Construction crews for LGI Homes begin work at 4 a.m., pouring concrete slabs for houses before the heat of a Texas day. They don’t stop until 6 p.m., and usually work six days a week. U.S. builders such as LGI Homes are on a tight deadline to finish houses by the end of June so purchasers can get a federal tax credit of as much as $8,000. “We have people we need to get closed by the end of the month,” said Eric Lipar, 39, chief executive officer of Conroe, Texas-based LGI Homes. “This is a sense of urgency.” Senate Majority Leader Harry Reid has proposed a three-month deadline extension amid concern that a rush of buyers created too big a backlog. New-home contracts rose 30% in March and 15% in April, the biggest two-month gain in records dating to 1963, according to the Commerce Department. About a third of the April signings were for homes under construction, and a quarter were for those that weren’t started. To complete a sale, builders in most of the U.S. are required to have a certificate of occupancy from local officials attesting the house is finished or at least conforms to building codes. Mortgage lenders usually require the document before closing on a loan. “I’ve seen some building officials require that a house be completely finished before issuing a certificate of occupancy — even the carpets installed,” said Richard Wildermuth, president of Connecticut Valley Homes in East Lyme, Conn. “In other towns, all they require is the house conforms to code — things like installed windows, stair railings, a functional bathroom and a working furnace.” Entry-level houses tend to be smaller and can be finished in three months or less, compared with five to six months for larger homes, said NAHB Chief Economist David Crowe. Still, it’s not easy to build a house that quickly, he said. “Finishing a home in a few months can be done, but the builder would have to work fast.” In Texas, the LGI Homes crews have it down to a science, according to Lipar. They can complete a home in about 45 days with a crew of 10 to 12 people on site, including framers, drywallers and electricians, he said. (www.bloomberg.com)
Bloomberg (6/11/10); Kathleen M. Howley

As a possible sign of a modest housing recovery, new model homes have started to pop up again in the Chicago market. “Builders are redesigning their models,” said real estate analyst Steve Hovany. “It’s happening nationally as well as locally. Houses got too big and expensive. That era is over. We’re slowly starting a new cycle, and new models are part of it.” These new models have slimmed down, shrinking in size and price from five years ago. “Builders are facing reality. Prices are down 25% from their peak. They’re rethinking the market. Now, it’s back to basics. People are buying what they actually need, not what they want,” said Hovany, president of Strategy Planning Associates in Schaumburg, Ill. “New designs are market-driven,” said Ray Blankenship, area vice president of Town & Country Homes. “Even fireplaces have dropped off people’s wish list. Our new value plans use an efficient box-over-box design. We’ve reduced square footage by eliminating excess space in hallways. Also, buyers are no longer looking for two-story foyers.” While the purpose of models is to sell houses, they also are having another impact. “New models help to increase the confidence of buyers. They see new models, and they figure the builder is not broke,” Blankenship said. “Single-family home sizes are down dramatically. There’s been a return to the three-bedroom plan with 1,650 to 1,700 square feet,” said Chris Naatz, Midwest director of marketing for Pulte Homes. “But builders can’t always get approval for that small a house. Village boards think that smaller homes may reduce property values,” Blankenship said. (www.chicagotribune.com)
Chicago Tribune (6/11/10); John Handley

In its latest member surveys, NAHB has found that builders are responding to changes in buyer preferences. More than 96% of the builders said they planned to produce smaller homes in 2010, and 95% said they would offer lower-priced models. The two features builders reported they were most likely to include were a walk-in closet in the master bedroom and a laundry room. These reflect consumers’ preference for practical features that make effective use of space and provide ample storage. Of the top 10 features most likely to be included in new homes, four provided opportunities for the home owner to save money by decreasing utility costs. They included an insulated front door, low-E windows, a programmable thermostat and energy-efficient appliances and lighting. Among the features builders said they were least likely to include in new homes were smaller kitchens, two-story foyers, media-rooms, butler’s pantries and multiple shower heads in the master bathroom.  (www.pilotonline.com)
Virginian-Pilot and Ledger-Star (6/5/10); Bill Halprin

Screened porches are more popular than ever and builders like Charles Page, founder of Winnetka, Ill.’s Charles Page Architects and Northfield’s Charles Page Builders, report large percentages of home buyers are itching to have one. Screened porches can provide protection from insects, shade from the sun and shelter from the rain, while still letting their owners feel they’re savoring the natural world outside. “People are thinking about how they want to use the space they live in,” said Court Airhart, president of Airhart Construction in West Chicago, whose new town home models at Wheaton’s Mackenzie Place offer screened porch options. “They’re saying, ‘I’m going to use a screened porch. I want to do more outdoor living.’ A patio gives them four to five months of warm weather use. But you have rain days, buggy days that limit that timeframe. So people choose screened porches to extend their outdoor enjoyment.” Screened porches’ growing prevalence is also driven by the popularity of porches in general, according to Steve Melman, NAHB’s director of economic services. In 1992, when the U.S. Census began tracking new home characteristics and noting, among other details, the presence of outdoor features, 42% of new homes had one or more porches. But by 2008, the U.S. Census found 60% had one or more. “Why? Obviously it’s a throwback to the days when every home had a porch,” Melman observed. “It shouts out to neighbors, ‘I’m here, and ready to engage.’ It’s like a sign that says, ‘Welcome.’” Because screened porches are usually around back, that welcome isn’t given to the whole neighborhood, but only to nearby neighbors, Melman added. (www.chicagotribune.com)
Chicago Tribune (6/4/10); Jeffrey Steele

Developer Philip Beere’s 150 West Elm rehab in Phoenix was honored last month as the green “remodel project of the year” by NAHB, which gave it the top or emerald certification via its National Green Building Standard. He dramatically upgraded the looks and energy efficiency of a 1,600-square-foot, 70-year-old ranch house in the Pierson Place Historic District near the city’s new light-rail line. “The project symbolizes our company mission of creating walkable neighborhoods, preserving existing structures and sustainable development, said Beere, founder of Green Street Development, which has been rehabbing homes in Phoenix since 2007. Beere reduced the home’s carbon footprint by more than 70% and its water use by 65%. Its Home Energy Rating, set at 100 for today’s new homes, fell from 208 to 65. The home features new Energy Star-rated windows and appliances, water-efficient fixtures, additional insulation, soy-stained concrete floors, upgraded HVAC systems and native landscaping. “This home is a great example of green remodeling done right while also done beautifully,” said Eric Borsting, chair of the NAHB Green Building Subcommittee.  (www.usatoday.com)
USA Today (5/29/10)

In this economy, some family firms are finding themselves forced to turn down job requests from relatives, and business owners are laying off family members and long-time trusted employees because of the length of the downturn, said Wayne Rivers, president of the Family Business Institute, a consultancy in Raleigh, N.C. “Most of the people I talk to are thinking right now in terms of pure survival: How do I survive 12 more months?” Rivers said. “If a business is already struggling and you are staying awake at night trying to figure out layoffs, then the last thing you need to do is increase headcount." William Dunelberg, chief economist with the National Federation of Independent Business, said businesses should not hire family members who don’t earn their own way, especially during a recession. The economy is forcing some family-owned firms to consider tweaking their pay structure, among other things, according to some initial survey results about the adaptability of closely held and family businesses. “What we are seeing is that the recession really started challenging the way they did business before, causing them to question what they thought to be ‘tried and true,’” said Barry Cain, managing director at Blackman Kallick, a Chicago accounting firm that conducted the survey in conjunction with the Family Firm Institute, a Boston-based trade group. The results should be published in September. Going forward, family businesses may be more transparent about compensation. The survey showed some evidence that the move toward transparency might lead to family workers taking pay cuts to bring their compensation more in line with non-family employees. (www.marketwatch.com)
MarketWatch (6/4/10); Ruth Mantell