Nation's Building News Online: May 14, 2007Print All Articles Text Version |
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Mild Remodeling Slide Follows in Housing’s FootstepsFollowing in the footsteps of the current downturn in housing production and sales, the residential remodeling market has entered into a decline that is expected to persist well into next year, according to participants in an NAHB news teleconference on May 8. The slowdown is expected to be concentrated almost entirely in home owner improvements, and the extent of the decline in the industry won’t be as steep as the ongoing correction in home building, they said. Americans will spend nearly $233 billion on home remodeling this year, said NAHB Chief Economist David Seiders. While that represents a 1.9% increase from the record $228 billion spent in 2006, it translates into a modest decline of 1.5% once it’s adjusted for inflation. Remodeling activity in 2008 is expected to grow by 2.8% next year, he said, which would be a decline of 0.5% after inflation. “Quite simply, we’re adding more homes each year than we’re tearing down,” Seiders said, “and these will eventually require remodeling. Compared to other components of the housing industry, remodeling remains one of the few areas to show growth, at least in nominal terms.” Along with growth in the nation’s economy, an aging housing stock — with homes in the U.S. averaging 33 years and rising — will be providing some underlying support for upgrades and repair even as remodeling volume weakens. While the direction of activity in remodeling generally follows home building, with a lag time of three to six months, “home owners cannot put off a major repair like a leaky roof as they can discretionary upgrades, and that stabilizes the industry during slower housing markets,” Seiders said. Noting “a good bit of sensitivity of larger improvements to owner-occupied housing” during down times, Seiders said that the downturn would be most evident in highly discretionary jobs like remodeling kitchens and baths and adding rooms. Owner-occupied remodels account for 78% of remodeling activity, and of those, 64% are for improvements, as opposed to maintenance and repairs. Remodeling Not in Jeopardy “Remodeling is really not in jeopardy at all, but a lot of the concern we see in the remodeling sector has to do with the fact that new home building is so weak,” said Kermit Baker, director of the Remodeling Futures Program at the Harvard University Joint Center for Housing Studies. The inventory adjustment process now slowing home building is not a problem for remodeling, Baker said. “You don’t do remodeling projects on spec, so it’s hard for the industry to get too far ahead of itself” and the industry will be able “to work through its weakness a good deal faster.” Foremost among the positives for remodeling is the strength of the U.S. economy, he said. Most remodeling recessions coincide with a recession in the national economy, but this time the economy is still in a growth mode. “Some of the numbers are weak, below par, but it doesn’t look like we’re going to be entering a recession in the macro-economy this year,” he said. Home owner equity is also a plus for remodeling, Baker said. Even with house prices leveling off or declining, most households who have owned their homes for a few years “have a good deal of equity in their home and can always tap into it to finance home projects.” Home owners are continuing to refinance their mortgages, especially adjustable-rate borrowers who are moving into fixed-rate loans to avoid higher monthly payments when the interest rates on their mortgages are increased, he said, and they are typically taking some cash out, a good share of which goes to home improvement spending. Although growth in home improvement spending has been on the increase for the first half of the decade, not all of the niches in remodeling are “tapped out,” he added. Rising home energy costs suggest an expanding market for energy-efficient retrofitting, he said, although research suggests that this is a process that could take several years. But more is being spent on improving rental units and baby boomers are spending on aging-in-place modifications to their homes as they anticipate their needs during retirement, he said. Nevertheless, “softer housing prices are creating nervousness for home owners and a little concern for undertaking home improvement projects in the midst of a home price correction,” Baker said, and many will be waiting to see prices hit bottom. Also, the current slump in home sales does hold negative repercussions for remodeling because those sales trigger home improvement activity; the most popular time for making improvements is after a home is purchased. The Strongest Year Ever for a Chicago Remodeler Mike Nagel, CGR, CAPS, chairman of NAHB Remodelers and president of Remodel One, reported that “this is the strongest year ever” of his 22 years in the business in the Chicago market. “We have a very strong referral market in Chicago and have a lot of good professional remodelers. There’s plenty of work here.” Nagel noted a trend toward professional installation, and he said that it is largely being driven by two-income households with “less and less time to spend working on their own home.” Looking at new business prospects for the industry, Nagel said that green remodeling has not really come into its own and may not be full-blown for a decade. For the time being, consumer demand for green remodeling seems to be limited to products that will save money, such as high-efficiency furnaces and air conditioners, energy-saving appliances and point-of-use hot water heaters. Still, in general, “people are still equating green with added costs,” he said. Citing the more than 120 million homes across the country and home owner equity of $11 trillion, “the demand for remodeling will be there now and in the future,” Nagel said. Remodeling currently accounts for more than 40% of the home construction industry by dollar volume. Economists in the teleconference said that the remodeling industry may well return to another record-breaking year by 2009. Membership Day Webcast Prizes: NASCAR, Harley Davidson, MoreMembers tuning in to the 2007 National Membership Day Webcast from the National Housing Center in Washington, D.C. on Tuesday, May 22 will have a chance to win two NASCAR tickets, a Harley Davidson leather jacket, NASCAR driver Carl Edwards racing caps and die cast miniatures of his car and more when they compete in the Biker Alley Trivia contest held throughout the afternoon. The “Leaders of the Pack” membership day Webcast will be broadcast from 2:00 p.m. to 5:00 p.m. To register and view the Webcast, click here. Trivia contest prizes for viewers of the Webcast include:
Live Interviews In addition to the trivia contest, the Webcast will feature interviews with members, membership planners and experts, and NAHB leaders. They include:
Whirlpool Provides Top Recruting Prizes to Participating Members This year, membership analysts predict that NAHB’s upcoming National Membership Day could bring in more than 10,000 new members. During the day, more prizes will be awarded to successful recruiters than ever before, thanks to Whirlpool, NAHB’s exclusive membership sponsor. Members of participating local home builders associations that participate are eligible to win a Chill and Grill Travel Cooler, receive double Spike credits during the month of May and become eligible to rank in national membership competitions for recruitment, retention and participation. The Chillerator — the only Energy Star®-rated refrigerator designed to handle the temperature extremes of the garage environment — is the top recruiter prize. New this year, all members who earn six retention credits in May will be automatically entered into a drawing for one of two KitchenAid Stand Mixers. Prizes Available
The Chillerator, from Whirlpool, is the top recruiter prize for National Membership Day.
If your association is not registered to participate, take the “Commit to Call” form, or forward this article with a personal message, to your local EO and let them know you want to participate and compete. For more information, visit www.nahb.org/membershipday, or call 800-368-5242 x8440. $2 Million Just Released: Apply Now for ‘Buy Now’ Ad GrantsOn April 27 the NAHB Executive Board approved the release of the remaining $2 million of the NAHB “Buy Now” Advertising Assistance Program. Launched in February, the program provides $3 million to assist local associations in an effort to bolster home sales in markets hit hard by the current housing downturn. The initial $1 million was quickly disbursed in grants to 51 HBAs. Following the release, NAHB immediately began processing 35 additional applications — worth more than $600,000 — that had been approved and were awaiting funds from the program’s second phase. In total, 86 local associations in 29 states have now applied for and have received, or been approved to receive, nearly $1.7 million in advertising assistance. Including the matching funds that the HBAs contributed, the total value of their advertising campaigns is $5.3 million. To see a list of the HBAs and the grant levels, click here. With $1.3 million in funds still available, NAHB encourages HBAs that have not yet applied for advertising assistance to apply today. The NAHB “Buy Now” Advertising Assistance Program provides grants to qualifying HBAs in three categories:
HBAs that applied and were eligible for the first phase, but did not receive grants from the initial $1 million, are currently being contacted by NAHB regarding their application and eligibility for the second phase. Associations that have already received matching grant money are not eligible for the second phase. NAHB is encouraging associations that have received grants to promote their grant to their membership through HBA publications and newsletters and on their Web sites. 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. Lennar Tries Web Auction to Battle Housing SlumpLast year as the housing market weakened, Lennar was among the first U.S. home builders to aggressively discount homes in order to move inventory. Now, the Miami-based company is taking another possibly trend-setting approach to spur sales by auctioning its homes off on the Internet. Lennar is “much better strategically positioned by moving through assets and getting returns today as opposed to waiting for a sunny day,” said Credit Suisse analyst Ivy Zelman. But the flip side is that an auction smacks of desperation and may deter already skittish buyers who are worried that the market could further soften. For its inaugural online sale, Lennar put up 24 residences in three locations, a small but representative sample of the company’s extensive holdings in California’s Palm Springs and Coachella Valley. This vacation and retirement area was a magnet for speculators and second-home buyers during the housing boom and a potential destination for middle-class buyers priced out of the Los Angeles suburbs, but pockets of the market are now oversupplied. None of the properties fetched their reserve prices during regular bidding, but Lennar agreed to sell a home for $1.1 million that had been listed at $1.4 million, and other sales resulted, as well. Lennar took pains to avoid the appearance of a fire sale; salespersons were even instructed not to refer to it as an “auction.” The Internet auction certainly spiked interest in the Lennar homes. Saleswoman Carol Corcoran fielded inquiries from as far away as Canada and Hawaii. Hundreds of shoppers visited the homes in person, including representatives of rival builders doing reconnaissance work, Lennar employees said. In the end, there was spirited competition for several homes, but just 34 actual bidders. (www.realestatejournal.com)
Is Home Slump a Speed Bump for Spenders?Some businesses say they are already seeing the fallout of falling home sales and what could be the first dip in national median home prices since the late 1960s. “All you have to do is look at those states that have the most distress in housing,” said Mike Jackson, CEO of AutoNation, the nation’s largest auto retailer. “You have the biggest decline in auto sales.” However, Jim Paulsen, chief investment strategist for Wells Capital Management, noted that overall consumer spending has held up following the peak of mortgage equity withdrawal in 2005, growing at a nearly 4% annual rate in the past six months. Goldman Sachs economist Jan Hatzius expects consumer spending growth to slow to 2% to 2.5% for the rest of the year, but said that the rising stock market, strong income growth and the fact that wealth effects from housing tend to lag is helping to offset a drop in mortgage equity withdrawal from $908 billion in 2005 to $646 billion in 2006. “A weaker housing market exerts a negative effect, but only a small one, on consumer spending,” Congressional Budget Office director Peter Orszag said. “In the absence of a substantial further fall in housing prices, we expect the effect on consumer spending to remain relatively small.” (www.usatoday.com)
GM Hurt by Weak Housing MarketIn-house sales and market analysts at GM and Ford Motor Co. said they believed that one factor behind slumping auto sales in April was weakening real estate prices that reduced the amount of cash that consumers were pulling out of home equity. As the housing market peaked in 2005, home owners pulled almost $1 trillion out of their residences through refinancing, gains on sales and home equity borrowing, said Mark Zandi, chief economist at Moody’s Economy.com. The annual rate through the first quarter of this year “has fallen very sharply, to less than $500 billion, and that’s going to weaken further as home prices continue to fall.” That could mean a big hit for automakers, whose inventories are starting to swell as sales slip. Fourteen percent of all sales of new passenger vehicles are cash deals, usually from home equity funds. Zandi added that some of the weakness in the home mortgage market could filter into the auto industry as people start running late on car payments as they juggle funds to keep their mortgage payments current. (www.latimes.com)
Florida’s Growing Wildfire ProblemAn explosive 13% increase in population between 2000 and 2006 in Florida has pushed more people into rural areas, limiting the options for controlled burns to eliminate dry brush that during drought conditions can be ideal kindling for a wildfire sparked by lightning or a discarded cigarette butt. “We call that the wild land/urban interface problem — where wild lands meet the homes,” said Rose Davis, spokeswoman for the national Interagency Fire Center in Boise, Idaho. “Not only does that impact where we can do prescribed fires and thinning, but it also impacts our fire costs. If we have to protect communities and homes, that is increasingly expensive.” In Florida, more than 200 wildfires burned tens of thousands of acres last week. Near Naples on Tuesday, a 13,000-acre blaze forced the evacuation of about a dozen residences, and one home and two mobile homes were lost. Up near Jacksonville in Bradford County, two fires merged Monday to become a 16,000-acre blaze. Near Orlando, some 6,000 acres burned in Flagler County, and some 1,000 acres burned in Lake County. To mitigate the risks posed by wildfires, residents should clear property of brush, dead trees and especially unkempt foliage growing close to their homes, said Jim Harrell, a spokesman for the Florida Division of Forestry. (www.csmonitor.com)
LEDs Emerge to Fight FluorescentsCompact fluorescent bulbs are the only real alternative right now to the inefficient incandescent light bulb that will eventually be banned in California, Canada and a growing number of locations, but “bulbs” that use light-emitting diodes, or LEDs, are quickly emerging as a challenger. LEDs, which are small chips usually encased in a glass dome the size of a matchstick head, have been in use in electronics for decades to indicate such things as whether a VCR is on or off. Those LEDs usually were red or green, but a scientific breakthrough in the 1990s paved the way for the production of LEDs that produce white light. Lighting consumes 22% of electricity produced in the U.S., according to the Department of Energy, and widespread use of LED lighting could cut consumption in half. By 2027, LED lighting could cut annual energy use by the equivalent of 500 million barrels of oil, with the attendant reduction in emissions of carbon dioxide, which is believed to be responsible for global warming. However, consumers haven’t warmed to LEDs because the light quality has been unsatisfactory, most take time to turn on and they aren’t dimmable. Nadarajah Narendran, director of lighting research at Rensselaer Polytechnic Institute, cautions that there are still technical issues to work out. While single LEDs can demonstrate very high energy efficiency in the lab, when they’re combined into fixtures, their efficiency is considerably lower, in part because the diodes keep heat in the fixture rather than radiating it. Also, because of their high prices, he doesn’t believe LEDs will be ready to replace incandescents in all their uses for the next five to 10 years. (www.washingtonpost.com)
A ‘No-Fee’ Mortgage That Might Be for RealWithout raising interest rates to its applicants, Bank of America said that its new “no-fee mortgage plus” plan eliminates traditional mortgage and settlement charges that can total 3% to 5% of the mortgage amount and run into the thousands of dollars. Floyd Robinson, president of consumer real estate for Bank of America, said that the company is able to offer the product in part because of its sheer size; the bank has $1.5 trillion in total assets, 55 million banking customers nationwide and a nearly $350 billion portfolio of first and second home mortgages. That size allows it to create cost efficiencies and take over certain responsibilities that smaller institutions cannot. For instance, the no-fee program allows downpayments as small as 5% for conventional mortgages up to $417,000 — and even lower for certain “jumbo” loans up to $3 million — without private mortgage insurance premiums. The bank intends to keep all or most of the no-fee loans in its portfolio, he said. (www.washingtonpost.com)
Senate Sets Aside Two Weeks to Discuss Immigration ReformThough bipartisan talks on immigration reform have thus far failed to produce a Senate bill in the current session of Congress, Senate Majority Leader Harry Reid (D-Nev.) has decided to set aside the next two weeks to debate the issue and bring back to the Senate floor legislation that was approved by the chamber last year. That measure contains provisions to beef up border security, establish a guest worker program and create a tiered system for applications for citizenship tied to how long illegal immigrants have lived in the country. While last year’s bill was supported by a majority of the Senate Democrats and 23 Republicans, the political climate has changed and a number of GOP lawmakers have indicated that they won’t vote for it again. Reid has offered to use the legislation as a place-holder that will be replaced with a bipartisan bill negotiated with the White House. However, it remains uncertain whether an agreement can be reached within the timeframe he has laid out. NAHB is urging senators to enact comprehensive immigration reform and is running an ad this week in the National Journal in support of a bill that would provide for an effective guest worker program, create a fair and efficient employee verification system, strengthen the economy and protect U.S. borders. In the House, Reps. Luis V. Gutierrez (D-Ill.) and Jeff Flake (R-Ariz.) on March 22 introduced H.R. 1645, the Security Through Regularized Immigration and a Vibrant Economy (STRIVE) Act of 2007. The bill would enhance the nation’s border safety, create a new employee verification system and establish a new visa program to manage the future flow of immigrants into the U.S. NAHB believes that H.R. 1645 is a solid first step toward achieving meaningful immigration reform and continues to work with lawmakers in both chambers to advance legislation to overhaul the nation’s immigration laws. To read H.R. 1645, click here and enter the bill number in the box at the center of the page. For more information, contact Jenna Hamilton at NAHB or call her at 800-368-5242 x8407. To see ads that have run in the National Journal as part of NAHB's congressional ad campaign, click here.
Plan to Attend the 2007 NAHB Legislative Conference on June 6 The 2007 NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line. The day-long conference is on Wednesday, June 6 and coincides with the NAHB spring board meeting in Washington, D.C. Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
South Dakota the 31st State to Enact Construction Defect LawSouth Dakota Governor Mike Rounds recently signed into law Notice and Opportunity to Repair (NOR) legislation that enables home owners and home builders to settle construction defect lawsuits without engaging in sometimes costly and time-consuming litigation. South Dakota is the 31st state to adopt a “right to cure” law. Among the states that have adopted the legislation are: Montana, Oklahoma, North Dakota, Colorado, Minnesota, Michigan and Virginia. The new law, which was signed by the governor in Pierre on March 7, requires home owners to provide written notice to builders before filing a lawsuit alleging a construction defect in a newly constructed or renovated home. Contractors would then have 30 days to propose to inspect the alleged defects, offer to settle the claim by payment or dispute the claim. Notice and right to cure preserves home owners’ right to sue if they are not satisfied with the builder’s settlement offer. “Notice and right to cure is a common-sense approach to resolving legitimate consumer complaints and addressing construction defect concerns in a way that can help both the home owner and the builder avoid expensive court battles,” said Mike Jung, president of the South Dakota Home Builders Association. For more information on this issue, e-mail Alex Strong, or call him at 800-368-5242 x8279.
BuilderLink Connects Builders With Members of Congress BuilderLink, an updated national grassroots program that will provide opportunities for NAHB members to connect more frequently with their members of Congress, is set to be launched on Wednesday, June 6 at the 2007 Legislative Conference in Washington, D.C. By developing local grassroots activities that bring NAHB members and their members of Congress together throughout the year, BuilderLink will build on the momentum generated by the annual NAHB conference, which is expected to draw more than 1,000 builders to Capitol Hill to share their concerns on housing-related issues with their representatives and senators. BuilderLink will pinpoint members of Congress who have the most influence over priority housing issues and link them to the NAHB members living in the areas they represent. As constituents, NAHB members are in a unique position to directly communicate with their federal lawmakers on the impact of their decisions on housing. Whether conducting a local visit, writing a letter or making a phone call to a member of Congress, BuilderLink will provide the resources NAHB members need to advocate a pro-housing message. For more information on BuilderLink, click here, or e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8470. Plan to Attend the 2007 NAHB Legislative ConferenceThe 2007 NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line. The conference is on Wednesday, June 6 and is a day-long event that coincides with the NAHB spring board meeting in Washington, D.C. Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
BuilderLink Connects Builders With Members of Congress BuilderLink, an updated national grassroots program that will provide opportunities for NAHB members to connect more frequently with their members of Congress, is set to be launched on Wednesday, June 6 at the 2007 Legislative Conference in Washington, D.C. By developing local grassroots activities that bring NAHB members and their members of Congress together throughout the year, BuilderLink will build on the momentum generated by the annual NAHB conference, which is expected to draw more than 1,000 builders to Capitol Hill to share their concerns on housing-related issues with their representatives and senators. BuilderLink will pinpoint members of Congress who have the most influence over priority housing issues and link them to the NAHB members living in the areas they represent. As constituents, NAHB members are in a unique position to directly communicate with their federal lawmakers on the impact of their decisions on housing. Whether conducting a local visit, writing a letter or making a phone call to a member of Congress, BuilderLink will provide the resources NAHB members need to advocate a pro-housing message. For more information on BuilderLink, click here, or e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8470. Custom Builders Say They Are Faring Well in DownturnCustom home builders and architects appear to be faring better than large production builders during the current housing downturn, according to a recent survey by Residential Design & Build magazine. “Despite all the bad news the mainstream media reports on a steady basis about the housing market being in crash mode, those in the custom home market maintain their positive attitudes,” says publisher Rob Heselbarth in the magazine’s April issue. Nearly 700 readers were surveyed for the publication’s 2007 Market Trends survey. Just less than half represented construction firms, 36% were from architecture firms and 15% worked for design/build companies. The largest segment of the construction firms represented in the survey (34%) reported annual revenue between $1 million and $5 million. Most of the custom home building and design firms that responded to the survey (66%) design or build 10 homes or less. Among survey responses suggesting a relatively more positive outlook for custom builders and architects than the home building industry as a whole:
Landscaping, countertops, cabinetry and plumbing fixtures were at the top of the list of where customers scale back when budgets get tight, according to the survey results. The most asked-for room features in 2006 were: home offices, outdoor living space, great rooms and multipurpose family/media rooms; all were cited by at least 50% of those surveyed. Discussions From Construction Forecast Conference Now Available on the Internet The simultaneous Webcast of the Construction Forecast Conference — Spring 2007 held in Washington, D.C. on April 26 is available for purchase for the next three months. Those interested can purchase the conference Webcast, which includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the Webcast archive for three months, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the Webcast, visit www.nahb.org/cfcwebcast. Where Are the Top 100 Metropolitan Areas for 2008? Find out in HousingEconomic.com’s Metro Forecast (sample). Access the metro forecast with in-depth analysis, overviews and downloadable Excel tables. 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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Eye on the Economy: Buyer Confidence Is Likely ShakenGrowth of real gross domestic product (GDP) slipped to an annual rate of 1.3% in the first quarter of 2007, according to the “advance” estimate released by the Commerce Department on April 27. This was the slowest pace in about four years and weaker than the consensus estimate as downside surprises showed up in federal defense spending, net exports and business inventory investment. As expected, the housing production component of GDP (residential fixed investment) exerted a major drag on economic growth in the first quarter, contracting at a 17% annual rate and lopping a full percentage point off the GDP growth rate. The negatives from RFI were not quite as large as during the second half of 2006, although the downtrend clearly remained in place as the first quarter drew to a close. Despite the weak first-quarter GDP performance, the economy is not likely to slip into recession during 2007. The drag from housing probably will ease off as the year progresses, several features of the weak first-quarter GDP report suggest that growth will pick up in the second quarter, and we expect further improvement in the second half of the year. Our current forecast pegs GDP growth at 2.1% for 2007 (year-over-year) and we place the probability of recession within the next 12 months at 25% — close to the May Blue Chip consensus. Labor Market Weakens Modestly, Pretty Much on Schedule The marked slowdown in GDP growth since early last year now is showing up in the national labor market, pretty much in line with normal lags in this relationship. Payroll job growth slipped to 88,000 in April, following some downward revisions to February and March, and the unemployment rate ticked up to 4.5%. Furthermore, average weekly hours ticked down in April and growth of average hourly earnings decelerated to some degree. Employment in residential construction — builders and specialty trade contractors — edged down in April, although the cumulative decline from early last year is quite modest in comparison to the major decline in residential construction activity. The length of the average workweek in this sector has shrunk by about an hour during the past year, helping to reconcile the large differential between construction activity and labor input. However, our estimates of productivity (output per hour) in residential construction still show major contractions in 2007 and early 2008. A U.S. Labor Department source suggests that some construction companies may have been switching their activity from the shrinking residential market to the expanding nonresidential construction sector while still classifying the activity of their firms as residential in the monthly employment surveys. Looking forward, we expect overall payroll employment growth to proceed at a modestly sub-par pace as GDP growth runs at a below-trend pace in coming quarters, and the unemployment rate should continue to gravitate upward in that environment. This process will open up a degree of “slack” in labor markets and help hold down unit labor costs, much to the liking of our inflation-wary central bank. Core Inflation Moderates in Line With Expectations The Federal Reserve has been preoccupied with the course of core inflation in the U.S. economy, stressing the risks of upward inflation pressures even as economic growth has slowed and the labor market has lost some forward momentum. But recent signals suggest that core inflation may now be moderating, in line with NAHB’s forecast as well as the hopes and expectations expressed by Fed representatives. The Fed’s key inflation gauge, the core price index for personal consumption expectations (PCE), increased at a year-over-year rate of 2.2% in the first quarter as a whole, in line with the average for 2006 and still significantly above the upper bound of the Fed’s implicit tolerance range for this measure (1.0% to 2.0%). However, the March reading receded to a 2.1% pace (year-over-year) and showed no change on a month-to-month basis. Our forecast continues to show systematic deceleration of core PCE price inflation on a quarterly basis, heading for year-over-year increases of less than 2.0% by 2008. If this pattern materializes, the economy will be posting near-trend GDP growth, near-trend job growth and benign inflation at the same time — quite a success story from the Fed’s point of view. The Fed Holds Steady Again, and Long-Term Rates Remain Low As expected, the Federal Reserve held monetary policy steady at the May 9 meeting of the Federal Open Market Committee (FOMC), maintaining the 5.25% federal funds rate target that’s been in place since mid-2006. By the way, this decision maintained the “real” funds rate at roughly 3%, apparently a slightly restrictive monetary policy stance. The May 9 FOMC statement noted that “the adjustment in the housing sector is ongoing,” the same wording as in the March 21 FOMC statement, but quite different from Jan. 31 when the FOMC said that “some tentative signs of stabilization have appeared in the housing market.” Of course, the January statement was issued before the highly visible blowup of the subprime mortgage market — an event that provoked another down leg to the dramatic housing correction. Financial market participants fully anticipated the May 9 FOMC interest-rate decision, and the statement did not provoke noticeable changes in long-term interest rates. Both long-term Treasury and prime fixed-rate mortgage yields remained within the historically low ranges that have prevailed for some time, and we’re expecting little change in the interest rate structure over the balance of the year. The Vacant Housing Inventory Climbs to Higher and Higher Records The Commerce Department reports that the number of vacant year-round housing units on the market (excluding those for seasonal or occasional use) surged to another new record in the first quarter of this year, continuing the sharp upward trend that began early last year. The ratio of vacant units on the market to the total housing stock also surged to a new record in the first quarter. While it’s hard to know what a “normal” ratio is at this time, it appears that there’s an excess of about 1.4 million vacant housing units on the market. The recent run-up in vacant housing inventory has been concentrated in for-sale units — both single-family homes and multifamily condos. But it’s important to note that the number of for-rent units on the market also has climbed to a new record, reflecting recent increases in rental vacancy rates for both the single-family and multifamily sectors. Rental units naturally compete with for-sale units on the market and vacant units for-rent can easily convert to vacant units for-sale (or vice versa) as market conditions shift. Indeed, many investors/speculators presumably will grow weary of negative cash flows on units they acquired during the boom and now are unable to rent, compelling them to unload the units onto the for-sale markets — with negative implications for new-home sales and house prices. The Subprime-Related Tightening of Mortgage Lending Standards Is Playing Out The meltdown of the subprime mortgage market has continued apace, and credit standards for new loans have been tightening not only in the subprime market but also in the “near-prime” (Alt-A) market and even in the prime segment. It turns out that inadequate documentation of borrower income and debt ratios infected a broad swath of mortgage lending — not only during the housing boom but also during the 2006 housing retreat — and various types of risk layering (including piggy-back seconds) became quite common. NAHB surveyed builders of all sizes in early May, following up on our surveys of mortgage lending impacts in March and April. About two-fifths of all builders reported adverse effects on their home sales during the previous month, and nearly three-fourths of large companies (starting more than 100 units per year) said that their sales had been reduced because of tighter mortgage lending standards. Among companies reporting adverse impacts, the median reduction was 15%. We also found adverse impacts on sales cancellations, heavily concentrated among big builders. Indeed, four-fifths of companies starting more than 100 units per year reported adverse impacts on cancellations, and these companies (on average) said that the upswing in cancellations in April had wiped out 10% of their backlog of signed sales contracts. The tightening of mortgage lending standards may not yet be complete, and it’s perfectly clear that the pendulum will not swing back to the exceedingly easy credit conditions that prevailed last year. Fannie Mae and Freddie Mac have announced efforts to keep credit flowing to higher-risk borrowers, and the FHA program apparently is regaining some market share as the subprime component shrinks. But the net effect of the subprime-related tightening of lending standards on home sales is likely to be heavily negative for both 2007 and 2008. Deteriorating Supply-Demand Balance Is Weighing on the Housing Outlook The housing markets already are heavily oversupplied with vacant units, the flow of completions of new units onto the markets still is quite sizable and a rising tide of mortgage foreclosures is sure to add additional supply over the course of this year and in 2008. At the same time, the subprime-related tightening of mortgage lending standards is cutting into effective home buyer demand and preliminary analysis of recent NAHB survey data points toward further erosion of builder confidence in May (following slippage in March and April). It is likely that the confidence of prospective home buyers has been shaken by the avalanche of media attention to the subprime debacle as well as by accumulating evidence of downward pressures on home prices in many parts of the country. Recent revelations on the evolving supply-demand situation have prompted another downward revision to NAHB’s housing outlook for the balance of this year and in 2008. The current forecast does not show systematic improvements in home sales and housing starts until late this year and shows only a modest recovery in 2008. Our 2007 and 2008 housing starts forecasts now are somewhat below the prevailing Blue Chip consensus. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his May 9 edition. To subscribe to “Eye on the Economy,” click here. Discussions From Construction Forecast Conference Now Available on the Internet The simultaneous Webcast of the Construction Forecast Conference — Spring 2007 held in Washington, D.C. on April 26 is available for purchase for the next three months. Those interested can purchase the conference Webcast, which includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the Webcast archive for three months, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the Webcast, visit www.nahb.org/cfcwebcast. Where Are the Top 100 Metropolitan Areas for 2008? Find out in HousingEconomic.com’s Metro Forecast (sample). Access the metro forecast with in-depth analysis, overviews and downloadable Excel tables. 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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Useful Links to Monitor Economic and Housing TrendsThe 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.
Discussions From Construction Forecast Conference Now Available on the Internet The simultaneous Webcast of the Construction Forecast Conference — Spring 2007 held in Washington, D.C. on April 26 is available for purchase for the next three months. Those interested can purchase the conference Webcast, which includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the Webcast archive for three months, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the Webcast, visit www.nahb.org/cfcwebcast. Where Are the Top 100 Metropolitan Areas for 2008? Find out in HousingEconomic.com’s Metro Forecast (sample). Access the metro forecast with in-depth analysis, overviews and downloadable Excel tables. 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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Builders’ Tip: Fast and Accurate Countertop Scribing
As a kitchen-cabinet installer, I have scribed hundreds of countertops to fit irregular walls. For most jobs, I only have to remove a little of the countertop material, but for some jobs, I have to carve away as much as 1⁄2 inch of material — which can be a long, dirty job with a belt sander. Now, I use a new technique that leaves the old way in the dust. Instead of a belt sander, I use a router.
— Steven Morris, Sarnia, Ontario, Canada Tips & Techniques provided by Fine Homebuilding.
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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Watermarke: Bold and Big Make a Small Space Live Large
The latest in a series on the secrets of The Nationals model home merchandising winners. By Jan Mitchell The Gold model home winners in the 2006 Nationals Awards have secrets to share about the different aspects of model home merchandising. Whether it’s use of materials or colors, the scale of the project or just breaking the rules, all of them reveal hot trends that are emerging today.
Watermarke’s merchandisers had a big challenge when it came to decorating the Astor Court model — how to make the 534-square-foot, one-bedroom, one-bath condo live large. Their answer: Throw out all the old caveats about color and scale for small spaces. Think bold and big instead. “We were not afraid of color,” said Lana Canova, vice president of design for Design Tec Inc., of Newport Beach, Calif. “We used a lot of it.” Not just a lot of color — bold, edgy color. Light colored maple-planked flooring was used throughout the living areas for a seamless look, which further expanded the space and helped make the bold colors stand out even more.
Watermarke is near the campus of the University of California, Irvine and the Astor Court price point made it a perfect investment for students. So Design Tec gave the model an edgy, young, decorating style to appeal to students. That style was carried through to the furnishings. A strong, L-shaped sectional sofa was used as the focal point of the great room. Bold, whimsical artwork depicting people at a cocktail party overlooks the sofa. To make up for the lack of a dining room, the merchandising team used an oversized sofa-back table that can double as an eating space. The combination of colors and furnishings showed prospects that entertaining could be done with style in this smaller unit. The Watermarke condo conversion has set the trend for similar communities in the area, Canova said. And why not? Just 13 months after Watermarke opened in December 2004, the community sold out its 534 homes, said Chad Harpole, of the Sares-Regis Group. Jan Mitchell is the senior editor of NAHB’s Sales + Marketing Ideas magazine. She also writes about model merchandising, interior design, architecture and consumer trends for other industry and consumer publications, including Professional Builder magazine and its online counterpart, Housingzone.com. Her bestselling book, “Sales and Marketing Checklists for Profit-Driven Builders,” is available through BuilderBooks.com. She has served as a judge for regional and national builder marketing competitions and is a member of the National Association of Real Estate Editors. For more information, e-mail Mitchell at mitchell.jan@comcast.net. 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. ‘Creating the Not So Big House’ Available at BuilderBooks.com” “Creating the Not So Big House,” available through BuilderBooks.com, focuses on key No So Big design strategies for creating a house that values quality over quantity and emphasizes comfort, beauty, a high level of detail and a floor plan designed for today's informal lifestyle. The publication features an up-close look at 25 houses from around the country — from a tiny New York apartment to a Southwestern adobe, a traditional Minnesota farmhouse and a cottage community in the Pacific Northwest. To view or purchase this publication online, click here, or call 800-223-2665. With Labor More Plentiful, Raise the Bar for Your TradesWith labor more plentiful than new jobs right now, builders have an opportunity to raise the quality of workmanship from their trade partners and to build lasting relationships with them. Doing so is a two-step process that not only puts your trades and craftsmen on notice that more is expected of them, but also requires the builder to organize his business processes in a way that enables his trade partners to do a better job, according to custom home builder Richard Pagotto, of Granor Price Homes in Horsham, Pa. Fire Your ‘Punch List Guy’ and Put Your Trades on Notice One of the simplest and most direct ways to raise the bar for your craftsmen and trade partners is to fire your “punch list guy,” Pagotto says. “Send out a notice: ‘Johnny Fix-It is not going to be there anymore. You’re going to have to fix it yourself.’” With the punch list guy gone, trade partners will quickly learn to do the job right the first time. Pagotto also recommends that builders eliminate the word “sub” from their vocabulary. Sub is a demeaning term for the artisans and craftspeople you depend upon for excellent work and service. Instead, call them your trade partners or trade associates. Tasks Builders Can Handle for Their Trade Partners Once the trades have been put on notice, it is up to the builder to ensure that the management practices he has in place will enable them to do a better job. “These guys are artisans, craftsmen, so let’s do the business for them so they can do the work,” Pagotto says. Pagotto recommends instituting the following business practices:
Keep bid requests to a minimum so you don’t risk alienating trade contractors by going to the well too many times, especially when you have to reject an offer, Pagotto says. He also says that one call to a trade contractor should be sufficient for a return call. If the contractor doesn’t return the call within a reasonable time frame or meet your deadline for proposals, reject them out of hand, he says. Their unresponsiveness is a good indication of how they will treat you and your projects once they are on the job. He also recommends that you standardize your trade pre-qualification form. It should require the name of the company, principals, address (not a P.O. box number), years in business, dollar-volume for the past three years, number of employees and liability insurance limits. The form also should have a question inquiring whether the company hires out work to other contractors. “Make your forms fill-in-the-blank so you can get estimates faster and easier,” Pagotto says. After Receiving the Bid, Make the ‘Trim the Fat’ Call Even with fewer bidders, builders can still ensure that they get quality work for the best price. The key, Pagotto says, is that the builder should always make the “trim the fat” call to see how much contractors can trim their prices and still “take the work cheerfully.” Always negotiate and never take the lowest bid without having a contractor double- and triple-check the math, Pagotto says. At the same time, never share bids of other trade contractors. And don’t forget to thank each bidder for taking the time to submit a proposal, he says. To further cement good trade relationships, Pagotto recommends calling at least one trade each day just to talk — assuming the contractors have the time — and to share their schedules for upcoming projects without hesitation. Once you get a trade on board, he says, make your company a preferred builder to work with by paying on time and eliminating unnecessary paperwork. Put a ‘Kick-Out Clause’ in Your Agreements Finally, Pagotto says every builder should have a “kick-out clause” in their trade agreements stating that if a trade contractor does not perform to the agreed-upon standards, the builder can hire another contractor to complete the work and charge back the materials and labor to the original trade contractor. For more information, e-mail Richard Pagotto, of Granor Price Homes in Horsham, Pa., or call him at 215-651-1687. For more tips about working with trades, visit www.nahb.org/trades on the NAHB Web site. (This link is available to NAHB members only. 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. CAASH Courses Launched at 50+ Housing SymposiumThe NAHB 50+ Housing Council is kicking off its new Certified Active Adult Specialist in Housing (CAASH) educational track and designation program with three courses following the Building for Boomers and Beyond: 50+ Housing Symposium later this month in Denver. The CAASH designation gives housing professionals serving this rapidly burgeoning market the essential knowledge, tools and skills that will help them succeed — from conducting initial research to design considerations and features to closing the sale and servicing the customer. The courses will be offered June 2 and June 3. Each course also offers continuing education credit for CAPS, CGA, CGB, CGR, GMB, Master CSP, CSP, CMP and MIRM. The 50+ housing symposium will be held May 30 to June 1. CAASH Course Schedule
For a full schedule of courses, or to register for the post-conference courses, visit www.nahb.org/build4boomers. To learn more about the CAASH designation, visit www.nahb.org/CAASHinfo. To register for courses held at the 50+ Housing Symposium, go to www.nahb.org/build4boomers, or contact the Office of the Registrar at 800-368-5242 x8338. * Note: Attendance of all post-conference courses will be capped at 50 registrants per course. Each registrant will receive an e-mail confirmation from NAHB’s Office of the Registrar.
“Boomers on the Horizon: Housing Preferences of the 55+ Market,” available through BuilderBooks.com, can help you better build and market homes to this age group. Capitalize on the niches, needs and opportunities of this rapidly growing market by learning their preferences. To view or purchase this publication online, click here, or call 800-223-2665. June 1 Deadline Nears for Livable Communities AwardsThe June 1 deadline is fast approaching for NAHB and AARP’s new Livable Communities Awards recognizing builders, remodelers and developers for creative and unique homes and community projects that improve the daily comfort, ease and safety of their residents and highlight the critical elements needed for a livable community. AARP CEO Bill Novelli announced the award during an address to the NAHB Board of Directors during February’s International Builders’ Show in Orlando, Fla. “Whether you’re a toddler, a teen with a backpack, a dad cooking dinner or a great grandparent using a walker, insightful home and community design can greatly improve your day,” said Novelli. “We hope this award will give building professionals an incentive to explore and employ new design approaches.” The award will be presented annually to the three professional groups for projects that incorporate such aspects as:
The Livable Communities Awards will honor winners in each of the three industry sectors: builders, developers and remodelers. Sponsors will declare winners for both a large project and small project in each category. Size will define large and small builder and developer projects. Cost will determine remodelers’ categories. NAHB and AARP seek applicants that reflect the full diversity of the home building industry: single-family and multifamily builders and remodelers, developers of large and small communities, for-profit and nonprofit, family-run and corporate entities. Winning projects must have been completed and opened or eligible for occupancy between Jan. 1, 2005 and June 1, 2007. A panel of expert judges appointed by NAHB and AARP will review the applications and select the finalists. Judging criteria vary from category to category, but points will be awarded based on: universal design features; ease of maintenance and energy efficiency; exterior design and landscaping/site design; incorporation of livable community design features; and stakeholder involvement. Winners will be reviewed to determine that they are good corporate citizens and in full compliance with all applicable laws and regulations at the federal, state and local level. Winners will be announced in the 2008 January-February issue of AARP The Magazine, the largest circulation magazine in America. For more information, click here; or e-mail Blake Smith at NAHB, or call him at 800-368-5242 x8583. AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. Remodelers See Slight Market Erosion in Year's First QuarterRemodelers saw activity erode slightly in the first quarter of 2007, according to the latest NAHB Remodeling Market Index (RMI). The component of the index gauging remodelers’ views of current market conditions slipped from 48.2 to 46.1 on a seasonally adjusted basis while their future expectations edged up from 46.0 to 46.4. Index readings below 50 indicate more negative than positive responses. "Compared to the major up-and-down cycles of the new home market, remodeling activity remains fairly steady," said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS, a remodeler from Chicago. "A significant part of the remodeling market comes from work that home owners cannot delay — like replacing a roof — keeping the industry relatively stable during housing market downswings." Regionally, RMI readings for this year’s first quarter were comparatively strong in the Midwest, with current conditions rising from 44.4 to 47.5 and future expectations jumping from 35.7 to 44.7. The other parts of the country registered declines in current market conditions and future expectations: in the Northeast, those components moved down from 45.7 to 43.4 and from 50.1 to 44.3, respectively; in the South they were down from 52.8 to 45.9 and from 51.1 to 50.7; and the West saw declines from 52.4 to 48.2 and 51.3 to 45.0. "The remodeling industry certainly benefited from the record numbers of home sales during 2004 to 2005, and the subsequent spending on home customization that follows housing turnover," said NAHB Chief Economist David Seiders. "The remodeling market shows relatively strong activity despite the substantial downswings in home sales and new home starts since early last year, and we feel that the trillions of dollars in home owner equity will help buoy the remodeling market in the near future and drive long-term growth as well." The index registered some slight improvement in the market for remodeling rental properties, as the current market for remodeling by home owners appeared to be losing ground. The remodelers surveyed for the index were somewhat more optimistic about future prospects for owner-occupied units and a bit less positive about the outlook for rentals. The first-quarter survey also asked participants for profile information on the heads of remodeling firms. More than half of the operating heads completed college (53%), with 12% earning an advanced degree. When asked how long they had been in the business, 65% said 20 years or more, 26% said 10 to 19 years; 6% had five to nine years experience; and 3% had two to four. Overall, 96% of the remodeling firms are led by men, according to the survey results, and 4% by women. Product Lifespans, Efficiency Key in Kitchen RemodelsIn celebration of May as Remodeling Month, NAHB Remodelers is offering consumers guidance on the lifespans and energy-efficiency of products and appliances that can be used to make smart choices in a kitchen remodeling project. "With a few simple steps, home owners can turn a kitchen renovation into a green renovation," said NAHB Remodelers Chair Mike Nagel, CGR, CAPS, a remodeler from Chicago. "These upgrades can significantly reduce utility bills while looking great for years to come." The kitchen rundown includes:
Attend the Modular and Panel Plant Tour on May 20-22The 2007 Modular and Panel Plant Tour, a behind-the-scenes look at modular and panelized home building industries, will be held May 20 to May 22 in Roanoke, Va. The tour, by NAHB's Bulding Systems Council, will feature educational programs, networking and tours of eight plants. Plants on Tour The plants on the tour include:
Onsite Registration Is Available Onsite registration is available. For more information, visit www.nahb.org/PlantTour. New ‘Ask an Expert’ Resource Available for RAMsThe NAHB University of Housing is now offering the online “Ask an Expert” designation information service to NAHB members seeking or earning a Registered in Apartment Management (RAM) designation. "Ask a RAM Expert," available on the NAHB Web site, enables members to e-mail designation program graduates with questions that will help them earn their RAM designation. A variety of designation holders will field questions and concerns ranging from course content, to the designation process, to how the designation has benefited them as well as provide guidance to help members navigate the ins and outs of the program. "Ask an Expert" About Other Designation Programs The “Ask an Expert” service already is available to members interested in earning their CSP, Master CSP, CMP and MIRM designations. ‘Residential Property Management’ Available at BuilderBooks.com “Residential Property Management,” available through BuilderBooks.com, is the savvy property management guide to success. This comprehensive reference tool is the core text of the Registered Apartment Manager (RAM) program. To view or purchase this publication online, click here, or call 800-223-2665. 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. 'National Designation Month' Attracts 2,000 StudentsMore than 2,000 students took courses ranging from green building to project management to active adult trends and more during NAHB’s “National Designation Month” earlier this year. Participating home builders associations offered more than 170 courses and raised nearly $85,000 in revenue during the month. “National Designation Month,” sponsored each spring by The NAHB University of Housing, gives NAHB members an opportunity to jump-start or complete a designation. The coursework enables them to hone their business skills and convey to their clients the superior training, practical experience and in-depth knowledge that come with earning an NAHB designation. NAHB offers more than a dozen professional designations covering industry basics such as business management and marketing, as well as specialized classes including aging-in-place programs, property management and more. For information about designations, go to www.nahb.org/designations, or contact Anna Jones at NAHB at 800-368-5242 x8437.
Education Calendar
Learn More About The NAHB University of Housing Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your educational pursuits. Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area.
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 next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Majority of Households Recognize Energy Star LabelPublic awareness of the Energy Star label has jumped to 68% of U.S. households, according to a recent nationwide survey released on April 25. Only 12% had only a “general” understanding of what the label means. In many major markets where utilities and other organizations use Energy Star to promote energy efficiency to their customers, public awareness was found to be even greater, averaging 76%. Among other key findings published last month from the Environmental Protection Agency:
The annual survey has been conducted for the past seven years. For informatino on green building resources available from NAHB, e-mail Calli Schmidt, or call her at 800-368-5242 x8132.
Download Green Building Intelligence Today at BuilderBooks.com "Residential Green Building SmartMarket Report ,” available through BuilderBooks.com’s Digital Delivery, addresses the growing trends and opportunities in green home building. 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, click here, or call 800-223-2665 for more information. Conference to Explore Green Affordable Housing Options
The symposium, “Sustainable Design: New Directions for Affordable Housing,” will bring together affordable housing advocates, architects, developers and policymakers to discuss green design and technologies, their costs and benefits and realistic strategies for affordable financing. Participatory workshops will examine three case studies reflecting a broad mix of green affordable housing projects. The symposium is being presented in conjunction with the museum’s current exhibition, “The Green House: New Directions in Sustainable Architecture,” which runs through June 2. The National Housing Endowment, the philanthropic arm of NAHB, provided a $15,000 grant for the symposium as part of its effort to help the industry develop more effective approaches to home building. To Register Prepaid registration is required. Walk-in registration upon availability. For more information about the symposium or the National Building Museum, visit the museum’s Web site at www.nbm.org. For more information about the endowment, visit www.nationalhousingendowment.org.
Download Green Building Intelligence Today at BuilderBooks.com "Residential Green Building SmartMarket Report ,” available through BuilderBooks.com’s Digital Delivery, addresses the growing trends and opportunities in green home building. 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, click here, or call 800-223-2665 for more information. 2008 Green Building Conference Seeking SpeakersWith planning for the 10th Annual NAHB National Green Building Conference now under way, conference organizers are seeking candidates to conduct seminars and educational sessions during the three-day event. The conference will be held May 11 to 13 in New Orleans. Almost 1,100 attendees filled classrooms at this year’s conference, which was held in St. Louis two months ago, and more are expected at next year’s sessions. The annual NAHB event is the only national conference targeted to green home building for the mainstream residential building industry. Presenters will be addressing builders, remodelers, land developers, engineers, architects, planners, public officials and environmental activists. Prospective speakers should describe their professional proficiency in areas such as energy efficiency, water conservation, indoor air quality, waste management, design and low-impact development. All proposals are evaluated based on relevance to green building, the timeliness of the topic and its practical application and the speaker’s qualifications. “The breadth of the subject matter in the submissions we receive is pretty phenomenal,” said program manager Emily English, who works with the Green Building Subcommittee’s conference planning team to evaluate the proposals. “There’s just a lot of information out there, and I know that our members look to this conference to help them make sense of it all.” Interested candidates can click here to submit proposals. The deadline is Aug. 10. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.
Download Green Building Intelligence Today at BuilderBooks.com "Residential Green Building SmartMarket Report ,” available through BuilderBooks.com’s Digital Delivery, addresses the growing trends and opportunities in green home building. 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, click here, or call 800-223-2665 for more information. Corporate Leaders See the Value of Green BuildingA new survey from McGraw-Hill Construction says that most corporate leaders want to incorporate green and sustainable building into their companies' missions, and 18% are already well on their way. Fifteen percent of those surveyed say sustainability is a competitive advantage, and over the next three years about one-third hope to be market leaders in sustainability, according to the "Greening of Corporate America SmartMarket Report." “Almost 60% of the top decision-makers in America's most important corporations are seeing the value in sustainability concepts now, with that number expected to increase dramatically to 88% in just three years,” said Harvey M. Bernstein, McGraw-Hill Construction vice president of industry analytics, alliances and strategic initiatives. "Today's corporate leaders are already very conscious of using green practices when considering new facilities, and they expect green building to have an increasing impact in the future," agreed Brad Haeberle, director of Marketing for Siemens Building Technologies, Inc., which co-sponsored the survey with McGraw-Hill. Other survey findings:
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