Print-All Page: February 2, 2009

As Congress continued to move rapidly toward completion of landmark legislation to stimulate the sputtering U.S. economy, leading national economists cautioned that the package is unlikely to succeed without provisions to restore home buying demand and address housing problems that are the root cause of the worst recession since the Great Depression.

With the Senate expected to vote on its version of the stimulus bill the middle of this week, NAHB has been coordinating a major grassroots push across the country to alert lawmakers on Capitol Hill that reviving housing demand through a beefed-up tax credit for home buyers is essential to restoring the confidence among consumers and in the financial markets needed to revive economic growth.

“The housing market is hurting and hurting bad,” said NAHB President and CEO Jerry Howard. “Unless Congress takes bold action to help housing in its economic stimulus package, things will only get worse.”

In the $819 billion stimulus bill passed by the House on Jan. 28, eliminating the recapture provision of the $7,500 tax credit for first-time home buyers was the sole item aimed at addressing the devastating impact of the housing downturn on the general economy, with the financial crisis and job losses continuing to escalate at an alarming rate and housing activity sinking to its lowest levels on record.

The stimulus measure adopted by the Senate Finance Committee the day prior to the House vote would also eliminate the need for first-time buyers to repay the tax credit and, moving a small step in the right direction, would extend the availability of the credit for an additional two months, until Sept. 1.

NAHB is seeking an extension of the credit through the end of this year. Among other enhancements to the credit that would make it an effective vehicle for leading economic recovery: the amount of the credit would be increased, ranging from $10,000 and up, based on housing prices in local markets; it would be available to all home buyers, not just those buying a first home, with income limitations; and it would be available at closing to be used as a downpayment.

“The tax credit would be available only until the end of the year,” said Howard, “sending a strong signal to families who have been sitting on the fence that they need to act quickly to take advantage of this opportunity. Housing affordability has improved markedly around the nation, and there is pent-up demand from new households who need housing, so we believe the credit would spark the activity the economy needs to stop shedding jobs and begin creating them.”

Economists participating in a Jan. 28 teleconference to discuss the importance of including housing in the congressional plan to save the economy emphasized that housing — which is responsible for 15% and higher of the gross domestic product during normal times — is in the best position to lead the recovery, which is the role it has traditionally played throughout the history of America’s business cycles. Also, ending the downward spiral in housing prices ought to be the first priority of efforts to halt further economic deterioration, they said.

“Three million home building-related jobs across the country have been lost as a result of the slowdown in housing production, which represents $145 billion in lost wages and $4.9 billion in lost purchases,” said NAHB Chief Economist David Crowe.

“Deterioration in these jobs has now spilled over into virtually all sectors of the U.S. job market and the economies of states across the country,” Crowe said. “Consumer and builder confidence measures are at an all-time low and foreclosures continue climbing to record levels.”

David Lereah, president of Reecon Advisers and a former chief economist for the National Association of Realtors®, noted that housing affordability has increased significantly over the past year with sharp declines in home prices and the cost of mortgage financing. However, tighter mortgage lending standards — particularly downpayment requirements — have prevented many prospective buyers from being able to buy homes. The tax credit proposed by NAHB, he said, would remove that obstacle by enabling borrowers to use it for a downpayment.

“Falling house prices are clearly the symbol of this economic crisis,” said Dwight Jaffee, professor of finance and real estate at the Haas School of Business, University of California at Berkeley.

“If we are going to have any form of significant economy recovery, the freefall in homes prices that we continue to observe must be stopped,” Jaffee said. “We don’t see success in foreclosures until we get the prices to stop falling. Consumer sentiment won’t turn, employment won’t rise and expenditures won’t increase until we can stop this freefall,” he said.

“Once you stop the freefall, and get home sales going, the multiplier to the rest of the economy is enormous. In fact, every key economic indicator — gross domestic product, consumer confidence and housing market activity — rebounds significantly faster if housing is included in the stimulus package.”

Jaffee cited the findings of a recent study conducted by California-based consulting firm LECG LLC showing that a significant tax credit for all home buyers and buying down mortgage interest rates through the end of this year would:

“This creates a positive, virtuous cycle instead of the vicious cycle we are in,” he said.

NAHB is now seeking to have the expanded home buyer tax credit added as an amendment to the stimulus bill that will be debated on the Senate floor. NAHB members are being urged to ask their senators to support the credit. House members should be urged to support the tax credit enhancements when the legislation goes to a House-Senate conference to reconcile differences between the two bills.

For resources to help prepare for local congressional visits — including legislative background, talking points, economic information and a sample letter to the editor — NAHB members can click here.

All concerned members of the housing community can contact their federal lawmakers by clicking here and urging them to support any amendment to expand and enhance the home buyer tax credit. The same message can be delivered to members of Congress by calling 1-866-924-NAHB (6242).

For more information, e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8282.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.

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.

ANSI Approves National Green Building Standard

The National Green Building Standard for all single-family homes, apartments and condos; land development; and residential remodeling and renovation was approved on Jan. 29 by the American National Standards Institute (ANSI).

The approval signals a new era for the nation’s builders, remodelers and developers and also provides an extra measure of reassurance for home buyers, said NAHB Chairman Joe Robson.

“The National Green Building Standard is now the first and only green building rating system approved by ANSI, making it the benchmark for green homes,” said Ron Jones, who chaired the consensus committee charged with developing the standard.

“The standard provides home builders and remodelers with a much more expansive third-party rating system that they can use to achieve ‘green’ certification under NAHBGreen and the National Green Building Certification Program,” said Mike Luzier, CEO of the NAHB Research Center.

The Research Center provides certification for NAHBGreen projects, which until now have only included single-family homes. “Consumers are looking for authentic, verifiable green building practices, and now they’ll find them with a true industry consensus standard for residential green building,” Luzier said.

The standard defines what green practices can be incorporated into residential development and construction and how home owners can operate and maintain their green homes.

The National Green Building Standard also provides flexibility, allowing home builders and home buyers to make green choices based on climate and geography as well as style preferences and budget.

NAHB and the International Code Council — as part of the stringent process required by ANSI — gathered a fully inclusive and representative consensus committee composed of a broad spectrum of builders, architects, product manufacturers, regulators and environmental experts. The work of the consensus committee was administered by the Research Center, an ANSI Accredited Standards Developer.

The consensus committee deliberated over the content of the standard for more than a year, held four public hearings and evaluated more than 2,000 public comments before submitting the standard to ANSI.

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

Click here to pre-order the National Green Building Standard from BuilderBooks.com. The retail price is $35.95; NAHB members pay $31.95.

Builders Scale Back House Sizes as Buyers Commit to Energy Efficiency

The roughly 420,000 recession-chastened households NAHB expects to buy new homes this year are looking for different things than the boom-era buyers who snapped up homes that grew bigger, fancier and pricier by the month. Because they aren’t held back by the need to sell an old home, first-time buyers now make up a greater share of the market. They’re trying to stretch their dollars at every turn, and many are concerned about the cost of heating and cooling, especially after having experienced the surge in fuel costs last summer. Builders say buyers are judging a home in terms of how comfortable it will be as a living space for the long term, rather than as an investment they can flip for a profit after a couple of years. Until recently, builders have focused mostly on grand houses larded with upgraded countertops, flooring, cabinets and bath fixtures. Heading into the peak home buying season this spring, many builders are calling attention to the ways their homes save money and energy. Smaller size is one way they’re trimming the cost. For example, Atlanta-based Beazer Homes recently started to shrink its designs. Its high-end houses, which used to be about 3,600 to 3,700 square feet, now average about 3,000 square feet. Entry-level homes, at least in some locations, are getting a trim as well. Some of Beazer’s houses in the Greenfield development in Hagerstown, Md. are now about 1,900 square feet, compared with the old standard of 2,500 square feet. The company is also paying more attention to energy-conserving and environmentally friendly features such as efficient appliances, programmable thermostats, compact fluorescent lights and paints that emit less toxic fumes, all of which are now standard features. (www.washingtonpost.com)
Washington Post (1/24/09); Elizabeth Razzi

No Bubble Burst Here: Cedar Valley Housing Market Hanging Tough

Local experts say a solid economy in Cedar Falls, Iowa kept home purchases stable last year. Residential sales totaled 2,300 in Cedar Valley, down from 2,392 in 2007. Median sale prices also declined — going from $115,000 to $113,588 — but those small reductions don’t concern Robert Reisinger, executive officer of the Waterloo-Cedar Falls Board of Realtors®. “The market is just as strong as it’s always been in recent years,” he said. “We might be in a little bit of a lull here as people take a wait-and-see approach, but we’ve really got a good market here.” Sales were slightly down due to the summer’s tornado touchdowns and floods. Another possible sales deterrent is the grim news about the national housing scene from other states, although that crisis hasn’t affected the area. Reisinger notes that low-interest rate loans make 2009 a smart year to buy. “We have to convince people that it’s actually a good time to sell in this market or buy in this market. You’re going to do OK.” That’s the message local developers have spread to clients, and their efforts appear to be paying off, said Craig Fairbanks, a member of the Northeast Iowa Home Builders Association. “Surprisingly enough, there’s a lot of inquiry about home building,” he said. “People here are pretty astute. It’s really a good time to build because pricing is down severely, especially on lumber products.” Like Reisinger, Fairbanks believes the Cedar Valley’s healthy local economy has insulated the market from challenges faced elsewhere in the nation. (www.wcfcourier.com)
Waterloo-Cedar Falls Courier (2/1/09); Mary Stegmeir

Toll Bros Offers 3.99 Percent Financing to Sell Homes

Looking to jolt paralyzed home builders into action, Toll Brothers, a builder of luxury homes, recently began offering some buyers of new homes a 3.99% 30-year fixed-rate mortgage. That is more than a percentage point less than the average rate on such mortgages, currently 5.26%, according to HSH Associates in Pompton Plains, N.J. It isn’t unusual for builders with their own mortgage units to offer below-market rates as an incentive to sell homes. They can do this by making an upfront cash payment to the investor who buys the mortgage in a process known as a “buy down.” Home owners often make similar payments, known as points, to obtain a lower interest rate. The buy down is treated as a cost of sale for the builder. What’s eye-catching about Toll’s offer is that the company is offering the low rate for the life of the loan rather than for a few years, as some builders have done. “One of the things we’ve heard from consumers is that they want to wait until rates come down,” says Don Salmon, chief executive of TBI Mortgage Co., Toll’s mortgage subsidiary. “We’re trying to figure out a catalyst to bring buyers off the sidelines.” (www.wsj.com)
Wall Street Journal (1/12/09); Ruth Simon, Dawn Wotapka and Michael Corkery

Proposal: Year With No City Impact Fee

Residential and commercial impact fees could be waived for the next 12 months as a way to spur building and create jobs, under a proposal released by Tucson, Ariz. City Councilman Rodney Glassman. Glassman said the one-year waiver of all impact fees — except those for public safety — is an immediate action that would help generate jobs for Tucson. Glassman said this may actually help the city’s $80 budget deficit for both this fiscal year, which ends on June 30, and next fiscal year, which begins on July 1, “if it spurs construction and retail development…that might otherwise not occur in this market.” That development would bring in more sales taxes to the general fund. The Southern Arizona Home Builders Association has written a letter expressing formal support for the proposal, noting that only 220 new-home permits were issued during the last six months of 2008, and it predicts only 110 will be produced in the first half of this year. The letter says the waiver would have several benefits, including: signaling that the city is serious about an economic stimulus to create jobs; providing concrete action that is not just a proposal; and finally showing “a great act of understanding how this local economy functions.” (www.azstarnet.com)
Arizona Daily Star (2/2/09); Rob O’Dell

Snohomish County Sets New Rules for Home Builders

When housing developments go in, neighbors often gripe about builders clear-cutting trees before breaking ground. That was a big factor in shaping the urban design rules the Snohomish Council in Washington approved last week. Among other changes, residential builders now will have to leave trees alone or plant replacement trees for any they cut down. Mike Pattison, government affairs manager with the Master Builders Association of King and Snohomish Counties, agreed that many builders will welcome the rules. But they aren’t sure how many more restrictions they can take, because regulations add to the price of homes and cut down on the number of buildable lots. “We’re getting to the point where we’re maxed out,” Pattison said. “This is the last additional cost measure the industry can tolerate.” Leaving more trees is likely to be popular with people living next to new developments, but that likely will be the most expensive change in the updated standards, he said. Just how much the new rules will cost is hard to say. It could be as much as $5,000 per home when new rules to save trees, preserve open space and vary the building designs are added up, Pattison said. “We won’t really know the answer until we start building again,” he said. (www.heraldnet.com)
Everett Herald (2/2/09); Noah Haglund

Missouri Program Aids First-Time Home Buyers

A new loan program is available to first-time home buyers in Missouri to turn the $7,500 federal tax credit approved last year into a downpayment on a home. Under a program announced last month, the Missouri Housing Development Commission will loan a first-time buyer $6,750 to use as a downpayment at closing and be paid back interest-free when the home buyer receives the credit at tax time. “The problem was nobody could figure out how to turn the $7,500 into cash at the closing table,” said Brad Goss, a St. Louis developer and a real estate lawyer. “No other state has figured out how to do it, except Missouri.” Experts hope that encouraging new home buyers will stimulate growth throughout the housing market, as current home owners would in turn purchase new homes. “Once you get the first-time home buyers buying at the front end of the market, then it ripples through the system,” said Goss, who was a member of a legislative task force that was established last year to examine problems in the housing market. (www.kansascity.com)
Kansas City Star (1/26/09); Jason Noble

American Bankers Association Says Banks Continue to Lend

Of interest to readers of Nation’s Building News is the following letter to the editors of The Wall Street Journal. It appeared in the Feb. 2 issue and was submitted by Ed Yingling, president and chief executive of the American Bankers Association in Washington, D.C.:

“Clearly there are major dislocations in the credit markets, but this is mistakenly being translated as ‘banks aren’t lending’ (‘Lending Drops at Big U.S. Banks,’ page one, Jan. 26). Thirty years ago, banks provided about 60% of all credit. Today, traditional bank lending provides less than 30%, and nonbank funding now dominates the credit markets. The financial turmoil of the last 18 months has made investors risk-averse; for example, the commercial paper and securitization markets are in disarray. This leaves it to traditional banks to fill the hole.

“Meanwhile, loan demand has declined, which is typical in a recession as consumers, many of whom are concerned about job security, choose to hold onto their cars and homes, and businesses. With fewer customers, businesses have a reduced need to finance inventory, buy equipment or expand operations. As the economy weakens, fewer businesses and individuals qualify for loans.

“Nevertheless, banks have continued to lend. Bank lending actually increased in 2008, although as the recession deepened at the end of the year, lending probably decreased marginally. Because banks now provide less than one-third of the credit in the economy, it is a challenge for them to offset the decline in volume from nonbank lenders. Ignoring the bigger economic picture and the cause-and-effect relationship between a recession and borrower behavior misses a critical point. Banks want to lend. It’s what they’re in business to do and what they will continue to do.”

IRS Gives Unmarried Home Co-Buyers Guidance on Tax Credit

While the leaders and grassroots members of NAHB continue to push hard for revising the home buyer tax credit so that it is substantial enough to stimulate home buying demand and reignite the nation’s faltering economy, the Internal Revenue Service has provided guidance on how unmarried co-buyers of a home can take advantage of the credit that is currently available.

“Although the first-time buyer tax credit hasn’t met the original expectations that it would help get the housing market moving again, it is nonetheless providing a financial benefit to many qualified first-time home buyers,” said Robert Dietz, NAHB’s director of tax issues. “While the tax credit has proven too limited to generate a significant return of prospective buyers to the marketplace, it can be a valuable selling tool for home builders, and there are many first-timers who are interested in it.”

Under current law, qualified first-time home buyers who close on their purchase before July 1 can claim the tax credit by completing IRS Form 5405 and entering the allowable credit amount on line 69 of Form 1040, the individual income tax return. In a report on the credit, NAHB has estimated that the value of the no-interest loan of $7,500 is approximately equal to $4,000, Dietz said.

The instructions for the form indicate that the IRS has accepted a recommendation from NAHB and others in the real estate community on an uncertain area in the law. The instructions for Form 5405 make it clear that unmarried co-buyers of a home can allocate the credit in any “reasonable manner.” In Notice 2009-12, the IRS has defined this to include allocating the credit amount according to the ownership interest or downpayment contribution of the buyers.

These tax credit rules can be useful for a first-time home buyer purchasing a home with a non-first-time home buyer. The entire allowed credit amount in this case can be allocated to the first-time buyer. Joint first-time home buyers also can allocate the credit amount to ensure that the law’s income phaseout does not reduce the total allowable credit. (See Example 5 of Notice 2009-12.)

The rules for married taxpayers are clear in the statute. Married taxpayers filing a joint return can claim the entire credit on their income tax return. However, married taxpayers filing separate tax returns must claim half the credit on each tax return, and both spouses must be qualified first-time home buyers.

Bottom Nears, But 2009 Looks Like Another Painful Year

2009 is shaping up as another painful year for the nation’s home building industry, according to economists speaking at last month’s International Builders’ Show in Las Vegas, but the bottom of the downturn is moving into sight, they said, conditions are expected to show improvement next year and a couple of years after that builders should be back to doing brisk business.

“Ultimately, we will get through this period and go back to demographic trends,” said David Berson, chief economist for the PMI Group. However, he said, “it will be two to three years before we get to that point and a more stable market.”

When good times do finally return, Berson said, builders should be breaking ground on an average 1.1 to 1.3 million single-family units annually, compared to his estimate of roughly 620,000 in 2008. Multifamily production will be moving ahead at an average annual clip in the range of 300,000 to 400,000 rental apartments and for-sale condominiums, up from an estimated 280,000 units in 2009. And total residential production, including manufactured homes, should leap into the 1.5 million to 1.9 million unit range, up from below 1 million last year.

The primary impetus behind the resurgence in home building will be household growth, he said. With households even this year expected to rise by some 1.4 million — significantly higher than the average 1.247 million households started during the 2004 to 2008 period — the underlying pent-up demand for housing is already picking up, he said. Projections show even more rapid household growth in the next few years, with an annual average of more than 1.5 million for the 2009 to 2012 period.

With housing affordability at the highest levels since the 1970s, he said, “the decision to buy or rent will tilt to buy in many parts of the country.”

Nevertheless, obtaining mortgage credit — especially among prospective buyers who cannot make a sizable downpayment, don’t have a good credit score and might not stand up to full documentation scrutiny of their application — remains a struggle for many, said Frank Nothaft, Freddie Mac's chief economist.

“The credit box for home mortgages and commercial mortgages has tightened,” he said, “and underwriting standards have tightened over and over.”

Nothaft noted that in the week prior to the IBS the average interest rate on 30-year fixed rate mortgages tracked by Freddie Mac dropped just below 5%, a record low in the company’s weekly surveys and the lowest point in 50 years.

Even though home purchases will be down this year, total single-family mortgage originations should rise to about $2 trillion, led by some growth in mortgage refinancings, which are forecast to account for 58% of the lending.

Jumbo loans, however, have remained “much more expensive,” he said, making home buying more difficult in the nation’s most expensive markets, such as those in California. Jumbos have been averaging 1.3 percentage points higher than rates for conventional loans, he said. Also, rates have been running higher for buyers with dings in their credit reports.

Offering some grounds for hope that the home mortgage system will eventually be restored to full health, Nothaft said that financing from the Federal Housing Administration has begun to play an important role. The FHA, he said, accounted for one-quarter of all single-family mortgage lending in the third quarter of last year, its biggest share in more than 60 years.

On the down side, delinquency and default rates will continue to rise in 2009, including some elevation in the number of prime borrowers who fall behind in their payments on conventional mortgages — which is not surprising at a time when the economy is experiencing sharp job losses, he said.

Nothaft said that the multifamily sector has now also started displaying signs of deterioration, including flat or falling rents and rising vacancy rates. Apartment values have also shown weakness, he said, though not as substantial as what has been occurring in the single-family sector.

Ongoing home price declines remain a major concern for home builders, according to NAHB Chief Economist David Crowe. With foreclosures growing to 2 million a year, builders are now having to compete with a constant supply of properties returning to the market. Matching fire-sale prices can be tough, he said, because “builders have a fixed cost embedded in the house.”

Only 12% of the builders recently surveyed by NAHB reported that they were not offering incentives – such as price cuts or no-cost amenities — to bolster lagging sales.

Supporting growing warnings from national economists that Congress and the Administration need to embrace policies to end the downward spiral in housing prices in order to ensure the success of any economic stimulus program, Berson cited disturbing findings from PMI’s proprietary U.S. Market Risk Index.

The index, which measures the likelihood of lower homes prices in two years for each of the nation’s 381 metropolitan statistical areas and divisions, found that a full 97% of them saw the odds rise in last year’s third quarter as the economic and housing downturns continued to expand. The risk of lower prices two years hence was more than 50% in half of the nation’s 50 largest cities, he said.

Crowe said that NAHB is projecting a further 29% decline in total housing starts this year and a 14% drop in new single-family home sales.

On the bright side, Crowe predicted that sales should bottom out in this year’s first quarter and then begin slowly moving forward, paving the way for a gradual improvement in production that will gain force next year.

However, in the aftermath of the unprecedented events in the financial markets of the past several months, “economists are struggling to predict the future,” Crowe said, making efforts in Washington to spark a turnaround in home buying demand all the more important.

With consumer confidence plummeting and job losses surging, he said, “people are afraid to go out and make major purchases.”

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

New-Home Sales Data More Grim News for U.S. Economy

More clear evidence of growing distress in the housing market came from a Jan. 29 U.S. Commerce Department report showing that sales of newly built single-family homes slid 14.7% to a seasonally adjusted annual rate of just 331,000 in December, the lowest monthly pace on record. Sales in December were down 76% from their market peak in 2005.

"What more proof do you need that the housing downturn is accelerating — bringing down the economy with it — and that the government must take substantive action to get qualified buyers back in the market?" asked Joe Robson, the newly elected 2009 chairman of NAHB.

"We need a significant stimulus on the demand side, because otherwise, home sales will only continue downward, dragging down home values, consumer confidence and consumer spending, which in turn creates further downward pressure on sales," Robson continued. "Because this vicious, self-perpetuating cycle can only be curtailed by offering a real incentive to those on the sidelines, NAHB is urging Congress to substantially enhance and extend the $7,500 first-time home buyer tax credit as part of the economic stimulus package that it plans to send to the President's desk within the next two weeks. Doing so would go a long way toward putting a floor under declining home values that are at the core of the current economic crisis."

"Clearly the housing downswing is worsening, and even historically low mortgage rates have not provided sufficient support to the marketplace," noted NAHB Chief Economist David Crowe. "Even the recent uptick in existing home sales is no source of comfort, since this movement is driven by distressed and foreclosed homes that continue to flood the market at fire sale prices, resulting in further deterioration in home values.

"The only positive note in the December report is that, due to prudent home builder action to restrain production, the number of new homes for sale continues to decline," said Crowe. "But even as this happens, the months' supply of homes on the market continues to rise, due to further slowing of sales activity. Basically every number in this report further bolsters the argument that substantive government action must be taken to stimulate housing demand, restore home values and revive the U.S. economy and job market."

The inventory of new homes for sale declined for the 20th consecutive month in December to 357,000, while the months' supply at the current sales pace increased for a third consecutive month to 12.9.

New-home sales were down across every region of the country in December, with declines of 28.2% in the Northeast, 5.6% in the Midwest, 12.1% in the South and 20.2% in the West.

For 2008 as a whole, sales were down 38% across the United States, falling 50% in the Northeast, 31% in the Midwest, 46% in the South and 47.4% in the West.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Housing Starts Plummet to Record Lows in December

Indicating a continuing free-fall in the housing market, production of new single-family homes and permit issuance declined by double digits in December, falling to their lowest levels on record for the month, according to U.S. Commerce Department figures released on Jan. 22. In addition, total starts and single-family starts fell to record annual lows in 2008.

Total housing starts posted a 15.5% decline to 550,000 units in December, an all-time low. Meanwhile, starts of new single-family homes posted their eighth straight monthly decline, falling to an all-time low of 398,000 units. This was down 13.5% from the previous monthly low in November. Multifamily starts fell 20.4% in December to an annual rate of 152,000.

“Builders continue to be in a de facto moratorium on building in hopes of getting this inventory level under control,” said Sandy Dunn, NAHB’s 2008 chairman. “With builders doing their part, Congress and the Administration must act quickly to pass a stimulus package that will stop the bleeding in the housing market.”

“These dismal housing production numbers are in line with our builder surveys that show a record low in confidence in the housing market,” said NAHB Chief Economist David Crowe. “Builders are addressing the supply issue. Washington policymakers must now act to boost the demand side of the equation by including a robust home buyer tax credit and mortgage rate buy down in the stimulus package that is moving through Congress.”

Overall permit issuance, which can be an indicator of future building activity, fell 10.7% to a seasonally adjusted annual rate of 549,000. Single-family permits declined 12.3% to a 363,000-unit rate, while multifamily permits fell 7.5% to 186,000 units.

Housing starts were down in three out of four regions in December, with declines of 24.5% in the Midwest, 22.2% in the South and 2.2% in the West. The Northeast registered a 12.7% increase.

On an annual basis, year-end figures from the Commerce Department showed that overall housing starts plunged to a record low of 904,000 units in 2008, down 33.3% from the previous year. Single-family starts fell 40.5% for the year to 622,000 units, while multifamily starts dropped 8.8% to 282,000 units. Overall permit issuance for new homes and apartments declined 36.2% to 893,000 units, with a 41.8% drop on the single-family side to 570,000 units and a 23% decline in multifamily production to 323,000 units.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Builder Confidence at a Record-Low Ebb in January

A faltering economy and reluctant home buyers pushed builder confidence in the market for newly built single-family homes down one point to a record low of 8 in January, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), which was released on Jan. 21.

"Clearly, conditions in the nation's housing market aren't getting any better, and they aren't going to get any better until the federal government takes substantial action to encourage qualified buyers to get back in the market," said 2008 NAHB Chairman Sandy Dunn. Speaking from the International Builders' Show in Las Vegas, Dunn noted that "the Obama Administration and the new Congress have a tremendous opportunity and responsibility to enact legislation that can spur home buyer demand and jump-start the national economy."

"Builder views continue to track with historically low consumer confidence measures," said NAHB Chief Economist David Crowe. "The fact that there has been microscopic movement in the historically low HMI and its component indexes over the last three months provides further evidence of the need for government action to rejuvenate housing demand. Qualified buyers are clearly in the wings, but they're looking for a significant signal from the federal government that now is the time to return to the market."

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales, sales expectations for the next six months and the traffic of prospective buyers. Any number over 50 indicates that more builders view sales conditions as good than poor.

All of the HMI's component indexes remained at or near historic lows in January. The index gauging current sales conditions showed the greatest change, slipping two points to a lowly 6. The indexes gauging sales expectations for the next six months and traffic of prospective buyers each rose a single point, to 17 and 8, respectively.

Regionally, January’s HMI fell one point to 10 in the Northeast, held even at 6 in the Midwest, rose one point to 11 in the South and fell three points to a new record low of 4 in the West.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Prospective Home Buyers Unable to Sell Existing Homes, Poll Finds

Prospective home buyers are staying out of the housing market primarily because they cannot sell their existing homes and because of concerns about employment and the economy, according to a recent NAHB survey.

“The vast majority — 91% — of the NAHB members polled in our January Builders’ Economic Council Survey said that buyers are staying out of the market because they cannot sell their homes,” said David Crowe, NAHB’s chief economist. “And 88% said that buyers are reluctant because of fears about employment and the economy. Concern over jobs and the economy has increased significantly since June, when 63% of the builders surveyed cited it as a cause for consumer reluctance.”

Additionally, 75% of the builders surveyed said that buyers believe home prices will drop further, and 68% said that buyers think it is hard to get financing.

“These results make it clear that Congress must include significant housing measures in any economic stimulus legislation that it enacts,” Crowe added. “Traditionally, housing leads the economy into recession and is the first sector to recover. Until we can stop the freefall in home values and get home buyers back into the market, the economy will stay mired in recession. It is also important that Congress act swiftly because more than a third of the builders (34%) reported that buyers are staying out of the market because they think that interest rates will drop in response to government action.”

“Builders reported that current home sales are down dramatically in every price range compared to a year ago, but indicated that the declines are most pronounced in the upper ranges,” Crowe said.

According to the survey results, which were released on Jan. 23, sales of homes priced under $150,000 declined 27% and sales of homes in the $150,000 to $249,999 range were down 34%. However, builders reported that sales of homes priced $250,000 to $499,999 were down 57% and sales of $500,000 to $999,999 homes declined by 64%. Sales of homes costing $1 million or more dropped by 56%.

“Declines of this magnitude in every price range point up the necessity for Congress to act quickly and decisively,” Crowe added.

He also noted that about seven in 10 builders cut their prices in the fourth quarter of 2008, and six in 10 made no profit as a result. A significant share of those who said that they didn’t make a profit in the fourth quarter — 38% — reported that they were selling homes below cost.

Although the survey results reflected declining sales and a great deal of pessimism about the market, they also showed that builders have been adapting to the realities of the market. Eighty-nine percent of the builders surveyed said they were building lower-priced homes, and 88% said they were building smaller homes, a trend that has accelerated since May of 2008, Crowe noted.

“Like professionals in any industry, home builders are taking stock of market conditions and adjusting their products accordingly,” he said. “This shift is largely because first-time home buyers are an increasingly large share of the few buyers who remain in the market.”

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Eye on the Economy: The U.S. Economy Is Faltering Badly

The U.S. and global economies downshifted substantially in the final quarter of 2008 and a lot more ground is being lost in the first quarter of this year.

Real gross domestic product in the U.S. contracted at an annual rate of 3.8% in the fourth quarter of 2008. Although this was below expectations, it was the weakest reading since 1982. Consumer spending, including the auto market, put a heavy hit on GDP growth, and large negatives also came from housing, business capital investment and net exports.

We expect GDP to contract by roughly 4% in the first quarter, reflecting further hits from consumer spending, housing and nonresidential fixed investment, and there is likely to be a rundown in business inventory investment as well.

The job market took very heavy hits during the final quarter of 2008, and we’re expecting a similar degree of damage in the first quarter of this year. Indeed, job losses accumulated throughout 2008 and the national unemployment rate climbed aggressively in the process, reaching 7.2% by December. Furthermore, state unemployment reports released by the Bureau of Labor Statistics on Jan. 27 show that labor markets deteriorated markedly across virtually all parts of the country in both November and December.

Ordinarily, the new- and existing-home markets work pretty much hand-in-glove, forming different parts of the traditional housing ladder and moving essentially in tandem (aside from the normal time lag between contract and closing). But things are really different now, with record foreclosures putting people out of their homes and dumping those homes onto glutted markets at deeply discounted prices that only make builders’ lives more difficult.

Indicators of demand in the new-home market have been uniformly weak. The Commerce Department's estimates of new-home sales moved down substantially through the end of the year, NAHB’s proprietary survey of large single-family builders showed ongoing weakness of gross and net sales in December, and the broad-based NAHB/Wells Fargo Housing Market Index slipped to a record low of 8 in January as builders continued to mark down their perceptions of buyer traffic, current sales and expected sales volume.

On the other hand, sales of existing homes have been relatively flat during the past year, at least on a quarterly average basis, and sales of both single-family and condo/co-op units actually bounced up in December — reducing inventory levels as well as months’ supplies in both components of the market.

The stark differences from the new-home sales picture obviously are traceable to the rising foreclosure wave that feeds existing-home sales at fire-sale prices while detracting from the new-home sales side. Furthermore, we don’t know how many of the foreclosure sales are to first-time buyers or to investors, or how long the latter category may stay off the market.

Home builders retrenched dramatically in December, faced with abrupt weakening of economic conditions, turmoil in financial markets, flagging consumer confidence, rising competition from foreclosure-related sales and sharply falling house prices.

Total housing starts ran at a record-low seasonally adjusted annual rate of just 550,000 in December, down by 15.5% from November, down by 45% from a year earlier, and down by 76% from the cyclical peak posted at the beginning of 2006. Major declines occurred in both the single-family and multifamily components of the market, and permit issuance also shifted down abruptly — particularly for single-family housing.

The December collapse of housing starts and building permits was far worse than “consensus” expectations (including NAHB's), and experience tells us that volatility in the government’s monthly housing numbers suggests a “wait-and-see” attitude for the coming months. But the breadth and depth of this shocking report strongly suggest that builders’ views of the market and their plans for 2009 deteriorated badly at the end of 2008. The deepening recession, the pervasive tightening of credit conditions and tumbling house prices apparently have taken their toll.

Weakening home buyer demand and heavy oversupply that continues to be fed by the rising foreclosure wave are combining to put increasingly intense downward pressure on house prices across more and more areas of the country.

Prominent repeat-sales house price measures (controlling for compositional shifts) posted record rates of decline last November (latest data available). The national monthly House Price Index produced by the Federal Housing Finance Agency (formerly OFHEO) and based on loans held or securitized by Fannie Mae and Freddie Mac, was down by 8.5% on a year-over-year basis in November and fell at a 19.2% seasonally adjusted annualized rate for the month — well outside the boundaries of recorded experience.

The 20-city composite Home Price Index, produced by S&P/Case-Shiller and based on repeat-sales methodology, fell at a record 18.2% last November on a year-over-year basis and stood 25% below its peak level in mid-2006. This measure fell at a seasonally adjusted annual rate of 20.6% in November, similar to the rapid rates of contraction recorded in September and October.

The median price of existing homes sold (not adjusted for compositional shifts) fell by a record 15.3% in December (year-over-year), as single-family home prices declined by 14.8% and condo/co-op prices were off by 18.3%. The most stunning declines were in the West region, where median sales prices were down by more than 30% in both components of the market.

There’s no doubt that house prices now are under strong downward pressure in many parts of the country, and the number of geographic exceptions has been dwindling fast. Distressed foreclosure-related sales at discounted prices are up to nearly half of all existing home sales (according to the National Association of Realtors®), and many builders are being forced to drop prices below production cost as they attempt to get some inventory off their hands.

Downward price momentum is bound to continue for quite some time under these extremely difficult and virtually unprecedented market conditions. And although falling prices have boosted standard measures of housing affordability, they also have created expectations of further decline and have helped perpetuate the vicious feedback loop (falling mortgage quality, tighter lending standards, falling house prices…) that can easily drive house prices well below sustainable value.

The performance of the economy beyond the first quarter of this year will depend very heavily on economic policy in three critical areas:

Measures to support the rapidly deteriorating housing market hopefully will be included in all three policy areas. The Fed earlier identified the mortgage markets as a key area needing support from its unconventional balance-sheet policies, and that message was reiterated in the FOMC's Jan. 28 statement. With respect to use of TARP funds, the Administration has indicated that high priority should be given to limiting the relentless upswing in mortgage foreclosures. On the fiscal policy front, strong tax credits for home buyers and sizable federal buy downs of mortgage interest rates by all rights should be part of the mix, although uncertainties on that front currently are considerable.

The Federal Reserve, led by Chairman Ben Bernanke, has effectively run out of traditional monetary policy ammunition since dropping the federal funds rate target into the 0.0% to 0.25% range at the December 16 FOMC meeting.

At the conclusion of the January 29 FOMC meeting, our central bank reaffirmed the 0.0% to 0.25% target range and said that exceptionally low levels of the funds rate are likely to be warranted “for some time.” In this regard, the FOMC noted that the economy (including housing) has weakened further since mid-December, that credit conditions for households and firms remain “extremely tight” and that inflation may be heading too low for comfort.

The Fed committed to employ “all available tools” to support the functioning of financial markets and stimulate the economy, relying heavily on the power of the central bank’s virtually unlimited balance sheet. In this regard, the Fed reinforced earlier statements regarding support to mortgage and housing markets via purchases of agency debt and mortgage-backed securities, and also noted that it will soon be implementing a new Term Asset-Backed Securities Loan Facility (TALF) to facilitate the extension of credit to households and small businesses.

The FOMC also said it’s “prepared” to purchase longer-term Treasury securities if that would be effective in improving conditions in private credit markets. Such purchases presumably would bring down longer-term private rates, as long as spreads to Treasuries do not widen.

The preceding is a slightly updated reissue of the Jan 28 edition of “Eye on the Economy.” To subscribe, click here.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Useful Links to Monitor Economic and Housing Trends

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

Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

NAHB Members to Get Free Business Survival Tips

Beginning on Feb. 16, NAHB members can get free business survival information on such issues as bankruptcy, reorganization, liens, subcontractor disputes, partnership issues and more that will help them survive the downturn.

The information, prepared by the Texas-based international law firm Gardere Wynne Sewell LLP, will be available on the NAHB Web site in a "Frequently Asked Questions" format that will address a variety of topics, including:

Available to NAHB members only, the information will be available at www.nahb.org/legalconsultation from Feb. 16 through March 13.

Members whose questions are not answered on the Web site posting will be able to call or e-mail the law firm for more information.

Builders’ Tip: Strain Paint for Touch-Ups, Without the Mess

By the time you’ve opened a gallon of paint or varnish on the job a half-dozen times or more, you can be sure it’s covered with several layers of messy, dried gunk.

But if there’s still enough usable paint or varnish left in the can and you still have some touch-up work to do, you shouldn't throw it out. Instead, it’s time to strain the paint.

As shown in the accompanying drawing, I have figured out a simple way to work with only what I need, save time and bypass the mess. Here’s how:

Join the ranks of the nation’s top building industry professionals with the Certified Graduate Builder (CGB) designation. The “Builder Assessment Review” (BAR) is your first step towards obtaining the CGB.

This comprehensive assessment measures your expertise in the four key areas of the building industry: building technology, business and finance, project management and sales and marketing.

Your results will show the areas where your knowledge is strongest and weakest and will help determine the courses required for you to obtain your CGB.

To learn where the next BAR will be held, visit NAHB’s education listings, or call the Professional Designation Help Line at 800-368-5242 x8154.

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.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Interest in IBS Exhibits Strong Despite Thinner Crowds

More than 60,000 builders, remodelers and other members of the home building industry returned to work last week after attending the NAHB’s International Builders’ Show (IBS) in Las Vegas on Jan. 20-23.

In the midst of the most severe housing downturn in recent memory, attendees took advantage of more than 250 educational sessions and exhibits showcasing products and services from more than 1,600 companies to arm themselves with information about the latest industry trends, research and new products — the better to respond to demand when the market returns.

“This attendance speaks to the optimism of our members and the nature of home builders to always anticipate the ‘next big thing,’” said newly elected NAHB Chairman Joe Robson, a home builder in Tulsa, Okla. “We continue to advocate an economic stimulus package that recognizes how important the home building industry is to helping the nation get back on track — and when it does, we will be ready.”

Exhibitors noted the drop in attendance from more than 90,000 at the 2008 IBS, but said they were not surprised, given the economy — and underscored the importance of maintaining their presence on the show floor. An industry downturn brings out more serious inquiries and fewer “tire kickers,” they said.

“People are spending more time talking,” said Shawn Buckland of Adrian Steel in Adrian, Mich., a company that customizes the interiors of work vans and trailers for home builders.

Twice as many exhibitors showcased green product lines this year as last, including Progress Lighting of Greenville, S.C., which manufactures high-efficiency and LED light products. “Green is definitely the hot topic. People are very interested in understanding new lighting technology,” said Vice President of Sales Bob Sale.

IBS exhibitors sprawled over 850,000 square feet of space at the Las Vegas Convention Center, including outdoor displays of homes built on site for the show. Industry professionals also attended educational events and training sessions on a variety of subjects ranging from land development techniques and building science to marketing tools and green product certification.

“We’re in the midst of an industry crisis, yet our members are still busy gaining knowledge about new products and techniques, and networking and learning from each other,” Robson observed. “I’m proud of the resilience of our members even as we work together to improve the market.”

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

New American Home 2009 Wows Crowds in Las Vegas

The showcase home features the latest innovations in green building, construction technology and design trends. Constructed by Las Vegas builder Blue Heron; designed by the architect firm Danielian Associates of Irvine, Calif.; and appointed by interior designer Robb & Stucky Interiors, the 2009 home features a state-of-the-art energy efficiency package and elegant contemporary design.

"I really liked the emphasis on home technology and energy efficiency," said Tannis Goehring, a home builder from Orlando. "And this home is so easy on the eyes. Inside and out, it is a beautiful home."

The New American Home is America's premier show home and construction technology laboratory. The 2009 home was unveiled Jan. 20 as the official showcase home of the IBS.

Goehring, who was a member of the team at Goehring and Morgan, Inc. that built the 2005 New American Home in the Baldwin Park community in Orlando, said this year's home gave visitors a high-impact first impression that never disappointed as they moved from to room.

"The outdoor living spaces are so well done," she said. "The moment you walk in the front door, you see the waterfall going from ground level to the sunken courtyard. And behind the waterfall, a waterway takes your eye to the back of the home. It is very clear that outdoor spaces and the water features are central to this home."

As beautiful as the home is, it is the energy efficiency package that really wowed builders in Las Vegas, said Bill Nolan, chairman of The New American Home Task Force. "The New American Home has been a leader in green building for years, but this latest edition is built to be the most energy-efficient home in the history of this series," he said.

"Builders, architects, engineers — anybody with an interest in housing construction — will be fascinated by the natural gas-powered heating and cooling system, the photovoltaic cells and the solar water heating," said Nolan, who runs The Nolan Group, a housing industry consulting firm in Altamonte Springs, Fla. "Even the insulation in this home is exciting. The whole package of energy-efficienct products works together to make this a near-zero-energy home."

The New American Home benefits from a comprehensive design approach to achieve extraordinary energy efficiency. A proprietary gas-powered heating and cooling system with a SEER rating of 18 combined with other energy-efficient features such as low-E windows, advanced insulation, vertical and horizontal solar overhangs and window louvers enabled the home to achieve a Five Star-Plus HERS rating of 57. This is before factoring in the installation of a 12,000+ khz solar panel system striving for a net-zero level of electrical consumption.

Insulated concrete forms (ICF) were used predominately for the basement and structural walls, which have R-values up to 50 and provide exceptional insulating properties.

"The design concepts, construction techniques and materials used in The New American Home 2009 can be adopted for use in any home," Nolan said. "In a sense, this showcase home is a collection of ideas for the industry to take away and put into any new or remodeled home."

Goehring said that, as a builder, she most appreciated the energy efficiency that is built into the home. As a consumer, Goehring said she liked the design features that provide "privacy and seclusion throughout the home, inside and outside."

Sponsored by the National Council of the Housing Industry (NCHI) — The Leading Suppliers of NAHB and Builder magazine, The New American Home is one of NAHB's most successful and visible programs. NCHI is made up of the leading product suppliers of the residential construction industry, and the show home provides an excellent way for NCHI members to highlight their products.

For more information about NCHI or The New American Home, e-mail Tucker Bernard at NAHB, or call him at 800-368-5242 x8519.

Revised Form I-9 to Verify New Hires Is Delayed

The Department of Homeland Security has delayed until at least April 3 the implementation of a revised Form I-9, which is used to verify the identity and work authorization of all newly hired employees. This means that all employers must continue to use the current (old) edition of Form I-9.

The revised form, the second in two years, was originally scheduled to go into effect on Feb. 2.

As it is now written, the primary change to the revised form eliminates expired documents — such as expired passports and driver’s licenses — from being used as proof of identity. However, the rule is now under review by the Obama Administration, and it may be subject to further modifications or withdrawn.

Homeland Security has also extended through March 4 the period during which it will accept written comments on the changes to the form.

For more information, e-mail David Crump at NAHB, or call him at 800-368-5242 x8491.

Be a Professional and Build a Better Business

As a member of the remodeling industry, one of my passions is professionalism. The design-build concept demands it, clients benefit from it and it definitely has a healthy impact on my bottom line.

There are many ways to display professionalism. It can be demonstrated by everything from a competent delivery system, efficient procedures, after-sale customer care and service, to just plain honesty. But until you identify the many aspects of putting professionalism into play, the concept can remain just a fuzzy spot on your frontal lobe. You may recognize it as “a good thing,” but you will actually have to take some steps to make it a reality for your business.

There is an ancient Chinese proverb: “Learning is like rowing upstream — not to advance is to drop back.” In other words, learning should be a conscious part of your everyday ritual. A day without learning is a day wasted. As I start 2009, I am planning on a successful and personally rewarding year. Part of my plan is to pay more than lip service to my past mistakes by actually looking at them and learning from them. And like most of us, I know I will have a large number of mistakes from which to learn.

The acquisition of knowledge is an integral part of professionalism, and sharing that knowledge is important to our industry. My business partner, Andrew, and I share a common passion for excellence and we hold our entire staff to a higher level of professionalism. We use this approach to get away from the “used car salesman” image that too often stigmatizes our industry.

For the past two decades, more and more remodelers have come to view their services in a more professional light, and that can only work to the advantage of their home-owner customers. Remodelers are hanging up their tool belts and becoming something more than technicians. By necessity, they are learning business management and leadership skills, and acquiring the knowledge necessary to own and operate a successful business. They are mastering accounting, sales, human resources and how to navigate the dynamics of successful professional relationships.

Learning takes an investment in time, patience and sometimes money. I can assure you it’s worth the price at twice the cost.

There is another Chinese proverb worth noting: “A single conversation with a wise man is better than 10 years of study.” Making mistakes is human. Accepting and learning from one’s mistakes is part of the maturation process, and sharing what you’ve learned with others is an act of leadership. Our company has an office meeting every other week. Several times a year, my partner asks everyone to talk about a mistake they have made and the lesson they learned from that mistake. My mistakes range from hiring the wrong person to expecting too much from a client who was on a tight time schedule.

However, educating ourselves isn’t enough. It is also incumbent upon us to educate consumers. Like you, I am tired of reading about or seeing an investigative reporter breaking a story about unscrupulous home repair schemes and contractors. Does it happen? Are there unscrupulous contractors among us? Of course there are, and no amount of effort on our part or by the licensing authorities is ever going to change that, but we can make an effort to educate the public in order to limit the damage that these individuals can cause. We can have the best delivery system imaginable, but we still need to take the responsibility of educating home owners. Public perception means a great deal if we want to be accepted as “professional” business owners.

The need to be taken seriously as a professional was one of the major reasons for our involvement in our local Remodelers Council. It was through the council that we first acquired some of the tools and ideas that have helped us in our professional development. I encourage you to become involved in NAHB Remodelers. This organization can provide numerous services and benefits. If you want feedback or would like to know someone in the industry you can call to share a gripe, then join a peer group such as a Remodeler 20 Club or Remodeler's Advantage. Also attend the Remodeling Show and the International Builder's Show, and take advantage of the many fine educational short courses they make available.

Ultimately, we are all in business to make money and generate profit. To succeed in that, we first need to educate ourselves on how to better run our businesses and show members of the public that we are just as professional as their dentist or lawyer.

Michael Menn, AIA, CGR, CAPS, is a principal architect at Design Construction Concepts of Northbrook, Ill. For more information, e-mail Menn, call him at 847-498-1676, or visit the Design Construction Concepts Web site at www.dcc-ltd.com.

The Certified Graduate Remodeler (CGR) designation emphasizes business management skills as the key to a professional remodeling operation.

Remodelers who earn the CGR become members of an exclusive national program and gain recognition as industry leaders.

To learn more about the CGR designation, visit www.nahb.org/CGRinfo, or call The Professional Designation Help Line at 800-368-5242 x8154.

Home Remodels, Retrofits Key to Energy Efficiency in Housing

As the nation's home builders embrace green building in growing numbers, industry research indicates that even the most aggressive efficiency goals for new homes won't make a dent in overall energy consumption.

Instead, remodeling and retrofitting the nation's older homes is by far the more efficient solution, industry experts said at a Jan. 21 press conference at the International Builders' Show (IBS) in Las Vegas.

The panelists spoke as NAHB commemorated Green Day, drawing attention to the green education and certification programs offered by the association and the many green products, supplies and materials on display at IBS, the world's largest home building industry show.

The home building industry can combat the potential effects of global climate change by providing additional training to its members and by encouraging home owners to alter some of their habits and make energy-efficient improvements to their homes, the panelists said.

Federal energy officials estimate that Americans consume about 21% of the energy produced each year to operate and maintain their homes — for heating, cooling and electrical appliances, from stoves and refrigerators to televisions, computers and hair dryers. "By just making thoughtful choices, we can reduce that impact," said Ray Tonjes, chair of the NAHB Green Building Subcommittee and a green home builder in Austin, Texas.

"Energy efficiency is absolutely key to our nation's continued security and to our economy,” Tonjes said. “Additionally, we know that building with energy conservation in mind is practical and profitable. My industry has stepped up to the plate to prevent the effects of global warming — but we call it responding to market demand," he said.

The greatest energy savings can be achieved by making changes to existing housing, which is less energy-efficient than today's new homes, Tonjes said. "We obviously can't solve the problem by tearing down all our inefficient housing stock and replacing it with new. We need to make some significant improvements to our existing homes," he said.

Referring to the results of a study his company conducted for the California Homebuilding Foundation last fall, Mike Hodgson, president of the California energy consulting company ConSol Energy, said that 70% of the greenhouse gas emissions related to single-family envelope energy consumption can be attributed to homes built before 1983.

Further, the study demonstrated that spending $10,000 retrofitting a 1960s home could save 8.5 tons of carbon, at a cost of $588 to $1,176 per ton depending on tax credits and incentives. On the other hand, increasing the energy efficiency of a new home by 35% over current state requirements would cost about $5,000 and would reduce emissions by 1.1 tons at a cost of $4,545 per ton.

"Simple arithmetic demonstrates how retrofitting existing homes with energy-efficient features is four to eight times more carbon- and cost-efficient than adding further energy-efficiency requirements to new housing," Hodgson said.

Remodeler Devon Hartman of HartmanBaldwin, a Claremont, Calif design/build firm, said his customers are heeding the call. By adding insulation and sealing and tightening the duct system in one recent large home renovation project, Hartman was able to replace four older heating and air conditioning units totaling 16 tons with a new six-ton system. "We're no longer talking about just putting on sweaters or lowering the thermostat. We're talking about creating energy through efficiency measures," he said.

As more people turn to retrofitting and remodeling, demand will increase for so-called green jobs in which skilled employees either manufacture or install components in the energy-efficient homes of the future.

Fred Humphreys, president and CEO of the Home Builders Institute, the workforce development arm of NAHB, discussed new initiatives to prepare and train these workers, including major revisions of popular industry textbooks and other training materials to reflect today's improved knowledge of building science and green technology.

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

Green Product Demand Continues to Rise, Manufacturers Say

With every indication that the trend will only get stronger, more and more consumers are seeking green products, especially those that focus on energy- and water-efficiency, according to home building industry product suppliers who participated in a Jan. 21 press conference during the International Builders’ Show in Las Vegas.

Representatives from Kohler Co., Marvin Windows and Doors and Whirlpool Corp. were on hand to discuss innovations that can lower home owners’ water and energy bills and also contribute to better indoor air quality.

“The industry is being transformed,” said NAHB Research Center CEO Mike Luzier, who moderated the press conference. Even as green home builders find relative success in a struggling housing market, it won’t be long before sustainable building practices become the industry standard, he said.

NAHB is providing education and training as well as home certification services to help prepare home builders and remodelers to capitalize on this trend. NAHBGreen, the association’s green building program, is expanding every month.

Energy efficiency is still the biggest driver on the growing interest in green products, the manufacturers said, but demand is also growing for water-efficient fixtures and appliances, as well as windows and doors that contribute to improved indoor air quality.

Only 1% of the Earth’s water is available for drinking, washing and other uses — 97% is saltwater and the remainder is part of the polar ice caps, said Omer “Butch” Gaudette, director of trade relations for Whirlpool Corp. “In the near future, water efficiency will be just as important as energy efficiency is today.”

“Water efficiency is not just important in water-starved areas,” like the arid Southwest, agreed Shane Judd, senior product manager for water conservation at Kohler Co. Increasingly, metropolitan areas where water supplies can’t keep up with sharp population increases are also looking for solutions to manage water use.

Currently, there are 100 million toilets in the U.S. that consume 3.5 gallons every time they are flushed. Switching to water-efficient models would have “a tremendous impact not only on water bills, but also for water conservation,” Judd said.

Advances in technology have now allowed Marvin Windows and Doors to increase the size of its casement windows while maintaining their energy-efficient qualities. This is allowing home designs to take advantage of “daylighting” — or natural lighting — so home owners don’t need to turn on their electric lights as often, said Brett Boyum, director of marketing for the Minnesota-based company.

For Marvin and other green industry leaders, building sustainably is “a solid business practice. A sustainable product is a quality product, so a green product is a product that will last,” Boyum said.

“Consumers and builders are starting to recognize the long-term benefit of green products. If you’re not building green, you’re not building,” especially in the current downturn, Gaudette said.

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

Design Competition Showcases Affordable Green Homes

Contest organizers hope to get the word out about the potential benefits of green homes — including lower operating costs — in projects that can work in urban, rural or small-town sites and cost less than $175,000.

All entries must meet the requirements of at least the 2006 International Building Code and the 2006 International Energy Conservation Code and also score to at least the Bronze level of NAHBGreen certification as provided by the NAHB Research Center.

Participating home builders must also record construction and installation costs and keep detailed records of expenses as well as projected utility costs — information the judging team will use as it compares designs.

The Mississippi Home Corporation is a member of the Home Builders Association of Jackson, whose Green Building Works program recently affiliated with NAHBGreen. The contest will help draw consumer attention to the HBA’s green program and to its member builders, said Bob McKay, the association’s executive officer.

The classes will give a leg up to novice green builders interested in entering the competition and also help increase the ranks of Mississippi CGPs, McKay said.

He credited builder David Smith of David Smith Builder Inc. and NAHBGreen verifier Gary Smith for helping to launch the contest as well as the HBA’s green program. Smith built the first NAHBGreen-certified home in the state and is about to break ground on the fourth.

All homes must be entered by May 4 and certified by Dec. 1, 2009. Additional information is available at the Mississippi Home Corporation Web site.

Purdue Students to Earn Green and Other NAHB Designations

Under a new agreement with Purdue University, the Indiana school’s construction management students will be the first in the country to earn a professional designation from the NAHB University of Housing when they receive their bachelor’s degree.

Students will now be able to earn the Certified Green Professional (CGP) designation and gain extensive knowledge of green building practices. “That’s yet another sign of the success of this University of Housing program — that it’s considered to be an added value to a traditional university degree,” said T.W. Bailey, a home builder from Frisco, Texas, and chair of the CGP designation task force for NAHB.

The CGP designation — which is based on 24 hours of classroom instruction, industry experience and other requirements — was introduced just 11 months ago and numbers more than 2,000 designees.

Even in the midst of today’s difficult housing downturn, the country’s home builders and remodelers are preparing themselves to meet the rising demand for green homes and home projects. In fact, said Bailey, association volunteers are already working with curriculum development experts to create a new “Master” green building and remodeling designation to meet the demand for more advanced training and course work. The new designation is expected to be unveiled in early 2010.

Home builder Greg Ugalde, of T & M Building Co. Inc. in Torrington, Conn., said the CGP designation has added credibility to his company’s marketing efforts. “It indicates to a customer that the person they are hiring to design, build or remodel their home sees building green as more than just a buzzword or marketing ploy,” he said at the press conference.

Countrywide Bank Senior Vice President Dave Porter of Seattle said the CGP designation is also an excellent idea for suppliers, manufacturers and other home building industry professionals. The knowledge he has acquired from CGP courses has been advantageous when he is talking to a builder about energy-efficient mortgages and other incentives, he said.

“As a lender, I deal with hundreds of builders, real estate agents and other industry professionals. In these interactions, I often share industry best practices, and of course building green is at the top of the list,” he said.

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

Entry Deadline Extended for NAHB Green Building Awards

The prestigious annual awards honor home builders, remodelers and home builders associations and other organizations for advancing green building through innovative design and construction techniques, excellent educational programs and successful advocacy efforts.

Awards organizers have made a number of changes and improvements to make this year’s application process easier. For the first time, no binders or other application packets will be accepted; to conserve paper, all applications must be submitted by mail on a compact disk.

NAHB has also introduced the Advocate of the Year — State and Local Government Award to honor individuals or teams who promote green initiatives and go the extra mile to advance sustainable building and development strategies in their communities. Applications for this award must be submitted by the home builders association in that particular jurisdiction.

To be eligible, projects must have been started after June 2007 and substantially completed by December 2008.

In order to facilitate the judging, project entries can be scored to the green certification program of the applicant’s choice, but must also be scored to the NAHB Model Green Home Building Guidelines — the rating system for NAHBGreen. NAHBGreen's online scoring tool generates checklists that can easily be saved to the submission disk.

“The tremendous growth of this popular awards program reflects the growth of green building practices all over the country,” said NAHB Green Building Subcommittee Chair Ray Tonjes, a home builder in Austin, Texas.

Tonjes was honored at the 2008 NAHB National Green Building Awards in New Orleans with the Lifetime Advocacy Award. A longtime subcommittee chair, he speaks frequently on NAHB’s green building efforts.

For additional information, e-mail Chad Riedy at NAHB, or call him at 800-368-5242 x8225.

EPA Storm Water Guidelines Costlier Than First Believed

Builders and developers who attended a presentation on proposed effluent limitation guidelines that the U.S. Environmental Protection Agency will require for job-site storm water discharge say there are a host of issues that will make the proposal more expensive and complicated than it originally appeared.

Nationwide, the EPA proposal is expected to add $2 billion per year to the cost of construction, the agency estimated — with the environmental gain not yet clear. “We have a very difficult time quantifying environmental benefits for this industry,” said Jesse Pritts, a representative from the EPA Office of Water who met with the NAHB Environmental Issues Committee during the recent International Builders’ Show in Las Vegas.

Builders now believe the costs will be even higher and that the requirements could actually cause environmental damage, in some cases. However, Pritts said, a cost-benefit analysis was not included in the court order prompting the new guidelines and therefore cannot be part of the EPA’s proposal.

The proposal is the result of a lawsuit filed by the National Resources Defense Council after NAHB convinced the agency in 2004 that conventional guidelines — which are used by industries whose discharges come out of a pipe and go directly into a body of water — are too difficult to apply to home builders, whose discharges result from rainwater leaving the job site.

NAHB and the EPA appealed the court’s decision, but the Ninth Circuit Court of Appeals last September ruled in favor of the environmental group and ordered the EPA to finalize a rule by the end of this year. NAHB is now preparing comments on the proposal, which are due by Feb. 26.

The NAHB staff is also preparing background information and talking points to encourage local home builders associations to enlist state and local government officials to submit comments opposing the new proposal.

NAHB has long held that successful erosion and sediment control measures — so-called Best Management Practices, or BMPs — are the best way for the construction industry to mitigate the effects of storm water discharges on nearby lakes and rivers. BMPs keep the rainwater that mixes with dust and dirt from leaving the construction site.

Currently, the EPA and state environmental agencies issue National Pollutant Discharge Elimination System (NPDES) permits to builders and developers, who in turn are required to demonstrate compliance with the terms of the permit. Those terms always include the use of BMPs to control storm water discharges and address the management of construction debris, equipment fuel and other possible pollutants.

Under the new proposal, builders would be required to take additional steps beyond existing NPDES requirements, based on one of these three options being considered by the EPA:

At the IBS meeting, builders and developers questioned everything from the cost estimates to the environmental benefit and the long-term effects on land development patterns and their relationship to climate change.

For instance, the EPA sought data on the effectiveness of advanced treatment systems only from the vendors of these systems, who likely inflated their effectiveness and downplayed the costs, both financial and environmental, builders said. Some systems use polymers that bond with the discharged sediment and could potentially pollute water bodies.

As the result of requirements relating to the turbidity of the discharged water, builders may end up discharging clear, sediment-free water into streams and lakes with naturally high turbidity levels that actually prevent erosion — raising the possibility of environmental harm.

Finally, the requirements discourage compact development, encouraging builders to construct fewer houses on larger sites to avoid additional, expensive mitigation efforts, which one builder called “a contorted perversion of the Clean Water Act.”

For additional information on effluent limitation guidelines and NAHB’s comments, e-mail Ty Asfaw at NAHB, or call her at 800-368-5242 x8124.

NAHB's Thibodeaux Appointed OSHA Committee Chair

Michael J. Thibodeaux, an NAHB member from Wimberley, Texas, has been invited to become the committee chairman of OSHA’s Advisory Committee on Construction Safety and Health (ACCSH). It is the first time an NAHB member will serve in this committee leadership role.

“Your experience in, and knowledge of, the construction industry are greatly valued by the ACCSH and OSHA,” said Elaine Chao, the secretary of labor under the Bush Administration, in a letter asking Thibodeaux to accept the appointment. “We believe that your further contributions and leadership as the ACCSH chairman will be of great value.”

The ACCSH was established to advise the assistant secretary for occupational safety and health on setting construction standards and policy matters affecting federally financed or assisted construction.

“Having a representative on the ACCSH is critical to ensure that home builders’ viewpoints and opinions are taken into account prior to OSHA issuing construction safety regulations,” said Colin Campbell, chairman of NAHB’s Construction Safety & Health Committee and a builder from Charleston, S.C. “I can’t think of a more qualified, dedicated individual than Michael to make sure our industry’s voice is heard.”

Thibodeaux is a longtime member of NAHB and has been an active member of the Construction Safety & Health Committee for 14 years.

“Due to the breadth of issues addressed by the ACCSH and the fact that home building is distinctly different from heavy commercial construction and other sectors being regulated by OSHA, this is an extremely important appointment for our builder members,” said NAHB President and CEO Jerry Howard.

Thibodeaux currently owns a risk management and safety consulting business serving the home building industry. Prior to that, he spent more than 20 years as the executive director for risk management for Lennar Corporation in Houston. Since 1981, he has been the presiding judge for the Hunters Creek Municipal Court, also in Houston.

The 15 ACCSH committee members are appointed by OSHA’s assistant secretary; they are comprised of five who represent employers, five who represent employees, two representing state safety and health agencies, two representing the public and one member designated by the secretary of health and human services.

NAHB provides members and others in the residential construction industry 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 English-Spanish NAHB Fall Protection Handbook and the Fall Protection Video — are available through www.builderbooks.com/safety.

For more information on NAHB construction safety issues and training programs, e-mail Rob Matuga at NAHB, or call him at 800-368-5242 x8507.

February Is NAHB National Designation Month

Putting a spotlight on the importance of education for advancement in the home building industry, The NAHB University of Housing is celebrating National Designation Month in February. This marks the seventh anniversary of the event.

National Designation Month promotes ongoing education in the housing industry, recognizing the achievements of fellow professionals and educating the public about the value of selecting building industry professionals who hold a designation from NAHB.

The 16 professional designations in NAHB’s program are aimed at improving skills, providing career advancement and recognizing industry expertise and commitment to professional growth for the home building industry. Click here to view the designations that are available.

The designations convey to potential clients that they can expect superior training, practical experience and in-depth knowledge from those who have earned them. Additionally, home building professionals enjoy valuable networking opportunities while they are earning their designation, working closely with expert instructors and other professionals both within and outside their specific areas of expertise.

“A building professional who takes the time and effort to earn a designation shows that they value the importance of staying on top of the trends and changes in our industry,” says Mike Weiss, a CAPS, CGB, CGR, GMB, GMR from Carmel, Ind., and 2008 chair of the NAHB Education Committee. “It also shows their clients that they are continually taking steps to improve themselves as an industry professional, which will result in a higher-quality product for them in the end."

NAHB will be stepping up efforts to educate the public about the value of selecting building industry professionals who earn a designation, to build support for continuing education programs and to increase recognition of the comprehensive training required for earning an NAHB designation.

For more information on participating in or promoting National Designation Month in February, visit www.nahb.org/ndm or call the Professional Designation Help Line at 800-368-5242 x8154.

Education Calendar

Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Awards Recognize Top NAHB Student Chapters, Educators

Capping off a week of NAHB Student Chapters activities at the International Builder’s Show in Las Vegas, more than 1,100 people attended a standing-room-only awards ceremony at Caesars Palace on Jan. 21.

Three professors were singled out as Outstanding Educators for their top-notch efforts: Russ Peterson, Texas A&M University in the junior faculty category; Barney Kahn, Pennsylvania College of Technology, from a two year college; and Patrick Pannell, South Dakota State University, from a four-year university. The winners received cash prizes of $800 or $1,200.

Candidates must be affiliated with their NAHB Student Chapter and are judged in five areas: full-time teaching responsibilities; assigned and voluntary extracurricular activities with students; activities with their local home builders association, NAHB and other construction industry organizations; other professional activities such as research, publications and presentations; and overall construction experience.

Also presented were the Outstanding Student Chapter awards, which were sponsored by NCHI — The Leading Suppliers of NAHB. Award winners are regularly dominated by a handful of NAHB Student Chapter powerhouses that receive consistently high marks in five categories: chapter, campus and community activities; fundraising efforts; and quality of the application.

For more information, e-mail Page Browning at HBI, or call her at 800-795-7955 x8918.

Student Teams Vie in Construction Management Competition

Despite today’s challenging conditions for the housing industry and the economy, NAHB Student Chapters hosted its largest Residential Construction Management Competition ever during last month’s International Builder’s Show (IBS) in Las Vegas.

The annual competition officially began in the fall, giving teams approximately three months to complete a construction project modeled after an actual Centex Homes development in San Antonio, Texas.

The 2008-2009 competition featured 66 teams, in three divisions: four-year universities, two-year colleges and secondary schools. All had to to demonstrate their knowledge of the home building process, from start to finish.

Students submitted their work to the judges prior to the show and spent the final weeks of the competition preparing for their presentations at IBS. For three grueling days, the judges — who were real project members from NAHB-member companies — listened to presentations and challenged the students to defend their work.

The competition culminated on Jan. 21 with an awards ceremony at Caesars Palace attended by more than 1,100 people. Among the winners:

Placing teams took home cash awards and calculators donated by Calculated Industries, along with team plaques.

In addition, the top three placing teams in each category received individual plaques, and first-place champions flew home with the coveted NAHB Student Chapters divisional trophy and noise cancellation head phones from Sage Timberline.

Teams received custom-designed competition t-shirts and certificates. Plaques, t-shirts and cash awards were made possible by a $25,000 contribution from Centex Homes.

The NAHB Student Chapters program is administered by the Home Builders Institute, the workforce development arm of NAHB.

For more information, e-mail Page Browning at HBI, or call her at 800-795-7955 x8918.

Free Webinars Aim at Helping Builders in Tough Times

Builder Partnerships and Builder magazine are sponsoring four upcoming Webinars geared to helping builders improve their businesses, including information that will enable companies to weather the difficult conditions prevailing in today’s marketplace.

To visit the events page at Builder Partnerships to register for these free seminars or to access past presentations, click here.

Recordings of the sessions will be available for purchase after the presentations.

Based in Denver, Builder Partnerships is a member of the National Council of the Housing Industry (NCHI) — The Leading Suppliers of NAHB. Builder magazine, published by Hanley-Wood in Washington, D.C., is also an NCHI member.

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

NAHB-Produced Programs on DIY, Fine Living and HGTV

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

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

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

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

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Endowment Webcast Examines Green Building Opportunities

The National Housing Endowment, in partnership with East Carolina University, will join with leading experts in the nation’s home building industry to present “Growing Green: A Sustainable Approach to Residential Construction.”

The webcast seminar series is designed to expose students to a full range of real-world opportunities and challenges in residential construction.

The webcast will feature Bill Killmer, NAHB’s group executive vice president of advocacy; and Mike Luzier, president of the NAHB Research Center. Mark Tipton, 1991 NAHB president, will moderate.

The program will look at the NAHB Green Building Program and how it is being implemented in the field today, including a discussion on how green building is promoting resource efficiency and practical green alternatives to traditional residential building technologies and techniques.

The series of webcast seminars is aimed at making students more aware of residential construction career opportunities and providing a forum for successful industry professionals to share their insights on home building.

This special event marks the third installment of the Building Communities series.

Students, faculty members and industry representatives from all over the country are encouraged to log in to view the webcast at www.rcmseries.ecu.edu. All of the webcasts in the series are available for viewing on this site.

Nation’s Home Builders Elect Leadership for 2009

The NAHB Board of Directors elected the association’s Senior Officers during its Jan. 22 meeting in Las Vegas during the International Builders’ Show in Las Vegas.

Taking the helm as NAHB’s Chairman of the Board this year is Joe Robson, a Tulsa, Okla.-based home builder. A leader in the Tulsa area home building and development industries for more than 25 years, he is the founder and president of The Robson Companies, Inc., developers of residential communities and commercial properties.

“We look forward to working with the Obama Administration and the new Congress to develop policies that will help families facing foreclosure, stabilize home prices and put America’s home builders back to work as the engine of the economy,” Robson said. “NAHB will be pushing very hard for an economic stimulus package that recognizes the important role that residential construction plays in generating economic activity and jobs.”

In recent testimony before the House Financial Services Committee, Robson noted that the Troubled Asset Relief Program (TARP), “has failed to expand the flow of credit to business and consumers on competitive terms. In addition, the TARP program has not adequately responded to the nation’s foreclosure crisis, which must be addressed to keep people in their homes, help stabilize home prices and promote recovery of the housing market and economy,” he said.

Robson said he expects to draw on his local, state and national experience to help NAHB serve its members during the housing downturn.

“These are challenging times,” Robson said. “We don’t expect a significant turnaround this year, but it appears we are near the bottom, and we have reason to hope that we will come out of 2009 on a modest upswing. This may be a difficult year for home builders around the country, but we will continue to do all that we can to meet the housing needs of America’s families.”

Also moving up on the association’s leadership ladder during NAHB’s Las Vegas board meeting was Bloomfield Hills, Mich.-based home builder Bob Jones, who was elected to be NAHB’s First Vice Chairman of the Board. As president of Robert R. Jones Homes, he specializes in land development and the design and construction of single-family luxury homes throughout metropolitan Detroit. During Jones’s 35-year career, he has earned a reputation for excellence and established a continuing commitment to the home building industry across the local, state and national levels.

Reno, Nev.-based builder Bob Nielsen was elected to the post of 2009 Second Vice Chairman. Nielsen has more than 25 years of experience in the industry and has overseen the development of more than 45 new home communities housing more than 4,500 families. He is president of Shelter Properties, a building and development company headquartered in northern Nevada that has constructed communities across the state and in California.

Barry Rutenberg, a Gainesville, Fla.-based home builder, joined the NAHB leadership ladder with his election to the post of Third Vice Chairman. Rutenberg is president of Barry Rutenberg and Associates, Inc. in Gainesville. He has more than 30 years of experience in the housing industry and has overseen the development of more than a dozen communities and 1,000 homes in the Gainesville area.

2008 NAHB Chairman of the Board Sandy Dunn, from Point Pleasant, W.Va., remains on the leadership ladder as Immediate Past Chairman. Dunn is a second-generation West Virginia home builder who has provided affordable housing to Mountain State residents for more than three decades. She is president of Point Pleasant, W. Va.-based B.J. Builders, Inc., a company founded by her father in 1953 that specializes in single-family, entry-level homes.

Rounding out the association’s leadership is NAHB Executive Vice President and CEO Jerry Howard, from Washington, D.C. Howard heads up a professional staff of more than 300 working out of the National Housing Center in Washington. After previously serving as the association’s chief tax counsel, Howard was promoted to EVP/CEO in February of 2001.

Drive Away With a Shiny New $500 GM Offer

NAHB members can receive $500 towards the purchase or lease of most new GM passenger cars, light-duty trucks, vans and SUVs — whether for business or personal use.

To receive the discount, members must present the GM authorization ID number to their dealer. Members can receive their ID number at www.gmfleet.com/nahb or by calling the GM call center at 866-760-7070. One authorization ID number is required per vehicle.

For more information, e-mail Tiffany Lindsley at NAHB, or call her at 800-368-5242 x8273.

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

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

NAHB Members Can Save Big on FedEx Shipping Services

NAHB members can receive valuable discounts of up to 29%* on select FedEx shipping services:

For questions or additional information, call 1-800-MEMBERS (800-636-2377) between 8:00 a.m. and 6:00 p.m. EST Mondays through Fridays to speak to a dedicated member service representative.

*FedEx shipping discounts are off standard list rates and cannot be combined with other offers or discounts. Shipping discounts are exclusive of any FedEx surcharges, premiums or special handling fees and are not available to package consolidators. Eligibility for discounts subject to FedEx credit approval. Eligible services subject to change. Base discounts on FedEx Express® are 19-24%. An additional 5% discount is available for eligible FedEx Express shipments when you ship online at fedex.com. Discounts are subject to change.

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

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

NAHB Members Can Get 10% Off Stays With Wyndham Hotel Group

NAHB members can get 10% off the “best available unrestricted rate"* at all participating Wyndham Hotel Group (WHG) hotels — Wyndham Hotels and Resorts, Wingate by Wyndham, Super 8, Days Inn, Ramada Worldwide, Travelodge, Howard Johnson, Baymont Inn & Suites, Knights Inn and AmeriHost Inn.

The Wyndham Hotel Group represents nearly 6,500 hotels and more than 535,000 hotel rooms on six continents.

Through the NAHB Member Advantage program, NAHB members can get a 10% discount off the hotel chain’s best rate, its brand Internet rate.

To use the program by phone, call 877-670-7088 and give the agent the NAHB discount ID number 20090. The NAHB discount will be applied at the time the reservation is made.

To book rooms online, visit the Wyndham Hotel Group page of the Member Advantage discount pages on the NAHB Web site by clicking here and follow the simple steps to make your reservation. The Web pages also enable you to review key hotel amenities, hotel descriptions and directions.

*“Best Available Rate” is defined as the best, non-qualified, publicly available rate on the Internet for the hotel, date and accommodations requested. The discount for International properties may be less than or equal to 10% off Best Available Rate. Certain restrictions apply. To redeem this offer, click our URL link on Organization’s website or call the hotel brand phone number above and give ID at the time of reservation. Offer not valid if hotel is called directly, caller must use toll free numbers listed provided. Advanced reservations are required. Offer is subject to availability at participating locations and some blackout dates may apply. Offer cannot be combined with any other discounts, offers, or special promotions. Discounts vary by location and time of year. Offer is void where prohibited by law and has no cash value

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

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Calendar of Events

Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.

What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.

Nation's Building News Online: February 2, 2009

Stimulating Housing Demand Key to Reviving U.S. Economy

ANSI Approves National Green Building Standard

Builders Scale Back House Sizes as Buyers Commit to Energy Efficiency

No Bubble Burst Here: Cedar Valley Housing Market Hanging Tough

Toll Bros Offers 3.99 Percent Financing to Sell Homes

Proposal: Year With No City Impact Fee

Snohomish County Sets New Rules for Home Builders

Missouri Program Aids First-Time Home Buyers

American Bankers Association Says Banks Continue to Lend

IRS Gives Unmarried Home Co-Buyers Guidance on Tax Credit

Bottom Nears, But 2009 Looks Like Another Painful Year

New-Home Sales Data More Grim News for U.S. Economy

Housing Starts Plummet to Record Lows in December

Builder Confidence at a Record-Low Ebb in January

Prospective Home Buyers Unable to Sell Existing Homes, Poll Finds

Eye on the Economy: The U.S. Economy Is Faltering Badly

Useful Links to Monitor Economic and Housing Trends

NAHB Members to Get Free Business Survival Tips

Builders’ Tip: Strain Paint for Touch-Ups, Without the Mess

Interest in IBS Exhibits Strong Despite Thinner Crowds

New American Home 2009 Wows Crowds in Las Vegas

Revised Form I-9 to Verify New Hires Is Delayed

Be a Professional and Build a Better Business

Home Remodels, Retrofits Key to Energy Efficiency in Housing

Green Product Demand Continues to Rise, Manufacturers Say

Design Competition Showcases Affordable Green Homes

Purdue Students to Earn Green and Other NAHB Designations

Entry Deadline Extended for NAHB Green Building Awards

EPA Storm Water Guidelines Costlier Than First Believed

NAHB's Thibodeaux Appointed OSHA Committee Chair

February Is NAHB National Designation Month

Education Calendar

Awards Recognize Top NAHB Student Chapters, Educators

Student Teams Vie in Construction Management Competition

Free Webinars Aim at Helping Builders in Tough Times

NAHB-Produced Programs on DIY, Fine Living and HGTV

Endowment Webcast Examines Green Building Opportunities

Nation’s Home Builders Elect Leadership for 2009

Drive Away With a Shiny New $500 GM Offer

NAHB Members Can Save Big on FedEx Shipping Services

NAHB Members Can Get 10% Off Stays With Wyndham Hotel Group

Calendar of Events