Nation's Building News Online: May 8, 2006Print All Articles Text Version |
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Financial Realities to Hit Retirement-Age Baby BoomersFor the developers of active adult communities, the 78 million baby boomers who are fast approaching their mature years are likely to provide some formidable challenges, according to speakers at last month’s “Building for Boomers & Beyond: 50+ Housing Symposium” in Phoenix. For a start, the vast majority of them aren’t planning on a traditional retirement, don’t want to move far from their existing home and don’t have the financial means to be able to live without a paycheck. Baby boomers are responsible for half of all discretionary spending in the country today and have annual discretionary income of $750 billion, said LeRoy Hanneman, CEO of Element Homes and former president and CEO of Del Webb Corporation, “yet too many are unprepared financially for retirement.” Only one in four of the boomers has invested assets of more than $100,000, one in three has less than $50,000 and by the time they reach retirement age, only one out of every two will have accumulated enough money to be able to support their current standard of living, Hanneman said. “Nearly one out of two boomers believe they will outlive their money,” he said, “although that is a common fear among seniors.” Nevertheless, “there are interesting adjustments to be made.” Only 15% expect to relocate to a place more than 150 miles from their current residence, Hanneman added, so the majority can be expected to consider “reasonably-priced active adult offerings within their own area.” Setting 1943 to 1960 as the birth years for the baby boomer generation, which is a few years earlier than most demographers define it, Neil Howe, author of “Generations,” said that the oldest members of this group are relatively well off financially, but on average the net worth of boomers is trailing down and there is an “enormous drop-off” in the affluence of those who are age 45-54 compared to those who are 55-64. “Late-wave boomers are much more likely to borrow against equity in their homes,” Howe added. The baby boom generation is characterized by a growing ethnic minority share, a weakening middle class and a swiftly rising retirement age, he said. The median retirement age today is 62-63, he said, but only 10% of the people who are now in their 40s expect to be retiring that young. “There is no date when they have to buy your home,” Howe said, so a soft sell is the best approach for baby boomers. “Bring them over to a place that has nice homes and leave the decision to them,” he advised. Among the points that Howe said builders should stress to capture this market:
“The historical model of working to 65 and then retreating to the golf course is no longer a realistic dream for many” baby boomers, he said. Boomers “will pursue new career paths and a desire for learning.” Hanneman cited survey research by Pulte showing that the household features preferred by boomers include: a laundry room; wiring for Internet access; a room that can function as a den, study or office; a covered porch; an entertainment space or family room; a large, eat-in kitchen; environmentally friendly features; and an alarm system. “Boomers live large even if they have to struggle to afford it,” Hanneman said, and their lifestyle is lavish compared to their parents. “Buyers want the whole package, which is often more important than the home itself,” he said. “They need a safe, secure and friendly environment.” Quality of Life Found to Rise With Residential GrowthA new study from researchers at NAHB challenges the assumption of local zoning officials that residential development is detrimental to the quality of life in their community. Using two sources of data for their analysis, the NAHB researchers clearly showed that there is a positive correlation between growth and the quality of life. “Many local decisions made by officials concerning growth and development” are based on the perception that additional growth will deteriorate the quality of life, the study says. “Elaborate public policy initiatives, such as impact fees, urban service boundaries and mandatory land conservation are designed and implemented in order to mitigate the ‘negative consequences of growth’ and to ‘preserve quality of life.’ “All too often, the many benefits of growth — such as job creation, increased cultural and educational facilities, transportation improvements and improved health care facilities — are overlooked within the context of considering further development.” The study correlated housing starts per capita in 260 metropolitan areas collected from the U.S. Census Bureau for 2000-2003 with a quality index compiled by well-known researcher Bert Sperling.
The publication “2004 Best Places — Cities Ranked and Rated” was produced by Sperling, and in 1986 he also produced the very first rankings of Money magazine’s “Best Places to Live.” His quality index is based on hundreds of local data in such areas as education, health care, transportation, jobs and crime. Researchers at NAHB conducted a simple correlation analysis by comparing the quality of life index and growth index, with each metro area represented as a point on a graph. The result shows a line of rising quality of life as per capita growth increases. “While local governments have a responsibility to respond to the needs of their citizens by utilizing local land use tools such as zoning, they need to apply those tools with a better understanding that improvements to their community also occur through growth and development,” the study says. For more information, e-mail David Crowe at NAHB, or call him at 800-368-5242 x8383. The Race Is On for National Membership DayNational Membership Day — the federation-wide membership drive — is set for Tuesday, May 23. This year the theme is, "Driven to Be the Best," and NAHB members and state and local associations are preparing for this win/win event. Having the drive helps local associations revitalize and grow their memberships. It can also help them to energize their members, create excitement, build momentum and even enter into a few friendly cross-state, cross-country or member-to-member rivalries. Members, Start Your Engines Alan Baggett, the member services coordinator for the Florida Home Builders Association, has set his sights on 1,500 new members as a result of a campaign that began in January with in-state contests and rivalries fueling the drive. Not to be outdone, Jon Chandler of the Oregon Home Builders Association recently conducted a two-day drive that netted 927 new members. Pat Inge, of the Home Builders Association of Greater Dallas, reported that the association had a very successful March Madness membership drive The Momentum Grows National Membership Day has gained in popularity in recent years, a trend made clear by the growing number of associations pledging their commitment to participate — 150 to date — and organizing fun campaigns around the event. “I participate because it’s the right thing to do,” said Stephen Gidus, CGR, CGB of the Home Builders Association of Metro Orlando, Fla. “It’s good for us to all rally around membership for one day of the year and do what’s right for our associations. We’d be nothing without a strong membership. NAHB knows that, so they do a nice job of making this work rewarding.” Membership Day Webcast — and Prizes New this year are prize opportunities for Webcast viewers. Whirlpool Corporation, the exclusive sponsor of NAHB membership, will be awarding a Gladiator™ Garageworks Chillerator, valued at $999, as a prize for the top recruiter in May. The Webcast will air on Tuesday, May 23 from 2:00-5:00pm ET at www.nahb.org. Other prizes available throught he Webcast include:
Nation's Building News Will Not Be Published May 15Nation's Building News will not be published on May 15, the week following the spring NAHB Board of Directors meeting in Washington, D.C. Publication of NAHB's official online e-newspaper will return to its regular weekly schedule with the May 22 issue. Nine Months After Hurricanes, Construction Costs Still UpCarl Mabry, president of Bluff City Community Development Corp., a nonprofit development company in Memphis, Tenn. focusing on low-income housing, says that he has seen the prices of construction materials rise about 40% from 2004 to 2005, with much of the increase attributable to the shockwaves felt throughout the Southeast in the wake of last season’s unusually destructive hurricane season. As a result, it has cost about $5,000 more per unit to build his latest apartment project, which in April was $500,000 more than it was originally bid because of the increased cost of lumber, steel and other building materials. Price pressures from last year’s hurricanes have been especially noticeable with materials involved in repairs, such as roofing, and those that are produced from petrochemicals, said Mark Billingsley, executive director of the Memphis Area Home Builders Association. “While the impact of the hurricanes will be felt for years or even decades, some of the hurricane-induced problems are likely to ease within a few months,” he said. “Some slowdown in residential construction also is in store, and some new capacity for producing materials can be expected to come online in 2006 and 2007.” (www.memphisdailynews.com)
Costly ComponentsAlthough builders in Tulsa, Okla. previously feared that reconstruction of the storm-battered Gulf Coast would drive up the costs of construction materials and limit their supply, so far any price increases have stemmed from other factors. Cement, for example, has been squeezed by rising demand in this country and in China, which is in the midst of an economic boom, according to NAHB economist Michael Carliner. “There have been widespread shortages of cement and concrete products since the spring of 2004,” he said. Metals such as steel have also been driven up by demand in China, he said. “Unlike the U.S., China doesn’t have a lot of old cars to provide scrap,” said Carliner, “so they’ve been buying up steel scrap, as well as copper scrap and aluminum scrap, from around the world.” Increases in materials prices are responsible for a 2%-3% increase in home prices in the Tulsa area over the past year, according to Wayne Farabough of Perfection Homes, who points out that labor is a more significant factor for the cost of a new home. (www.tulsaworld.com)
Reasons Change for RefinancingFor the first time in five years, borrowers as a group are paying higher rather than lower interest rates after refinancing their home mortgages, according to a Freddie Mac review of refinancing activity during this year’s first quarter. At a time of rising mortgage rates, many home owners are refinancing to switch over from adjustable-rate to fixed-rate loans, and they are leaving the table with some of their equity to consolidate debt, pay for home improvements or buy a beach house. About 88% of people refinancing their homes took out loans for at least 5% more than their original balances, according to the report, which is the highest cash-out refinancing activity since the third quarter of 1990, about the time when the real estate boom of the late 1980s ended. However, the dollar amount of refinancing loans has been heading down. Home owners took $59.6 billion in equity out of their homes in the first quarter, down from $70.9 billion in the last quarter of 2005. (www.washingtonpost.com)
Economist: Slowing Market Not a ‘Bad Story’Although he expects purchase mortgage originations to recede this year to the levels of 2003, Doug Duncan, chief economist at the Mortgage Bankers Association, says that the market is “normalizing.” As part of that process, house-price appreciation will slow to the 6%-7% range this year; prices could slip in some local markets; more borrowers will switch from adjustable-rate to long-term mortgages; and delinquencies will be up. As a leading indicator for the rest of the nation’s housing, Duncan pointed to condominiums, which have the most price volatility, and he said that today’s supply of condos has climbed to seven months from a three-month average and their price appreciation has been falling more rapidly than any other housing segment. Higher mortgage delinquencies are likely because half of all loans are less than three years old and mortgages are most likely to become delinquent in the third to fifth year. Also, lending to households with lower credit quality has been the largest growth area for mortgage lenders. Even so, he does not expect rising delinquencies to have a major impact on the overall housing market. Duncan also noted that 34% of all U.S. households own their homes outright and that 48%-50% have a fixed-rate mortgage, leaving only 16%-18% exposed to the risks of rising interest rates. (www.inman.com)
Computing the CommuteResidents in the Minneapolis-St. Paul area who have moved to the outskirts because of housing prices are now asking some hard questions in the face of skyrocketing gasoline prices. “The old maxim, ‘Drive till we can afford it,’ may be softening,” said Michael Noonan, division president for one of the top national home builders operating in the area and a vice president of the Builders Association of the Twin Cities. “The rising cost of gas is adding a dimension that people didn’t used to consider as carefully as they do today.” Although it meant a long drive to work, Angie Rimbo and her husband bought a new $140,000 home that was halfway to St. Cloud because it was $50,000 less expensive than some older ones they had seen. But since moving in January, their monthly gas cost has averaged $500 and they are wondering if they can afford to live so far out. Responding to the problem, Scott Bernstein, president of the Chicago-based Center for Neighborhood Technology, is working with the McKnight Foundation and the Brookings Institution to assemble a data base that will enable prospective buyers to type in the location they are considering and find out what the transportation will cost them. (www.startribune.com)
Target to Appeal Edina’s Wish for SuperTarget With HousingTarget Corp. is appealing a decision by the 10-member Edina, Minn. Planning Commission turning down a proposal for the company to tear down an existing store in the affluent city and build a 196,000-square-foot super Target with a grocery because it refused to add a small number of affordable housing units or small retail shops behind the store. “It sounds like a good idea in concept, but in the real world, think of the lights on all night, trucks coming and going and noise from the fans required to cool the groceries, said Edina Mayor Jim Hovland. The mayor also said he doesn’t think the city has the authority to require Target to include affordable housing in its development project and that he’s inclined to support the redevelopment in order to update the look of the store. Minneapolis-based Target already owns the land, which is zoned for retail, and the only variance it is seeking is on the amount of parking spaces needed per square foot of store space. (www.twincities.bizjournals.com)
Oklahoma 29th State to Enact Opportunity to Repair LawOklahoma became the 29th state in the country to adopt notice and opportunity to repair (NOR) legislation when state governor Brad Henry (D) signed Senate Bill 1749 into law on April 27. The new measure allows a residential construction contract to include NOR provisions that require a home owner to notify a builder of an alleged construction defect before filing a lawsuit. The builder then has 30 days to respond by either offering to repair the defect or provide compensation. “We worked very hard and overcame many obstacles to enact the NOR bill,” said Rex Alexander, president of the Oklahoma State Home Builders Association. “We believe this equitable alternative to costly litigation will benefit both home buyers and home builders." Joining Wisconsin, Oklahoma is the second state that has adopted NOR legislation so far this year. Recent legislation in Virginia strengthens the state’s NOR law by including condominiums in the opportunity to repair process. Other states are still considering legislation this session. “The trend of states adopting NOR legislation continues as Oklahoma has chosen to enact this reasonable alternative to contentious litigation,” said NAHB President David Pressly. “This legislation, which had bipartisan support, ensures that home buyers can have construction defects remedied without having to incur expensive legal fees and court costs. I applaud the efforts of our builders throughout Oklahoma who worked so diligently to see this legislation enacted. ” For more information on the Oklahoma legislation, e-mail Mike Means, executive vice president of the Oklahoma State HBA, or call him at 405-843-5579. For more information on NOR laws across the country, e-mail Gerry Keegan at NAHB, or call him at 800-368-5242 x8326. Miami Could Be the First Hot Market to Land With a ThumpSome of the nation’s hottest housing markets will experience some bumpy corrections as the industry as a whole recedes to more sustainable, but healthy levels of activity, according to economists at the NAHB Construction Forecast Conference in Washington, D.C. last month. Miami, Fla. is the most “overvalued market in the country” and could very well be “ground zero” for the unwinding process that could deliver a thump to some overheated local markets at the same time as the industry as a whole glides in for a “soft landing” this year, panelists said. The markets where Mark Zandi, chief economist for Moody’s Economy.com, anticipates the most significant corrections — defined as more than a 10% peak-to-trough decline in housing prices — are in the Northeast, the Mid-Atlantic, Florida, California, Las Vegas and parts of Arizona. (See list of markets to watch below.) These markets will “correct, not crash,” Zandi said, because they have sturdy job markets, well-capitalized intermediaries and were only moderately overbuilt during the boom years. “Builders did a pretty good job of matching supply and demand,” he said, but “some reduction in the level of construction” is warranted and will help head off the longer-term potential for a severe slowdown. Australia and the United Kingdom, which have managed to weather a transition from their housing boom times without undue calamity, provide a reliable indication of what builders here should expect. “The housing markets were as juiced up there as here in the U.S., and they had soft landings,” he said. However, Zandi pointed out that there were still reasons to be wary of a potentially more severe slowdown here in the unlikely event that the general economy begins to falter. “Housing’s tentacles go deep into the economy,” he said, “deeper than many people think.” Zandi also noted that housing’s high sensitivity to shifts in interest rates will become increasingly apparent the longer the Federal Reserve continues driving up those rates by quarter-point increments. “Any fundamental rise in interest rates will bite hard,” Zandi said, and “the rise will lock out two key groups that are important to local and regional markets: first-time home buyers and investors.” Investors have something valuable to contribute to the long-term vitality of local markets because they aren’t just buyers whose aim is to “flip and get out,” but include second home buyers, boomers seeking retirement homes and others who are in it for the long haul. Another cause for concern, Zandi pointed out that there are a substantial number of borrowers at risk of defaulting on mortgages that are for amounts exceeding the value of their homes. “We will see defaulting and foreclosures,” he said. Taking a regional look at the state of the housing industry, Bernard Markstein, NAHB’s director of forecasting, said that there are significant variations in the forces driving housing demand, including home prices, population growth, household formations and jobs. Immigration, shifts in population patterns, energy prices, large-scale natural disasters such as Hurricane Katrina and an area’s appeal as a second home location are among other factors that will continue to generate somewhat different housing outlooks for different parts of the country.
Want to Know Your State and Metro Forecasts for 2006? Anticipate the trends, make better decisions and improve your bottom line. HousingEconomics.com, the online publication from NAHB Economics Group, is your single source for market analysis, forecasts, housing statistics and more. In-depth analysis and detailed Excel tables and overviews are available for all the state and metro forecasts. HousingEconomics.com combines unique scientific research with practical applications providing insights that are original and useful. This interactive Web site at the executive level provides critical data and information quickly, easily and frequently, and includes the following features:
Seiders Says, 'Builders Have Not Lost Touch With Demand' on the NAHB Economics Blog NAHB Chief Economist David Seiders says that "builders have not lost touch with demand" 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 Seiders' expert opinions, projections and responses. Then let Seiders know what you think by giving your perspective. Immigrants Help to Fill U.S. Construction Labor ShortagesImmigrants play an increasingly major role in the nation’s construction workforce, but even their growing presence has not been enough to alleviate debilitating labor shortages, according to an NAHB analysis of the 2004 American Community Survey (ACS) from the Census Bureau and Builders Economic Council (BEC) surveys conducted monthly by the association. The BEC surveys have found that more than 50% of all builders consistently report either severe or some shortage of carpenters and more than 40% are concerned about the availability of roofers. These labor shortages were particularly severe last summer, NAHB survey data show. In July, two-thirds of all interviewed builders reported shortages of carpenters and 42% said they did not have enough roofers. Immigrant rates of employment are above-average in both of these high-demand trades, Census data show. About 22% of carpenters and 33% of roofers are foreign-born. Although the ACS does not distinguish between residential and non-residential construction jobs, both require similar skills and draw workers from the same labor pool and many trades can go easily from one to the other. Roughly 20% of the construction workforce, or 2.4 million, are immigrants, according to the Census, higher than the 15% share of foreign-born workers in the nation’s workforce overall. Using Census survey data, Natalia Siniavskaia, an NAHB economist, has reported a number of findings about the participation of immigrants in U.S. construction:
For more information, e-mail Natalia Siniavskaia at NAHB, or call her at 800-368-5242 x8441. Hovnanian Lowers 2006 Expectations as Market CoolsAlthough it is anticipating another record year for earnings, Hovnanian Enterprises announced last week that it experienced smaller year-over-year earnings during the second quarter than it had anticipated and that the pattern should continue for the balance of its current fiscal year, which ends on Oct. 31. To blame, according to Ara Hovnanian, the company’s president and chief executive officer, are continuing production delays in several markets that have postponed deliveries, a slowdown in the recent sales pace, higher cancellation rates, more pronounced use of concessions and incentives, and material price increases. Although Hovnanian rang up a 33% increase in the dollar value of net contracts in its first quarter compared to the prior year, it expects to report about a 20% decline for the second quarter when results are released on May 31. “One factor that has negatively influenced our recent pace of net contracts is the sequential increase in our cancellation rates over the past two quarters,” Hovnanian said. “Typically, our second quarter cancellation rates are lower than those of our first quarter, which was not the case this year.” Conditions have slowed in certain markets, Hovnanian noted, and second-quarter sales were not as strong as the company has traditionally seen. “We believe the higher cancellation rates, in addition to an increase in resale listings and increased use of sales incentives in certain markets, are temporary aberrations as certain markets work through the increased level of resale homes for sale,” he said. “However, we remain encouraged that, supported by job creation and household formation, the long-term fundamentals of housing remain solid." Hovnanian also said that in response to the continued cooling-off of housing activity from the “white-hot levels” of previous years, the company has renegotiated or even walked away from deposits on several parcels of land it had under control through options, a tactic it has used successfully in prior slowdowns. 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.
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. Eye on the Economy: Fed Chair Hints at Another Rate HikeA Fade in Economic Growth Is in the Cards Beyond Mid-2006 Strong forward economic momentum extended into the second quarter of this year, but growth of both real GDP and payroll employment should begin slipping to below-trend rates beyond mid-2006. In the process, the unemployment rate should gravitate upward and get back to 5% by mid-2007. We’re viewing the upcoming slowdown in economic growth and the projected uptick in the unemployment rate as fundamentally positive developments that will help extend the life of the current economic expansion. After all, the expansion is now into its fifth consecutive year, and a lot of above-trend growth has been grinding up slack in labor and capital markets and threatening to generate serious upward pressures on core inflation (excluding prices of food and energy). That’s a real red flag to our inflation-wary central bank. Inflation Story Remains Good Despite Surging Energy Prices The Fed has been worried about upward pressures on core inflation from tightening labor markets and soaring energy prices that can make their way into the core through business cost structures. Indeed, history suggests that such pressures are now developing even if current readings on core inflation look benign. The core GDP price index showed an annualized gain of 3.3% in the first quarter of this year and a year-over-year gain of 3.0% — both on the high side of recent experience. The core price index for the Fed’s favorite inflation gauge, the Personal Consumption Expenditures (PCE), showed an annualized gain of 2.0% in the first quarter and 1.9% on a year-over-year basis. The top of the Fed’s “tolerance zone” for the core PCE price index apparently is about 2%. So the Fed presumably is prepared to nip underlying inflation pressures in the bud before they materialize at the consumer level. Fed Chairman Bernanke Hints at Another Rate Hike on May 10 The Fed chairman, Ben Bernanke, testified before the Joint Economic Committee of the U.S. Congress on April 27. He painted a picture of an economy that had decelerated late last year in the wake of the hurricanes but that had rebounded nicely in the early months of 2006. He also discussed systematic reduction in the degree of slack in resource (labor and capital) markets as well as the complications posed for both real economic growth and core inflation by surging energy prices. Bernanke also discussed the likelihood of a slowdown in economic growth and job creation as 2006 progresses. And while characterizing the outlook for inflation as “reasonably favorable,” he stressed the upside risks from both labor and energy markets and declared that “vigilance in regard to inflation is essential.” With respect to future monetary policy moves, Bernanke hinted strongly about another quarter-point rate hike at the next Federal Open Market Committee meeting on May 10, a move that will raise the target for the federal funds rate to 5.0%. He stressed that policy adjustments beyond that point will be data-dependent. We’re viewing a 5% funds rate as a slightly restrictive monetary policy stance, and we expect the Fed to hold that position throughout the balance of the 2006-2007 forecast period. Long-Term Interest Rates Are Firming Up, Restoring Some Positive Slope to the Yield Curve Strong economic indicators, percolating inflation numbers and an obviously resolute Federal Reserve have combined to push long-term interest rates to four-year highs. Indeed, the 10-year Treasury yield has been hanging around 5.1% in recent days and the fixed-rate home mortgage moved up to about 6.6% at the end of April. Long-term rates currently are a bit above NAHB’s estimate for the second quarter ― and about equal to our forecast for the second half of the year. As long as current expectations for economic growth, core inflation and Fed policy are realized as time goes by, long-term rates should stabilize around current levels. That’s our current judgment, although our long-term rate forecast could turn out to be too low if term spreads in the yield structure widen out further — imparting more upward slope to the Treasury yield curve. Home Sales Are Rattling Downward, Inventories of Unsold Homes Are Rising Surveys of home builders and home mortgage lenders have been painting downward trends for home sales since mid-2005, and the official measures of new and existing home sales have been rattling downward irregularly from peaks reached around that time. Sales of new homes rose in March, but the average for the first quarter was off by 10% from the final quarter of 2005 and even further below the third-quarter average. Sales of existing single-family homes (based on closings) were about flat in March, but the first-quarter average was down by about 5% from its high in the second quarter of last year. Meanwhile, sales of existing condos were off by 10% from their late-2005 highs. Pending sales of existing homes ― based on contracts signed ― trailed down during the first quarter, and the March reading was nearly 10% below the monthly high last August. Inventories of homes for sale have moved upward as sales volume has come down. Inventories of new homes gravitated up to a record 555,000 units in March, a 5.5 months’ supply at the current sales rate. Inventories of existing single-family homes moved up to a record 2.70 million in March, a 5.3 months’ supply, and the inventory of unsold existing condo units soared to 494,000 — a shocking 6.9 months’ supply. House Price Inflation Is Decelerating, But Affordability Still Is Falling The rate of house price inflation has been decelerating from peak rates posted during 2005. The median price of existing single-family homes sold in March was up by 7.8% from a year earlier, well down from the 15% rate of appreciation seen around the middle of last year. In the market for existing condos, year-to-year price appreciation in March was 6.1%, down from rates in excess of 20% early last year. The multi-year accumulation of rapid house price increases took a heavy toll on housing affordability last year, and affordability has continued to erode as price appreciation has slowed — partly because of a rising mortgage rate structure. Indeed, the Housing Affordability Index (National Association of Realtors® series) was down by 10% in March (year-over-year basis), reflecting a 4.1% increase in median family income and a 15.6% increase in mortgage qualifying income. The index was down most sharply in the West, where price appreciation has been most robust. The Housing ‘Soft Landing’ Still Is on Track, But Downside Risks Abound Bernanke told the Joint Economic Committee on April 27 that the housing market is showing “signs of softening,” and he noted that house prices “appear to be in the process of decelerating.” With respect to the near-term outlook, Bernanke said that the housing sector “will most likely experience a gradual cooling rather than a sharp slowdown.” However, he quickly added that “significant uncertainty attends the outlook for housing, and the risk exists that a slowdown more pronounced than we currently expect could prove a drag on growth this year and next.” NAHB’s baseline (most likely) housing forecast for 2006-2007 is fully consistent with Bernanke’s view of the most likely outcome. However, we also recognize substantial downside risks to the “gradual cooling” scenario. The biggest uncertainty relates to the actions of investors/speculators that were such a big factor in the single-family and condo markets last year. Indeed, NAHB surveys of builders are documenting a falloff in investor purchases, rising sales cancellations by investors/speculators and resales of units owned by investors/speculators as the prospects for price appreciation deteriorate. These cancellations and resales are adding supply to markets already experiencing an inventory run-up as demand cools in the face of deteriorating affordability conditions. Stay tuned. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his May 3 edition. To subcribe to “Eye on the Economy,” click here.
Want to Know Your State and Metro Forecasts for 2006? Anticipate the trends, make better decisions and improve your bottom line. HousingEconomics.com, the online publication from NAHB Economics Group, is your single source for market analysis, forecasts, housing statistics and more. In-depth analysis and detailed Excel tables and overviews are available for all the state and metro forecasts. HousingEconomics.com combines unique scientific research with practical applications providing insights that are original and useful. This interactive Web site at the executive level provides critical data and information quickly, easily and frequently, and includes the following features:
Seiders Says, 'Builders Have Not Lost Touch With Demand' on the NAHB Economics Blog NAHB Chief Economist David Seiders says that "builders have not lost touch with demand" 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 Seiders' expert opinions, projections and responses. Then let Seiders know what you think by giving your perspective. Builder's Tip: Shop Vac Works for Hard-to-Fill Glue Ups
While building a set of stairs recently, I noticed that a crack had developed in the bottom of one of the vertical-grain fir stringers. Because the stairs were exposed on both sides, I wanted to glue and screw the crack closed, but I had difficulty filling the crack with glue. To solve the problem, I used a co-worker’s shop vac to help fill the crack with glue. Here's what I did:
— Gregory Coffin, Loveland, Colo. Tips & Techniques provided by Fine Homebuilding.
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. Log In and Explore www.nahb.org
Explore the latest housing industry news and information on www.nahb.org — the official public and members-only Web site of NAHB. With an expansive "For Consumers" section, www.nahb.org provides a credible source of information on home building and remodeling for your customers. The Web site also provides a wealth of member discount programs and business resources developed for you. Plus, to make it easy to get what you need, the Web site has built in time-saving features like My NAHB to customize the site to your interests, My Favorites so you can select specific links to appear on your www.nahb.org Home page and online Staff Directories so you can find NAHB housing industry experts quickly and easily. Use www.nahb.org to stay on top of the latest housing industry news, access your council and committee materials, register for courses and events and stay abreast of NAHB’s efforts to promote housing. Log in today to start taking advantage of this free NAHB member benefit. Employment Records Subject to Immigration Law AuditsThe information below has been prepared by NAHB to help members of the association understand their rights and responsibilities as employers under the nation’s immigration enforcement policies. Last month, the Department of Homeland Security announced a shift in its strategies to enforce compliance with its immigration requirements on the work site. (For a previous NBN story on this announcement, click here.) At about the same time, some residential construction companies reported receiving a formal, three-day "Notice of Inspection" document for an I-9 audit, demanding the usual review of company employment records, but also requiring a review of their subcontractors' employment records. The following questions and answers explain what employers need to know about Form I-9 and what is involved in the event of an audit: Q. What is a Form I-9? A. Federal law places an affirmative duty on employers to verify the identity and work authorization of all persons who are hired. This is accomplished by the mandatory completion of Employment Eligibility Verification Form I-9. Employers are required to keep a completed Form I-9 on file for each of their current employees who were hired after Nov. 7, 1986. Q. When must the I-9 be completed? A. Section 1 of Form I-9 (information supplied by the employee) must be completed and signed by the employee at the time of being hired. Section 2 of Form I-9 (the employer's review and document verification) must be completed and signed by the employer (or an authorized representative) within three business days of the hiring. Q. How long must Form I-9s be retained? A. Employers are required to retain each Form I-9 for one year after the employee is terminated, or for at least three years from the date of the hire, whichever is later. Q. What is an I-9 audit? A. The Department of Homeland Security's Immigration and Customs Enforcement Agency (ICE), formerly the INS, has the authority, without needing a subpoena, to inspect any employer's Form I-9s to verify compliance and to check their accuracy. This inspection is called an I-9 audit. Q. Can ICE conduct surprise I-9 audits? A. No. An investigator can show up unannounced at a work site, but cannot demand an immediate production of I-9 records. Under the law, an employer is entitled to receive a three day notice prior to the I-9 audit. In the past, it was possible to negotiate with ICE for longer periods before an I-9 audit took place, as much as 10-12 business days. Q. Are builder-employers responsible for their subcontractor employees' I-9 compliance? A. No. Under the law, builder-employers are not required to complete Form I-9s for the employees of their subcontractors, or to monitor their subcontractors' Form I-9 compliance. However, builders should be aware that they are unlawfully circumventing the immigration laws if that know that any of their work-site subcontractors are employing unauthorized aliens. Q. Do builders have to produce their subcontractors' employment records or a list of their subcontractors? A. A builder is not expected to have possession of a subcontractor's employment records at an I-9 audit and is not responsible for securing these records from subcontractors or assembling subcontractors at any location. However, builder-employers are required to cooperate with ICE investigations. Other documents of a builder that are relevant to any investigation can be subpoenaed, including records that a builder possesses pertaining to its subcontractors. Q. Can a builder-employer have an attorney present during the I-9 audit? A. Employers who are the subject of an I-9 audit have the right to be represented by counsel. Given the new federal "compliance attitude," and its obvious attempt to make builders-employers responsible for subcontractor hiring practices, it is recommended that an attorney be brought in immediately when notice of an I-9 audit is received. Any investigative demands, including demands for subcontractor information, should then be referred to the builder-employer's attorney for appropriate action and response. Q. Can incomplete or inaccurate Form I-9s be corrected? A. If at any time errors are discovered on a Form I-9, corrections can be made. Corrections to Section 1 (employee information) should be made by the employee, or made in the employee's presence, and then initialed and dated by the employee. Corrections to Section 2 (employer review and document verification) should be made by the employer or an authorized representative. Each correction should be initialed and dated by the person actually making the change. Under no circumstances should a Form I-9 ever be backdated or forged. These are criminal violations. Q. What penalties can be imposed for violations of the Immigration Act? A. If any deficiency or illegality is found, ICE will issue a Notice of Intent to Fine (NIF) to the employer. Form I-9 paperwork violations are subject to fines of between $100 and $1,000 per infraction. More serious violations, such as hiring unauthorized aliens, are subject to steeper fines. Arrest and imprisonment are possible for those who are found to have engaged in a regular pattern or practice of willful violations. Q. Can an NIF be contested? A. Yes. An employer has 30 days to contest the NIF by requesting a hearing before an administrative law judge. Q. Can anything be done to reduce the penalties for unintentional paperwork violations? A. Yes. Mitigating factors are considered, including the size of the employer, the employer's good faith, a good compliance history, the seriousness of the violation at hand and whether the employee listed on an incomplete or inaccurate I-9 is actually authorized to work. The presence of mitigating factors can result in a reduction of penalties. Q. What proactive measures should be taken to avoid an unintentional violation? A. It is highly recommended that builder-employers conduct regular internal audits of their company's employment records to re-verify the legitimacy and appropriateness of the documents on file, to confirm that all Form I-9s are accurate and complete, and to assure that any temporary work authorizations have not expired. Q. Where can blank Form I-9s be obtained? A. Form I-9s can be downloaded from the following Web site: www.uscis.gov/graphics/formsfee/forms/files/i-9.pdf Q. Where can instructions for completing Form I-9s be obtained? A. Detailed instructions can be found in the U.S. Justice Department publication M-274 "Handbook for Employers — Instructions for Completing Form I-9." This can be downloaded from:
Supplemented on Oct. 7, 2005, by the U.S. Department of Homeland Security, Employer Information Bulletin 102, "The Form I-9 Process in a Nutshell," can be downloaded at: www.uscis.gov/graphics/services/employerinfo/EIB102.pdf For more information, e-mail David Crump at NAHB, or call him at 800-368-5242 x8491. Vendor Summits Build Winning Team, Increase ProfitsOne of the top business management challenges home builders of all sizes frequently cite is the difficulty in finding and retaining good trade contractors. After all, the quality of the next house is only as good as those working on it or providing materials. In a booming market coupled with low unemployment, such as the Washington/Baltimore region where we at Caruso Homes are building, a competitive edge rests heavily on the ability to keep the best subcontractors. Every house we deliver will be touched or impacted by more than 65 other companies. These businesses can contribute significantly to — or take away from — on-time delivery of quality homes, satisfied customers and profits. Know Your Partners A first step for builders to build a winning team is to know the goals and expectations of their trade partners. Throughout Caruso’s 20-year history, and in particular, during our rapid growth periods, some of our trade contractors have chosen to grow with us ― and have prospered as a result. Some, however, chose to remain small and, therefore, could not meet our increased needs. This has necessitated that we find qualified vendors to replace them ― an extremely time-consuming process for builders that is best accomplished on the very front end of projected growth. Conversely, to meet our need for quality construction, timely delivery and delighted customers, these subcontractors — who have a significant capital outlay — need to know our expectations as a customer and how they and their paper trails can ensure prompt payment. To be most effective, the trade contractors need to recognize they are our partners in the business. As open communication is critical to any partnership, the key to keeping loyal trade partners is to keep them informed about:
To accomplish this, regular and clear communication with trade partners is critical. Communication with workers in any business is a challenge, but it is particularly difficult in home construction, where the field work may be far from the office and we may be just one among many sources of work for our trade partners. Most of these partners welcome periodic face time at meetings where they are provided useful information and the opportunity to ask questions and network. At Caruso Homes, we meet at least semiannually at a company-sponsored “Vendor Summit.” These summits, which we host at a hotel conference center, cost $3,000-$5,000 each, including materials. We consider them an essential business investment. With smaller groups, the investment might be less. Vendor Summits Improve Efficiency The summit is an efficient way for team members to trade information, particularly when a builder works in more than one region and with different groups of vendors. Attendance may be required or optional, depending upon the issues to be addressed. But most of our vendors have told us that the summits are time well spent and that they rely on these routine updates ― especially information on anticipated construction starts and volume ― so they can be staffed properly to take maximum advantage of work loads. One important function that the summits fulfill is the opportunity for Caruso staff and the company’s trade partners to put names with faces, fostering positive relationships. Our entire purchasing department attends, so trade partners learn who to contact if they have questions or problems. In addition, Caruso’s purchasing director and vice president for production, CEO and many others address the group. Prior to our summits, our vendors receive a written invitation and a copy of the proposed agenda. Handouts for the summits cover everything from bid procedures to projections for work volume and timing. Vendors also receive updates on any technology implementation, invoicing and payment methods, safety issues, and changes in policies or procedures. Master contracts with detailed scopes of work can be included as well if they are renewing or changing. Recent agenda items included:
At our most recent vendor summit, I asked all the Caruso team members to stand. The Caruso employees stood up, but the rest of the room ― all the trade contractors ― remained sitting. I then reminded our partners that even though they don’t work in our administrative offices, they are critical to our success. As a home builder, you, too, are building a team and should recruit and coach top players and follow winning strategies with the same spirit as any sports coach.
David Herzog is president of Caruso Homes, Inc., a Washington, D.C. metropolitan area-based home builder that closed 248 single-family homes in 2005. Caruso Homes is a member of the NAHB Builder 20 Club program, a 2006 America’s Best Builder award winner and has been recognized with numerous other honors. For more information, visit their Web site at www.carusohomes.com. 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. 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:
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. Awareness of Active Adult Housing Rising SharplyBaby boomers who are in their mid-40s and older have a growing awareness of active adult communities, which will give builders and developers a marketing advantage in selling these homes to them, Margaret Wylde, of ProMatura Group, told the “Building for Boomers & Beyond: 50+ Housing Symposium” in Phoenix last month. “There has been a huge statistical increase in awareness” of active adult housing, researcher Wylde said, “and the higher the awareness, the higher the market penetration and sales.” She attributed the growing interest in active adult to the proliferation of these communities nationwide and outside of their traditional location in Arizona and other pockets of the Sunbelt. In a telephone survey earlier this year of almost 3,400 households in the 45+ age range, Wylde found that 84% knew about this product. Among those who were 60+, 87% of those participating in the latest survey were aware of active adult housing, compared to 62% in a similar survey in 1998 and 68% in 2000. Of those surveyed, 15.6% said that they planned to move within the next five years, 54% of them within the same state, 11.2% to Hawaii, 9.4% to Arizona, 5.5% to North Carolina, 5.5% to Texas and 5.2% to Nevada. And 15.3% of those who said they plan on moving indicated that they were likely or very likely to buy an active adult home, indicating average annual demand for 248,888 homes over the five-year period, Wylde said. But a more significant opportunity comes from the 54.4% who expect to be moving but are unsure if their destination is an active adult community, Wylde said. They average 883,523 annually over five years. “This is your market to lose,” she said, adding that “the more they know about active adult, the better.” Going by zip codes, demand for active-adult housing ranged from a high of 20% in the mid-Altantic states to a low of under 12% in Nebraska, Kansas, Missouri and Illinois. More than 50% of those surveyed said that they expected to purchase a primary, secondary or investment residence over the next five years, Wylde reported.
Wylde’s survey research zeroed in on a number of factors likely to influence the decisions of 45+ households who want to puchase a home in the next five years, and representatives from active adult companies supplemented her findings with anecdotal observations from their communities:
Find Out What the 55+ Market Wants “Boomers on the Horizon,” 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. Cooling Housing Market Could Deliver a Glut of CondosConcerns are growing that apartment condominiums may be vulnerable to the current cooldown in the nation’s residential market, according to a recent multifamily housing forecast by NAHB, even though many of the properties under development have been pre-sold. A large share of sales contracts could be cancelled and condo units purchased by speculators could quickly make their way back onto the market in the face of oversupply and declining sales prices, the forecast warns. “It will be hard to absorb all of the supply that will become available for occupancy in 2006 and 2007,” the forecast advises, and most vulnerable to a glut will be hot markets such as Florida and the Southwest where the condo craze has been most pronounced. The slowdown may start occurring even before oversupply problems become apparent, according to NAHB forecasters, because lenders are starting to cut back on their support of condo production and conversions, which tend to be highly leveraged. While well-established builders are not having as much difficulty obtaining financing as newcomers to the industry, they, too, can be expected to start having reservations about the ability of the market to absorb the supply of units in the pipeline, the forecast says. As a result, the 43% share of multifamily starts captured by condos last year was likely the cyclical high-water mark of the condo boom. At the same time, the share of condos occupied by renters will be on the increase, according to the forecast, with apartments owned by investors a significant segment of the upper end of the rental market. NAHB economists have identified a number of recent trends related to multifamily housing:
The Multifamily Forecast: Major Shifts Underway Find out where the mulifamily market is headed in HousingEconomics.com’s “Multifamily Forecast Report.” (Sample report). The forcecast, available by subscription only, provides the latest information on the condo boom, tax credit/subsidized units, market rentals and more. Data and figures are provided in downloadable Excel tables. Reports are in a PDF format. To learn more, or to subscribe, visit www.housingeconomics.com. May Is ‘Remodeling Month’ and NAHB Has Resources for YouNAHB Remodelors™ Council’s nationwide campaign blitz to promote it.The council has developed a National Remodeling Month Kit that includes easily customizable press releases and articles and offers plenty of marketing ideas to help promote remodeling throughout May. In addition, the kit includes a step-by-step guide to lead you through the campaign. The materials available in the kit include: Press Materials
Members can use National Remodeling Month materials to:
NAHB's Remodelors™ Council has two designations — Certified Aging-in-Place Specialist (CAPS) and Certified Graduate Remodelor™ (CGR) — that will give remodelers the expertise and knowledge to set themselves apart from their competition as well as run their businesses more efficiently and effectively.
'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. Small Tilt-Up Projects Can Be Profitable and EfficientBy Craig Olson, P.E. and Laurence Smith, P.E. But as tilt-up has evolved and adapted with new finishes and construction techniques, it also became possible for general contractors to build smaller structures of between 3,000 and 10,000 square feet using tilt-up concrete construction ― and to be profitable doing so. The key to success clearly lies in pre-planning and addressing the design and construction process with a fresh approach, rather than replicating a scaled-down version of a large tilt-up facility. A case study of tilt-up success in a smaller job is the construction of the 5,000-square-foot building for Pinchin LeBlanc Environmental Ltd., a Nova Scotia-based multidisciplinary consulting firm providing environmental assessment, management and control of hazardous materials. Recognizing the Long-Term Benefits Initially, Ron LeBlanc, president of the consulting firm, was skeptical about using tilt-up construction for his building. But he soon recognized the long-term benefits. “Beyond price, tilt-up was a more durable solution that required less maintenance,” LeBlanc said. “Further, our building location was in an industrial park and tilt-up fit the existing look and theme of the complex.” LeBlanc contracted with the general contracting and engineering firm, J.W. Lindsay Enterprises Ltd., which was building a 69,000-square-foot office/warehouse using tilt-up construction not far from his site. J.W. Lindsay was given the freedom to design and develop cost-effective and efficient options to make tilt-up an affordable solution. The contractor began the design process with a feasibility study assessing staff needs and space requirements. The study included such intricate details as whether or not a window would create a glare on a computer screen and how often the receptionist had to leave her desk to work elsewhere in the building. After the study, J.W. Lindsay developed the floor plan and design concept. As with any tilt-up project, planning began by determining panel dimensions, the availability of cranes and selecting the casting surface. After the panels were designed, the layout/erection sequence was planned. Designing for Efficiency
It is important to begin the process by reviewing all the design features that add to the panel thickness and weight. These dimensions not only impact the budget because of the amount of reinforcing steel and concrete required, panel thickness and weight also dictate the size ― and cost — of the crane. And on a small project, the size of the crane could make or break the budget. As a general rule, a crawler crane capacity should be five times heavier than the heaviest panel, a conventional crane capacity should be four times and a hydraulic crane capacity should be about 3.5 times the heaviest panel. To determine the type of crane necessary, first determine the weight of the heaviest panel. Although large projects typically dictate the use of a crawler crane in order to speed panel erection, on a smaller project such as the Pinchin LeBlanc building, a hydraulic crane may suffice. True, a smaller hydraulic crane may take more time to erect the building, but those time-related costs will more than offset the much higher crawler crane rental cost, even for a shorter time. With the Pinchin LeBlanc building, the panels were only 14.5-feet tall and an insulated form system was used for the foundation and frost wall. These design decisions meant that the panels would be only 6 inches thick, which reduced formwork and material costs. The smaller panels also enabled the contractor to use a lower capacity, 70-ton crane, rather than a more traditional 140- to 300-ton crane used on most tilt-up projects. Designing for Economy The architectural treatment cast into the exterior of the panel can also lead to more savings if done properly for a smaller structure. For example, if a 5.5-inch structural panel is required, a 1/2-inch reveal, instead of a more expensive 3/4-inch reveal, may be all that’s needed. Chances are that no one will notice the design variance, but the decrease in the amount of concrete needed can make a difference. Although there are great economies of scale realized when the panels are the same on a large structure, such repetition may equate to excess reinforcing steel or unnecessary concrete in a small structure containing only 10 or 20 panels. Just because a double mat of reinforcement is necessary in one panel doesn’t mean it’s required throughout the entire structure. Corner detailing also can make a difference since the cost and formwork necessary for a smooth edge miter, sharp edge miter or modified butt joint can be drastically more expensive than a simple butt joint. A Size and Accessibility Challenge Overcome
Because the site was small and located on airport grounds, accessibility was a major challenge. Design and construction required 17 panels, but all the panels had to be cast on the hangar’s floor slab so as not to interfere with airport operations. In addition, permission was required from the adjacent property owner to utilize space for staging, and coordination with the utility company was required during panel erection because power lines needed to be taken down because of their close proximity to the building and crane. This project would not have been as successful without solid pre-planning and design, including panel size and opening locations, to ensure economical stack-casting. All this was accomplished. Not only that, the design incorporated architectural banding using corporate colors to provide visual relief, the corporate logo and an airplane silhouette — all of which was cast into the structure ― so the small tilt-up hangar was not only cost-effective, it was attractive. The Need for Speed Beyond durability, speed is another major reason to select tilt-up construction for even the smallest structures. In Theresa, Wis., town leaders wanted to build a 10,000-square-foot town hall in as short a time as possible. The building committee chose to use tilt-up construction for the facility, which included offices, meeting spaces and a garage, and construction was begun and completed in the heart of Wisconsin winter. The building was completed in just three months, meeting the town’s requirements. In addition, banding was chosen to provide architectural relief in the panels to make the town hall attractive. And radiant heat was used in the garage area to complement the inherent thermal mass properties of the concrete panels. The Pinchin LeBlanc building was also finished quickly. The walls for that building were cast in one week and erected in a mere four hours and 15 minutes, and LeBlanc had complete occupancy of the facility one month ahead of schedule. When Thinking Small Tilt-Up, Think Simple Tilt-up construction combines the advantages of reasonable cost with low maintenance, durability, speed of construction and minimal capital investment. There are many creative design solutions that can be employed with tilt-up construction to make it an affordable option for smaller scale projects. When thinking small, keep the design options simple and many cost-effective options will be realized. For more information about tilt-up construction, visit Tilt-Up Concrete Association (TCA) Web site at www.tilt-up.org, or call 319-895-6911. Craig Olson, P.E. is senior project engineer for C.E. Doyle, LLC of Campbellsport, Wis. and a member of the Tilt-Up Concrete Association Technical Committee. For more information, e-mail Olson, or visit his company's Web site at www.cedoyle.com. Laurence Smith, P.E. is project manager at J.W. Lindsay Enterprises Ltd. of Dartmouth, Nova Scotia and president-elect of TCA. For more information, e-mail Contact Smith, or visit his company's Web site at www.jwlindsay.ca.
Want to Know More About Designations? Ask an ExpertThe NAHB University of Housing recently implemented “Ask an Expert,” a new service on the NAHB Web site for members seeking or earning designations. "Ask an Expert" allows members to e-mail designation program graduates with questions that will help then earn their CSP, Master CSP, CMP or MIRM designations. The graduates will field questions and concerns ranging from course content, to the designation process, to how the designation has benefited them. So, if you're thinking about enrolling in the CSP, Master CSP, CMP or MIRM designation programs or have already started the necessary course work and have questions or concerns, visit “Ask an Expert” on the NAHB Web site. A variety of designation holders will provide you with guidance and help you navigate the ins and outs of the program.
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.
Log In and Discover www.nahb.org The NAHB Web site, www.nahb.org, gives you access to nearly 5,000 pages of housing industry information and exclusive members-only resources 24 hours a day, seven days a week. Access is fast, easy and free to NAHB members. To take full advantage of the exclusive NAHB members-only resources on www.nahb.org, however, you must log in. To create your login:
By logging onto the NAHB Web site, you will have access to twice as much information as non-members — information that will help you stay ahead of your competition. You will be able to view and read entire sections of content developed just for members, and you will be able to personalize the site to your specific interests. To learn more, log in and visit the "How to Use" www.nahb.org section in My NAHB. For questions or help logging in, call 800-368-5242 x0; or e-mail your name, company name, state and phone number to login@nahb.org. Education Calendar
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.
Log In and Discover www.nahb.org The NAHB Web site, www.nahb.org, gives you access to nearly 5,000 pages of housing industry information and exclusive members-only resources 24 hours a day, seven days a week. Access is fast, easy and free to NAHB members. To take full advantage of the exclusive NAHB members-only resources on www.nahb.org, however, you must log in. To create your login:
By logging onto the NAHB Web site, you will have access to twice as much information as non-members — information that will help you stay ahead of your competition. You will be able to view and read entire sections of content developed just for members, and you will be able to personalize the site to your specific interests. To learn more, log in and visit the "How to Use" www.nahb.org section in My NAHB. For questions or help logging in, call 800-368-5242 x0; or e-mail your name, company name, state and phone number to login@nahb.org. Sponsorships Available as 28th Builder Earns NHQ CertificationThe NAHB Research Center announced last week that Wallen Builders of Rio Rancho, N.M. is the 28th builder in the country to earn National Housing Quality (NHQ) certification. The center also announced that it is stepping up efforts to find new partners to help support NHQ efforts to improve the home building industry. “In a competitive market, one of the ways builders can differentiate themselves is through the quality of their homes,” said Michael Luzier, president of the Research Center. “The NHQ Certified Builder program allows them to proactively address production issues and build a better product,” he said. Participating NHQ builders have noted measurable improvements in their productivity, home buyer satisfaction and their bottom lines, he said. Launched during the 2005 International Builders’ Show in Orlando, Fla., the NHQ program is designed to foster consistency and quality in building practices. The program recognizes builders who have implemented formal quality assurance systems and have participated in a rigorous audit by quality experts from the Research Center. Candidates for certification must work effectively with their trade contractors and are required to continuously improve all elements of the company’s quality assurance efforts to reach higher levels of customer satisfaction. In business since 1982, the philosophy of Wallen Builders is “to remain loyal to customers and solidly stand behind every home we build,” said Gary Wallen, the company’s president. Created earlier this year, a new NHQ sponsorship program is providing companies with an opportunity to partner with the leader of the industry’s quality assurance movement and market to builders and trade contractors who are focused on profitability, accountability and customer satisfaction. During the week of May 8, with the NAHB Board of Directors assembling in Washington, D.C. for its spring meeting, the Research Center is offering a special 20% discount for new NHQ sponsors. A variety of sponsorship opportunities are available. To learn more about how your company can support the improvement of quality in the home building industry, or for further information about NHQ Certification, e-mail Lisa Gibson, NHQ sponsorship coordinator, or call her at 301-785-3100. For those attending the spring board meeting, information will also be available at the NAHB Research Center booth. Builders Can Help Guide New Product DevelopmentThe NAHB Research Center is looking for builders to join the Home Builders Online Research Panel, where they can draw on their experience in the industry to provide key information that will provide the basis for making effective marketing and business decisions. The panel was created to help product manufacturers improve the performance and durability of the nation's homes. Information from panelists provides the Research Center with insights into the perceptions, motivations, reactions and decision-making processes of home builders. The valuable feedback of the panel's builder members is then put to work to help solve manufacturer problems and influence the development of new products. Joining the panel is simple. Members are asked periodically to offer confidential responses to brief questionnaires. Membership is free, and participants earn points that can be traded in for cash and other gifts. For more information, or to join, click here. For those attending the spring board meeting in Washington, D.C. this week, information will also be available at the NAHB Research Center booth. Job Corps Students Step Up for National Youth Service DaySeveral Home Builders Institute (HBI) Job Corps programs across the country rallied students to assist in various projects in their communities on April 21-23 in conjunction with National Youth Service Day, one of the largest service events in the country. Youth Service Day is a program of Youth Service America (YSA) and the National Youth Leadership Council (NYLC) in partnership with Parade magazine. Following is a sampling of last month’s activities on Job Corps campuses:
For more information on HBI’s Job Corps programs, e-mail Maria McIntyre, or call her at 800-795-7955 x 8912. America’s Ugliest Doors Win High-Performance MakeoversWhen the experts at Therma-Tru® set out to find the ugliest entry and patio doors in America for the second year in a row, they didn’t realize what stiff competition was out there. They encountered double doors plastered in hot pink, single doors that looked like they were hacked with a chainsaw and patio doors hanging off their hinges. In the national “Ugliest Door in America Contest” with the Carey Brothers, hosts of the “On the House” home improvement radio show, Therma-Tru invited home owners to submit a photo and brief essay declaring why they deserved a new entry or patio door system from Therma-Tru. An elite panel of expert judges — comprised of Morris Carey and James Carey; Sal Alfano, editor-in-chief, Remodeling and Replacement Contractor magazines; Colette Ortiz, building and design editor, “This Old House”; Steve Lawler, producer, “DIY to the Rescue”; and Bernie Ferrari, product manager for exterior doors, Huttig Building Products — waded through more than 100 qualified entries. The two grand prize winners were announced during a live broadcast of “On the House” on April 15. They will receive Therma-Tru door systems worth approximately $3,000 to $5,000. The actual door model, style and size will be determined by Therma-Tru based on the home. Construction is set to begin later this spring. Grand prize winners Darrell and Marie Dunnewold of Clymer, N.Y., really charmed the judges with their unusual entry door. The previous owner was an art teacher and had painted the entire door, including its windows, a combination of “blue-grey and old-barn red.” In addition, to the unique color pattern, the owner had attached a lion’s head knocker, “Hawaiian-style” window shutters and pineapple decorations. Besides blocking out light, the door is notable for its chipping paint and a rickety storm door that is one size too small, ensuring that residents have a good idea when there’s cold weather outside. A sticker in the upper left corner of the door stating “Please Use Other Door” says it best. Second place winners Jerry and Gloria Schwartz of Matthews, N.C., have a security risk on their hands with doors that can easily be picked “with a bu |