Court to decide the issue of the Corps’ jurisdiction over tributaries, Rapanos v. United States and Carabell v. Army Corps of Engineers.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

Large Numbers in Gulf Coast Not Paying Mortgages

Significant numbers of home owners in areas of the Gulf Coast devastated by Hurricane Katrina last year have yet to be able to resume making their regular mortgage payments, according to the latest National Delinquency Survey released last Thursday by the Mortgage Bankers Association.

Almost 76,000 home owners in Louisiana and Mississippi were seriously delinquent on their mortgages at the end of December, the survey found. These are loans that are 90 days or more past due or in the process of foreclosure, and they normally would be considered to be in default at this stage, but many borrowers have been taking advantage of forbearance programs offered by their lenders.

In the immediate aftermath of Katrina at the end of last September, 24.6% of all mortgages in Louisiana and 17.4% in Mississippi were delinquent, or 30 days past due. By the end of 2005, those percentages had declined to 20.8% and 16.9%, respectively. As expected, a majority of the loans that were only 30 days delinquent in September have now fallen into the 90 days or more seriously delinquent category.

As a result of the mortgage industry’s forbearance programs, the mortgage bankers reported, new foreclosures have actually dropped, to only 0.16% in Louisiana and 0.26% in Mississippi at the end of December, compared to 0.67% and 0.78% respectively during the same period a year earlier.

The national average for foreclosures started stands at 0.42%.

“The fact that we have almost 76,000 people who have not been able to resume making their mortgage payments, most as a direct result of Hurricane Katrina, points to the need to get a housing and economic development program funded and under way in Louisiana, and build support for the initiatives already undertaken in Mississippi,” said Jay Brinkmann, vice president of research and economics at MBA.

“It is also important to realize that a number of home owners continue to meet their financial obligations despite not being able to occupy their homes or being temporarily relocated for other reasons,” he said. “These people are putting their faith and money into their expectations of a recovery along the Gulf Coast and those expectations must be met.”

In Louisiana, 16.1% of prime loans were delinquent, 33.9% of subprime loans and 31.8% of FHA loans. In Mississippi, 11.8% of prime loans were delinquent, 31.1% of subprime loans and 24.9% of FHA loans.

For seriously delinquent loans past due for 90 days or more or in foreclosure, in Mississippi the percentage of prime loans was 9.7%, 24.3% for subprime and 21.1% for FHA. In Mississippi, the percentages were 6.3%, 19.8% and 13.5%, respectively.

Builders Invited to Accessibility Workshops

Free workshops for builders and architects, code officials and building inspectors, Realtors™ and others interested in meeting the accessibility requirements of the Fair Housing Act are being offered this spring and summer in New York, North Carolina, Georgia and Tennessee.

The workshops are sponsored by the United Spinal Association and the International Code Council, whose International Building Codes (IBC) for 2000 and 2003 are safe harbor documents that local jurisdictions can adopt to ensure compliance with Fair Housing Act accessibility requirements for multifamily buildings with four or more units.

Endorsed by NAHB, the workshops will include a discussion of design and construction requirements, common violations and how local jurisdictions can adopt the IBC or one of six other safe harbor documents to ensure compliance with the law.

NAHB played a leading role in securing safe harbor designation from the U.S. Department of Housing and Urban Development.

"When you incorporate accessibility requirements into apartments and other multifamily residential facilities during the construction process, the cost is minimal yet the benefit to people with disabilities is enormous," said ICC President Henry L. Green. "The International Building Code already addresses the Fair Housing requirements. By working with the United Spinal Association and NAHB, we can educate builders about accessibility and significantly improve housing opportunities for the thousands of people with disabilities across the nation."

The half-day workshops will be held in New York City on April 4; Raleigh-Durham, N.C., May 12; Atlanta May 25 and Nashville June 14. Click here to register. Additional information is available from the program brochure.

Deadline Nears for Code Change Proposals

Do you want to submit a proposal for a code change?  Friday, March 24, is the deadline for the International Code Council’s 2006-2007 Code Development Cycle.

NAHB will submit between 40 and 50 International Residential Code change proposals this week. But individuals can do so as well and can visit this link for submission information.

NAHB Construction Codes and Standards Committee members will meet this summer to consider the hundreds of code submissions from individuals, trade associations, manufacturers and other interest groups. Proposals with the greatest impact on NAHB members will be discussed in upcoming issues of Nation’s Building News.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

Development in Irvine a Neighborhood With ‘HEART’

Recognizing ingenuity in the development, construction and marketing of affordable workforce housing, NAHB honored five communities with its Innovation in Workforce Housing Awards at the International Builders’ Show in Orlando, Fla. in January. In an effort to bring attention to outstanding examples of workforce housing, Nation’s Building News is showcasing the winners of the award in a series of articles. The third development in the series is Montecito Vista in Irvine, Calif.

Developed by Jamboree Housing Corporation, Montecito Vista is a multifamily rental development consisting of 84 two-bedroom, one-bath apartments starting at $510 per month and 78 three-bedroom, two-bath apartments starting at $589 per month. These units will be rented to households earning between 30% and 50% of area median income.

Laura Archuleta, president of Jamboree Housing Corp., accepted the award.

The development includes a community building, a small library, a computer learning center, as well as outdoor barbecues, on-grade parking and a swimming pool. Jamboree Housing Corp. also offers resident assistance programs, such as child safety courses, tutoring programs, computer learning classes and programs to help residents prepare for career opportunities in the job-rich Irvine area.

“Basic shelter is only the beginning when it comes to improving the lives of lower-income residents of affordable housing communities,” Archuleta said. “JHC was one of the first nonprofit housing providers to recognize, and integrate into its program, the vital link between housing and on-site resident services. So strong is this belief that in 2004 Housing with HEART (Helping Educate Activate and Respond Together) became its own 501(c)(3) organization as an affiliate of JHC.”

“Housing with HEART fills a critical gap by providing essential services, tools and other resources to help our residents become more self-sufficient, and to help make JHC communities better places to live,” Archuleta added. “Our goal is to transform our developments into neighborhoods, by creating environments that foster communication, resident involvement and empowerment. Housing with HEART offers an innovative, comprehensive approach to developing a long-term resident services program tailored to each of its communities. The goal is to respond to the current and future needs of residents to improve their lives, break the poverty cycle and move them toward non-subsidized self-sufficiency.”

Montecito Vista is adjacent to a new community park and a new technology center. It is close to hiking and bike trails and is just two blocks from The Market Place, a regional retail center with stores, restaurants and movie theaters that provide amenities and job opportunities. Montecito Vista is also adjacent the new Arnold O. Beckman High School, a $94 million state-of-the-art facility that is the first new high school built in the Irvine Unified School District in 40 years.

From the initial phases of development through the implementation of property management, partnerships play a crucial role to the viability of a project, Archuleta said. “As a nonprofit housing developer, JHC is able to leverage a nexus of public and private funds through partnerships with local government, private developers, investors and the surrounding community. Public-private collaboration with partners like JHC is why Irvine boasts the greatest ratio of affordable housing units in Orange County,” she said.

“Irvine’s Housing Element indicates the city is a jobs-rich community with an estimated 3.4 jobs per housing unit,” Archuleta said. “The average price of a home is $693,500, but the fastest-growing California industries average annual salaries of only $17,000-$44,000. That means thousands of residents from other communities commute here for work, creating traffic congestion, air quality problems and other issues."

“Incorporating rental workforce housing into its major employment centers makes sense for the city and families and is key to success for Irvine’s overall housing plan,” she added. “It provides workforce families with the opportunity to live where they work. This results in shorter commutes, access to better schools and more time with their families.”

Archuleta offers this advice for those interested in providing workforce housing:

  • Know your community and its needs. Allocate staff and financial resources to research the opportunities and obstacles — the people, policies and perceptions — to developing more affordable workforce housing. Knowing the facts helps position you and your cause as an ally for balanced economic development in your neighborhood — and that’s good for everyone.

  • Build strategic and creative partnerships and do what you do best. Successful affordable workforce housing requires the cooperation of many organizations and entities — both for-profit and nonprofit. Through collaboration, affordable workforce housing is not only possible, it can exceed expectations by impacting the overall health of a community. The positive impact we can have on families, education and the economy addresses some of the biggest challenges we face as a society.

  • Continually work to change NIMBY-ism (Not-in-My-Back-Yard). Go to city council meetings. Proactively address the issues of neighboring residents. Educate those with opposing views about the positives of more affordable housing. Put faces to the residents — the firemen, schoolteachers and store clerks who live and work in the community.

  • Plan, design and build affordable workforce housing with the same high-quality standards, finishes and materials as market-rate communities. Do everything with an excellence that parallels your passion for a safe, decent place for everyone.


For more information, e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583.

Florida Job Corps Students Earning College Credit

Under a model “Building Today’s Workforce for Tomorrow” program by the Northeast Florida Builders Association, students at the Jacksonville Job Corps Center are receiving training in carpentry and electrical wiring, earning credits toward an associate’s degree and developing ties with members of the housing industry that will enable them to establish careers in construction.

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, model programs are underway at sites in Arizona, California, Connecticut, Idaho, Kentucky, New York, Pennsylvania, South Carolina, Virginia and Florida.

Job Corps students participating in the Jacksonville program can receive 24 credit hours towards a degree from St. Johns River Community College or 30 hours from Florida Community College at Jacksonville.

“Eighteen months ago, Labor Secretary Elaine Chao stood side by side with Kimsha Lowery, an HBI Job Corps student, to announce this grant and the benefit this effort would bring to Job Corps students,” said HBI Chairman Michael Sivage, a builder and developer in Albuquerque, N.M. “This is the type of collaboration we all envisioned at the time, and we hope other HBI Job Corps programs, home builders associations and community colleges will use this as a model in their career development efforts.”

The Northeast Florida Builders have worked with the Job Corps Center in Jacksonville for some time, and several graduates have been accepted into the association’s apprenticeship program. In January, Kareem Dorsett, one of the association’s electrical apprentices, was recognized with the NAHB President’s Award at the International Builders’ Show.

Through its Builders Care program, the association has also been instrumental in helping Job Corps students gain job site experience and work with prospective employers by participating alongside builders and contractors in community service rehab projects.

HBI currently operates its standards-based trades training programs at 68 Job Corps Centers in 40 states. The “Building Today’s Workforce for Tomorrow” grant was awarded to HBI under the President’s High Growth Job Training Initiative.

For more information on “Building Today’s Workforce for Tomorrow,” e-mail John Shortt at HBI, or call him at 800-795-7955 x8924.

For information on HBI’s Job Corps programs, click here; or e-mail Maria McIntyre or call her at x8912.

Insulation Protects Unvented Attics From Hurricane Rains

In the midst of a record-breaking year for Atlantic hurricanes in the U.S., Icynene, Inc., the manufacturer of The Icynene Insulation System, initiated a study last fall to evaluate insulating practices that can protect homes and their occupants from water and moisture damage resulting from high winds.

Based in Toronto, Icynene, Inc. is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB.

The study was conducted by the Alan G. Davenport Wind Engineering Group at The University of Western Ontario, using a model home with reduced air infiltration rates similar to those that would be achieved in a home insulated with Icynene’s insulation/air barrier system.

The model created for the test was a gable-roof house with the attic and living space scaled to maintain similar volume ratios to those of a full-scale home. Two different insulation applications were tested to determine which would perform better in strong winds. Wind climate models for Chicago and Miami were used during the tests.

In the first test of a typical vented attic design, wind and the laterally-driven rain accompanying it entered the attic through the soffit vent assemblies, which under real conditions can cause flooding and an increased risk of mold growth and rotting building materials.

Studying the