Nation's Building News Online: August 27, 2007Print All Articles Text Version |
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Builders Report Rising Sales Losses From Credit CrunchMore tightening of mortgage credit for prospective home buyers just in the past month has further weakened housing market conditions and has increased chances that the housing downturn could draw the nation’s economy into a full-fledged recession toward the end of this year, participants in an Aug. 28 NAHB teleconference on the credit crunch warned. In a national survey of builders just completed by the association, 62% reported that tighter mortgage lending standards had taken a toll on their home sales during the past month, said Jerry Howard, NAHB’s executive vice president and CEO. That was up dramatically from a 33% response when the same question was asked in March, he said. The survey showed that among the hardest hit by the credit crunch are builders in the West, where 71% said they were losing sales, and big builders, 88% of whom said they were losing business because of the lending clampdown. Of those who have seen a negative impact on sales, Howard said, the average decline registered 31% over the past month, up from 15% in March. “The bottom line is that housing is hurting and it doesn’t look like it’s going to bounce back as quickly as we had hoped,” said Howard. To head off any further deterioration, he said that the Federal Reserve needs to be more aggressive in cutting interest rates and restoring liquidity at the short end of the financial markets; Congress needs to pass legislation to modernize Federal Housing Administration mortgages and to reform Fannie Mae and Freddie Mac so that they can play a larger role in restoring stability in the mortgage markets; and the Department of Housing and Urban Development needs to support seller financing and other regulatory measures that would expand home building opportunities. The leaders in Washington who can address the problem need to take the further erosion in market conditions that builders are now reporting from the field “with the same degree of alarm that we do,” he said. Another Significant ‘Down-Leg’ Noting that “it’s very difficult to craft a forecast with an awful lot of confidence right now,” NAHB Chief Economist David Seiders said that he is now expecting new single-family home sales to bottom out by the end of the year with a 38% decline from their peak in the third quarter of 2005. Sales should average 800,000 during the fourth quarter and total 843,000 in 2007 and 869,000 in 2008. He conceded, however, that the decline could be deeper “given the condition of the mortgage market” and that he was assuming that some severely damaged parts of the mortgage market will “regain some footing.” Sales during this year’s second quarter had moved up “a tad,” Seiders said, “but we are looking definitely for another significant down-leg in the second half of this year, maybe even early next year.” The conventional conforming mortgage market — loans up to $417,000 that can be purchased by Fannie Mae and Freddie Mac — “have been virtually unscathed so far” and should be providing financing at affordable interest rates that will fluctuate only narrowly through 2009. Last year these loans comprised roughly half of residential mortgage lending and he said that he expected them to account for a rising share of the market in the face of the limited availability of subprime, Alt-A and jumbo loans. Going forward, fixed-rate mortgages will become increasingly dominant, Seiders added, because it has become evident that the “problems of quality” have occurred primarily on the adjustable-rate side of the market. The most recent eruption on the mortgage front, which occurred in the jumbo market, has put builders in California and other high-priced housing markets "in very deep trouble,” he said. Initiated by revelations of subprime problems earlier this year, investors in mortgage securities have become “uneasy” about the true value of those investments and are re-evaluating what they should be paying for them. Single-family housing starts also are experiencing “an off-the-cliff decline,” he said, and will show a 43% drop from their peak when they reach a trough in the middle of next year. Single-family housing starts will slow to a seasonally adjusted annual pace of 1.02 million during the first half of next year, a 10% downgrade from his forecast of only one month ago, Seiders said. Despite a 50% decline in condominium production, multifamily activity will fare somewhat better, with a 28% cyclical drop by the time it bottoms out in mid-2008. Another Hit on Economic Activity Faltering residential fixed investment will take “another major hit on economic activity” during this year’s second half, reducing growth in the gross domestic product by one full percentage point and reducing GDP growth to 2% in the final quarter, “at which point you start to worry about economic recession.”
Seiders calculated that the risks of the economy lapsing into a downturn will be about one-third in the final quarter, and then if the drag from housing starts easing off, the odds for a recession should recede to 20%. “But that’s a big if,” he said. The nation’s economy has been weathering the drag from housing well so far, “but the longer it goes on, the more you worry about the consumption side,” with house values eroding and poised to erode further. “It is important for the housing market to bottom out early next year,” he said. Following record performance in house price appreciation at the height of the boom in 2004 and 2005, nominal housing values fell 6% in the second quarter, he said, when numbers on the S&P/Case-Shiller Home Price Index are seasonally adjusted and annualized. Expecting “pretty much the same pattern” for housing and the economy forecast by NAHB, the Federal Reserve should be providing some good news at the Sept. 18 meeting with the Federal Open Market Committee deciding to cut the Fed funds rate by one-quarter of a percentage point. It will probably do the same at its meeting at the end of October, bringing the rate to 4.75%, Seiders said. Adjusted for inflation, this would leave the real rate at slightly under 3%. “A third cut is not out of the question before year end,” he said. The Fed is clearly now much more worried about the downside risks to the economy and less worried about inflation, Seiders said, and “will be there if things turn out to be worse” than people are talking about. Oversupply of Rentals Weighs on Multifamily Housing ActivityFeeling the fallout from the ongoing correction to the 2003 to 2005 housing boom, the near-term outlook for multifamily activity is “rather weak,” according to a new forecast report from NAHB economists. While condominiums — which rose to an abnormally high share of the multifamily market at the height of the boom — are being hit the hardest, market-rate rentals also face tougher going as the supply of available units is bloated by for-sale properties that, at least until conditions improve, are being put up for rent. “After a decade of unusual stability in the production of multifamily housing, multifamily housing starts are poised to fall sharply in 2007,” according to the NAHB report. “Over the last decade, multifamily housing starts have not fallen below 329,000 starts. This year and next year, multifamily starts are likely to be close to 1995’s level of 277,000 starts.” On a seasonally adjusted annual basis, multifamily production averaged 292,000 units during the first half of 2007, and it is expected to slow somewhat further during the balance of the year. An uptick in rental starts later this year or early next year won’t be enough to offset a decline in starts of multifamily units for sale. A Condo Glut With the homeownership rate slipping from its 69.2% peak in the second and fourth quarters of 2004 to 68.4% in this year’s second quarter as the result of the overall housing downturn and problems in the subprime mortgage market, the number of prospective renters is now on the rise. However, the supply of rentals has been increasing at an even faster pace and vacancy rates have been rising because of a recent movement back to building market-rate rental units, conversions back from condos to rental apartments and an increase in single-family rentals, the economists report. From an abnormally high 45% share of multifamily starts in 2006, condominiums are now headed back to their traditional range of 20% to 25% and were already down to a 39% share during the first quarter of this year. Even though it has been clear for some time that home buyer demand has weakened, the economists add, multifamily condo projects require a relatively long lead time. And even as condo production has declined, condo starts still exceed completions, “suggesting that a large number of units will be coming on the for-sale market during the coming year — adding to the supply glut and encouraging more conversions to the rental market.” High Rental Vacancy Rates The rental vacancy rate among structures with five or more units has been high in recent years, reaching 12% in 2004 but dropping to 9.5% during the fourth quarter of 2005. “However, more recently it has moved back up, partly due to increased supply from conversions of condos to rental units. In addition, some would-be sellers have decided to rent their units while they wait for a bounce back in the market to produce a price they are willing to accept,” the study says. As of the second quarter of this year, the five or more rental vacancy rate stood at 10.1%. The unprecedented overall rental vacancy rates in recent years partly reflect increases in the number of vacant single-family homes for rent. Single-family rentals account for more than 30% of all rental housing, and in the fourth quarter of 2005, the vacancy rate for these properties actually exceeded the multifamily rental vacancy rate for the first time ever. “The current high vacancy rate for single-family rentals is most likely due to excess supply from individuals who originally purchased a house with hopes of quickly selling it for a profit and now find they must either sell at a loss or rent the property until the housing market rebounds,” according to the report. “Many of these novice landlords may be exacerbating the excess supply problem by asking for too high a rent. Rather than ask a reasonable market rate, this group often asks for a rental rate that covers mortgage payment, insurance and taxes, an amount which may be above the market clearing rent. Presumably, the discipline of the market will eventually sort this out." Recasting Condos as Rentals Despite high vacancy rates, rents have been rising: “In 2006, rents rose faster than overall inflation and probably will continue to do so in future years as well.” Along with oversupply problems, this has resulted in some condo projects being recast as apartment projects, but the strategy is not risk-free. Condo units tend to be larger and more upscale than most apartments and “even if converted into luxury apartments, a limited market, it may be difficult to extract sufficient rents to pay for the cost of the project. At best, the project may have to be sold at a discount to attract a buyer, leaving the project’s backers with below-normal returns or even losses.” Nation's Building News Will Not Be Published Sept. 3 and 10Nation's Building News will not be published Sept. 3 and 10. Regular weekly publication will resume Sept. 17. Good Old FHA Loans Make a ComebackThe collapse of the subprime mortgage business has revised interest in federally backed Federal Housing Administration loans among low-income and first-time home buyers who have been shut out of the mortgage market. After a three-year slump, applications for FHA loans jumped from 41,530 in December 2006 to 73,444 in June — a 76.8% increase at a time when the overall housing market was slowing. However, despite the rebound, FHA is flawed and in need of some major improvements, industry experts say. “FHA is definitely a step behind where the private markets have gone,” said Keith Gumbinger, vice president of HSH Associates, which publishes loan information. With a maximum $362,790 loan limit for a single-family home, FHA hasn’t kept up with rising home prices in high-cost areas. Also, a 3% downpayment is required, and lenders are required to complete cumbersome paperwork and costly audits. “Given how many borrowers really could benefit from FHA financing but how few of them do, I would say we are still very much in the doldrums,” says Meg Burns, the FHA’s director of the Office of Single Family Program Development. (www.usatoday.com)
Tax Deduction Under Fire for ‘McMansions’House Energy and Commerce Committee Chairman John Dingell (D-Mich.) is drafting a “carbon tax” bill that would include removing the mortgage interest deduction on homes larger than 3,000 square feet in an effort to reduce carbon emissions by 60% to 80% by 2050. The preliminary estimate of Lawrence Yun, senior economist for the National Association of Realtors®, is that ending the deduction for larger homes would result in a 4% decline in the national median house price. He said that there are at least 10.4 million single-family houses with interior areas of 3,000 square feet or more, about 15% of the nation’s owner-occupied housing stock. Dingell’s plan could also push up foreclosures because every 1% decline in the median price leads to an additional 70,000 foreclosures, Yun said, citing industry research. A price decrease of 4% in a national market already swamped with foreclosures could add 280,000 to the total. Bill Killmer, a policy advocate for NAHB, called the Dingell plan “wrongheaded” in its focus on house size. “We believe a much better approach would be to look at consumer behavior — how efficient are the appliances they’ve installed, how energy-efficient are the windows, insulation, heating and air conditioning” and other systems, he said. Killmer said that “nobody questions” the importance of the environmental problem Dingell is trying to solve. “We just don’t think this is the right way to go about it,” he said. (www.washingtonpost.com)
As Woes Grow, Mortgage Ads Keep Up PitchAs more home owners fall behind on mortgage payments and investors abandon the industry in droves, mortgage companies are facing greater scrutiny over their lending practices and disclosures to borrowers. One area where regulators are paying closer attention is advertising that promises tantalizingly low payments without clearly disclosing the myriad strings that accompany the debts. It is a tactic that has been widely used — and, critics say, abused — by lenders trying to lure new customers. Not including direct mail and Internet advertising, mortgage lenders have spent more than $3 billion since 2000 on advertising on television, on radio and in print, said Nielsen Monitor-Plus, which tracks ad spending. Consumer advocates say many ads are at best misleading and at worst steer consumers into risky loans with promises of low introductory rates that do not make clear that they could pay significantly more in a few months or years. In its ads, Livonia, Mich.-based Quicken Loans, suggested that consumers could pay off credit card bills, remodel their homes and lower their monthly payment if they got a Secure Advantage mortgage, which allowed home owners to roll what they would have paid in interest into the amount they owe. Many critics consider such mortgages, known as payment-option loans, dangerous for all but the most sophisticated borrowers, because many home owners do not realize that making just the minimum payment will mean they owe more on their house with each passing month. The company says it no longer offers that mortgage, didn’t make many of them and also made few loans to subprime borrowers. (www.nytimes.com)
Reverse Mortgages Moving ForwardOlder adults now hold $4.3 trillion in home equity. By 2030, when the youngest members of the baby boom generation retire, Americans 62 and older will have $37 trillion in their houses, the National Reverse Mortgage Lenders Association predicts, and that is turning reverse mortgages into a booming business. Borrowers are expected to take out 120,000 of the most popular kind of reverse mortgage this year, a 57% increase from last year, according to the association. With conventional mortgages, borrowers make monthly payments to the lender. But with reverse mortgages, the home owners receive a lump sum, a monthly amount or a line of credit and don’t have to repay the debt for as long as they live in their homes. In most cases, the income is tax-free and generally doesn’t affect Social Security or Medicare benefits. When the borrower moves out of the house or dies, the loan becomes due, along with all fees and accumulated interest charges. The debt is usually paid off through a sale of the home. Because the borrowing costs can be high, financial advisers usually recommend the loans only for seniors who intend to live in their homes for at least five years. The reverse mortgage industry’s biggest player, Financial Freedom Senior Funding Corp., has seen its loan volume increase almost 17-fold in the last six years, from $300 million in 2001 to $5 billion in 2006. Even though 308,000 older adults have taken out a federally insured reverse mortgage since 1990, lenders say they’ve penetrated only 1% of the senior home owner market. (www.dallasnews.com)
Layoffs Spreading in the Housing IndustryThere have been some 21,000 layoffs since the beginning of the month in the real estate, construction and mortgage-lending industries, which is almost equal to the number for all of last year — 22,814. A simple real estate transaction can involve up to 20 people, says Steve Walsh, president of Scout Mortgage in Scottsdale, Ariz. “An escrow officer may make $1,000, the county recorder gets a few hundred, the appraiser makes $300 to $400, the termite man $50 to $100, and there are movers and landscapers and decorators.” Walsh says his accountant told him of some real estate agents who had been making $200,000 a year but are down to a $15,000 income. He says his firm, with business down 40%, has cut staff, too. The layoffs sweeping the mortgage brokerage industry are not surprising to Wayne Archer, a professor of finance, insurance and real estate at the University of Florida, Gainesville. “The business has always been extremely volatile,” he says, adding that it has often attracted people with less than stellar credentials. So far, in terms of actual numbers, the damage is not at the same level as the dotcom crash, when the layoffs helped drive the economy into a recession. “By way of contrast, this is a slow leak in a balloon,” says John Challenger, CEO of Challenger, Gray & Christmas. But at the same time the industry has been laying off people, it has also been hiring them, with an estimated 120,000 jobs created in the past year. (www.csmonitor.com)
Soaring Home Prices Challenge South FloridaRecruiting workers and keeping them has become increasingly challenging for South Florida employers as home prices have soared out of reach even for many two-income households. So employers are getting increasingly creative — throwing in bonuses, allowing flexible schedules and, in the case of the University of Miami (UM), even kicking in up to 50% of a home’s purchase price. Income gains have not kept up with soaring home costs. In fact, the rise in income per person here between 2000 and 2006 — 28% to an estimated $39,900, says the University of Florida’s Institute for Economic Competitiveness — has been all but gobbled up by the rise in property taxes and insurance alone. The property tax on a median-priced home in unincorporated Miami-Dade rose to $8,011 last year from $3,114 in 2000 and hit $7,988 in unincorporated south Broward, up from $3,505 in 2000. Home owners insurance has skyrocketed similarly. Between 2000 and 2006, the median home price rose 172% to $375,800 in Miami-Dade and by 148% to $367,800 in Broward, says the Florida Association of Realtors®. “Anyone considering coming to Miami to work faces the growing burden from the mortgage payment, the real estate taxes and the storm insurance, says Dr. Richard Bookman, vice provost for research at UM’s School of Medicine, which is hiring aggressively from around the country. “It’s the bane of my existence and one of the big challenges to recruiting.” UM last year began kicking in up to 50% of the purchase price of a home, up to $300,000, in exchange for a stake in the property. So far, more than 65 eligible recruits have taken advantage of the benefit. (www.miamiherald.com)
July New-Home Sales Up Some From Weak JuneRebounding from a weak patch in June, sales of new single-family homes rose 2.8% in July to a seasonally adjusted annual rate of 870,000 units, the U.S. Commerce Department reported on Friday. The July sales pace was 10.2% below a year earlier. “Despite their normal volatility, these numbers are promising,” said NAHB President Brian Catalde. “Today’s headlines would make you think that no one is buying, or can buy, new homes. That is far from the case. Financing is still available, builders are offering plenty of choices in a variety of price ranges and people are still buying the homes of their dreams.” “Home builders have been trimming prices and offering non-price sales incentives to bring reluctant home buyers back into the market, and their efforts have brought results, at least for the short term,” said NAHB Chief Economist David Seiders. “However, the tightening of lending standards and problems in the financial sector, which deepened this month, will delay housing’s recovery at least until mid- to late-2008.” The inventory of new homes for sale edged down slightly to 533,000 in July and the equivalent months’ supply at the July sales pace was 7.5 months, down from 7.7 months in June. Completed homes for sale comprised 33% of the inventory; units still under construction accounted for a 51% share; and units for-sale that were permitted but not yet started represented 16% of the inventory level. The inventory showed essentially no change from the previous two months. The median length of time that completed homes were on the market was 6.1 months in July, up from 5.9 months in June. Regionally, new-home sales in July were up 22.4% in the West and 0.6% in the South. Sales were down 24.3% in the Northeast and 0.9% in the Midwest.
Attend the Fall Construction Forecast Conference in October Plan to attend NAHB's Construction Forecast Conference on Oct. 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Register by Sept. 7 and save $50 off the regular registration fee. For more information, visit www.nahb.org/cfc.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2007-2008 Metro Forecast (free preview). Get 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. Housing Affordability Remains Sub Par in Second QuarterThe Indianapolis-Carmel, Ind. metropolitan area is the most affordable major U.S. housing market for the eighth consecutive business quarter in rankings for this year’s second quarter on the NAHB/Wells Fargo Housing Opportunity Index (HOI). On a nationwide basis, housing affordability remained well below the levels recorded prior to the price acceleration accompanying the 2004 to 2005 housing boom, although there was some improvement from a year earlier. The HOI indicated that 43.1% of new and existing homes sold in the U.S. during the second quarter were affordable to families earning the national median income, compared to 43.9% in this year’s first quarter and 40.6% during the second quarter of 2006. “The data show that housing affordability generally remains a serious issue even though national average house prices are down from their 2005 highs,” said NAHB Chief Economist David Seiders. “Moreover, the abrupt tightening of lending standards in the subprime sector — a trend that is now bleeding into other sectors of the mortgage market — is having serious impacts on the ability of many families to purchase homes.” In the nation’s most affordable major housing market of Indianapolis, approximately 87% of new and existing homes sold during this year’s second quarter were affordable to families earning the area’s median household income of $63,800. Also bobbing to the top of the list of the most affordable major metros in the second quarter were Detroit-Livonia-Dearborn, Mich.; Youngstown-Warren-Boardman, Ohio-Pa.; Buffalo-Niagara Falls, N.Y.; and Grand Rapids-Wyoming, Mich., respectively. Midwestern metros also dominated the list of the most affordable smaller housing markets (defined as those with fewer than 500,000 people). Kokomo, Ind., was at the top of that list, followed by Bay City, Mich.; Lansing-East Lansing, Mich.; Mansfield, Ohio; and Saginaw-Saginaw Township North, Mich. Landing at the bottom of the affordability scale for the 11th consecutive quarter was Los Angeles-Long Beach-Glendale, Calif., where just 3% of homes sold in the second three months of this year were affordable for families earning the metro’s median household income of $61,700. As usual, Los Angeles shared the bottom of the affordability scale with other major California metros, including Santa Ana-Anaheim-Irvine; San Francisco-San Mateo-Redwood City; and Modesto in the second, third and fifth least affordable positions, respectively. As the fourth-least affordable major metro, New York-White Plains-Wayne, N.Y.-N.J. was the only non-California location in the bottom five. Continuing a trend, all five of the least affordable small cities with populations under 500,000 were located in California during the second quarter, with Salinas at the very bottom of the listings, followed by Merced; Santa Barbara-Santa Maria-Goleta; San Luis Obispo-Paso Robles; and Napa.
Attend the Fall Construction Forecast Conference in October Plan to attend NAHB's Construction Forecast Conference on Oct. 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Register by Sept. 7 and save $50 off the regular registration fee. For more information, visit www.nahb.org/cfc.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2007-2008 Metro Forecast (free preview). Get 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. Sales of Existing Homes Stable in JulyExisting-home sales were essentially unchanged in July, with increases in the West and Northeast offset by a decline in the Midwest, the National Association of Realtors® (NAR) reported on Aug. 27. Existing-home sales slipped 0.2% in July to a seasonally adjusted annual rate of 5.75 million units from an upwardly revised pace of 5.76 million in June. They were 9% below the 6.32 million-unit rate of a year earlier. “Home sales probably would be rising in the absence of the mortgage liquidity issues of the past two months,” said Lawrence Yun, the association’s senior economist. “Some buyers with contracts have been scrambling when loan commitments did not materialize at the last moment, while other potential buyers are simply waiting for the mortgage market to stabilize.” The total housing inventory rose 5.1% at the end of June to 4.59 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, up from an upwardly revised 9.1-month supply in June. “For buyers able to qualify for conventional financing, there are ample opportunities in the current market,” said NAR President Pat V. Combs. “Availability and pricing of conventional loans are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans. If buyers are in it for the long haul, now can be a good time to get into your home.” Regionally, existing-homes sales rose 1.8% in the West to a rate of 1.12 million and 1% in the Northeast to a rate of 1.02 million. They remained unchanged in the South at an annual rate of 2.26 million and fell 2.2% in the Midwest to 1.35 million. Online Resources Help Consumers Buy Homes, Avoid ForeclosureOnline Home Loan Learning Center resources from the Mortgage Bankers Association are geared to educating consumers about how to manage their finances so that they can become home owners and how they can avoid foreclosure in the event that they are hit by an unexpected job loss or other financial trouble. The center provides information on credit reports and scores, the true cost of owning a home and how to compare the costs of owning versus renting a home. In an “All About Mortgages” section, consumers can access in-depth, easy-to-read information on home loan products, including how to qualify for a loan, what the documents mean, what’s in the mortgage payment and mortgage calculations to help plan payments. The Mortgage Bankers’ Foreclosure Prevention Resource Center educates home buyers about their responsibility should their home loan become delinquent and what they can do to help ensure that they don’t lose their home if they are faced with a sudden drop in their income. This section includes tips from the Department of Housing and Urban Development on avoiding foreclosure and an overview of 12 things to know about the foreclosure process when calling a lender or loan servicer. Also, several lenders have provided the Home Loan Learning Center with a list of contact information for borrowers who may be having difficulty making their mortgage payments. 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.
Attend the Fall Construction Forecast Conference in October Plan to attend NAHB's Construction Forecast Conference on Oct. 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Register by Sept. 7 and save $50 off the regular registration fee. For more information, visit www.nahb.org/cfc.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2007-2008 Metro Forecast (free preview). Get 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. SAFE Award Applications Now AvailableThe application period for the 2007 NAHB Safety Award For Excellence (SAFE), which provides recognition for home builders who develop outstanding work-site safety programs, is now open. For information, requirements and an online application, click here (nahb.org/SAFE). The award honors the achievements of builders and trade contractors who have developed and implemented high-quality construction safety programs, as well as those government officials and NAHB-affiliated associations who have made successful efforts to advance safety in the home building industry. In last year’s inaugural awards program, 19 winners in 16 categories were cited for their safety achievements. Read about them here. “NAHB is a national leader in residential construction safety, and this award program both honors exemplary safety behaviors practiced by home builders and encourages others to adopt similar programs in their work sites,” said NAHB President Brian Catalde. NAHB member companies in good standing that build residential homes or town homes using light construction methods can apply for a SAFE award. Specialty trade contractors, remodelers and light commercial and multifamily builders, as well as NAHB-affiliated associations and federal or state Occupational Safety and Health Administration (OSHA) officials who have been nominated by an NAHB member or association, are also welcome to apply. Awards will be made in a variety of categories; for a detailed listing, click here. Applications must be received no later than Oct. 5. “Last years’ winners were a testament to how seriously NAHB members take the safety of their employees, from developing unique safety programs to creating educational materials to conducting weekly training,” said Andy Anderson, NAHB Construction Safety and Health Committee chairman and a builder from Pinopolis, S.C. “We know there are many more examples of safety best practices in the industry and look forward to recognizing them in the 2007 awards.” Award winners will be recognized during a breakfast ceremony at the 2008 International Builders’ Show in Orlando in February. Winners will receive an award and coverage in this publication. NAHB provides members and others in the residential construction industry — including non-English and limited English-speaking employees and trade contractors — with information, guidance and access to training resources to help them protect employees' health and safety. A variety of safety resources and guidebooks, including the NAHB-OSHA Jobsite Safety Handbook: English-Spanish Edition, are available for purchase through www.builderbooks.com. For more information on the SAFE Awards Program, click here; or e-mail Lindsay Cather at NAHB, or call her at 800-368-5242 x8163. Builders’ Tip: How to Use an Air Chisel to Trim Wood
Then I found a tip called a muffler-cutting attachment. To use it, I ground the chisel edge on it, as shown in the accompanying drawing. Chisel Cuts Through Knots Like Cheese The chisel goes through dry Douglas-fir knots and end grain as if they were cheddar cheese. But because I can go full blast — or just squeeze off one or two strokes — the cutting action is safe and controlled. (Obviously, you should wear your goggles when using this rig.) The muffler-cutter steel is soft, so it won’t cut nails. But it sharpens easily with a file. So, for this type of work, you don’t need to worry about microbevels. Handy to Have Around One day, our crew’s door doctor came upon the ultimate door hassle. The subfloor at the back of a pocket door rose up too much to let the door open completely. Our solution: We welded up a 3-foot version with an old chisel on one end, a length of 1/2-inch pipe in the middle and an adapter from another cutting tool on the other end. It took longer to clear away the chips than it did to cut down the floor. Now, I keep my impact hammer and the chisel attachments around for a variety of jobs — for when the header is an inch too low, when I need to carve a channel for a steel strap or when our plumber remembers the waste and overflow after the tub’s already in. — Gregg Roos, San Francisco 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. How to Manage in a Cyclical DownturnHome building is a cyclical industry and there are three truths about cyclical industries that are important to remember. They are:
Companies that are most prepared for a downturn generally emerge as the strongest companies after the downturn. The most prepared companies are:
What to Do Look at your company's situation with a clean slate as if you were brought in from the outside to manage a crisis. We suggest that you do the following:
The article is provided courtesy of John Burns Real Estate Consulting, Inc. based in Irvine, Calif. For more information, call 949-262-3228.
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. EPA Administrator Visits New NAHB Research Center LabU.S. Environmental Protection Agency (EPA) Administrator Stephen L. Johnson and NAHB Vice President and Secretary Bob Jones visited the NAHB Research Center in Upper Marlboro, Md. on Aug. 16 for a tour of its new 42,000-square-foot laboratory and market research facility, which opened earlier this summer. Jones and Research Center staff provided Johnson with a better understanding of the subsidiary’s wide range of testing, evaluation and certification capabilities, as well as its ongoing work with NAHB and the International Code Council (ICC) to develop the National Green Building Standard™ — the first and only national green building standard for residential construction. Under Johnson’s leadership, the EPA has implemented a number of significant environmental programs, including NAHB-endorsed WaterSense, a voluntary public-private partnership that promotes consumer use of water-efficient products, certification for water industry professionals and innovation in water-efficient product manufacturing.
The NAHB Research Center — recognized as an industry leader in the areas of code development, laboratory certification and quality assurance — is accredited by the International Accreditation Service (IAS), an ICC subsidiary. The Research Center provides certifications for contractors, builders, suppliers and building products that are recognized and trusted across the country by builders, home buyers and building inspectors. In addition to its work on the green building standard, the Research Center is also developing a certification protocol and new Web-based suite of tools to support the NAHB National Green Building Program. The program will be launched at the International Builders’ Show in February. For information on the NAHB Research Center, click here, or call 800-638-8556. To participate in the public comment period now underway for the National Green Building Standard, click here to obtain a form. Energy Efficiency Not Optional for Two Custom BuildersEnergy efficiency and green building are not an option for the clients of two 2007 Energy Value Housing Award (EVHA)-winning custom home builders — Ferrier Custom Homes of Fort Worth, Texas and Fireside Homes Construction of Dexter, Mich. Both companies have garnered success in catering to custom home buyers who are seeking a home built to high energy and environmental standards. The EVHA program is managed by the NAHB Research Center, and operated in partnership with the National Association of Home Builders (NAHB) and the U.S. Department of Energy through the National Renewable Energy Laboratory. Ferrier’s “High Performance Homes” come in all styles and sizes. The modern styling of its award-winning “Heather’s Home” reflects the owner’s contemporary taste, yet many of the company’s other homes are traditional. “The outside look is not the focus, but simply a reflection of the owner’s preference,” said company president Don Ferrier. “It’s the high performance of the home that people seek and we deliver. The vast majority of our clients come to us because we only build very energy-efficient, comfortable, green homes.” The goal for the project was to build a high-performance home featuring sustainable materials and near-zero energy consumption that an average family could afford. Located in Weatherford, Texas, the just under 2,000-square-foot home was constructed at a cost of $115 per square foot. With quality always a top concern for his company, “subs and suppliers who are properly aware of energy-efficient practices and procedures are the only ones we will consider using on our projects,” Ferrier said. Early on in its history, Fireside Home Construction decided to make energy efficiency a cornerstone of its business, with the mission of building “for customers who seek high-quality, energy-efficient and sustainable housing that incorporates green building principles." Over the years, the company has refined its practices according to the latest recommendations by building scientists. During the various phases of construction, the builder meets with the client at the construction site to review the energy and environmental features of the home. According to company owner Robert Burnside, “Once the customers see and understand these practices, they become one of our greatest sales tools.” Fireside’s award-winning 3,453-square-foot home was built in Ann Arbor, Mich. for $198 per square foot. Burnside said that his company emphasizes consistency in design and execution and uses the same tradespeople, who know Fireside’s system and understand its expectations. The EVHA program is managed by the NAHB Research Center, and operated in partnership with NAHB and the U.S. Department of Energy through the National Renewable Energy Laboratory. To learn more about the EVHA program and the 2007 winners, click here. Applications for the 2008 EVHA are officially closed. Winners will be announced at an awards ceremony during the 2008 International Builders’ Show in Orlando in February. For more information, e-mail Kimberly Warren at the Research Center, or call her at 800-638-8556. Pulte, MHI Building Green to NAHB Model GuidelinesTwo production home builders have announced plans to construct communities with homes certified by local green building programs based on the NAHB Model Green Home Building Guidelines. The news is another important step for the NAHB National Green Building Program, which will be unveiled at the International Builders’ Show in February, said NAHB Green Building Subcommitee chair Ray Tonjes, a custom builder in Austin, Texas. The Southern Nevada Green Building Partnership and Pulte Homes announced last week that Pulte has signed as the first production home builder to participate in the program, which was established to help builders design and construct more environmentally sensitive homes in metropolitan Las Vegas. MHI, a builder member of the Home Builders Association of Greater Dallas, will begin constructing more than 800 green homes for its three brands — Pioneer, Plantation and Coventry Homes — in the Dallas-Fort Worth region that will fit the HBA's Green Built North Texas program's construction guidelines. The Green Building Partnership — a program of the Southern Nevada Home Builders Association and the Green Building Initiative of Portland, Ore. — is based on the NAHB Model Green Home Building Guidelines. The partnership administers third-party inspection and verification that registered homes are constructed to the program’s green building requirements. Pulte plans to launch its participation with the design and construction of its Villa Trieste at West Park community, which will feature 185 homes when completed. Villa Trieste will have three-story home designs from about 2,400 to more than 2,800 square feet, with prices starting in the $400,000s. The Southern Nevada Water Authority has also designated Villa Trieste as a Water Smart Home Community because of its outstanding water conservation and water efficiency features. NAHB supports the voluntary Water Smart program, which is a federal Environmental Protection Agency initiative. "Pulte prides itself on having set the standard for environmentally-sensitive and technologically-advanced home building in Las Vegas for many years,” said Nat Hodgson, vice president of construction for Pulte Homes' Las Vegas Division. “It is exciting to continue in this tradition by being the first production builder to join the Southern Nevada Green Building Partnership, and in doing so, add additional validation to our claim of being Southern Nevada's greenest national home builder." The company built and sold 4,519 new homes in 2006, according to Home Builders Research of Las Vegas. "As one of the most successful and prominent home building companies in the nation, the participation of Pulte Homes in the Southern Nevada Green Building Partnership raises the bar for this program," said Irene Porter, SNHBA executive director. "Pulte's involvement will certainly establish a protocol for designing and building green production homes in our community. Pulte customers who purchase green homes will be assured that their new home was built to verifiable and certified green standards." MHI is one of the first volume builders in the Green Built North Texas Program and will brand its green homes with the Eco Smart label. Eco Smart homes built by the Pioneer Homes division of MHI are priced from the $110,000s, designs by Plantation Homes are priced from the $150,000s and homes by Coventry Homes start in the $280,000s. The HBA's Green Built North Texas program is a partnership of North Texas home builders, industry supporters and sponsors committed to resource-efficient home construction. The program consists of 38 construction guidelines that address strategies for six categories of construction, including job site management, water efficiency, indoor air quality, material usage and home owner education. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Sign Up for Regular Updates on NAHB’s National Green Building Program Get regular updates about NAHB’s National Green Building Program and learn more about ongoing educational opportunities by visiting the green building program Web site at www.nahb.org/greenbuildingprogram. Also, subscribe to the NAHB Green Building Update e-newsletter by filling out the online signup form. For more information, or to subscribe, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. ‘Profit from Green Building’ Available at BuilderBooks.com “Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665.
Jones Updates Tucson Builders on NAHB ProgramMembers of the Southern Arizona Home Builders Association packed the house to hear NAHB Vice President Bob Jones discuss the NAHB National Green Building Program in Tucson, Ariz. on Aug. 20. Jones spoke to more than 200 association members and public officials. Rep. Gabrielle Giffords (D-Ariz.) also spoke at the forum, touting the city’s potential to become the nation’s leading center of solar research and development. “Ten years ago, green building was a niche market,” Jones told a special forum of the SAHBA Green Build Council. “Today, advanced building technologies and new products mean that mainstream homes can be built green affordably. Unimpeded market competition will result in the greenest technology at the most affordable price.” Jones , who is the NAHB Senior Officer charged with oversight of the green building program, emphasized that a mandatory, one-size-fits-all approach limits flexibility and increases home buyers’ costs. Also, mandates stifle supplier incentives to exceed established benchmarks. “Public officials want someone to take the lead to encourage energy efficiency and green building. In Tucson, they will have a program from SAHBA to hang their hats on,” Jones said. Later that day, SAHBA President Ed Taczanowsky hosted Jones at a reception for the SAHBA Board of Directors, after which Jones spoke to some 140 people at an association membership dinner. For more information on NAHB’s green building efforts, e-mail Calli Schmidt, or call her at 800-368-5242 x8132. Sign Up for Regular Updates on NAHB’s National Green Building Program Get regular updates about NAHB’s National Green Building Program and learn more about ongoing educational opportunities by visiting the green building program Web site at www.nahb.org/greenbuildingprogram. Also, subscribe to the NAHB Green Building Update e-newsletter by filling out the online signup form. For more information, or to subscribe, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. ‘Profit from Green Building’ Available at BuilderBooks.com “Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665.
NAHB Designation Proposed for Green BuildingA new designation from the NAHB University of Housing for successful completion of green and sustainable building education has been proposed by the Green Building Subcommittee and is up for approval during the NAHB Fall Board of Directors Meeting in Seattle next month. The NAHB Education Committee is studying the proposed designation, which will likely be based on the existing "Green Building for Building Professionals" two-day course and other requirements. Plans for the designation have been placed on a fast track so that they can coincide with the launch of the NAHB National Green Building Program, which is set to be unveiled at the International Builders' Show in February. Since “Green Building for Building Professionals” was first presented at the eighth annual National Green Building Conference in Albuquerque, N.M. in March 2006, it has been offered 21 times by home builders associations and during trade shows all over the country and has been completed by 470 students. Twelve more classes currently are scheduled between September and February. "I know that the University of Housing takes the creation of a new designation very seriously," said Ray Tonjes, chair of the Green Building Subcommittee. “The fact that this planned designation is speeding through the pipeline is another indication of the serious commitment the association is making to the NAHB National Green Building Program." For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Sign Up for Regular Updates on NAHB’s National Green Building Program Get regular updates about NAHB’s National Green Building Program and learn more about ongoing educational opportunities by visiting the green building program Web site at www.nahb.org/greenbuildingprogram. Also, subscribe to the NAHB Green Building Update e-newsletter by filling out the online signup form. For more information, or to subscribe, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. ‘Profit from Green Building’ Available at BuilderBooks.com “Profit from Building Green — Award-Winning Tips to Build Energy Efficient Homes,” available through BuilderBooks.com, showcases what energy conscious award-winning builders are doing, provides innovative energy-efficient features and covers successful techniques for building this niche market. To view or purchase this publication online, click here, or call 800-223-2665.
New, Free Toolkit Gives Tips to Boost Sales, MarketingNAHB has developed a series of free sales and marketing resources in its Sales and Marketing Toolkit to help members strengthen their sales and marketing proficiency during this downturn. The toolkit is available exclusively to NAHB members and includes a free, introductory booklet as well as online resources available on the NAHB Web site, www.nahb.org. The booklet includes easy-to-read articles, tips and an overview of online resources. Articles include tips for builders on how to:
Members must log in to the NAHB Web site to access this information. For login help, call the Member Service Center at 800-368-5242.
Get Powerful Technique for Selling More Homes Bill Webb, MIRM, in “Sweet Success in New Home Sales,” available through BuilderBooks.com, provides you with the most powerful techniques ever devised for selling more homes and making more money in lean times. This instructive guide 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. Three Communities Near Seattle on Fall Board Housing Tour
Three communities near Seattle will be featured during the National Sales and Marketing Council's 2007 Fall Housing Tour from 8:00 a.m. to 12:30 p.m. Saturday, Sept. 8 at the upcoming NAHB Fall Board of Directors Meeting. The communities on tour include: Copperfield is a quiet community off the beaten track, yet near the Seattle area’s main travel corridors. It offers 119 well-appointed homes with floor plans designed to meet just about any lifestyle need. Copperfield boasts a rural feel with large adjacent greenbelts and it is close to Lake Tapps, well known for its fishing, swimming and boating opportunities.
River’s Edge borders the Carbon River, where residents can enjoy swimming, tubing and fishing. It offers large home sites and spacious interiors — a vanishing benefit in the marketplace. The area boasts working farms and, within the community, miles of trails for walking, jogging and biking.
Wyndham Ranch is a 261-home gated community on the site of a historic saw mill and features a family park on the very spot where the original homestead stood nearly a century ago. Wyndham Ranch also features many mature Gary Oak trees as well as greenbelts and trails that meander through the community. The tour is $60 per person and includes a boxed lunch.
Register online, or by mail or fax using this form. Advance registration ends Wednesday, Aug. 29. Onsite registration is available at the National Sales and Marketing Council booth at the Westin Seattle. Enter The Nationals Sales and Marketing Awards by Sept. 28Enter your best in new home sales and marketing and design for 2008's The Nationals — the National Sales and Marketing awards, the largest and most prestigious competition for new-home sales and marketing professionals and communities. Sponsored by NAHB’s National Sales and Marketing Council, The Nationals honor the best in architectural achievement, product and community design, advertising and promotion, interior merchandising, Web site design and more. The awards are open to individual sales and marketing professionals, home builders, associates and sales and marketing councils. All entries, including fees and exhibits, are due Friday, Sept. 28. The Nationals recognizes innovation and excellence in 57 categories. During a three-day judging process, a panel of industry professionals from across the country selects Silver and Gold award winners from a field that typically includes more than 1,200 entries. Last year, more than 1,400 entries were submitted. To Apply
Awards Gala at IBS on Feb. 13 Category winners will be honored during a gala event at the Rosen Shingle Creek Resort in Orlando on Feb. 13 during the International Builders' Show. For more information, visit www.TheNationals.com, e-mail Lisa Parrish, or call her at 800-658-2751. Donald Trump Enters the 50+ Market: Here’s Why
Donald Trump has entered the active adult market with Trump Park Residences, a luxurious, 114-unit condominium community on 50 acres in Westchester County north of New York City. Developed as a joint venture with New York’s Cappelli Enterprises, the one-, two- or three-bedroom units feature 9-foot ceilings, a host of high-end amenities and range in price from the mid-$500,000s to $1.2 million. The Club at Trump Park features a library, private movie theater, stone fireplaces and indoor and outdoor pools. The community also overlooks Donald J. Trump State Park, 436 acres that Trump donated to the state. Two weeks before sales started, the community reportedly had a waiting list of 200. Barbara Kleger, president of 55+ Consulting, based in Philadelphia, and a member of NAHB’s 50+ Housing Council, talked with Marge Schneider, executive vice president of Cappelli Enterprises, about the development of Trump Park Residences.
Barbara Kleger: What made Trump decide to venture into the 55+ market? Marge Schneider: Besides the fact that both Donald Trump and Louis Cappelli are now “active adults?” Seriously, both Trump and Cappelli realized three years ago that the baby boomer market, which represents the largest segment of the population, was “graying,” the first wave having tuned 60 in 2005. Not only were there vast numbers of potential empty nester purchasers in this baby boom generation, in most cases, they lived in a single-family home that had significantly increased in value over the years. They were in a position to easily sell their existing homes and buy a luxury condo in an active adult community without having to take on an additional mortgage commitment. Kleger: What research was done prior to entering the market? Schneider: We conducted extensive market studies about what potential purchasers would be looking for in terms of amenities, features and finishes. We also looked at demographics from our own Westchester County area to determine sales potential and looked at existing “active adult” communities around the region and country. We recognizined that to entice this market into leaving a home that they had lived in for 20 or 30 years, we would have to give them ample space, good storage, designer finishes, maintenance-free living and an amenities package that would be too good to pass up. Kleger: What did you do differently in designing residences for the 55+ buyer?
Critical personal space, the oversized master suite, is basically the same size in all the units. Schneider: We focused on open floor plans with great finishes, oversized windows that bring in incredible light and spacious, convenient storage. One of the most appealing design features is our oversized master bedroom suite that the architect designed to be basically the same for every home. So regardless of whether you purchase a 1,150-square-foot one-bedroom home or a 2,000-plus-square-foot three-bedroom home, your critical personal space, the master bedroom suite, is the same. The bedrooms are approximately 17x13 feet; the master closet is 6x9 feet and the marble master baths are 10x12 feet. Also, we were able to provide every home with storage ranging in size from 45 square feet to 160 square feet, most of which is on the same floor as the home — so there is no digging around in a basement.
Kleger: What have you found different in marketing to the 55+ buyer versus the younger buyer? Schneider: It’s a longer sale process. These are people who have “been there, done that,” so they are going to take their time. With the exception of prospects who want to be close to their children, grandchildren, country club or otherwise stay in their neighborhood — this market can really live just about anywhere they would like, so they have more options than the typical buyer. Also, we have found that many prospects want to wait to see the public spaces such as the lobby, clubroom and pool, before making a decision. Kleger: How much time have you allotted to pre-sales/sales, and is this different than what you would have done if Trump Park Residences was not age-restricted? Schneider: No, we haven’t approached this any differently than our typical residential development. Kleger: What has surprised you most about the 55+ market? Schneider: The most surprising thing about this market is their ability and willingness to live just about anywhere that suits their fancy. Kleger: What advice do you have for builders and developers entering this age-restricted marketplace? Schneider: Do your homework. Understand your market both from a geographic and economic standpoint. Barbara Kleger has been serving the senior housing industry since 1978. She is currently president of Philadelphia-based, 55+ Consulting, a division of KD Partners, LLC, a national firm that specializes in strategic planning, consumer research and marketing for active adult and full service retirement communities. Kleger also serves on the board of many senior housing organizations and is a frequent speaker at national seminars. She has personally served more than 250 clients and surveyed more than one million adults. For more information, e-mail Kleger, or call her at 215-893-3635.
Hear About Hot Design Trends for the 50+ Market at Fall Board
William Kreager, MIRM, FAIA, of Mithun, one of the country’s premier architects and designers, will speak about hot architectural design trends for the 50+ market at the annual 50+ Housing Council Fall Board Networking Dinner on Thursday, Sept. 6. An award-winning architect, Kreager will discuss his company’s portfolio of active adult and service-enriched projects, sharing the latest trends and techniques, and how he has tailored his community and home designs to meet the evolving needs of the boomer generation. Kreager has led Mithun’s urban housing and planning teams to national prominence in the housing industry. His projects have achieved recognition for environmentally sensitive master site planning and innovative architectural design. His market-oriented work includes projects from small infill communities to new towns. The integration of site planning and building design in urban infill, mixed-use development and sustainable design are his particular focus areas. The 50+ networking dinner will be from at 6:30-9:00 p.m. at Salty’s on Alki Beach, a landmark Seattle restaurant. The cost is $95. To Register Register online, or by mail or fax using this form. Advance registration ends Wednesday, Aug. 29. If space is available, attendees may register onsite at the National Sales and Marketing Council booth at the Westin Seattle. For more information, e-mail Kate Carrigan at NAHB, or call her at 800-368-5242 x8244. Get Strategies for Marketing to Boomers “Marketing to Leading-Edge Baby Boomers,” available through BuilderBooks.com, delivers all the insights and strategies you need to achieve extraordinary business success as you determine what uniquely motivates boomers and how to communicate with them in meaningful and mutually beneficial ways. To view or purchase this publication online, click here, or call 800-223-2665. Immigrants Likelier to Move to Single-Family Over TimeSignificantly more U.S. immigrants live in multifamily housing than the rest of the population, but their age and the amount of time they have spent in the country determine their likelihood of living in a single-family residence, according to recent research from housing analysts at NAHB. A March 2006 Supplement of the Current Population Survey, which is published jointly by the Bureau of Labor Statistics and the Census Bureau, provides some interesting insights into the housing choices of the immigrant population, according to the NAHB economists. Among those findings:
Section 8 Housing Subsidy Payments Running LateThe Department of Housing and Urban Development is once again behind on paying subsidies to owners of Section 8 project-based properties. As of the middle of this month, many owners had not received Housing Assistance Payments for July, and HUD expects payments to be late for August as well. HUD field offices are advising owners to use reserve funds to cover the shortages, but that is not always permitted by lenders, leaving some owners with few options to cover costs. HUD field offices have been instructed to process owners’ requests for reserve withdrawals within 24 hours. HUD currently is operating under a Continuing Resolution (CR) for the remainder of FY 2007. Under a CR, funds are apportioned to HUD by the Office of Management and Budget (OMB) based on a formula related to HUD’s spend-out rate in the previous year. However, the formula is not always accurate because HUD’s spending fluctuates. It takes HUD up to three weeks to move funds from OMB to owners. Compounding the problem, HUD may not have asked for sufficient funds from Congress in FY 2007, raising the possibility that it may have to ask Congress for an additional appropriation. HUD currently is auditing all HAP contracts to determine funding needs. Members of Congress have been in contact with the HUD secretary, who has assured them that HUD is working to resolve the issue. For more information, view click here; or e-mail Claudia Kedda at NAHB, or call her at 800-368-5242 x8352. Entries Open for Pillars Design, Marketing Awards
NAHB Multifamily has announced a call for entries for the 2008 Pillars of the Industry Awards competition honoring excellence in apartment and condominium design and development, as well as leadership in marketing and property management. Apartment owners and developers, property managers, architects, interior designers and others involved in the multifamily housing industry are invited to enter. The application deadline is Nov. 9. Entry notebooks are due Dec. 7. The Pillars of the Industry Awards program is the largest and most prestigious of its kind, and both housing professionals and the media look to the awards as a showcase of future trends and innovation. The awards recognize superior achievement in three areas: building, marketing and individual excellence, including “Multifamily Development Firm of the Year” and “Best Multifamily Community of the Year.”
For complete details, including eligibility requirements and application forms, go to www.nahb.org/pillarsawards, e-mail multifamily@nahb.com or call 800-368-5242 x8215. To see a list of last year's winners, available on the NAHB Web site, click here. How to Schedule RAM Courses for Local Multifamily CouncilsLocal multifamily councils can schedule Registered in Apartment Management (RAM) educational courses through the NAHB University of Housing. RAM is a comprehensive educational and designation program offered to property management professionals by NAHB. “RAM is the most sought-after credential by managers of apartments and condominiums, both market-rate and affordable,” said Jacquelyn Bruchi, a RAM designation holder and president of Shadowlake Management Company in New Orleans. “Offering the course is a great opportunity to serve the multifamily members of your HBA.” To schedule courses:
For more information or to schedule a RAM class, call the NAHB University of Housing at 800-368-5242 x8338, or visit www.nahb.org/RAMinfo. Plan to Attend the Remodeling Show in Las VegasNAHB Remodelers who want to learn about the latest technical skills and business practices should plan to attend the 2007 Remodeling Show, Oct. 10-12, at the Mandalay Bay Convention Center in Las Vegas. The show features more than 80 courses in eight different educational tracks in the traditional conference program alone. Free Workshops at NAHB Remodelers Booth — #10079 NAHB Remodelers will be offering six free workshops at the council’s booth — #10079 — on the show floor. They include: Wednesday, Oct. 10
For more information about NAHB Remodelers activities at the Remodeling Show, e-mail the NAHB Remodelers at remodel@nahb.com, or call 800-368-5242 x8216. Updated CAPS Classes Debut at 2007 Remodeling ShowTwo updated Certified Aging-in-Place (CAPS) courses will debut during the 2007 Remodeling Show, Oct. 10-12, at the Mandalay Bay Convention Center in Las Vegas. The courses — “Marketing and Communication Strategies for Aging and Accessibility (CAPS I)” and “Design/Build Solutions for Aging and Accessibility (CAPS II)” — have been upgraded to include recent statistics and trends about the older adult community, as well as improved graphics and activities to make the courses even more comprehensive. “As our medical technology and care techniques provide for longer and more comfortable independent lives and lifestyles, the building industry — remodeling in particular — needs to be, and indeed should be, on the leading edge,” said Greg Miedema, CGR, CGB, CAPS, president of Dakota Builders, a remodeler from Tucson, Ariz. Miedema worked closely with the NAHB University of Housing as a content provider for the CAPS I designation. “Marketing and Communication Strategies for Aging and Accessibility (CAPS I)” replaces “Working With and Marketing to Older Adults.” When completed, students who took the course will be able to describe the different aging-in-place markets, better promote new aging-in-place products and services and better understand and sell to older adults. “Design/Build Solutions for Aging and Accessibility (CAPS II)” replaces “Home Modifications.” The course will allow students to assess the needs of aging-in-place clients, better understand the design and accessibility needs of clients, and understand contractual and legal issues surrounding aging in place, among other valuable considerations. The courses being offered include:
NAHB member fees are $185. Fees for non-members are $235, unless otherwise noted. * All pre- and post-conference courses will be capped at attendance of 50 registrants per course. BSC Modular Member to Be Featured on Discovery ChannelSafeway Homes, of the Building Systems Councils’ Modular Council, will be featured in the new series on the Discovery Channel, “Build It Bigger” at 10:00 p.m. EST on Tuesday, Aug. 28. Safeway Homes, based in Pearl, Miss. with a manufacturing plant in nearby Lexington, will be in the show, “Hurricane Proof Homes,” airing on the two-year anniversary of Hurricane Katrina. The show will highlight Safeway Homes’ ability to produce 160 mph-rated homes and how the company is helping to rebuild the Gulf Coast. “Build It Bigger” will give viewers a soup-to-nuts look at Safeway's construction process — from manufacturing in the factory to transportation to the site, setting the home, final finishes and presentation to the home owners who lost their original home during Katrina. For more information, visit the Safeway Homes Web site, e-mail Jeremy Bertrand at NAHB, or call him at 800-368-5242 x8353. Sept. 7 Entry Deadline Looms for BSC Excellence AwardsThe deadline for entries for the Excellence in Marketing & Home Design Awards — the Building Systems Councils' (BSC) annual competition to recognize the finest in technology-driven and factory-crafted home manufacturing, building and marketing — is Friday, Sept. 7. The awards are open to all BSC member manufacturers — concrete, log, modular and panelized — and associates and any NAHB builder member who uses building systems As in the past, all winners will be featured in the January/February 2007 issue of Building Systems Magazine, in Nation’s Building News, on the NAHB Web site and through national and local press releases. Winners will be recognized and honored during a ceremony at the 2007 Building Systems Councils' SHOWCASE in Hilton Head, S.C. on Oct. 28-31. NAHB builder members who win awards also will be recognized during the 2008 International Builders’ Show in Orlando in February. To Apply Entry guidelines and submission forms are available on the Building Systems Councils Web site. Mail entries to:
For more information, e-mail Scott at NAHB, or call him at 800-368-5242 x8676. Log Homes Grading Program Receives IAS AccreditationThe NAHB Log Homes Council (LHC) Grading Program successfully completed an audit with the International Accreditation Service (IAS), one of the leading accreditation bodies in the United States and a subsidiary of the International Code Council. The IAS accreditation enables log home manufacturer council members to assure their customers that they are receiving the highest quality products when searching for a home. Participation in a certified grading program became a mandatory membership requirement for the LHC in 1994 and raised the bar for log home manufacturers across the country. The grading program is based on an ASTM International standard specific to full logs providing a mechanism to grade — similar to how plywood and dimensional lumber are graded to their specific standards. ASTM, originally known as the American Society for Testing and Materials, is one of the largest voluntary standards development organizations in the world. The LHC grading program promotes public safety, establishes a formal program of quality assurance and control, educates manufacturers and builders on log construction and provides procedures for settling disputes and claims. For more information about IAS, visit www.iasonline.org. For a copy of the accreditation, click here. To learn more about the Log Homes Council, visit www.loghomes.org, or call 800-368-5242 x8577. Market Trends, Successful Selling Hot Topics at ShowcaseHow to increase market share and profit margins is one of the hot topics at SHOWCASE 2007, the premier systems-built industry education and networking event, at the Marriott Hilton Head Golf and Resort in South Carolina on Oct. 28-31. Bill Webb, the author of “Sweet Success in New Home Sales,” available through BuilderBooks.com, will lead an education session about how to boost your sales in a changing market. In addition, NAHB Chief Economist David Seiders will discuss trends in the market and the immediate and long-term effects on the systems-built housing community. SHOWCASE 2007, by NAHB’s Building Systems Councils, features educational sessions, trade show exhibits, award ceremonies and networking opportunities tailored to manufacturers, builders, dealers, suppliers and associates in the concrete, log, modular and panelized home building industries. SHOWCASE 2007 attendees will have the opportunity to see cutting-edge technology and the most advanced supplies and products and to learn about the latest trends from experts in green building, marketing, human resources and from the NAHB Research Center. Among this year's breakout sessions are:
For more information and to register, visit www.nahb.org/showcase. Register early. Discounted "Early Bird" registration ends Sept. 7.
PATH Concept Home Uses System-Built Technology
System-built technology was used to speed production and increase quality, flexibility and sustainability of the Concept Home built by the Partnership for Advancing Technology in Housing (PATH). Built in Omaha, Neb. and opened in June, the Concept Home features more than 60 efficient, sustainable and systems products. It was built and scored to the NAHB Model Green Home Building Guidelines. The Concept Home incorporated “pre-built” or “prefabricated” components wherever possible to reduce construction time on the job site and increase safety, better control construction materials and reduce waste. Insulated concrete forms (ICFs), which arrived at the site in sections up to 10 feet wide, were used in the basement. The forms enabled the basement to be completely built, including the footers, foundation and walls, in just two days — a process that normally takes more than a week using traditional construction methods. Through panelization, the entire basement floor was pre-built in just a few sections.
"By using building techniques that create better homes faster, and applying cutting-edge technologies for sustainability and efficiency, I can do a better job of providing durable, comfortable and affordable homes," said Concept Home builder Fernando Pages Ruiz of Brighton Construction, based in Lincoln. "Plus, innovation and vision allow America's home building industry to continually improve our building processes and quality." Efficiency, flexibility and sustainability are all attainable through system-built For more information on the PATH Concept Home, visit the Concept Home demonstration Web site. Register for Custom Builder Symposium in Naples, Fla.Register for the 2007 Custom Builder Symposium, NAHB's premier educational and networking event for custom builders. The symposium will be held Oct. 26-28 at the Naples Grande Resort & Club in Naples, Fla. Discover Hidden Treasures This year's program, "Discover Hidden Treasures," is filled with hidden treasures and opportunities that will enable participants to improve their businesses. Tours, Golf, Education and More The symposium will include:
To Register Online registration is now open. For more information and to register, go to www.nahb.org/custom.
Education Calendar
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