Nation's Building News Online: April 9, 2007

Print All Articles Text Version

Builders Need to Make Energy Efficiency a Selling Point

At a time when energy costs are taking a bigger bite out of the household budget and consumers are increasingly receptive to energy efficiency and sustainability in their housing, the nation’s home builders must do a better job of selling green home building features to their customers, according to participants at the NAHB National Green Building Conference in St. Louis on March 25-27.

In its 2006 Energy Pulse survey, the Shelton Group found that 86% of Americans would choose one home over another based on its energy efficiency, said Suzanne Shelton, president of the research and marketing company. Yet 78% of the home owners who were polled reported that nobody talked to them about energy efficiency during the buying process.

The results were derived from telephone surveys of more than 500 nationally representative adults last July.

The leading incentive persuading survey respondents to pursue energy-efficient home improvements was a lower monthly utility rate, which was identified by 84.2%, Shelton said.

Ranking at the top of a list of what would be most likely to convince a home owner to spend $2,500 on energy-efficient improvements was that the monthly utility savings would more than cover the increase in the mortgage payments, identified by 22.9%. Close behind, cited by 21.9%, was that the investment would on average be paid back within six years through reduced utility costs.

Responses at the bottom of the list showed less support for other green building attributes: multiple benefits, including mold and moisture prevention, cited by 8.6% of the respondents; a higher-quality home by 4.8%; and better indoor air quality by 3.8%. These results also imply that consumers might need to be educated about these attributes of green-built homes.

At the outset of their marketing efforts, home builders are likely to receive a more favorable response from prospective customers by talking about “conservation,” which struck a positive chord with 65.2% of those surveyed, instead of “green,” which registered positively with 48.5%.

Average household energy costs have risen $3,800 a year, Shelton said. However, as a primary concern among those surveyed, the quality of the earth our children and grandchildren will inherit (cited by 21%) ran ahead of increasing energy prices (18.9%). That was followed by U.S. reliance on other countries for energy (16.1%) and global warming (14.3%).

When asked about the primary reason they would participate in energy-conserving activities and purchases, 26.9% said to preserve the quality of life for future generations, 23.4% cited protecting our environment and saving natural resources, 17.1% saving money and 15.9% protecting our nation’s economy and reducing foreign dependence on oil.

Make the Entire Development Green

The best way by far for home builders to sell energy-efficient home features, Shelton said, is to make all of the homes in the development energy-efficient. Prospective buyers “want all of the neighbors to have it” as a source of reassurance, she said.

Offering slightly higher-priced homes with the features as a standard would motivate 21.9% of the respondents to buy energy efficiency; and the same percentage would be motivated by the builder offering an optional package for an additional price. Builders offering energy-efficient features individually during construction would appeal to 17.1% of their prospective buyers.

Shelton suggested that home energy audits might be a good way of opening up the green home building discussion; 42.5% expressed interest in having one conducted and 20.8% said they had already requested an audit.

Shelton also stressed the importance of talking to prospects about energy efficiency right up front. “The issues of green are not being presented at the point of sale,” she noted, which is a lost opportunity because “your prospects’ ears will perk up as soon as they hear” about savings on the monthly utility bills.

To be successful, green home building messages will also need to be pitched to different segments of the marketplace, she said:

• Comprising 33% of the prospective green home market are “Conservative Classics,” who tend to be politically conservative, middle-aged, Caucasian and male (64%), with middle- to upper-middle income and a moderate education, living in rural and suburban areas that are largely in the South and West. Saving money and protecting the nation’s economy will be the message that strikes the most responsive chord with this market segment, she said.
  
  
• With a 27% market share, “Young Urbanites” are younger, ethnically diverse (mainly Latino), largely male (62%), most likely to have children, well educated and living in cities and suburbs and tend to vote Democratic. The message green builders should be conveying to them should tie into protecting the environment and saving natural resources and preserving the quality of life for future generations.
  
  
• “Working-Class Realists” make up 21% of the prospective audience. They are ethnically diverse (mainly African American) men and women with low incomes, blue-collar jobs and less education residing in the urban and rural South and Midwest. Preserving the quality of life for future generations and saving money are the two messages that resonate with them.
  
  
• “Progressive Matriarchs” are 19% of the market; they tend to be older, liberal and in professional and white-collar jobs and living in the suburbs in the Northeast, West and Midwest. The two most effective messages for them are related to protecting the environment and saving natural resources and preserving the quality of life for future generations.

Shelton advised builders to take a social market approach and to link “preserving the earth for future generations” to taking personal responsibility — shifting the message from “you can do something” to “you should do something” through the home in which you decide to live.

“Make sure the money works,” she advised, and provide incentives in possible partnership with architects, Realtors® and utility companies.

More Prospective Remodelers and Buyers Expecting Green

	Michael Strong, CGR, GMB, CAPS

Remodeler Michael Strong, CGR, GMB, CAPS, vice president of Brothers Strong in Houston, called the Shelton Group research "an eye opener" about the green opportunities that builders and remodelers should be looking for in today's marketplace. "The rules are changing in terms of consumer expectations," he said.

"We've gotten more calls from people interested in green remodeling in the last 18 months than we had in 18 years, yet the problems are no different than they've always been," he said. "It's what we've done forever — make the owners' homes healthier, safer and working more efficiently."

Strong observed that green is fast becoming synonymous with better performance of the home and that increasing numbers of prospective buyers are expecting their homes to be healthier.

Cost, he said, is a concern and green building doesn't necessarily have to cost more.

"Home owners need to know what options are available, and that requires remodeling contractors to be more aggressive in their research so that they can speak intelligently about what the options are," Strong said. "You can get a high-performance paint that doesn't have VOCs — what a difference that will make in a house."

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

National Membership Day 2007: More Prizes Than Ever Before

NAHB’s upcoming National Membership Day on Tuesday, May 22 will award more prizes to successful recruiters than ever before, thanks to Whirlpool, NAHB’s exclusive membership sponsor.

This year, analysts predict that the association’s annual membership drive could bring in more than 10,000 new members.

The theme this year, “Leaders of the Pack,” evokes motorcycle-oriented excitement and will be a prominent part of the day’s Webcast, which will be broadcast live from the National Housing Center in Washington, D.C. from 2:00-5:00 p.m. ET.

Members can access the Webcast on the NAHB Web site, www.nahb.org.

Whirlpool will be awarding  the National Membership Day top recruiter a Gladiator™ Garageworks Chillerator, the only Energy Star®-rated refrigerator designed to handle the temperature extremes of the garage environment.

	Successful recruiters have a chance to win a Chill and Grill Travel Cooler.

Individual recruiters who sign up three or more builder or associate members; six new council members; or a combination equaling six new member Spike credits will be eligible to win a Grill and Chill Travel Cooler.

New this year, prizes will be awarded for retention, as well as recruitment. All members who earn six retention credits in May will be automatically entered into a drawing for one of two KitchenAid Stand Mixers.

“Whirlpool is thrilled to support and participate in National Membership Day” said Butch Gaudette, the manufacturer's director of trade relations. “Successful recruiting and membership growth are not only good for NAHB, they're good for the industry as a whole.”

New Recruitment Combinations for Spike Credit and a Chance to Win

This year, local and at-large council members count toward Spike credits and, as always, Spike credits are doubled in May.

Several new recruitment combinations are available to members for Spike credit and a chance to win the travel cooler. They include:

• One associate, one builder and two council members
• One associate and four council members
• Six council members

For More Information

For more information, visit www.nahb.org/MembershipDay, e-mail membership@nahb.com, or call the NAHB Membership Team at 800-368-5242 x8337.

‘Buy Now’ Advertising Assistance Nears $1 Million. Apply Now.

If your local association is currently engaged in an ongoing advertising campaign in print, radio or television outlets, or if you are planning such a campaign, have your association apply for a “Buy Now” matching advertising assistance grant from NAHB. HBAs from around the country have already applied and have begun to receive their assistance funds. 

To date, 38 local associations have applied for advertising assistance grants from the $1 million to be awarded during the first phase of the program, and $932,429 has been approved. The total cost of the campaigns is $3.5 million. Another $2 million will be made available if the program is successful, and HBAs are encouraged to apply now.

NAHB launched the multi-million dollar grant program last month to assist local home builders associations in an effort to bolster home sales in markets hit hard by the current housing downturn and help offset the cost of local ad campaigns.

The NAHB “buy now” ad assistance program will provide grants to qualifying HBAs in three different categories:

• HBAs conducting ad campaigns in the top 10 media markets would receive assistance equaling up to one-third of the total cost of the campaign, with a maximum NAHB contribution of $75,000. In other words, an HBA conducting a campaign costing a total of $225,000 could receive a $75,000 contribution from NAHB and cover the remaining $150,000.
  
  
• HBAs with more than 250 members operating in areas outside of the top 10 major media markets would qualify for matching grants up to a maximum of $40,000 and be required to pay for at least half the cost of the campaign.
  
  
• HBAs with 250 or fewer members would qualify for grants of up to $5,000.

To qualify for grants, the ads must deliver a “buy now” message, be placed in 2007 and conducted in markets that have experienced a major decline in home sales and housing production.

To learn more about the program, eligibility considerations and requirements, click here (www.nahb.org/buynowapplication), or call Niki Clark at 800-368-5242 x806l.

Share Nation's Building News With Your Staff. It's Free.

Make your business click. Subscribe your employees and trade partners to Nation's Building News — the free, online e-newspaper of NAHB.

Each issue is filled with valuable news and information on every aspect of the home building industry — business and builders' tips; the latest materials prices and mortgage interest rates; new technologies; cutting-edge design; state and federal regulations and how they affect the industy; and more. Information your entire company needs to stay ahead of your competitors.

Forward this issue to your employees and trade partners and ask them to subscribe.

Nation's Building News, it's free to them — invaluable to you.

Don't delay, have your employees subscribe today. To subscribe, go to www.nahb.org/nbn.

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 the 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 Slump Pinches States in Pocketbook

State tax revenues around the country are growing far more slowly this year and in some cases falling below projections as a result of the housing market slowdown that has curbed spending on real estate, building materials, furniture and other items. The downturn is most apparent in Florida, where tax revenue is projected to drop this year for the first time since the energy crisis of the 1970s. However, other states are seeing their collections slow, especially in sales and real estate transfer taxes, and the impact can especially be seen in states where housing prices soared in recent years. For example, New Jersey could face a $2.5 billion shortfall by mid-2008 and California could face two consecutive years where tax revenues are $2 billion below projections after coming up $1 billion short in income tax receipts this January. The inability of home owners to extract equity from their homes will also have an impact. At the end of the real estate boom, 16% of new car purchases in Florida were made with home equity loans, compared with 7% nationally, according to CNW Marketing Research. Maryland’s real estate transfer tax has tumbled by 22% this fiscal year, suggesting that fewer homes are being sold, prices have fallen or both. In Connecticut, transfer tax revenue is down by 13.3% so far, compared to the 3.6% decline predicted by state budget analysts. (www.nytimes.com)
New York Times (4/8/07); Abby Goodnough

Condos Feel the Mortgage Crunch: Behind in Payments, Many Owners Forgo Association Dues

In a sign that the turmoil in the subprime mortgage industry is affecting entire communities and not just individual home owners, condominium association officers, property managers and real estate lawyers through the Washington, D.C. region are noticing more delinquencies in monthly fees. About one in six Americans live in a community run by a condo or home owners association. Fees pay for such services as water, garbage removal, cleaning and repairs. For many subprime borrowers who are struggling to keep up as the interest rates on their mortgages are adjusted and their payments climb, the bill from the condo association becomes easier to ignore. Phil Ochs, a lawyer who represents about 40 condo and home owners associations in Montgomery and Prince George’s counties in Maryland, said he has seen 10 foreclosures since January. In the past 45 days, 15 people living in communities he represents have declared bankruptcy to stave off foreclosure. Most of them bought their condos in the past two years, he said. Delinquencies are also increasing on units that investors had hoped to sell for a quick profit but now are renting out, sometimes for less than their monthly mortgage payment. To make up for the shortfall, some choose not to pay condo fees. (www.washingtonpost.com)
Washington Post (4/7/07); Nancy Trejos

Moderate-Income Home Buyers Hit by Predatory Lenders

Based on an analysis of the sales and mortgage histories of 15,500 properties, a study by the Reinvestment Fund, a community-development group in Philadelphia, has found that one in 30 home owners in the city have been hurt by predatory lenders who target people who live in moderate-income neighborhoods and whose homes are often their only asset. Among those who have refinanced frequently, the odds of being victimized increase to one in seven. Lax lending in the first half of the decade allowed people to buy homes they otherwise could not have afforded. But when the housing market softened, people who had trouble making their monthly payments got stuck with houses they could not sell or refinance. The most vulnerable were subprime borrowers with blemished credit or low incomes, who pay 2% to 3% more on a mortgage than a more credit-worthy borrower. Predatory lenders add to those already high costs by raising the rates even further and tacking on fees. A predatory loan may have high prepayment penalties, for instance, that strip the equity from a home. A recent study by the Urban Institute based on federal data found that 17.6% of all conventional home-purchase and refinance loans in the Washington, D.C. area were made by subprime lenders in 2005 — a new high for the region. A separate study by the Center for Responsible Lending found that predatory loans stripped families in the area of $24.9 million in home equity in 2001. (www.washingtonpost.com)
Washington Post (4/4/07); Dina ElBoghdady

Workouts Could Soften Impact of Subprime Lending Woes

Considering that more than 7 million homes are bought and sold each year, First American Corelogic researcher Chrisopher Cagan says that the possible 1.1 million foreclosures among ARM loans originated between 2004 and 2006 won’t put enough inventory on the market to do serious harm. But the latest forecast from the Anderson School of Management at the University of California, Los Angeles, predicts that the “credit crunch” now underway as lenders tighten their standards will trigger a “second leg” of reduced housing production and prices. But the delinquency and foreclosure numbers may not be as dire as they seem because foreclosing on a property can lead to expenses and losses of 30% to 60% of a loan’s outstanding balance, according to groups like the Mortgage Bankers Association. Lenders say they would often rather bring a delinquent loan back into compliance than take possession of the property. In some cases, lenders are working with borrowers to modify loan terms, lowering interest rates or extending terms to lower monthly payments. In instances where borrowers are coping with temporary job losses or health problems, lenders may show temporary “forbearance” by suspending payments for up to 90 days. In other cases, lenders are negotiating longer-term repayment plans that give delinquent borrowers a set time period, such as 18 months, to catch up on their payments. As a last resort, lenders are often agreeing to “short sales” in which they collect all of the proceeds from the sale of a distressed property, in exchange for letting borrowers off the hook even if the sale price doesn’t repay their loan in full. (www.inman.com)
Inman News (4/0/07); Matt Carter

Volatile Prices Will Cut Copper Demand From Contractors, OEMs

With near-record prices and a late-year decline in housing construction, North American use of copper dipped in 2006 by 0.5% to just under 5 billion pounds. With residential housing construction in the doldrums and a slowdown in commercial and consumer goods, analysts and buyers agree that copper and brass demand in 2007 will be lucky to match 2006 poundage, but probably will dip by a couple of percentage points. “Demand for copper-based products is dropping like a stone,” says a buyer at a plumbing products wholesaler in a recent survey by Purchasing magazine. A typical house in the U.S. and Canada contains 400 pounds of copper and brass. Since the construction industry accounts for around half of total U.S. copper consumption, the collapse in new housing construction is having a direct negative effect on copper demand. “The bearish U.S. housing market will be negative for copper demand,” says Helen Henton, head of commodity research at Standard Chartered Bank in London. “Although its importance has diminished relative to China, the U.S. still accounts for 13% of global copper demand. Therefore, the status of the U.S. housing market is likely to continue to have a significant impact on the world copper market.” (www.purchasing.com)
Purchasing.com (4/5/07); Tom Stundza

The Clutter Stops Here; As Mudrooms Become Must-Haves, Even the Name Gets an Update

As American houses become larger, less formal and more child-centric, the lowly mudroom is finally having its day. In its new incarnation, it is not some dark corner of the laundry room or a bench in the garage, but a full-fledged room, often decked out with hardwood floors, crown molding, windows and a computer or security station. Stephen Melman, NAHB’s director of economic services, said that a survey by the association of architects last summer found that the mudroom was taking on increased importance in new construction, especially since the laundry room is now often being put on the second floor, near the bedrooms. “Architects are telling us that all upscale homes” built in the last two or three years “have transition rooms,” he said, using one of the terms that has replaced “mudrooms” in some parts of the country. And when something becomes popular in high-end houses, he added, “we expect it to start migrating to average-price homes,” especially those with primarily open floor plans, which need some kind of space where clutter can be organized and stored. These rooms may be called transition stations, commuter stations or friends-and-family entrances, but they all share a common purpose: connecting the side or garage entrance to the house, usually by way of the kitchen, and offering cubicles or lockers for each family member. (www.chicagotribune.com)
Chicago Tribune (4/5/07); Leslie Kaufman, New York Times News Service

Momentum Grows to Revitalize FHA Lending

The debate on the best way to modernize and revitalize the Federal Housing Administration (FHA) began in earnest last month with the introduction of two bills in the House and one in the Senate designed to help the agency more effectively carry out its mission of spurring housing opportunities for America’s working families.

House Financial Services Committee Chairman Barney Frank (D-Mass.) and Housing Subcommittee Chairwoman Maxine Waters (D-Calif.) on March 29 introduced H.R. 1852, the Expanding Homeownership Act of 2007.

On the same day, Rep. Judy Biggert (R-Ill.), the ranking member of the Housing Subcommittee, unveiled H.R. 1752, the Expanding American Homeownership Act. The bill is identical to H.R. 5121, which passed the House in 2006.

In the Senate, Sen. Hillary Rodham Clinton (D-N.Y.) recently introduced her legislative measure to modernize the FHA, S. 947, the 21st Century Housing Act.

In addition, Senate Banking Committee Chairman Chris Dodd (D-Conn.) is expected to offer a bill in the near future.

Many of the legislative proposals to give buyers better financing options are supported by NAHB. These include increasing loan limits in high cost areas of the country and allowing the FHA to develop responsible, alternative mortgage products such as reduced downpayments and longer-term mortgages to meet the housing demand of low- and moderate-income borrowers.

In the coming weeks, NAHB looks forward to working with Reps. Frank, Waters and Biggert; Sens. Clinton and Dodd; and other lawmakers in both chambers who are seeking to pass legislation that would give the FHA a greater ability to respond to the needs of borrowers and enable more working families to become home owners.

To read the legislation, click here and enter the bill number into the box at the center of the page.

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

Useful Links to Monitor Economic and Housing Trends

The following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market.

To access the latest information available, simply click the links.

• U.S. Census Bureau Construction Price Indexes
  
  
• NAHB's Housing Forecast
  Housing starts, sales and interest rate projections through 2007.
  
  
• Latest Home Mortgage Interest Rates
  Contains current and historical data on fixed and adjustable mortgage rates. Updated weekly.
  
  
• Historical Facts, Figures and Trends
  Includes new home starts and sales, average and median home prices, homeownership rates, characteristics of new homes and more.
  
  
• Characteristics of New Housing
  Highlights the latest data on new-home characteristics released by the U.S. Census Department. Includes links to the complete Census report and other trends researched by NAHB.
  
  Additional breakouts of this data and other trends researched by NAHB are available at www.nahb.org/constructionstats under “Selected Characteristics of New Housing” (dated 6/13/2006).
  
  
• Housing Starts
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Home Sales
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Single-Family Median Home Prices
  Updated monthly.
  
  
• Home Price Index
  The index measures average home appreciation in more than 250 metropolitan markets. Updated quarterly.
  
  

• Metro Home Building Permits
  Local and state data on housing construction rates. Updated monthly.
  
  
• Employment Trends for Metro/State Markets
  Provides metro and state employment data nationwide. Updated monthly.
  
  
• Local Economic Impact of Housing
  Shows how building 100 homes benefits a typical metropolitan area.
  
  
• Home Building’s Direct Impact on the Economy
  
  
• Housing’s Contribution to Gross State Product
  Measures how much housing contributes to the economic output of each state.
  
  
• Housing Market Statistics from HousingEconomics.com
  Full array of statistical categories available to NAHB members, a limited number available to non-members.
  
  
• In-Depth Analysis from HousingEconomics.com
  Full array of analysis of factors affecting housing and the impact on the industry available to NAHB members, a limited number available to non-members.

How Deep Is the Housing Correction? Attend Construction Forecast Conference on April 26

Will housing demand outweigh affordability hurdles, inventory overhangs and the retreat of investors? Where are home prices headed?

Get the answers to these and other questions at the Construction Forecast Conference — Spring 2007 on April 26 in Washington, D.C.

Panels of nationally recognized experts will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys at the day-long conference.

For more information and to register, click here.

Can't Attend in Person? Webcast of Conference Also Available

The conference is also available via Webcast. For Webcast information, visit www.nahb.org/cfcwebcast. 

Want to Know Your State’s Starts Forecast for 2008?

Find out in HousingEconomic.com’s State Starts Forecast (sample). The starts forecast includes downloadable Excel tables of total, single-family and multifamily starts by region and state.

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 the 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.

Builders’ Tip: Fabricating Better Garage-Door Weatherstripping

	Click for larger image.

I’ve always been disappointed with the weatherstripping products for garage-door openings. In my experience, they are expensive and too fragile to accommodate the play in garage doors. The only piece of conventional weatherstripping that seems to work well is the heavy rubber strip designed to seal the gap at the bottom of the door.

Frustrated at not being able to keep cold Minnesota winds out of the garages and shops I was building, I decided to modify this rubber strip and use it around the entire door. The results were so good that I’ve stopped using any other type of weatherstripping.

Door-bottom edge stripping is usually shaped like a flattened-out U with one long leg and one short leg. As the drawing illustrates:

• I install the stripping on the top and side jambs with the long leg lightly pressing on the door.
  
  
• I hold the strips in place with plywood battens 1/4-inch thick by 1-1/4 inches wide.
  
  
• Once the battens are screwed in place, I use a razor knife to trim the short legs flush with the battens.
  

Door-bottom edge stripping can be purchased at almost any building center. But most commercial garage-door companies carry a high-quality stripping that they will often sell in bulk quantities at reasonable prices.

— Gary E. Carlson, St. Paul, Minn.

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

To 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 the 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.

Five Actions to Manage Your Finances in a Changing Market

By Steven W. Hays, Sr., CPA

Builders in markets in the midst of a slowdown should take action to minimize the downturn’s economic impact on their businesses.

Five actions to consider include:

• Control fixed general and administrative expenses.
  
  
• Develop and monitor budgets for other fixed expenses and capital items closely.
  
  
• Control and manage the number of specs and display homes carried.
  
  
• Monitor closely the relationship between staffing and sales volume.
  
  
• Manage and reduce direct construction costs.

Control All Fixed General and Administrative Expenses

These are the costs of running your office, such as company officer and other salaries, related payroll taxes and fringe benefits, rent, office supplies, training, insurance, travel and entertainment and professional fees.

Since these expenses remain the same regardless of the number of houses closed, they can eat up an increasing percentage of your profits. They should be monitored and, if possible, reduced.

Employees should be cross-trained to better absorb personnel losses. And as always, think twice before you hire anyone new.

Develop Budgets for Other Fixed Expenses, Capital Items — And Monitor Closely

Establish budgets for other fixed costs such as advertising, promotion and donations if you don’t already have them, and stick to them.

For example, if a builder’s total budget for advertising is 1% of sales, all advertising expenses, such as print and media ads, should be monitored during the year to ensure that they don’t exceed the budget.

In addition, create and follow a budget for fixed asset additions — and prioritize the items by need. Also, before making a new asset purchase, conduct a cost-benefit analysis.

One way to reduce the budget on home furnishings in new model homes is to use existing furnishings from older or existing model homes, where possible.

Manage and Control the Number of Spec Homes, Display Models

Base the number of spec houses and models you build on your anticipated closing volume. Too much sitting inventory will have a substantial negative impact on your financing and model home costs.

Closely Monitor Relationships Between Staffing, Sales Volume

Your sales volume must be able to support the number of superintendents, estimators, general laborers and general and administrative staff and subcontractors that you employ.

While your company may have been able to support two superintendents when you were closing on 80 homes, if it has dropped to 40 or 50 units, it is time to take a hard look at keeping both positions or eliminating one.

Manage, Reduce Direct Construction Costs

Slower cycles are an especially good time to review direct construction costs. The impact of even a small reduction in each home’s cost can add significantly to your bottom line.

In particular, value engineering can help determine what features in the base model can be replaced by less costly items that will not reduce the appeal of your product among prospective home buyers.

Go to your subcontractors and suppliers for ideas about reducing costs and finding design alternatives. Ideas that can be duplicated in each of your homes will multiply your savings and, once again, add profits to your bottom line.

Steven W. Hays, Sr., CPA, is partner-in-charge of the Home Builders Services Group of RubinBrown LLP CPAs, in St. Louis. RubinBrown serves more than 35 home builder groups in the Midwest and Florida. For more information, e-mail Hays, call him at 314-290 3336, or visit the RubinBrown Web site at www.rubinbrown.com.

Boost Your Business With Free Biztools Business Guides

These Biztools business guides are available free to NAHB members.

Three new builder business guides — created to help NAHB members manage their businesses more effectively and increase their profits — are available free from NAHB. 

Available to members only and downloadable from the NAHB Web site, www.nahb.org, the guides offer members tips on technology, business planning, ensuring the financial health of their business and more.

Produced by NAHB’s Business Management and Information Technology Committee and found in the NAHB Business Management Resources section of the Web site, the 2007 Biztools builder business guides include:

• "Financial Management for Home Builders in a Changing Market"
• "Building Processes Using Technology: Steps to Making IT Work for You"
• "Planning for Performance: A Strategy for Building Success"

 
All three concise guides — which include lists of other valuable NAHB Biztools resources — can be downloaded free by clicking here, or by clicking the individual titles above.

Free 2006 Builder Business Guides Also Available

The 2006 Biztools builder business guides are also available free to NAHB members and can be downloaded from the NAHB Web site. The three 2006 guides provide business tips on technology, human resources and measuring profits.

To view or download the 2006 guides, click here.

NAHB Has More Than 300 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 300 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.

Implement Procedures and Standards to Increase Quality

Standardize each step of the construction process by implementing the tools and procedures in “The Scopes of Work Program: Procedures and Standards to Increase Quality,” available through BuilderBooks.com.

Field tested by builders concerned with quality issues, this program has proven to significantly reduce warranty work. "The Scopes of Work Program" will help you:

• Standardize your business
• Gain accountability from field personnel and trade contractors
• Ensure 100% completion by each trade
• Reduce wasted material
• Control your construction costs
• Reduce warranty work
• Increase your bottom line

You can adapt the scopes to meet the demands of your business or codes for your state or county.

To view or purchase this publication online, click here, or call 800- 223-2665 to order.

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 the 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.

With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive 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.

Six Simple Tips to Make Your Model Sell

By Lita Dirks, MIRM, Lita Dirks & Co., LLC

Anyone who has spent even a small amount of time in a model home while prospective home buyers were strolling through has probably overheard them gasp, “I want my home to look just like this.”

These are happy words for builders, the beginning of prospects envisioning actually living in that particular home.

But what makes prospective home buyers think and react that way? Is it the pillow arrangement on the couch, or the warm, pumpkin spice latte paint color in the kitchen?

Actually, it’s much more than that. It’s a professional understanding of your buyers’ wants and needs by your interior merchandiser.

	Positioning furniture in a model means not only promoting good traffic flow, but also “inspiring functionality of the space,” says Lita Dirks, MIRM, of Lita Dirks & Co. LLC.

To keep those gasps coming, follow these six simple tips to keep your model presentation focused and your prospective home buyers interested:

Thoughtful Space Planning

First, analyze your floor plan. Walk through the plan as if you were the potential buyer, and then determine each room’s functionality.

Once you’ve done that, plan the furniture placement in each room. This part of the process can become a true team effort involving the builder, architect and interior merchandiser. And it could save you from costly production changes.

With all of the team involved early, you can determine whether or not a floor plan layout makes sense for your particular target market — for instance, does the fireplace location leave enough room in the family room for the media center?

When planning space this way with everyone involved in the process, you can make timely, appropriate adjustments, possibly even before the final set of construction documents is issued.

When furnishing a room, you also should consider how buyers will live in that room when positioning the furniture — not just for traffic flow, but also to inspire space functionality.

Finally, keep in mind that the prospective buyers will walk through your models with their two children, Realtor® and mother-in-law. Each room not only needs to function as a model, it has to work as a selling tool.

Deliberate Details

Every home needs personality, but more importantly, the right personality to match the target market. This is accomplished through the creation of deliberate details.

Whether simply-built or radically unique, these deliberate details are an opportunity to emphasize drama, or to create diversion from a builder’s area of concern. They emphasize spaces, define niches, create corners and cause someone to stop and look.

Whatever details you want to incorporate, design your idea for the dream, then modify it with easily accessed materials. Incorporate the entire wall space, from the floor to the ceiling and wall, to wall to create a positive impact when planning and creating the details.

	Thoughtfully planned color can enhance built-in details like shelving and ceiling trim.

Relevant Furnishings

Does the room have volume? Will a bold armoire or a soaring art niche be appropriate? Or, are the room's furnishings restricted by an 8-foot ceiling?

When selecting furnishings, understand the room’s true size and then choose correctly-scaled furniture.

If the room has volume, furniture generally can be heavier or taller. If the room has a lower ceiling, match the size of the room to the furniture. This doesn’t mean that you have to undersize the furniture. It means using furniture wisely. Coffee tables with glass tops may work in a smaller room, or open-leg dining room tables with fewer chairs.

In addition to correctly-scaled furnishings, you should select furnishings that send a clear message to the potential home buyer that they can now afford, or will soon be able to afford, what they see. Just make sure that the furnishings are within the grasp of your target market, whatever that market may be.

The furnishings you present also must be consistent with the overall theme of the home.

Taken together, you want to provide a seamless and enjoyable experience for the prospective home buyer. If there is a gap in any part of this experience — and that can be something as simple as a piece of furniture or accessory that appears out of place — you could ruin the model experience, giving your prospects a reason not to buy.

Finally, make sure the furniture is comfortable. You want prospective buyers to stay longer and experience the model. I remember walking into the kitchen of a model during its opening. Several prospects were gathered, quite relaxed and talking among themselves. It was almost as if I was in a private residence. One of the people at the kitchen counter even said to me, “Come on in,” as if he were in his own kitchen. Now, that’s comfortable.

Timeless Trend

“Timeless trend” relates to consistent styling and the concept of incorporating “new,” but not “too new,” elements into your home. If something is too trendy, most people tend to shy away from it.

Timeless trend evokes a sense of safety — being on the edge, yes, but not over the edge. Prospective buyers can relate to a home incorporating timeless trend. They see that the home features the latest and greatest, as well as the attainable.

By furnishing your home with timeless trend as your guideline, you will be able appeal to your targeted audience quite possibly for several years.

Calculated Color Use

Color is a great way to change the look of a room, but the carefully planned use of color is what can set the tone or mood of the entire home and the prospective home buyer’s experience.

The use of color can be tricky, however. What’s hot comes and goes quickly. So choose colors that have a two- or three-year life span when used in model merchandising.

When selecting color and where it will be used, also consider the lifestyle you are intending to craft.

Use color for details, such as a cove ceiling, a cozy corner or a series of uniquely positioned windows. Contrasting or complementing colors can be used to accent cabinets or tile, as well.

Most people like and want to feel good. The appropriate use of color is just what’s needed to foster that feeling. 

	Pull drapery clear of windows to allow for maximum light to enter the room.

Controlled Lighting

Illuminate the opportunity and make your models twinkle with controlled and carefully thought-out lighting.

Maximize window glass exposure with your furniture placement by keeping windows clear or partially clear of furniture, especially bulky pieces.

Keep your drapery pulled clear of the glass to maximum the light streaming into the home and to take advantage of views.

When needed, add additional lighting, possibly recessed, to help balance the light disbursement throughout a room throughout the year. Balanced lighting will help buyers see better, and more, when they walk through your models in the early evening on an autumn day.

Ultimately, maximize lighting to create ambiance. Decorative and directional lighting can pack a punch. Use decorative lighting to highlight a special piece of art in the master suite or to set the mood by focusing on the grand piano in the entertainment room.

Incorporate All Six Tips

You probably have incorporated a number of these simple tips when merchandising your models. But, by incorporating all of them each time you decorate your models, you are creating a better opportunity to put prospective buyers from your targeted audience right where you want them — in your models whispering, “I want my home to look just like this.”

Lita Dirks, MIRM, of Denver-based Lita Dirks & Co., LLC, is a nationally recognized leader in model home merchandising. Since 1974, Dirks has worked with most of the nation’s residential and commercial home builders and developers, helping them to achieve their sales goals.

This story originally appeared in the January/February 2006 issue of “Sales + Marketing Ideas” magazine.

Subscribe to 'Sales + Marketing Ideas' Magazine for Cutting-Edge Information

For additional cutting-edge sales and marketing information, subscribe to "NAHB’s Sales + Marketing Ideas" magazine (www.smimagazine.com). 

Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

Strenghten Your Selling Game

Bill Webb, MIRM, shows you how in “Sweet Success in New Home Sales,” available through BuilderBooks.com.

This book provides powerful techniques for selling more homes and making more money in leaner times, and lays out the proven approaches for crafting and delivering sales excellence.

To view or purchase this publication online, click here, or call 800-223-2665.

Concrete Adds Strength to Disaster-Resistant Home

A broad-based coalition of building, safety and affordable housing advocates and emergency organizations have joined forces in the Chicago area to build an affordable, disaster-resistant home featuring precast concrete walls and floors and other safety products.

The home is being built to demonstrate the construction options available to better safeguard homes from natural hazards.

The Portland Cement Association and the Precast-Prestressed Concrete Institute (PCI), both members of the NAHB Concrete Home Building Council, joined the American Red Cross, the Illinois Emergency Management Agency (IEMA), the Institute for Business and Home Safety (IBHS) and others for an April 2 groundbreaking for a “Fortified” single-family, handicap accessible home in Aurora, Ill.

Unlike traditional groundbreakings featuring officials with shovels, at this one, the concrete walls and floor were put in place. In addition, a series of “wind cannon” demonstrations were held to emphasize concrete’s ability to resist tornado-force winds.

The home is being built as part of the Safe Home Illinois initiative, which is jointly sponsored by the American Red Cross of Greater Chicago and IEMA. The group’s goal is to educate government officials, industry professionals and the general public about building products and techniques that can mitigate the damage caused by tornados and wind storms.

The home is being built in accordance with criteria specified by the IBHS’ "Fortified…for safer living®" program. IBHS is a national non-profit initiative of the insurance industry.

The inspection-based “Fortified” program offers participating builders a range of construction options designed to better safeguard homes from tornados, hail and freezing weather that plague Illinois and other Midwestern states.

The demonstration home also is being constructed in conjunction with The Joseph Corporation, a non-profit affordable housing organization, and the vocational trade programs of three high schools in suburban Chicago. Once completed, the home will be sold to a low-income family, who will receive financial and homeownership counseling from the Joseph Corporation.

The home features precast concrete wall panels and floors by Chicago-area manufacturer and PCI member DuKane Precast. Others contributing to the project include Simpson Strong-Tie, Symons, Grace, Andersen Windows, Allstate Insurance, PCI member Pre-Stress Engineering Corp., Owens Corning, the National Storm Shelter Association and PCA members LaFarge, St. Mary’s Cement and Buzzi Unicem.

News coverage of the groundbreaking appeared in The Chicago Tribune, Chicago Sun-Times, Aurora Beacon News and The Daily Herald and on the Chicago Fox News affiliate.

For more information on the Safe Home Illinois program, visit www.safehomeillinois.org

For more information on the IBHS “Fortified…for safer living” program, visit www.IBHS.org.

Attend the Concrete Technologies Tour on May 6-8

The latest advances in concrete construction, production, materials and design will be showcased at the 2007 Concrete Home Building Council Concrete Technologies Tour in Minneapolis on May 6-8.

The evemt will feature educational programs, networking and behind-the-scenes tours of six cement-based building materials and manufacturing facilities. 

To Register

For more information and to register, visit www.nahb.org/concretetour.

Concrete Tour Mixes Plant Visits, Latest Trends

The latest advances in concrete construction, production, materials and design will be showcased at the 2007 Concrete Home Building Council Concrete Technologies Tour in Minneapolis.

The tour will be held on Sunday through Tuesday, May 6-8.

The tour will feature educational programs, networking and behind-the-scenes tours of six cement-based building materials and manufacturing facilities. 

Plants on Tour

The plants on the tour include:

• Molin Concrete Products Company
  Molin, with more than 100 years in the prestressed/precast concrete industry, provides design, manufacturing and installation services for such products as hollow core planks, precast foundation walls and precast/prestressed beams, columns, structural wall panels and stadia.
  
  
• Schwing America, Inc.
  Schwing manufactures a broad line of truck- and trailer-mounted concrete pumps that allows its customers to grow with the company. Schwing also provides an array of innovative products for ready-mix producers.
  
  
• Becker Architectural Concrete
  Becker Architectural Concrete brings together the disciplines of quality concrete construction with the limitless possibilities of color, texture and form to give designers and builders the creativity and strength of concrete.
  
  
• Holcim (U.S.) Inc.
  Holcim (U.S.) is one of the largest suppliers of Portland and blended cements and related mineral components in the country. The company offers an extensive line of cements and related construction materials, as well as technical support.
  
  
• Anchor Block Company
  Anchor Block Company manufactures concrete blocks, autoclave-cured decorative masonry units, pavers and retaining walls in a vast array of textures and colors.
  
  
• Cemstone
  Cemstone, a family-owned and operated business founded in 1927, delivers quality concrete for everything from residential driveways, to walls in homes built with Insulating Concrete Forms technology to high profile commercial projects. The company supports concrete batch plants, contractor supply stores, state-of-the-art concrete pumping trucks, a concrete block plant and 18 aggregate mines.

The three-day event also includes an optional golf tournament and several receptions.

To Register

Online advanced registration is available until close of business Friday, April 20.

For more information and to register, visit www.nahb.org/concretetour.

Attend the Modular and Panel Plant Tour May 20-22

Go behind the scenes of the modular and panelized home building industries at the 2007 Modular and Panel Plant Tour in Roanoke, Va. on May 20-22.

Tour six plants and network with modular and panelized professionals from across the country.

Factories on tour Nationwide Custom Homes, Mod-U-Kraf Homes, Timber Truss Housing, Metwood Building Systems, West Window Corporation and Martinsville Speedway.

For more information, or to register, visit www.nahb.org/PlantTour.

“Concrete at Home,” available through BuilderBooks.com, offers tips on incorporating concrete architectural elements such as counters, sinks, columns and water pieces into a project.

To view or purchase this publication online, click here, or call 800-223-2665.

Free NAHB E-Newsletter on Custom Home Building

NAHB’s Custom Home Builders Committee recently launched a new resource for NAHB members interested in custom home building — Custom Home Building Quarterly — a free electronic newsletter with business management tips by and for custom builders.

This new, easy-to-read e-newsletter, available free to NAHB members, provides:

• A glimpse of custom home builders and their businesses
  
  
• Tips to help custom home building businesses run more smoothly
  
  
• Links to NAHB business management resources and Biztools from builders and other industry experts
  
  
• News from NAHB’s Custom Home Builders Committee

Subscribers to Custom Home Building Quarterly also will receive regular updates on NAHB’s premier education and networking event for custom builders — the Custom Builder Symposium. The symposium will be held from Oct. 26-28 at the Naples Grande Resort and Spa in Naples, Fla.

To Subscribe

For more information, or to subscribe to Custom Home Building Quarterly, click here.

Green Building the Next Step for Remodeling Industry

Consumers want their remodeling projects green and remodelers are answering the call, according to recent research by NAHB Remodelers released at the National Green Building Conference in St. Louis last month.

“The only way to bring green into 120 million existing households is through remodeling,” said NAHB Remodelers Chair Mike Nagel, CGR, CAPS, a remodeler from Chicago. “Americans spent over $230 billion last year in home remodeling, with energy-efficient and sustainable products representing an increasing share of the market.”

More than one quarter of remodelers surveyed by NAHB saw growing demand for green remodeling late last year, compared to just 6% reporting declining demand. The majority of remodelers already incorporated energy efficiency into their work. Nearly all (85%) have said they used low-energy windows, 68% used insulated exterior doors, 65% upgraded insulation and 56% installed high-efficiency HVAC systems.

The survey also showed that many remodelers use environmentally friendly products. For example, more than 75% of those surveyed said they were contributing to minimizing harvesting from old-growth forests by using alternatives to dimensional lumber, like engineered wood. Additionally, 65% said they already incorporate recycled or recyclable materials into their projects.

For the first time, the National Green Building Conference held remodeling educational courses for contractors. One of those instructors, Michael Strong, CGR, CAPS, GMB, a member of the NAHB Green Building Subcommittee, discussed the emerging trends within the industry.

“Energy efficiency continues to lead the way, but for items beyond appliances, the installation matters as much as the product,” Strong said. “Simply putting in that low-E window doesn’t solve the problem. Home owners need to look at the whole room and eventually use a whole-house approach to maximize efficiency.”

NAHB Remodelers offer a “Top Eight” list for home owners:

• Install maximum insulation in the area to be remodeled.
• Install high-efficiency windows instead of those that just meet the energy code.
• Seal all exterior penetrations in the area being remodeled.
• Purchase only Energy Star®-rated appliances.
• Install only low-flow water fixtures.
• Upgrade to an Energy Star®-rated water heater, or better yet a tankless water heater.
• Purchase the highest efficiency HVAC system you can afford.

In another presentation at the conference, Carl Seville, of Seville Consulting, noted that incorporating green had given a boost to his business. “There are still few green remodelers out there,” he said, which has provided an opportunity to differentiate himself from the competition.

To get started, he suggested “taking small steps, picking a few things and doing them better. Don’t get overwhelmed; don’t try to do everything at once and do the best you can.”

Home performance and how the house as a system controls heat, air and moisture is the “critical piece” of green remodeling, Seville said, and he recommended taking a four- to five-day HERS rating training class.

“Green building is the next step in the remodeling industry,” he said, and the first challenge is “creating the demand. Nobody asks for it,” he said, but remodelers can create the demand by emphasizing such advantages as comfort, healthier air and lower energy bills.

“Once you learn about this stuff, you look back and you’re ashamed with what you used to do,” Seville said.

For more information about remodeling, visit www.nahb.org/remodel.

For more information on NAHB resources on remodeling, e-mail Jim Lapides at NAHB, or call him at 800-368-5242 x8451.

Download Green Building Intelligence Today From BuilderBooks.com

The “Residential Green Building SmartMarket Report,” which addresses the growing trends and opportunities in green home building, is available and can be quickly downloaded through BuilderBooks.com’s Digital Delivery service.

Available through Digital Delivery only, the report provides the results of market research conducted by McGraw-Hill Construction and NAHB about green building in home construction.

To download this publication from BuilderBooks.com, click here.

‘Building Greener Neighborhoods’ Available at BuilderBooks.com

“Building Greener Neighborhoods,” available through Digital Delivery at BuilderBooks.com, shows those involved in building new communities the advantages and rewards of saving, planting and transplanting more trees in their developments.

The examples are drawn from decades of experience of land developers, home builders and urban foresters. 

To download this publication in a PDF format, click here, or call 800-223-2665.

Apply for the NAHB Remodeler of the Month Award

Through the Remodeler of the Month award, the NAHB Remodelers are honoring remodelers who demonstrate strong business practices, community service or industry involvement through the Remodeler of the Month award.

Winners will be featured in Qualified Remodeler magazine and in Nation’s Building News.

To qualify:

• Candidates must be NAHB Remodelers  members.
• Local councils may nominate a member or members may self-nominate.
• Candidates may submit for any month and will compete with peers across the nation.
• NAHB will check with the candidate's EO to confirm their qualifications before they are confirmed as a winner.
• All applications must be submitted electronically.
• The deadline is the 15th of each month
• Winners must reapply to be considered for Remodeler of the Year. 

How Does Your Remodeling Business Measure Up?

The “Remodelers’ Cost of Doing Business Study,” available through BuilderBooks.com, is a comprehensive assessment of the growth and viability of the remodeling industry that enables remodelers to see how their business stacks up against the competition.

Conducted by the NAHB Economics Group and the NAHB Remodelers, the study provides a statistically accurate analysis of the remodeling industry in terms of size, profitability, time in the business, business organization and staffing.

The study allows remodelers to compare key business statistics, such as gross and net profit margins, against results from the most successful remodelers. 

To order the “Remodelers’ Cost of Doing Business Study” online, click here, or call 800-223-2665.

Symposium Explores 50+ Buying and Selling Trends

The latest trends in 50+ buying and selling patterns, Internet connectivity and lifestyle, niche buyers and the lure of campuses will be explored during breakout sessions at the upcoming Building for Boomers & Beyond: 50+ Housing Symposium in Denver next month.

Hosted by the NAHB 50+ Housing Council, the symposium will be held at the Hyatt Regency Denver at the Colorado Convention Center from May 30 to June 1, with post-conference courses available June 2-3.

The breakout sessions will be held Thursday, May 31, and Friday, June 1. They include:

• “Survey Says…How 50+ Consumers Buy and Sell Homes”

The Senior Advantage Real Estate Council® annually conducts research on the buying and selling process of 50+ buyers, as well as on their attitudes and values. The results of the council’s 2006-2007 surveys will be shared, along with strategies to translate the survey results into business solutions to enhance sales to this market segment.

• “The Connected Home Lifestyle”

The results of a study exploring the Internet connectivity needs and desires of the 50+ market will be explored, and solutions — including marketing strategies and upgrade packages that fill this need — will be discussed. The soon-to-be published study was conducted by the Internet Home Alliance Research Council and NAHB’s 50+ Housing Council.

• “Beyond Sun City: Exciting New 50+ Designs for Home and Community”

Niche groups of 50+ buyers are looking for something unique. This session highlights the community designs that deliver the individualized lifestyle customers want.

• “Returning to Campus”

Retirees, attracted by the many benefits that college towns offer, are returning to campuses across the country. Universities are partnering with builders to offer an integrated product, including access to lectures, seminars, cultural events and superior medical care. Attendees at the session will learn what drives this fast-growing trend and gain an understanding of both the opportunities and obstacles to success.

The symposium will also feature three housing tours showcasing different market segments of the 50+ housing industry — active adult communities, service-enriched communities and transit-oriented development (TOD).

Also new to the symposium this year will be the Best of 50+ Housing Awards gala, held on May 31, honoring the winners of the prestigious design and marketing awards program showcasing the latest trends and most innovative design. 

To Register

For more information and a full schedule of courses, or to register, visit www.nahb.org/build4boomers.

Note: Pre-registration ends Friday, May 11. Separate fees apply to the awards gala, housing tours and post conference courses.

Find Out What the 55+ Market Wants

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

Education Calendar

April 11-13	2007 NAHB Multifamily Pillars of the Industry Conference & Awards Gala	Hollywood, Fla.
April 26	Construction Forecast Conference — Spring 2007	Washington, D.C.
May 6-8	Concrete Home Building Council Concrete Technologies Tour	Minneapolis, Minn.
May 20-22	2007 Building Systems Councils Plant Tour	Roanoke, Va.
May 23	Audio Conference: 60 Minutes to Storm Water Permit Compliance
May 30-June 1	Building for Boomers & Beyond: 50+ Housing Symposium	Denver, Colo.
June 25-27	NAHB/BALA Design Institute for Builders	Bellvue, Wash.
Aug. 7-11	Executive Officers Council Seminar	Long Beach, Calif.
Oct. 12-14	National Conference on Membership	Charlotte, N.C.
Oct. 24	Construction Forecast Conference — Fall 2007	Washington, D.C.
Oct. 26-28	2007 Custom Builders Symposium	Naples, Fla.
Oct. 28-31	Building Systems Councils SHOWCASE 2007	Hilton Head, S.C.
Nov. 6-10	State and Local Government Affairs Conference	Austin, Texas

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 the 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.

Builders Asked to Help Benchmark Healthy Products

Architect and designer William McDonough, world renowned for his leadership in sustainable development, has invited green builders to participate in efforts to benchmark the performance of various building products through his Cradle to Cradle initiative.

Along with Dr. Michael Braungart, McDonough founded MBDC in 1995 to promote a revolutionary new approach to products and services emphasizing their health for humans and the environment, including the ability of waste materials to be broken down into nutrients or reused for other purposes.

As an example, McDonough, in a keynote address to the NAHB Green Building Conference in St. Louis last month, described how his company was able to overhaul a textile factory in Switzerland so that the water at the end of the manufacturing process was drinkable, and cleaner than the water that entered it.

McDonough, who is also the founding principal of Charlottesville, Va.-based William McDonough Partners, Architecture and Community Design, said that MBDC has also devised an online supply chain tool that provides information on the desirability of products.

Of the 104,000 chemicals that are currently being used to produce things, the first 6,000 have been entered into Cradle to Cradle’s database and categorized in a stop-go system where unhealthy is indicated by red, environmentally desirable by green and yellow signals caution because there is not enough available information, he said.

Hycrete, a form of concrete that is made completely waterproof through the addition of a product first invented as an anti-corrosion agent in car engine oils, was one of the earliest products to receive Cradle to Cradle certification.

The product eliminates the need for external membrane and coating systems. It also speeds up the construction process, reduces the materials that are needed for the job and is suitable for handling the moisture collected by plants on green roofs.

In China’s Luzhou, McDonough said, soil has been lifted onto the roofs of new office buildings and they are being used for farming in a country that has a dwindling amount of agricultural land and is in the process of building housing for 400 million people in the next 12 years.

McDonough told green conference-goers that he is pursuing designs that will “love all the children of all species for all time,” and his goal is to create a “delightfully diverse, safe, healthy and just world with clean air, water, soil and power.”

One of his top design priorities is harnessing energy from the sun, he said, which can provide 5,000 times more power than people need. He built three solar houses in Ireland, “where there is no sun,” and designed the Adam Joseph Lewis Center for Environmental Studies at Oberlin College, which makes 30% more energy than it needs to operate and purifies water through a wetland in the auditorium.

For more information on green building resources available from NAHB, e-mail Calli Schmidt, or call her at 800-368-5242 x8132.

‘Green Building Products’ Available at BuilderBooks.com

“Green Building Products: The GreenSpec Guide to Residential Building Materials,” available through BuilderBooks.com, provides descriptions and manufacturer contact information for more than 1,400 environmentally preferable products and materials — from age-fiber panels to zero-VOC paints.

To view or purchase this publication online, click here, or call 800-223-2665.

2007 Expected to Spawn Very Active Hurricane Season

Defying predictions, the 2006 Atlantic hurricane season fortunately did not produce a single landfall, but that could turn out to be the quiet before the storms if the forecast for the 2007 season released last week holds true.

This year’s hurricane season will be much more active than the average season from 1950 to 2000, Philip Klotzbach and William Gray from Colorado State University's Department of Atmospheric Science announced on April 3.

The forecasters are predicting nine hurricanes this year, compared to an average of 5.9, and five of those will be intense, at least a Category 3, compared to an average of 2.3. The probability of a major hurricane landfall in the U.S. is estimated to be about 140% of the long-period average, they said.

The hurricane forecast has been upwardly revised from the prior forecast in early December, they said, due largely to the rapid dissipation of El Nino that has occurred over the past couple of months. “We expect either neutral or weak-to-moderate La Nina conditions to be present during the upcoming hurricane season,” they said. “Tropical and North Atlantic sea surface temperatures remain well above their long-period averages.”

The 2006 season was only the 12th year since 1945 in which there were no hurricane landfalls along the U.S. coastline. There have only been two consecutive seasons without landfalls — 1981 to 1982 and 2000 to 2001. The most recent stretch was “especially impressive,” the meteorologists said, because the amount of hurricane activity during those years was well above average.

The most recent forecast also takes a look at the impact of global warming on unusually destructive seasons in 2004 with Charley, Frances, Ivan and Jeanne and in 2005 with Dennis, Katrina, Rita and Wilma, and it finds no link.

“Despite the global warming of the sea surface that has taken place over the last three decades, the global numbers of hurricanes and their intensity have not shown increases in recent years except for the Atlantic, where recent hurricane increases are likely a result of naturally occurring multi-decadal Atlantic Ocean circulation variances,” they said.

“We have no plausible physical reasons for believing that Atlantic hurricane frequency or intensity will change significantly if global ocean temperatures continue to rise,” they said.

“What made the 2004 to 2005 seasons so unusually destructive was not the high frequency of major hurricanes but the high percentage of major hurricanes which were steered over the U.S. coastline. The major U.S. hurricane landfall events of 2004 to 2005 were primarily a result of the favorable, upper-air steering currents present during these two years.”

New Emissions Rules Could Await Construction Equipment

Following an April 2 ruling by the U.S. Supreme Court on Massachusetts v. EPA, home builders are waiting to see what kinds of changes the Environmental Protection Agency will make to emission regulations for motor vehicles and whether the new rules put in place for cars and trucks might lead to tighter restrictions on construction vehicles as well.

While home builders are not directly regulated by statutory provisions in this case, the ramifications of the decision may eventually affect the industry.

The court ruled that the Clean Air Act authorizes the EPA to regulate carbon dioxide and other greenhouse gas emissions from motor vehicles as air pollutants, and that the EPA acted arbitrarily in not providing a good reason for refusing to decide whether greenhouse gases cause or contribute to climate change.

The agency is now charged with deciding whether green house gases cause or contribute to climate change — and no matter what it decides, regulatory changes are likely.

If the EPA decides there is not enough scientific evidence or that available evidence is too contradictory to conclude that greenhouse gases are an agent of global warming, it will not regulate carbon dioxide emissions from motor vehicles — but it would have to give a detailed explanation of the rationale behind its decision and would likely be sued again by states and environmental groups.

If, however, the EPA does decide to regulate greenhouse gases from new motor vehicles, unhappy industry stakeholders could sue, but they would probably have a difficult time overcoming the Supreme Court's decision in light of  the court pointing to global warming as “the most pressing environmental challenge of our time.”

NAHB staff members viewing this decision have concluded that EPA regulation of greenhouse gases is probably not far off.

The scope of Massachusetts v. EPA is limited to cars and light- and heavy-duty trucks, but not construction equipment, which is covered by another section of the Clean Air Act. However, depending on what the agency decides to do about new motor vehicle emissions, home builders could see new regulation of construction equipment emissions.

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

Green Builders Need Legal Counsel to Limit Risks

Green home builders need to look at some of the legal issues associated with this growing movement in residential construction to manage the expectations of their customers and avoid unnecessary risks to their business, according to panelists at the NAHB Green Building Conference last month in St. Louis.

Acknowledging that this is an exciting time to be building green, the panelists said that their goal was to highlight some of the potential legal issues that building green might generate so that builders can pursue opportunities in this specialized field with the confidence that that they are not taking on undue risk.

“As with other aspects of your business, the key is to accept risk knowingly” advised David Jaffe, NAHB’s staff vice president for construction liability and legal research.  

On a wide range of issues — including lending and tax incentive programs, the certification process, innovative building products and unintended warranties — green builders need to be diligent in considering the things that can go wrong from a legal standpoint, the panelists said.

“Team up with legal counsel” on these issues, advised Jaffe. “You need a professional to work with you, this is a worthwhile cost of doing business.” For instance, he said, for a builder who is seeking to identify himself as green, “if one risk is I don’t get certification, that’s one of the risks I want to know about.”

Brian Anderson, a lawyer with Axley Brynelson LLP in Madison, Wis., told conference-goers that clients such as the Wisconsin Builders Association and lenders involved in green building projects have been coming to his firm for help in identifying risks and addressing specific issues in their contracts and negotiations. Many of the issues involved with green building can be “annoying,” he added, because they are not precisely defined and open to interpretation.

A green building promise, Anderson said, can turn into an unexpectedly unpleasant reality for builders who haven’t thought things through:

• What happens when a contractor who has agreed to maintain a green roof for two years goes out of business in six months?
  
  
• What is there to prevent a builder from having to pay for a flawed design in which a backyard geothermal heat system sucks up the heat for a water and sewage system to an out building so that the water freezes and the pipes have to be dug up?
  
  
• What recourse is there for a lender who provides financing at a discounted interest rate for green residential development that subsequently fails to get certification?
  
  
• What happens when the claims of a general contractor on the health benefits of the indoor air quality of a home persuades a family with asthmatic children to buy but their medical condition worsens after they move in?
  
  
• What’s to prevent another developer from blocking exposure to the sun or wind that a builder needs to provide energy for his green homes?

“You need to aggressively look at these issues,” said Ujjval Vyas, of the Alberti Group, LLC. “You cannot ignore the risk, all for the laudable outcome of sustainability.”

To manage risk, builders need to be specific about what they mean when they say their home is green, Vyas said. How the home will perform needs to be understood by all of the players in the project. And “lawyers acting as counselors are crucial to making green building viable,” he added.

Green builders need to be careful about their interactions with design professionals, he said, and how those designers interact with their customers so that realistic expectations are set for the final product.

For example, the environmentally active buyers of a large custom home are excited that their home is going to be a showpiece of green design and will put them in the vanguard of the sustainability movement. They insist on certification, but there is no energy performance rating for the home. “The mismatched expectations will keep you in court for a long time,” said Vyas. “Even if you were completely in the right, it will cost you.”

Disputes over indoor air quality, he warned, can be even costlier because they will involve an injured person, not property.

Green builders also need to check their warranty language and the warranties they receive from others, he advised, because “new technologies are generating new risks,” creating potential problems in building processes and procedures, product performance, product installations and building systems integration, and combing old technologies in new ways.

Builders also need to be aware of possible conflicts between their warranties and products that have been rated and have met certification requirements. “Am I excluding what’s been certified?... If the home owner believes the warranty takes away all that was promised or represented, this could be a problem.”

For more information on legal resources available from NAHB, e-mail David Jaffe, or call him at 800-368-5242 x8317; or contact David Crump, x8491.

Housing Discrimination Complaints Hit a Record in 2006

Government agencies received 10,328 housing discrimination complaints during fiscal 2006, the U.S. Department of Housing and Urban Development announced last week, which was the highest number ever filed in a single year.

Race and disability topped the list of reasons why individuals filed complaints.

The statistics were included in the department’s annual report on the state of fair housing, which is released every April in conjunction with Fair Housing Month. This marks the 39th anniversary of the Fair Housing Law.

Of the more than 10,000 complaints reported to HUD and state and local government agencies funded through its Fair Housing Assistance Program (FHAP), 40% alleged racial discrimination and almost the same percentage came from persons with disabilities. The complaints, according to the report, most often alleged discrimination in the terms and conditions of the sale or rental of housing, or refusal to rent.

The report includes summaries of several cases that HUD or FHAP agencies investigated during FY 2006. For example:

• A case that resulted in a $40,000 settlement for an African-American woman in Pennsylvania who was allegedly denied the opportunity to rent a house because of her race
  
  
• A case that resulted in a $7,500 settlement for a couple in Illinois that was allegedly denied the opportunity to rent an apartment because they had a child
  
  
• A case that resulted in a $15,000 settlement for a man with a disability in Hawaii who was allegedly denied permission to make structural modifications that he needed in order to use and enjoy his dwelling

The report also details HUD’s efforts to educate housing providers and the public about fair housing and increase the stock of accessible housing for persons with disabilities.

Policies to Address Affordable Housing Shortfall Discussed

Effective deterrents to predatory lending, the creation of land banks to make lots available for housing, broad-based consumer education efforts and a revitalized Federal Housing Administration were among the approaches to affordable housing reviewed during recent roundtable discussions co-hosted by the NAACP and NAHB.

The meeting drew expertise from the leadership of the nation’s leading housing advocacy groups.

“The roundtable discussion was a critical first step in determining how we move the affordable housing issue from a policy discussion at the national level to a movement that makes a real difference in the lives of families across the nation,” said Dennis Hayes, interim president and CEO of the NAACP. “We view this issue from a broader context, and seek to determine the larger social costs of current development patterns. We don’t want to encourage policies that promote economic disassociation.”

Discussion ranged widely, from sub-prime lending to the production of affordable rental housing, from weak federal housing programs to local zoning practices. Participants agreed that the current shortage of affordable housing will only grow worse without concerted action by both public and private sector institutions.

“The immediate challenge is to ensure that policy makers at all levels of government are aware of the increasing demand for affordable housing, then give them a set of clear and concise recommendations to meet that need,” said NAHB President Brian Catalde.

Other roundtable participants included:

• Enterprise Community Partners
• Independent Community Bankers of America (ICBA)
• Local Initiatives Support Corporation (LISC)
• Mortgage Bankers Association of America (MBAA)
• National Association of Housing and Redevelopment Officials (NAHRO)
• National Association of Realtors® (NAR)
• National Housing Conference (NHC)

Participants agreed to hold a two-day symposium in the fall to formulate policy recommendations that a broad coalition of organizations can endorse.

“The challenge will be ensuring that the ideas generated at the symposium are addressed by Congress and the President,” Hayes added. “We will continually work with other advocacy organizations and policy makers to ensure that homeownership, a central component of the ‘American Dream,’ is not an illusive vision, but a reality for those that seek it.”

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

Pulte and HBI Promote Diverse Housing Workforce

	From left, Pulte’s Gary Binford , national director of finance and planning; Jessica Davisson, director of operations, Phoenix; and Magan Gand, customer relations manager; at the Diversity in Construction Luncheon during the International Builders' Show earlier this year.

Over the past several months, Home Builders Institute (HBI) and Pulte Homes have partnered on several innovative programs designed to promote diversity in the residential construction industry.

“Although our company is quite large, Pulte’s culture is wrapped around a strong sense of family and a ‘small company’ atmosphere,” said Richard Dugas, president and chief executive officer of the Fortune 200 builder. “For us to reach our overall goals, however, we need to take the next step and become a more inclusive and diverse organization that welcomes challenging new ideas and embraces differences that will ultimately make us stronger.”

In 2006, Pulte delivered 41,487 homes in the U.S. and generated consolidated revenues of $14.3 billion.

The 2007 International Builders' Show (IBS) in Orlando, Fla. served as a springboard for the HBI-Pulte partnership. Working with the NAHB Student Chapters, Pulte sponsored “Women in Construction” and “Diversity in Construction” luncheons, which featured professional presentations and roundtable discussions with students, builders and professors focusing on finding creative ways to attract more diverse populations into the industry’s workforce.

“Our industry has seen amazing growth over the past 10 years and is poised for even more in the future,” said Kari Lawry, Pulte’s national director of diversity and college recruiting. “It would be impossible for us to sustain long-term growth, profitability and innovation without inclusion and diversity as a key business objective.”

Pulte also will be participating in HBI’s Team Builders and “A Day at the Job Site” programs.

Team Builders, now in its second year, was established in partnership with the Hispanic Heritage Foundation's (HHF) LOFT (Latinos on the Fast Track) program to provide Hispanic college students with summer internships working for builder companies in management jobs. Pulte will be accepting its first group of interns this summer.

“A Day at the Job Site,” also in its second year, will bring diverse NAHB Student Chapters to actual Pulte building projects. Students will tour developments, interact with on-site superintendents and witness the daily operations of a major American home builder.

“Any great company that sustains itself over time doesn't achieve that status on the brilliance of a few, but rather through the combined and diverse views of many," said Dugas.

For more information on how HBI and Pulte are working together to further diversity in the home building workforce, e-mail Page Browning, or call her at 800-795-7955 x8918.

	Sixty students, professors and industry professionals talk with their tablemates at the Diversity in Construction Luncheon. Participating in the discussions and wearing red shirts were students from HBI’s inaugural class of Team Builders.

More Than 600 Students Participate in Builders Youth Day

Palencia, a Hines-developed community in Northeast Florida, recently hosted more than 600 high school students in one of the nation’s largest and most successful Builders Youth Days.

“These future industry leaders got an up-close look at how professional craftsmen and builders transform dirt lots into award-winning homes and communities,” noted Naomi Lumley, sales and marketing director for Hines at Palencia.

The program is one of only 10 pilot projects nationwide selected by the Home Builders Institute (HBI), the workforce development arm of NAHB. Funded by a grant awarded under the President’s High Growth Job Training Initiative, as implemented by the U.S. Department of Labor’s Employment and Training Administration, the project is part of an effort led by the Northeast Florida Builders Association to recruit young people for industry careers.

“There is a shortage of construction workers, so we are trying to promote the trade as a viable career alternative,” said Rita Williams, president of Merchandising Plus. The Jacksonville, Fla.-based firm has won numerous awards throughout the country for its innovative interior design work.

Hosted by Palencia for the second straight year, Builders Youth Day showcased best practices for carpentry, masonry, plumbing, electrical engineering, surveying and interior design. Students also had the opportunity to participate in a nail driving contest and to ask questions of some of Northeast Florida’s top builders and designers.

Volunteers, staff and members from St. Johns River Community College, Florida Community College at Jacksonville, Florida Youth ChalleNGe, the Jacksonville Job Corps Center, Joyce Development Group, ICI Homes, Rita Williams Merchandising Plus, The Vintage Group, Brylen Homes, The Woodside Group, Standard Pacific, St. Johns Builders Council and Palencia were on hand to help lead the students through construction site tours, and answer questions along the way about framing, drywall installation, wiring, masonry, design and more.

Students from schools in St. Johns, Baker, Duval and Clay counties, and from Job Corps Centers where HBI offers training in carpentry and electrical, participated in the half-day event.

Students arrived by bus, received hard hats and t-shirts and were served lunch afterwards in one of Palencia’s many parks. The 2,200-acre development includes single-family homes, condominiums, live/work units and town homes and more than 300,000 square feet of retail and office space.

According to the U.S. Department of Labor, total employment in the construction industry will increase by nearly one million jobs in 2012. However, the industry has experienced difficulty in recruiting young workers.

For more information on this or the other nine pilot sites, e-mail John Shortt at HBI, or call him at 800-795-7955 x8924.

Home Depot Reaches Out to Hispanic Contractors

At the International Builders’ Show in Orlando, Fla. on Feb. 9, The Home Depot® presented its second annual Hispanic Pro Customer of the Year Award to Houston-based PV Roofing in honor of its leadership and entrepreneurial qualities.

In accepting the award, Paul Vasquez, owner and operator of PR Roofing, noted that The Home Depot “has been an excellent business partner by providing the products, services and assistance of knowledgeable associates I need to be successful.”

After growing up in Mexico and moving to the U.S. at the age of 17, Vasquez worked in a variety of agricultural, janitorial and landscaping jobs until he began roofing when he was 21. Shortly thereafter, he started his own roofing company, and eventually his own home building business, BUYOUR Homes, which provides homes to lower-income families with no closing costs.

The Home Depot Emerging Markets team has been dedicated for several years to pursuing strategies to serve Hispanic contractors, reaching out to them in Spanish, in their local community. The team researches best practices and works on a local level to partner with contractor associations, host educational events and participate in community activities.

Continuing to target Hispanic professionals and consumers in the U.S., The Home Depot last year:

• Launched a bilingual professional contractor promotional mailer and made it available to more than 50,000 Hispanic and bilingual companies
• Completed the rollout of the award-winning Colores Origenes Hispanic color palette into all U.S. stores
• Launched several promotional programs, including Manos a La Obra in New York, GP Amigos in Los Angeles and the Germany World Cup sweepstakes nationwide
• Sponsored bilingual safety fairs across the country
• Launched a dedicated radio advertising program for Hispanic professionals
• Became the official sponsor of the Mexican National Futbol team and the Official Home Improvement Retailer of the Mexican National Team

The Home Depot will continue to expand its offerings to the Hispanic customer through bilingual materials, in-store signage, clinics and Spanish-speaking associates who work directly with customers to serve their needs.

In order to be considered for the Hispanic Pro Customer of the Year Award, companies have to be Hispanic owned or operated with annual revenues of $2 million or more in various branches of residential construction. They also have to embody hard work and entrepreneurial spirit.

Headquartered in Atlanta, The Home Depot 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.

NAHB-Produced Programs on HGTV and DIY This Week

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

"Rock Solid" on DIY

Episode: "Outdoor Shower"

• April 12, 9:00 p.m. ET/PT • April 13, 1:00 a.m. ET/PT • April 13, 9:00 a.m. ET/PT • April 14, 11:30 a.m. ET/PT

Dean and Derek travel to Cape Cod to create a distinctive outdoor shower with the help of guest expert Joe DiMare. Outdoor showers are an increasingly popular way to add style to the home and backyard. This one is created with easy-to-install river-rock tiles and glass blocks.

"Assembly Required" on DIY

Episode: "Modular Home — The Build"

• April 9, 10:30 p.m. ET/PT • April 10, 2:30 a.m. ET/PT • April 10, 10:30 a.m. ET/PT

Catch an inside look at how modular homes come together and pick back up with the Papadopoulos family as they begin to build their prefab vineyard manor in this second of two episodes. Learn what happens after modular homes leave the factory on flatbed trucks and are delivered onsite. Meet the builders who piece the modules together and the home owners who watch as months of planning begin to take shape. 

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, sel