Nation's Building News Online: January 15, 2007

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Builders Told to Ramp Up Sales Efforts in Slow Market

In the current buyer’s market, home builders are paying the price for the buying frenzy they helped create at the height of the recent boom, according to Tom Stephani, an infill builder in Crystal Lake, Ill., but there are still many buyers out there for companies that know how to ramp up their sales and marketing.

“We out-produced the market by playing a game of musical chairs, raising prices and adding more chairs.” said Stephani, who moderated an NAHB “Back to Basics” teleconference last week. But “when people found a chair they liked, they didn’t play anymore, there were too many chairs and too few people and the frenzy ends.”

(At no charge, NAHB members can access the audio conference, "Ramp Up Your Sales and Marketing in a Changing Market," by clicking here.)

With prices getting out of hand, even with low mortgage interest rates, “the market eventually said enough,” he said, and there was “too much product chasing too few customers.”

“The need for quality housing in America will continue to be strong for the foreseeable future,” he added, but “the existing market must get real first,” a process that is already occurring.

While Stephani indicated that he and his panelists Bill Becker, managing director and president of The William E. Becker Organization; and S. Robert August, president and founder of S. Robert August & Company, Inc., have been in the industry long enough to have seen their fair share of housing downturns, a surprisingly large share of today’s builders and their associates haven’t experienced a slowdown before, because the last one occurred more than 14 years ago. “This is a new and scary experience for those who haven’t gone through this before,” he said.

The first step for beleaguered builders is to identify their problems, Becker said. Those can include cash flow, unsold inventory, cancellations and the loss of buyer deposits, large deposits on future communities, overstaffing, competition, slow or nearly no traffic and out-of-date models and products.

In looking for the solution to those problems, “don’t play catch-up with the competition,” Becker advised. Instead, “match it”; emphasize “what you have and they don’t” and “review your successes over the years and capitalize on your strengths.”

Some specific suggestions from Becker:

  • Actively solicit testimonials from happy customers; this is “one of the best things to beat the competition.”

  • Research why buyers aren’t going through with the sale. If they’re afraid they won’t be able to sell their home, “you should go to the mortgage company and say we need a certain kind of mortgage to help our people sell their existing home.”

  • Allow the salesperson to offer the buyer optional products to close the sale, up to a certain dollar limit; the seller gets to keep the amount by which the incentive package comes in under the limit, on top of a regular commission.

  • Look at innovative programs to reduce overhead. “Eliminate redundant employees” and have employees do more than one job. The sales manager should be on the floor and making sales. “Get the sales team together, outline the problem and let them come up with new strategies. It may call for firing the existing team and getting a new one.”


August provided more advice on how builders should re-evalute their sales team to stay on top of the marketplace when it is slowing:

  • Review the performance of each individual employee and shop them at least three, possibly four times a year to ensure that the right people are in place.

  • Review all of the subcontractors to ensure that they are performing.

  • The management team should be getting out in the field regularly and inspecting the site, and managers should be meeting individually with employees to discuss what needs to be done to move the business forward.

  • The builder should be meeting with the management team to set new expectations.

  • “Take the time to go out and understand the strengths and weaknesses of each neighborhood. The entire team should go out there,” because those who haven’t been to the site will look at the neighborhood with a fresh perspective. Then a plan of action should be developed to sell out the homes in each neighborhood, giving the plan time to produce results, but constantly re-evaluating its effectiveness.


Becker said that builders should take a hard look at their current product mix to ensure that it is appropriate for a soft market:

  • “Discontinue soft sellers,” he said. “Too often the builder keeps the model and forgets it isn’t selling.” It can be upgraded or dropped from the line.

  • Determine whether the number of model homes is appropriate for the size of the community. For a community of 75 to 100 homes, there should be two to three models, none furnished; for 101 to 200, three to four finished models and one furnished; and 250 to 300, four models with one to two furnished. It takes 40 to 50 production units to pay for a furnished model,” he said and 25 to 30 to pay for one that is unfurnished. “Understand the model mix concept.”

  • When designing the community, do not make the lowest-price model the first one the buyer sees. Put first the middle of the product line or the home you are making the most profit on.

  • “Take a trip to the competition and look at what they are showing,” and “shop the product, the presentation, the approach you get at the entrance; talk to your competitor’s buyers.”

  • Review demand and absorption bi-weekly, monthly and quarterly — including the competition’s.

  • Visit the building department to take a look at communities in the planning and zoning pipeline to see what is coming down the road.

  • Review the closing prices of competitors and compare them against the base price to see how much is being sold in extras.


Restoring balance to the inventory is the leading challenge in many of today’s markets, August said, but it is important to “preserve the curb appeal of your present product” because it’s “your one chance to make a good impression” with the 40% or so of prospects who show up because they were driving by and happened to see the for-sale sign. Signage and landscaping should “look sharp” and the building sites should be debris-free. Every home and street should “look perfect,” conveying a sense of quality.

Other pointers from August related to the inventory:

  • Re-evaluate your lot holdings and determine how quickly they are being absorbed. “It may be important to sit down with the land developer and renegotiate the lot schedule.” And rather than staying the present course, “sometimes it’s better to walk away from a large lot line-up.”

  • Cut your overhead by determining what works. Maintaining a scrap book of promotional campaigns and more provides a good archive of what was successful.

  • “Sign all of your own checks so you know what you’re paying for, what you ordered and what is being developed.”

  • Reduce speculative building; it’s better not to have the inventory.

  • Pay a standard real estate commission.

  • Eliminate personal liability notes.

  • Strive for zero defects within the home and the buyer will become “an outstanding ambassador for the builder.”

  • At least one model should be a standard product, with upgrades and options introduced in the second model.

  • Use furniture and sales displays professionally, concentrating on what has worked previously in other model homes.

  • Train and retrain the sales staff. Make sure they understand the importance of paying attention to details and that they are “expert closers.”

  • Offer personalization programs, focusing on one-of-a-kind luxuries.

  • Take the time to learn from vendors and subs.

  • Set up a grid system to pinpoint where buyers have been coming from and to identify the areas most worth targeting for prospects through direct mail.

  • Advertise online; 84% of all prospective buyers say they go online before actually heading out into the marketplace.


Some further pointers from Becker on cutting costs:

  • “Don’t worry about market share, that’s an economist term, not yours,” he said. Instead, focus on cash flow and turnover. “How many houses do I have to sell this week or month to keep my cash flow going?”

  • Go to banks, insurance companies and suppliers and tell them you are looking for their help. Some suppliers will even send their own people into a community to assess what’s going wrong; “take advantage of their national services.”

  • “Don’t start a house until you have a signed contract.”

  • “Maintain total liquidity.”

  • Find a strategic partner. Work with an ad agency and ask them to prove why their campaign should be adopted.

  • Review all cost areas, including overhead, subcontractors, vendors, advertising and anyone who benefits from your company.


To keep lenders on board, August advised:

  • “You need to review all of the prospective buyers and determine what it will take to get them to buy” and identify programs that will be helpful to them. Only 5% of salespeople on the floor have been following up with prospects on a regular basis, when they need to be working to understand the specific needs of each buyer.

  • Review all mortgage programs best-suited for your customers. “Consider buy-down and innovative permanent financing instruments that will help your customers today and after they move into their homes.” However, builders should beware of interest-only and other “exotic” loans for marginal home buyers.

  • Have at least two preferred lenders, and use them to provide education to your sales staff and marketing team member so that they know how to fully qualify and process a mortgage loan through closing.

  • The salesperson should determine who the appraiser is for the mortgage. “Contact the appraiser to schedule an appointment to review the home at a time that does not conflict with consumer sales,” and “prepare and review the best comparables for the appraiser,” he said.


Hundreds of pages of the most up-to-date information on running your home building business in today’s buyers' market are available to NAHB members online. Click here to access “Back to Basics — NAHB’s Toolkit for a Changing Environment.”

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The preview issue contains information about more than 40 new products and technologies that you can see and sample, as well as classes and events that you can attend.

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Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Court Case Seen as Opportunity to Halt Regulatory Onrush

Builders see a recent decision by the U.S. Supreme Court to hear NAHB v. Defenders of Wildlife as an opportunity to halt a march of excessive regulation that is a fast-growing threat to housing affordability around the nation.

As reported in NBN last week, the court has agreed to review a lower court ruling that would add new requirements for states that want to administer Clean Water Act permitting programs — and result in additional expenses that would be passed on to home buyers. The court will hear oral arguments in April.

The issue centers on the transfer of the Clean Water Act permitting program from federal regulators to the state of Arizona. The Defenders of Wildlife say that the Environmental Protection Agency (EPA) did not consider the needs of endangered species before it decided to transfer authority to the state.

“It’s quite disturbing. It’s another example of a built-in housing bias on the part of regulators that is the result of pressure that is put on them by environmental zealots,” said R. Randy Lee, chair of the NAHB Legal Action Committee and a home builder and developer in New York City.

“We have a moral imperative to work together, so we can accommodate our need for clean water, an abundance and variety of species and housing for our nation. We cannot allow the scales to tip and collapse under the weight of additional bureaucracy.”

The lawsuit also opens the door to adding Endangered Species Act considerations any time the federal government transfers administrative authority to a state — not just for Clean Water Act permits, but for other programs and permits as well.

The case represents a milestone for NAHB, said NAHB President David Pressly, noting that the association has played an important role in other regulatory cases by submitting friend of the court briefs, but that this lawsuit marks the first time that NAHB has been named as a petitioner.

The association was joined in the suit by the Home Builders Association of Central Arizona and the Southern Arizona Home Builders Association. The EPA also filed suit, and the court consolidated both actions.

Currently, consultations are required if the affected land is considered “critical habitat” or if there are endangered or protected species living there. This new requirement imposed by the lower court would require consultation even where there are no endangered species on the site.

According to an economic impact study by the U.S. Fish and Wildlife Service, the time delays from consultations in the case of the pygmy owl ranged from five to 18 months. When added to the cost of onsite mitigation and project modifications, this added between $1.7 million and $2.7 million to the cost of a typical development in Arizona.

EPA and NAHB both agree that the federal agency didn’t consider endangered species when it decided to transfer permitting authority to the state, nor was it supposed to under the law. The Clean Water Act requires the EPA to allow states to take over permitting authority if they meet nine standards; consideration of the Endangered Species Act is not among them.

“This has nothing to do with whether it’s important to protect endangered species. Of course it is,” said Pressly. “But it is not part of the Clean Water Act. Congress never intended it to be so. It’s also just not logical to use a program designed to protect the waters of the United States to give special considerations to the pima pineapple cactus, a desert plant, and the pygmy owl, which is no longer listed as an endangered species. As Justice Antonin Scalia said about using the Clean Water Act to protect drainage ditches, this extends the reach of the act beyond parody.”

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

The Hot and the Not: Yesterday’s ‘Wow’ Feature May be Today’s Dealbreaker

According to a survey of 923 real estate agents from around the country by Chicago-based real estate broker Mark Nash, author of “1,001 Tips for Buying and Selling a Home,” some old house features, such as spiral staircases, are definitely out. But other “old” features, such as old-fashioned plank floors, weathered and recycled woods, and wood paneling over kitchen appliances have more appeal among home buyers than ever. Storage space — linen closets, dressing areas, pantries, luggage rooms — creates buzz on the spot, and even enhances property values. On the other hand, some things that were hot just a few years ago are already staring to feel dated. Stainless steel appliances can be unpopular because some models are hard to keep smudge-free. Glass-front cabinets are a problem for home owners who are unable to keep their shelves neat. Sleek, bowl-shaped vessel-style sinks, while still a popular feature with some buyers, are falling from fashion because they are also hard to keep clean and make it easy to splash water on the floor. Glass tiles in kitchens and baths are definitely a yes, and two home-offices for dual-income households have become a major selling point. Bamboo flooring, with its variegated honey tones and unique grain patterns, is becoming less popular in houses with children because it isn’t as durable as some other kinds of floors, and can even fade from the sun. (www.washingtonpost.com)
Washington Post (1/6/07); Kirstin Downey

The Tide Is Turning: It Seems the Market Has Weathered the Worst of the Correction

Increases in both new and existing home sales in November and a decline in unsold inventories suggest that the 18-month market correction following the four-year housing boom has just about run its course “without the blood running in the streets that some bubble-bust bears had forecast.” Median prices of resale houses have fallen 3.6% nationally year-to-year, and there are anecdotal reports of 10% to 20% reductions in the asking prices in formerly hyperinflated markets. But moderate price cuts have helped eventually stimulate buyers who had been sitting on the sidelines wondering when the market might bottom out. This doesn’t mean that sellers should assume that with the trend turning positive they can suddenly price their house for what they might have commanded in early 2005. In most places, buyers still have the upper hand, with plenty of inventory to choose from, and a house will sit unsold for months if the pricing is unrealistic. On the other hand, with the spring buying season approaching, serious buyers should be prepared to pay a price that may not be as low as they had hoped, but just might be their last shot at a particular house before it sells for closer to the asking price a few weeks from now. Shoppers should also understand that current mortgage rates remain close to 40-year lows and they won’t be around indefinitely. (www.washingtonpost.com)
Washington Post (1/6/06); Kenneth R. Harney

KB Drops Plan to Build Homes on West Bank

KB Home, which last year rolled out plans to develop thousands of homes on a 3,000-acre tract near Waggaman in New Orleans, has let its contract to purchase the land expire. The project originally called for as many as 20,000 residential units, but in recent months officials said the development would be closer to 10,000 units. The land transaction didn’t take place, according to Caroline Shaw, vice president of communications for KB, because “we weren’t done with out due diligence, and we couldn’t come to an agreement with the owner.” Although the company has no plans to resume the negotiations, she said that it has taken an interest in developing in other parts of the area. Since unveiling the Waggaman project, KB has acquired acreage in Madisonville, Baton Rouge and Geismar and has announced plans to develop housing communities in each area. In a partnership with Shaw, KB is also building the latest phase of River Garden, a residential community in the Lower Garden District. (www.timespicayune.com)
New Orleans Times Picayune (12/28/06); Greg Thomas

Katrina Victims Find a Solution: Modular House

Before Hurricane Katrina devastated the Gulf Coast in August 2005, modular houses that can be erected in just a matter of days were almost unknown in Mississippi, whose houses tended to be “stick built” on site or mobile homes. But since the storm, modular houses, which range from simple shotgun-style cottages to fancy mini-mansions, are starting to appear across the Gulf Coast, as public officials and private citizens search for ways to speed the slow pace of recovery and begin experimenting with new forms of shelter. In addition to the speed with which they can be completed, the homes are relatively easy to perch up on stilts to comply with flood zone rules. They require less local labor in a region where there is more than enough construction work to go around. Some are less expensive than conventional houses — ranging from $50,000 to $500,000 — and according to manufacturers, some can withstand 160-mile-an-hour winds. Perhaps only 400 of the modular houses have been installed in Mississippi over the last year, said Fred Hallahan, a consultant in Baltimore who tracks the modular business. But he and other experts expect the trickle of modular housing to grow rapidly this year, and perhaps lead to a dramatic change in how houses are built in the region. Katrina destroyed 70,000 houses and apartments in Mississippi, according to state estimates. Although the state is widely considered to be far ahead of Louisiana in terms of recovery, only 2,480 building permits had been issued by the end of November for new home construction in the hardest-hit coastal counties. The going has been slow, officials say, for a number of reasons: insurance issues, wetlands regulations, permit backlogs, infrastructure problems and not enough money for rebuilding. (www.nytimes.com)
New York Times (1/6/07); Leslie Eaton

San Franciscans Hurl Their Rage at Parking Patrol

Burdened with one of the densest downtowns in the country and a California love for cars, San Franciscans have been shocked in recent months by crimes related to finding parking places, including an attack in September in which a man was killed trying to defend a spot he had found. More recently, four parking control officers were attacked in late November, with two of them being sent to the hospital. Last year, there were 28 attacks on employees handing out tickets, up from 17 in 2005. Donald Shoup, a professor of urban planning at the University of California, Los Angeles, said that the chronic lack of parking in the city has come as the result of a decision to encourage a bustling downtown free of parking lots, a phenomenon echoed in other popular cities like Boston, Chicago and New York. The city, he said, has also come up with some questionable parking policies: cheap on-street parking and expensive garages and lots, a dynamic that encourages drivers to look endlessly for meters rather than pay for the privilege of parking off the street. “A lot of the traffic in downtown San Francisco is people looking for curb parking,” he said. “And they’re apparently so fed up that they’re willing to assault parking officers to protest the idea of a shortage of spaces.” San Francisco issues 1.9 million parking citations annually, bringing in more than $40 million from violators, according to the Municipal Transportation Agency. The city has a pilot program to scan license plates for 8,000 repeat offenders who owe an estimated $6.1 million. In addition, the city manages 41 lots and garages, and it owns most of them. Nationally, parking is a $20 billion industry, experts say, with the revenues divided almost evenly between public and private entities. (www.nytimes.com)
New York Times (1/5/07); Jesse McKinley

In Florida, Upwardly Mobile Homes

The owners of nearly 500 mobile homes in 43-acre Briny Breezes, one of the last waterfront trailer-park towns in South Florida, stand to become instant millionaires if they agree to sell to a developer, but some are holding out for more important things than money. “You just can’t buy a way of life,” said Tom Byrne, a 68-year-old retired sales executive from New York who doesn’t want to sell even though he would make a little over $1 million on the trailer and site he bought two years ago for $150,000. “This is my home,” he said. With 600 feet on the ocean and another 1,100 feet along the Intracoastal Waterway, Boca Raton-based Ocean Land Investments envisions building 900 low-rise multimillion-dollar condo units, a high-end marina and a 300-room luxury hotel on the property, if the deal goes through. Briny Breezes board approved the sale for $510 million. The owners of the 488 trailers had until Jan. 10 to ratify or reject the deal. A two-thirds majority was needed to sell and owners would not get any money or have to move out until 2009. John and Gay Sideris, retired teachers from New York, bought their home in 2001 for just $155,000 and stand to make close to $1.5 million. Asked how he would vote, John Sideris crossed his legs and breathed a heavy sigh. “The money is great, but you can’t get another place like this to live,” he said. “It’s like Club Med.”  (www.washingtonpost.com)
Washington Post (1/7/06); Brian Skoloff, Associated Press

Fed Vice Chair Kohn Says Housing May Be Stabilizing

While a lower level of housing production and adjustments in some manufacturing industries will remain a drag on output in the near-term, economic conditions should show some improvement during the first half of this year as inventories are worked off, Federal Reserve Board Vice Chairman Donald L. Kohn told the Atlanta Rotary Club in Atlanta on Jan. 8. “When this process is completed, the rate of economic growth should pick up to something in the neighborhood of the growth rate of the economy’s potential,” he said.

Kohn noted that housing and the automobile industry were largely responsible for the deceleration in U.S. economic activity during the second half of 2006. Noting that single-family housing starts in November were 30% below their peak during the first month of 2006, Kohn cited evidence that housing is close to bottoming out, although not soon enough to avoid having a negative impact on the U.S. economy for the first six months of this year.

“Tentative signs have begun to emerge that the housing market may be stabilizing,” Kohn said. “Home sales appear to have flattened out since midyear, mortgage applications have been increasing and consumers’ perceptions of home buying conditions, as reported in the Michigan survey, have improved.”

However, he warned that “even if the demand for housing is leveling off, housing activity may not yet have found a floor, given the sizable overhang of unsold houses.”

Kohn also said that the causes of the current housing downturn are different from those in the past, and that has created “considerable uncertainty” about where the industry now stands:

  • The current downturn was not triggered by the restrictive monetary policy and high interest rates that have caused previous housing slumps. “Indeed, relatively low intermediate and long-term interest rates are helping to support the stabilization of this sector,” he said.

  • But the current contraction “did follow an unusually large run-up in sales and construction and, even more so, in prices relative to the returns on other financial and real assets,” he said.


“Our uncertainty about what pushed home prices and sales to those elevated levels raises questions about how the market will adjust now that expectations of the rate of house price appreciation are being trimmed,” he said. “And changes in the organization of the construction industry, with activity more concentrated in the hands of large, publicly traded corporations, may also affect the dynamics of prices and activity in response to the inventory overhang.”

While Kohn said that he believed that “housing starts may be not very far from their trough,” there are risks to this positive outlook:

  • “Although house prices nationally have decelerated noticeably and appear to have fallen in some markets, they are still high relative to rents and interest rates,” he said.

  • “Building permits decreased substantially again in November, and inventories of unsold homes have only started to edge lower.”

  • “We also do not know whether the possible stabilization that seems to be taking hold would be immune to a rise in longer-term interest rates should term premiums increase or the federal funds rate fail to follow the downward path currently built into market expectations.”


While saying that it is too early for the Fed to relax its vigilance on the inflation front, Kohn did voice optimism that core inflation is declining from the “elevated levels of last spring and summer.”

“Conditions appear to be in place for a good year for the U.S. economy, one marked by growth that is moderate and sustainable and by inflation that will be lower than last year’s,” he said.



Want to Know the Long-Term Forecast Through 2015?

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.



NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Housing to Continue to Drive Lumber Demand Down

Slower housing markets will continue to take some of the pressure off of demand for lumber, according to the Western Wood Products Association in its forecast for the coming year.

The association estimates that lumber demand last year fell 3.2% to 61.9 billion board feet, down from an all-time high of 63.9 billion board feet in 2005. Demand for lumber is expected to slide further this year, by 7.2% to 57.1 billion board feet.

A slowdown in housing activity from the blisteringly hot levels of the recent boom years is the key reason for the decline in lumber demand, according to the association, and it assumes that housing starts will decline 10% in 2007 to 1.69 million, following a 9% decline last year.

A 6% decline in the volume of lumber used for residential repairs and remodeling is also in this year’s forecast, following a 2.6% decline in 2006.

“While homes prices will still fall in some areas, we think that housing starts and home sales are nearing a sustainable rate,” said Kevin Binam, the association’s chief economist. “But construction is going to be lower than we’ve seen in the past few years and that will mean less demand for lumber.”

Lumber imports are forecast to decline with the slide in lumber demand, although Canadian shipments are expected to fare better than those from other countries. Canadian imports fell by an estimated 1.4% in 2006 and are headed for a further 6.1% drop this year, slipping below 20 billion board feet for the first time in three years.



Want to Know the Long-Term Forecast Through 2015?

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.



NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

California Buyers’ Market Expected to Fade as Year Progresses

Housing activity in California will be especially slow during the current business quarter, according to the California Building Industry Association’s 2007 forecast, as builders finish the process of selling their excess inventory.

But construction should pick up later in the year, reaching levels that are fairly healthy from a historical perspective without necessarily answering the state’s growing need for more affordably priced housing.

Following an unsustainable and “frenetic” pace during the recent boom, “we are returning to a normal market,” said CBIA Chief Economist Alan Nevin. The 155,000 to 170,000 housing starts forecast for the state this year “will be more than any year from 1991 to 2001 and could exceed production levels from 1990 and 2002 as well,” he said.

The lower production level is not good news for prospective home buyers, however, who have been priced out of the market by high prices, which in turn are being driven by the abuse of environmental laws to delay or block new residential construction, constraints on available land and unnecessary government regulation.

“We need to be building about 240,000 new homes, condos and apartments a year to meet the need for housing,” Nevin said. “The problem is that we need new homes in all price ranges, and given the ever-rising fees and constraints on housing, it’s all but impossible to meet the need in the entry-level market, where the need’s the greatest.”

Between 110,000 and 120,000 single-family homes are forecast to be started in California this year, Nevin said, roughly the same as last year, but down from 155,000 in 2005.

He also predicted that housing prices will remain soft to stable in most markets.

“We are already seeing signs of price stabilization as builders in some markets have sold most of their standing inventory,” Nevin said. “We expect that trend to accelerate after the first quarter. Because there’s still excess inventory, there are still significant concessions, which we expect will drop considerably later in the year. In other words, now is a great time to buy.”

Nevin said that builders can expect to see some relief in construction costs this year, as well as a reduction in land prices in most metropolitan areas.

The inventory of land held by the public home builders has increased from a four-year to an eight-year supply in the past three years, he said in his forecast. “Some of those parcels will have to be remarketed. To that end, there will be accelerated opportunities for smaller builders to obtain land at prices that are almost palatable, both in the suburban and urban areas.”

Census Calls Arizona Nation’s Fastest-Growing State

Looking at the one-year period of July 1, 2005 to July 1, 2006, Texas saw its population grow by 579,275, the biggest increase in the nation; followed by Florida, 321,697; California, 303,402; Georgia, 231,388; and Arizona, 312,211, according to estimates released by the U.S. Census Bureau at the end of 2006.

Arizona was the nation’s fastest growing state, with a 3.6% surge in its population, nudging out Nevada, whose population grew by 3.5%, followed by Idaho, 2.6%; Georgia, 2.6%; and Texas 2.5%.

The South and West continued to monopolize the list of fastest-growing states, the Census Bureau said, with Utah, North Carolina, Colorado, Florida and South Carolina rounding out the top 10. Colorado and South Carolina replaced Delaware and Oregon on the list this year.

According to the estimates, California remained the most populous state as of July 1, with a population of 36.5 million. This was followed by Texas, 23.5 million; New York, 19.3 million; Florida, 18.1 million; and Illinois, 12.8 million.

Other highlights of the Census report:

  • North Carolina replaced New Jersey as the 10th most populous state.

  • The Northeast grew by only 62,000 people. In contrast, the South grew by 1.5 million and the West by 1 million. The Midwest added 281,000 people.

  • The West was the fastest-growing region, with a 1.5% climb in its population, followed by the South, 1.4%; the Midwest, 0.4%; and the Northeast 0.1%.

  • The South now accounts for 36% of the nation’s total population, followed by the West, 23%; the Midwest, 22%; and the Northeast, 18%.



Want to Know the Long-Term Forecast Through 2015?

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.



NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

 

Movers Leave Central Northeast in 2006; Head Southeast and West

Several states experienced substantial shifts in population last year, with moves benefiting the Southeast and West and thinning the Central Northeast region of the country, according to United Van Lines' 30th annual “migration” study, which tracked 227,254 interstate moves by its customers among the 48 contiguous states and Washington, D.C. in 2006.

The United study classifies each state as “high inbound” (55% or more of moves going into a state), “high outbound” (55% or more of moves leaving the state) or “balanced.”

Although the majority of states were in the “balanced” category last year, several were not, with many states in the Southeast gaining new residents. Nationwide, North Carolina was the top destination (64.0%) inbound. In South Carolina, 60.6% of the moves were into the state, the 13th year of such growth. Alabama grew for its fourth year, with 57.5% of its moves inbound. Although moves into Tennessee dropped from 58.0% in 2005 to 55.8% last year, the state still captured a spot on United’s high-inbound list.

Although not “high inbound,” other Southeastern states gained residents: Kentucky (52.9%), in a five-year growth trend; Georgia (53.9%), in a 25-year trend as an inbound state; and Mississippi (50.1%).

The West also emerged as a top region for migrations, with Oregon in second place nationwide (62.5%), in a 19-year trend; Arizona (55.4%), losing roughly 5% in moves into the state over the previous year; and Nevada (59.9%), which has been on a roll since 1986.

Inbound moves to New Mexico grew by 3.7% over 2005, rising to 57.9%; Utah rose to 56.0%, up nearly 6%; Idaho was 59.3%, its high inbound ranking holding steady for the past 19 years; and Montana was 55.0%, growing for five consecutive years.

Not quite making it into the “high inbound” category but still growing were: Colorado (54.7%), a 1.2% increase over 2005 in a four-year growth trend; and Wyoming (54.4%), up 4.3% from the prior year.

Rounding out the list of high-inbound locations were Washington, D.C. (57.9%), which has been growing ever since the study was started; and South Dakota (55.9%), in its first high-inbound year since 1994.

Other noteworthy trends among inbound-migration states in 2006 were:

  • Texas (54.6%) has been experiencing inbound movement since 1989 and saw a slight 0.7% gain in people moving in over 2005.

  • Nebraska (52.5%) saw its inbound moves grow by 3.2% over the previous year as it changed course as an outbound state.

  • While it was in the “balanced” category, Oklahoma (50.0%) experienced a 3% increase over 2005.

  • Minnesota (51.3%) saw more people coming than going last year for the first time in 25 years.


The United Van Lines study found that the Central Northeast was generally following an outbound trend last year, with Michigan (66.0% of moves leaving the state) tied with North Dakota for the highest percentage of shipments to outside states.

Other states in the region on the “high-outbound” list were: New York (59.5%), an outbound state since the beginning of the survey; Indiana (58.2%), a high outbounder since 1993; and Illinois (55.7%), a high outbound state from the survey’s inception.

Also continuing to be on the outbound were: New Jersey (60.9%), on the decline since 1997; Pennsylvania (57.0%), a high-outbound state for the past three years; and Ohio (55.8%), outbound since 1992.

Also one of the top high-outbound states was Louisiana (56.4%), for the second consecutive year, although inbound moves grew 1.5% over 2005.

Not in the “high outbound” category, but trending down were Connecticut (52.4%), in the fifth consecutive year of out-migration; and Maryland (54.1%), an outbounder for 15 straight years.

Other noteworthy trends in outbound states:

  • California (52.4%) saw its lowest outbound percentage in four years.

  • Missouri (51.8%) continued a 12-year outbound trend and saw 1% more residents leave in 2006 than in 2005.

  • Wisconsin (53.2%) saw its lowest outbound loss since 2000.


Over the years, the United Van Lines study has been shown to accurately reflect the general migration patterns in various regions of the country, according to Carl Walter, the company’s vice president, and its data is regularly used by real estate firms, financial institutions and other observers of relocation trends in their business planning and analysis.

‘Housing Bubble’ T-Shirts Are Being Sold for a Worthy Cause

A series of t-shirts has been created by a real estate public relations firm in Jacksonville, Fla. to poke fun at the media’s role in undermining consumer confidence in the housing industry, and sales proceeds are going to Habitat for Humanity and Home Builders Care.

“The housing market correction has been an unfortunate reality, said Tim Hamby, president of Renaissance Creative, which provides advertising, marketing and public relations for residential, commercial and resort real estate clients across the country. “But everyone knows the market will eventually return to normal.”

The shirts, he said, are also geared to allowing industry professionals to vent their frustration over the excessively negative interpretations of the current market correction that have appeared frequently in the news media.

One shirt design, “The Attack of the Housing Bubble,” spoofs the panic initiated by media reports of an imminent collapse in housing values, with a knockoff of a vintage 1950s B-horror movie poster.

An “Overblown” shirt recalls Bazooka Joe and a third design, “The Housing Bubble Did Me Right,” portrays a man and woman drinking martinis under a shower of dollar signs in celebration of the economic benefits of home building.

Hamby said that the t-shirts were originally developed for clients and friends, but they struck a chord and the company decided that they could be marketed for a worthy cause.

“Everyone in the industry — Realtors®, builders, developers, mortgage people — they really get a kick out of them. They make a great gift and bring some perspective to the current market fundamentals,” he said.

To take a look at the shirts, or to place an order, click here.

Eye on the Economy: Home Sales May Be Firming Up

The “final” estimate of growth in real gross domestic (GDP) for the third quarter of 2006 stands at a sub-par 2.0%, down from the preliminary estimate of 2.2% and well below the average pace for the first half of the year. Residential fixed investment (RFI) was the weakest component of the third-quarter GDP report, contracting at an 18.7% pace and subtracting 1.2 percentage points from the overall GDP growth rate.

GDP growth undoubtedly remained relatively weak in the final quarter of 2006 — we’re estimating 2.3% — and downward trends in housing starts and residential construction put-in-place point toward another major contraction in RFI for the fourth quarter.

However, we expect GDP to firm up moderately during 2007 as the drag from RFI eases off and other sectors continue to perform well, and the economy should be growing around a sustainable trend pace by 2008.

Conditions Are Positive on the Employment and Inflation Fronts

The U.S. job market has performed remarkably well in the face of the pronounced slowdown in GDP growth since early last year, despite systematic job losses in housing production and related markets. Indeed, monthly average payroll employment growth has slowed only modestly from the cyclical highs posted in 2005, and the nation’s unemployment rate gravitated down to a cyclical low in the final quarter of 2006.

The systematic tightening of U.S. labor markets has put significant upward pressure on average hourly earnings and some upward pressure on unit labor costs (labor cost per unit of output).

Even so, key measures of core inflation (excluding prices of food and energy) recently have receded despite persistent and perverse upward pressure from the imputed home owners’ equivalent rent components. Further declines in core inflation are likely over the 2007-2008 forecast horizon.

The Interest Rate Structure Is Low and the Prospects Are Good

The minutes from the Dec. 12 meeting of the Federal Open Market Committee (FOMC) revealed growing concern among Fed policymakers about downside risks to economic growth in the near term along with ongoing concerns about upside risks to core inflation. On balance, the minutes support our expectations for stable monetary policy at the next FOMC meeting on Jan. 30-31 as well as further down the line.

Financial markets have been trying to sort out oft-conflicting signals on both real economic activity and core inflation, and market expectations for Fed management of monetary policy have fluctuated in the process. Long-term interest rates have backed up to some degree from their recent lows in early December, although both bond and mortgage rates still are quite low and near-term prospects are good.

Home Sales Apparently Stabilized Around the End of Last Year

Job growth, household income growth and the interest rate structure all have been favorable for housing demand, and cuts in house prices along with deepening nonprice incentives provided by sellers have been working to stem the downswing in home sales and the upswing in sales cancellations that began in the latter part of 2005.

While sales activity still is receding in some areas, gross and net home sales appeared to stabilize late last year on a national basis.

It’s true that relatively favorable weather conditions may have buoyed home sales in the final months of 2006, and it’s always hard to get a firm grip on fundamental housing trends during the winter months. But some forward-looking measures that are based on surveys of home builders, home mortgage lenders and consumers tend to support the proposition that housing demand bottomed out late last year and that home sales may now be starting to firm up.

Strong ‘Headwinds’ Will Delay the Upturn in Housing Production, But Not for Long

While the housing market has experienced an impressive “correction” process since late 2005, following the unsustainable housing boom, strong “headwinds” still must be overcome before solid underlying demand fundamentals can raise housing production back to trend. These headwinds relate primarily to historically low levels of housing affordability, an ongoing retreat by investors/speculators and historically high levels of current and potential inventory in the single-family and condo markets.

NAHB’s forecast continues to project a bottoming-out of housing starts and manufactured home shipments in the first quarter of this year, along with maintenance of positive real growth in residential remodeling throughout the difficult correction process for new housing.

If these patterns materialize, the serious drag on GDP growth from the pronounced contraction in residential fixed investment will be easing off soon and RFI may very well be delivering modest positive contributions beyond mid-2007.

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 Jan. 10 edition. To subscribe to “Eye on the Economy,” click here.



Want to Know the Housing Starts Through 2015?

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.



NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Sign Up for Expert Advice at the Builders’ Show

This year, the 2007 International Builders’ Show (IBS) in Orlando is offering several “Advice From the Experts” sessions that will enable attendees to engage industry experts in a range of topics in a more personal forum than the more traditional education sessions also offered at the builders’ show.

The “Advice From the Experts” sessions supplement the extensive educational programs offered at IBS and provide attendees opportunities to explore the latest trends and best practices and learn how to grow their businesses and careers.

Past show attendees cite the educational programs at IBS as one of the main draws of the show. The programs are offered in several categories covering the industry in general as well as specific areas of expertise.

What the Experts Will Be Talking About  

“Advice From the Experts” sessions are available for several topics, including:

  • Active Adult Housing — A question and answer dialogue with active adult housing experts in a panel presentation format. Topics include marketing, product design, sales and tips especially for small and midsize builders.

  • Land Planning Charrette — This is an intensive, hands-on opportunity for builders and developers to take part in a mock charette and visioning process. Attendees will learn the techniques used in taking the project from concept, to plan, to finished product.

  • American Institute of Architects (AIA) Plan Review Workshop — In this one-on-one workshop, architects and interior merchandisers will spend 25 minutes reviewing attendees’ house plans, then illustrate how to change the plans in order to meet the needs of today’s home buyers.

  • National Sales and Marketing Council/Institute of Residential Marketing (NSMC/IRM) Meet the Experts — These interactive sessions represent an informal opportunity for convention attendees to talk to experts and interact with each other in a more intimate forum.

  • Land Planning Workshop — Meet one-on-one with a nationally experienced land-planning and development consultation firm to review and discuss development plans and programs, generating useful feedback and options to assist in devising a successful development strategy.


To register for the "Advice From the Experts' sessions and more, visit the educational seminar pages on the International Builders' Show Web site at www.buildersshow.com/seminars. Use the "My Show Planner" tool to register for specific courses.

To view a virtual showcase for builders’ show exhibitors and their products, visit www.buildersshow.com/VTS.

To Register for IBS

Discounted online pre-registration to the builders’ show ends Thursday, Jan. 25. To register online, visit www.buildershow.com.

On-site registration begins on Sunday, Feb. 4.

Builder's Tip: Emergency Flat-Roof Repair

When a roof leaks, it’s not the kind of situation where you can schedule a roofer to fix it sometime next month. It needs to be fixed right now.

Because most flat roofs turn into small swimming pools in a good rain, if there is a leak, hundreds of gallons of water may find their way inside and cause an amazing amount of damage. I’ve had a lot of years to experiment on patching flat roofs, and the patches that I applied 10 years ago are still good. Here’s why:

The primary repair material that I use is called Henry’s Wet Patch. It’s a sticky, black, tar-like substance that can be applied to wet surfaces — even underwater. But my secret is that I use the Wet Patch with aluminum foil and that I have an assistant to help me apply it.

Required ingredients also include several garbage bags, some duct tape and a disposable spatula.

If you try this fix, you can get the Wet Patch on your hands and arms, so protect them with the garbage bags. Use the duct tape to hold the bags in place.

The repair:

  • Scoop the Wet Patch with the spatula and spread it over the hole.

  • Have your helper tear off a piece of aluminum foil that will almost cover the Wet Patch.

  • Press the aluminum foil into the Wet Patch with your covered hand and use the spatula to press its edges into the Wet Patch.


That’s all there is to it. When you are done, peel off the garbage bags and stuff all the trash into them.

This kind of patch lasts a lot longer than a simple gob of Wet Patch spread over a hole in the roof. I believe this is because the Wet Patch seals the leak and that the foil prevents the Wet Patch from outgassing, drying out and ultimately cracking.

It doesn’t make for a pretty patch, but it is quick and will last for many years — plenty of time to schedule a new roof.

— Kee Nethery, Berkeley, Calif.

Tips & Techniques provided by Fine Homebuilding.
©2005 The Taunton PressTo request a reprint of this feature, e-mail Christina Glennon 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.



Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site.

For assistance, call the NAHB Member Service Center at 800-368-5242.

An Easy, Three-Fold Approach to Incorporating Green Building

The increasing demand for green building makes one thing perfectly clear — green building is more than a passing trend.

As consumers become more aware of the environmental effects of the decisions they make in their day-to-day lives, the demand for healthier, more efficient homes will continue to grow. As leaders in the remodeling industry, we all can prepare to meet this demand head-on.

If you find the concept of green building intimidating, rest assured you are not alone. The good news is that incorporating green building practices into your existing projects is not difficult. In fact, you probably already are.

During the past 25 years, our company has been building responsibly and I would like to share our approach with you so you can integrate some of our ideas into your company’s business practices.

The approach we take to green building is three-fold. First, we consider energy efficiency. We then examine how to ensure good indoor air quality. Finally, we look for the healthiest, most durable materials.

If you consider these simple ideas when making decisions on your remodeling projects, you will undoubtedly produce homes that are healthier for the residents and the planet.

Greater Energy Efficiency

Since 1988, we have used structural insulated panels (SIPs) and they have significantly enhanced our ability to be environmentally responsible.

SIPs are both energy-efficient and cost-effective. They are generally comparable in price to wood frame construction, but using the panels can reduce energy consumption by up to 60%. Because SIPs offer a tight building envelope, there is less energy transfer, which allows for savings on both heating and cooling costs.

Indoor Air Quality

In a SIPs home, the air entering and exiting the house is controlled. In addition, we use an air-to-air exchanger to pre-heat the air coming into the house. By controlling where the air enters and exits the house, indoor air quality is improved. The homes we build are also completely ventilated, which ensures superior indoor air quality.

Healthy Materials

It is important to determine that the air is not being further polluted by building materials that create gases and can make home owners sick. If our clients insist on having carpet installed as part of their remodel, we encourage wool carpet since wool does not emit dangerous volatile organic compounds (VOCs) or organic gases. And if you are using hardwood flooring in a project, we suggest that you use hardwoods that are farmed and have a factory-installed finish.

Currently, there are numerous products on the market that use recycled materials, as well as those that do not emit organic gases. High quality paints that are low in VOCs are also widely available.

Finally, we also look at a product’s durability. The most environmentally friendly thing you can do is to not replace a product once it’s been installed.

We are committed to incorporating green products and practices into all of our projects and we work diligently to remain true to our goal. The resulting buildings are healthier, energy-efficient, lower-maintenance and built to last.

By incorporating the green building practices I have mentioned above, your company will be prepared for the next generation of remodeling. An added bonus is the reward of knowing that you have had a positive impact on the lives of your clients by helping create healthy, comfortable spaces in which their families can live and thrive.

Donna Bade Shirey, CGR, CAPS, is the president of Shirey Contracting, Inc., an award-winning remodeler and custom builder based in Issaquah, Wash. Shirey Contracting specializes in the use of SIPs and Built Green technology and is committed to using energy-efficient and sustainable methods whenever possible. For more information, visit the Shirey Contracting, Inc. Web site at www.shireycontracting.com, e-mail Shirey, or call her at 425-427-1300.

Log Homes Council Sells Cookbooks for Cancer Cure

 

All the proceeds from the Log Homes Council's "Cookin' for a Cure" help provide aid to families in need. To order, click here.

The NAHB Log Homes Council has created and is selling a cookbook, “Cookin’ for a Cure: A Collection of Favorite Recipes From the Members of the Log Homes Council,” in which 100% of the proceeds will help provide financial aid to cancer patients and their families.

More than 60 council members and most of their product suppliers have provided tasty recipes, ranging from Texas Caviar to Cherry Pretzel Torte, and donated funds to produce the 200-page cookbook. All proceeds for the cookbook will go to the National Cancer Awareness Foundation, a nonprofit, totally volunteer organization that gives 100% of all the money it raises to families in need.

'Cookin' for a Cure' sells for $14.50, plus $4.05 shipping.

“It is with great pleasure and excitement that we were able to put this cookbook together and make a difference in the lives of many across the country,” said Dana Delano, of Ward Cedar Log Homes, of Houlton, Maine. Crystal Horne, of Honest Abe Log Homes, based in Moss, Tenn., produced the cookbook.

“We are fortunate that all the individuals involved in the foundation are volunteers,” said Jeremy Bertrand, executive director of NAHB’s Building Systems Councils. “Items such as postage, phone, supplies, printing, etc. are all supported by private funds and corporate supporters. When individuals and companies make a donation, they can be assured that 100% of the money will be used for the cause.”  

To Order ‘Cookin’ for a Cure’

To order “Cookin' for a Cure,” click here for the order form and fax or mail your order to:

The National Cancer Awareness Foundation
P.O. Box 261
Terryville, Conn. 06786
Web site: www.nationalcancerawarenessfoundation.com

Or, contact the foundation at: 

Phone: 860-589-5941
Fax: 860-589-7391
E-mail: cancerfoundation@adelphia.net

Or, call the Log Homes Council at 800-368-5242 x8576, or visit the council Web pages on the NAHB Web site, www.nahb.org.

Fuel Up On Education at IBS, Win Free Gas for a Year

The NAHB University of Housing will be giving away three $100 gas cards each day of the 2007 International Builders' Show — plus one grand prize of Free Gas for a Year valued at $2,500.

The gas giveaway is part of The University of Housing’s “Fuel Up on Education” program.

To enter, simply visit The NAHB University of Housing booth located in the West Building, Hall C, Level II of the Orange County Convention Center.

2007 Education Calendars Available

The 2007 education catalog — complete with updated courses, seminars, tours and new designations — will be available at the booth.

For more information about The NAHB University of Housing, visit www.nahb.org/education.

Education Calendar

Feb. 3-6

2007 International Builders' Show Pre-Show Education

Orlando, Fla.

Feb. 7-10

2007 International Builders' Show

Orlando, Fla.

March 25-27

National Green Building Conference

St. Louis, Mo.

April 11-13

2007 NAHB Multifamily Pillars of the Industry Conference & Awards Gala

Hollywood, Fla.

May 30-June 1

Building for Boomers & Beyond: 50+ Housing Symposium

Denver, Colo.



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.



NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Health Care Workers Can’t Afford Homes in Most Markets

Health care workers are priced out of buying a home in the majority of metropolitan areas in the U.S., according to the latest report from the Center for Housing Policy's “Paycheck to Paycheck” research on how wages for various workers who are needed in the community compare to prevailing housing costs.

The study found that licensed practical nurses don’t quality to purchase the median-priced home in 187 of the 202 metro areas that were studied. Registered nurses were out of luck in 115 of the local markets and physical therapists in 104. Nursing aides and home health aides were shut out of the homeownership market entirely.

“With Americans living longer and the baby boom generation aging, our communities will need more health care workers to meet the growing demand,” said Kent Colton, chairman of the center and a senior scholar at the Joint Center for Housing Studies of Harvard University. “However, if these workers cannot afford to become home owners, as this study shows, it will likely become more difficult to attract a sufficient workforce.”

“It is also clear from this study that housing affordability concerns stretch beyond the health care field to a spectrum of other occupations,” Colton added.

Overall, an annual income of $84,957 was needed to qualify for the nation’s median-priced home of $248,000 in the third quarter of last year, the center’s study found. For that same period registered nurses earned a median salary of $58,640, licensed practical nurses $37,127, nursing aides $24,745, physical therapists $62,417 and home health aides $20,414.

The study also pointed to affordability problems among health care workers in the rental housing market. Nursing aides were unable to afford renting a typical one-bedroom home in 80 of the metro areas and a two-bedroom home in 147 of the markets that were surveyed. For home health aides, those numbers were 144 and 201, respectively.

In its latest report, the center also analyzed housing affordability for elementary school teachers, police officers, retail salespersons and janitors.

The study found that police officers would not quality to purchase the median-priced home in 161 of the 202 metro areas, followed by elementary school teachers, who were priced out of 157 markets. Retail salespersons and janitors didn’t qualify anywhere.

The Center for Housing Policy is the research affiliate of the National Housing Conference.

Handbook Cites Red Tape as One Barrier to Affordable Homes

Reducing red tape and other regulatory barriers to housing is one of six broad strategies that state and local leaders can use to begin increasing the availability of homes that working families can afford, according to a handbook released last week by Homes for Working Families in conjunction with the Center for Housing Policy's latest research on housing affordability for the nation’s working families.

State and local initiatives can help fill the gaps left by federal policies that may not be flexible enough to meet local needs, according to the publication, “Increasing the Availability of Affordable Housing."

“In order to target limited federal funds to families with the most severe needs, federal funding for the construction, operation, rental or purchase of affordable homes tends to be directed to families at the lower end of the income spectrum,” the book says. “While these rules may make sense at the national level, in some ‘high-cost’ markets where homes are expensive relative to the national average, they can leave out significant numbers of families with pressing needs.”

The handbook also observes that states and localities “can help reduce the inequities associated with federal tax policies that support homeownership, which tend to benefit families with relatively higher incomes, providing only modest support (or no support at all) to working families with moderate incomes. Many working families who own homes do not benefit from the mortgage interest deduction because their itemized deductions are less than the standard deduction.”

Among the recommended approaches to reduce regulatory obstacles to affordable housing are: ensuring that zoning policies support a diversity of housing types; adopting expedited permitting and review policies; revising impact fee structures; and adopting building codes that facilitate the rehabilitation of existing homes.

“In the housing development world, time is money,” the handbook notes. “The longer it takes to gain necessary approvals to build a home and the more uncertainty involved in the approval process, the higher the costs of newly built or renovated homes.

“By expediting the approval proves for affordable homes and addressing other regulatory barriers that drive up costs — such as overly restrictive zoning rules and building codes, and regressive fees — state and local governments can cut through the red tape and expand the supply of affordable housing.”

In all, the handbook identifies 22 high-impact policies in six strategic areas, and examples of how those policies have been successfully applied in specific locations are included.

In addition to regulation, recommendations are made in these policy areas:

  • Expanding the availability of sites for the development of affordable homes
  • Harnessing the power of strong housing markets
  • Generating additional capital for affordable homes
  • Preserving and recycling resources for affordable homes
  • Empowering residents to purchase and retain market-rate homes

 

Pulte Homes, HBI Sponsor IBS Diversity Awareness Lunches

On behalf of the NAHB Student Chapters, the Home Builders Institute (HBI) has been working with Pulte Homes to provide “Women in Construction” and “Diversity in Construction” luncheons during the upcoming International Builders’ Show (IBS) in Orlando.

Both of the luncheons will take place on Saturday, Feb. 10 from 12:00-2:00 p.m. They are being held toward the end of the show so that students will be able to bring their experiences from the convention’s displays, educational sessions and industry updates to roundtable discussions featured at the luncheons.

While students will make up the majority of the attendees, several professors and industry leaders will be present to facilitate the discussions and lend their expertise on the two topics.

The luncheons have been designed to provide an accessible forum for young future home builders to learn how the building industry derives strength from a workforce that represents a wide range of backgrounds and experience.

“The opportunity to host and sponsor these luncheons is terrific for Pulte,” said Kelly McGill, diversity college recruiting specialist at Pulte Homes. “Diversity is a major priority for us and these events will serve to raise awareness about the benefits of diversity, while also attracting students with various life experiences to our company and industry.”

More than 300 NAHB Student Chapters members will be participating in Residential Construction Competitions throughout the week at IBS and several hundred additional students will be attending this year’s show.

Only 64 spaces are available at each luncheon, with 48 spots reserved for students and eight each for professors and industry leaders.

Pre-registration is required and already underway. Click here for a detailed event summary and to register.

Pulte Homes also has demonstrated its commitment to diversity by joining HBI, Beazer Homes and the Hispanic Heritage Foundation as a sponsor of the Team Builders program, which encourages Hispanic college students to pursue careers in the managerial ranks of the home building industry through summer internships.

For further information on the luncheons, NAHB Student Chapters or Team Builders, e-mail Page Browning at HBI, or call her at 800-795-7955 x8918.

New Thermador Wall Ovens Featured at Builders' Show

In celebration of its 75th anniversary, Thermador (Booth W759) will be featuring two new lines of wall ovens at the International Builders’ Show — the Professional and Masterpiece Series.

The manufacturer forever changed the face of the American kitchen more than five decades ago with the introduction of the world’s first built-in ovens.

The new Professional wall ovens feature a heavy-duty professional-style with stainless steel knobs and an elegant, luxurious chronometer, as well as a unique dishwasher-safe rotisserie, the largest on the market, with two handles for easy lifting.

With chiseled angular edges and a contemporary design, the Masterpiece ovens feature a massive oven cavity and an array of 17 different cooking modes, including the new Speed Convection mode, which is also available in the Professional Series.

A new EasyCook function assists with convection cooking and includes 20 pre-programmed recipes. Users can also save their four favorite recipes in the ovens’ program for easy access.

Both new wall oven lines feature an exclusive two-hour rapid self-clean cycle that even cleans the oven racks and supports.

The Masterpiece ovens are available in seven different configurations, offering the ultimate in design flexibility.

Thermador is owned by BSH Home Appliance Corporation, which is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB.

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

Star Material? Audition to Host NAHB-Produced TV Shows

If you think you’ve got what it takes to host a home building TV show, the NAHB Production Group, which produces cable programming for networks such as HGTV and DIY, is auditioning potential hosts for new programs.

The auditions will be held at the 2007 International Builders’ Show on Wednesday and Thursday, Feb. 7-8 from 3:00-6:30 p.m. in the NAHB press room, West 203 A of the Orange County Convention Center.  

The NAHB Production Group is seeking camera-comfortable experts in design, building, architecture, carpentry, interior design and other home-related fields.

To Schedule an Audition

If you would like to audition, and you are extroverted as well as an expert, e-mail the production group at tv@nahb.com. Include your area of expertise and a brief note about why you would be a good television host.

The NAHB Production Group currently produces “I Want That” on HGTV and “Rock Solid” and “Assembly Required” on DIY. Several more shows are in production and will begin airing later this year.

NAHB-Produced Programs on HGTV & DIY This Week

The NAHB Production Group produces three weekly television shows on HGTV and DIY for consumers. The following is the latest lineup:

"Rock Solid" on DIY

Episode: "Stone Columns"

• Jan. 18, 9:30 p.m. ET/PT
• Jan. 19, 1:30 a.m. ET/PT
• Jan. 19, 9:30 a.m. ET/PT
• Jan. 21, 11:30 a.m. ET/PT

 

Make a statement with stone columns, the perfect accent for an entryway, whether it's a driveway or backyard. In this episode, expert stone masons Derek Stearns and Dean Marsico build square stone-faced columns with Weymouth granite veneer and then top them off with stunning bluestone. They use the granite's two faces — seam and split — to achieve a classic, handcrafted look.

"Assembly Required" on DIY

Episode: "Backyard Prefab"

• Jan. 16, 2:00 a.m. ET/PT
• Jan. 16, 10:00 a.m. ET/PT

 

Backyard prefab is front and center on this edition of "Assembly Required." In Sonoma County, Calif., Yvonne Mathieu and George Reed build a Hooch shelter nestled high among the tree tops. In Ojai, Calif., Leslie Davis and her family assemble their new T House, a simple, open-air structure.

HGTV Seeking ‘Dream Home’ Builder/Architect Teams

HGTV is seeking developers, builders and architects to create the 2008 and 2009 dream homes for the network’s Dream Home Sweepstakes. To learn more, click here.

About the NAHB Production Group

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

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



NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar of the NAHB Web site.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Bob Jones a Candidate for NAHB Vice President/Secretary

Bob Jones of Michigan, running unopposed for NAHB vice president and secretary, is looking forward to the opportunity, with the directors’ support, of becoming an NAHB Senior Officer at the board of directors meeting in Orlando during the upcoming International Builders’ Show (IBS).

Following his certification by the Nominations Committee at the 2006 IBS, Bob embarked on a year-long nationwide tour, visiting state and local home builders associations, attending numerous regional conferences, and meeting with past leaders and emerging talents in every part of the country.

“It has been an incredible experience,” Bob said. “Imagine being able to spend time with more than 2,000 industry colleagues — builders and associates representing every discipline in our business — receiving firsthand feedback, hearing extraordinary ideas, obtaining excellent suggestions.

“I think everyone would agree that the common attribute among our members is their commitment; they are involved, knowledgeable, opinionated and outspoken. Believe me, they shared their thoughts and concerns honestly and straightforwardly, providing me with a solid understanding of the issues that are on their minds. This has been a fantastic educational experience.”

During the business meetings at IBS, Bob plans to make the traditional visits to the area caucuses to express his appreciation for the reception his campaign has received. Prior to the election, he will address the NAHB Board of Directors in his last official appearance as a candidate.

For more information, e-mail Cyndi Brown at NAHB, or call her at 800-368-5242 x8346.

NAHB Board Meetings Scheduled for Builders’ Show

Annual Meeting of the Members

NAHB Vice President and Secretary Joe Robson has announced that the annual meeting of the members of the National Association of Home Builders will take place on Thursday, Feb. 8, 2007 in the Valencia A-C Rooms, Level 4 at the Orange County Convention Center in Orlando, Fla., for the purpose of electing directors and state representatives, and other matters that may come before the meeting.

Notice of NAHB Board Meetings

The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Board of Directors meetings, which will be held at the International Builders’ Show in Orlando from Feb. 6 through February 10. The NAHB Board of Directors meet at the Orange County Convention Center in Valencia A-C on Thursday, Feb. 8 from 1:00-5:00 p.m. and Friday, Feb. 9 from 8:00 a.m.-12:00 p.m.

The International Builders’ Show program will identify the exact time and place of each scheduled meeting.

Sunday, Feb. 4
Subcommittees, Task Forces and Working Groups
2006 National Vice Presidents
2006 State Representatives
2006 Executive Board Meeting

Monday, Feb. 5
Committees and Councils Meetings
Past Presidents’ Council
National Housing Center Board of Governors
2006/2007 National Vice Presidents

Tuesday, Feb. 6
Committees and Councils Meetings
Budget and Finance Committee
Resolutions Committee
2007 Executive Board Orientation

Wednesday, Feb. 7
Opening Ceremonies
Area Caucuses

Thursday, Feb. 8
Joint 2006 Executive Board, Budget and Resolutions Committee
Spring Into Style — Luncheon and Fashion Show
2006 Board of Directors Meeting/Annual Meeting of the Members
Spike Party and Directors Reception

Friday, Feb. 9
2006 Board of Directors Meeting
Board of Directors/Installation Reception

Saturday, Feb. 10
Educational Programs
Exhibits

For more information, e-mail Cyndi Brown at NAHB, or call her at 800-368-5242 x8346.

Free UPS Shipping From the BuilderBooks Store in Orlando

Members who have a UPS account and are registered in the NAHB/UPS shipping discount program will receive one free shipment* at the 2007 IBS BuilderBooks Book Store. 

Please be sure to enroll in the NAHB-sponsored UPS discount program prior to the Show.

If you already have a UPS shipper number, simply include it on the enrollment form. If you don’t have one, UPS will assign one to you when you enroll in this program. 

To Sign Up for the NAHB/UPS Shipping Program

Visit  www.savewithups.com/nahb to sign up.

*Restrictions apply. Visit the store at IBS for details. 



Free  NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

GM $500 Off for NAHB Members Rolls Into 2007

NAHB members purchased more than 9,000 vehicles were purchased through the GM NAHB program in 2006. The Cadillac SRX-LG is included in the exclusive GM $500 Off for 2007.

GM has extended the $500 exclusive offer on most GM passenger cars, light-duty trucks, vans and SUVs to qualifying NAHB members for 2007.

  • All eight GM nameplates are included in the offer — Chevrolet, Pontiac, Buick, Cadillac, GMC, Saturn, Saab and HUMMER.

  • Vehicles excluded from this offer are Cadillac XLR, XLR-V and STS-V, Chevrolet Corvette Z06 and SSR, HUMMER H1 Alpha, and Pontiac Solstice. Medium duty trucks are also excluded.

  • The $500 exclusive offer can be combined with most retail national and regional incentives in effect at the time of delivery.

For complete details, visit www.gmfleet.com/nahb.

The program runs through Jan. 3, 2008.

To obtain a "Proof of Membership Form" for this program to take to your dealer, go to www.nahb.org/MA and click on “GM." GM NAHB Affinity Cards and details on this offer were mailed directly to NAHB members from GM, and members should use For more information, e-mail Tiffany Smith at NAHB, or call her at 800-368-5242 x8273.

Other Member Advantage Discounts

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.



Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Discuss Successful Membership Programs at Learning Lab at IBS

Representatives form home builders associations will discusses their successful membership programs during the Membership Learning Lab at the 2007 International Builders’ Show in Orlando.

Former NAHB Affiliate Services member Joe Burak, the executive officer of the HBA of Greater Little Rock, Arkansas, will moderate the discussion.

Topics for the roundtable discussion include:

  • State Membership Models
  • Retention Programs
  • Building Program Budgets and Successful Sponsorship Opportunities
  • Successful Spike Club
  • Builder Awards
  • Successful Membership Committee Management
  • Membership Databases and Other Technology
  • Newsletters and Magazines


The Membership Learning Lab will be held from 1:00-2:30 p.m. Friday, Feb. 9, in West 224 A-E, Level II of the Orange County Convention Center.

To Register

To register for this session, call NAHB at 800 368-5242 x8351, or e-mail membership@nahb.com. Include “Membership Lab 2007 — I’m there” in the subject line.

Builders Rock! Limited Edition Pin Available at Builders’ Show

A special limited edition 2007 Hard Rock/International Builders’ Show guitar pin will be available at the BuilderBooks Store at IBS.

The pin is available for $11.95 to NAHB members and $12.95 to non-members.

Reserve Your Pin Today

To reserve a pin and have it ready for you at IBS, e-mail Lay Bragg at NAHB.

Include “Hard Rock IBS Pin” in the subject line of the e-mail and your name, company, address and cell phone number.

You must pick up your reserved pin at the BuilderBooks Store by 5:00 p.m. Wednesday, Feb. 7. The store is in the West Building, Hall C Lobby.

Beginning Thursday, Feb. 8, all pins not picked up will be offered for sale to BuilderBooks Store customers.

 

 

 




Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.

Play Builders' Free Online Pro Football. Don't Drop the Ball.

Don't miss another weekend of NFL games — and your chance to win prizes from HGTVPro. Sign up and play in the Builders Football League (BFL) on HTGVpro.com — the free, online pro football "pick 'em" contest with a special league for NAHB members.

Playing is free, fun and easy ― and participants have a chance to win weekly prizes or the grand prize — a Panasonic 61-inch high definition TV — at the end of the season.

How to Join and Play

  • Go to HGTVPro.com's Builders Football League to sign up.

  • Log in and join the NAHB League and use the password: BEATJERRY, or

  • Log in and join the 20 Club League (for 20 Club members only) and use the password: 20Power.

  • Pick the winning teams each week from Sunday's NFL football match-ups. Helpful "pick" tools and stats make the game fun for rookies and veterans alike.

  • Earn bonus points playing against top TV celebrities and NAHB CEO Jerry Howard.

  • Play against your friends, HBA colleagues and co-workers by joining the NAHB League within the BFL.

  • Keep track of your prowess.


To join the Builders Football League and begin picking winners, click here.

For more information, go to www.nahb.org/bfl.

Calendar of Events

Feb. 3-6

2007 International Builders' Show Pre-Show Education

Orlando, Fla.

Feb. 6

Best in American Living Award

Orlando, Fla.

Feb. 7-10

2007 International Builders' Show

Orlando, Fla.

Feb. 7

EnergyValue Housing Awards

N/A

Feb. 8

Remodelors™ Council Chairman's Dinner

Orlando, Fla.

Feb. 8

National Housing Endowment Builder Achievement Award
for Outstanding Community Service

Orlando, Fla.

Feb. 8

2006 State & Local Government Affairs Recognition Awards

Orlando, Fla.

Feb. 8

Safety Award for Excellence Program

Orlando, Fla.

March 25-27

National Green Building Conference

St. Louis, Mo.

March 25

National Green Building Awards

St. Louis, Mo.

April 11-13

2007 NAHB Multifamily Pillars of the Industry Conference & Awards Gala

Hollywood, Fla.

April 12

2007 Pillars of the Industry Awards

Hollywood, Fla.

May 30-June 1

Building for Boomers & Beyond: 50+ Housing Symposium

Denver, Colo.

June 6-10

Spring Board of Directors Meeting

Washington, D.C.

June 6

Legislative Conference

Washington, D.C.

Sept. 5-9

Fall Board of Directors Meeting

Seattle, Wash.

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



Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment.

To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.

For assistance, call the NAHB Member Service Center at 800-368-5242.