Nation's Building News Online: September 5, 2011

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The New American Home 2012 at IBS Is Leaner, Greener, Smarter Than Its Predecessors

Created as a reinterpretation of the classic white box-style design of the ’60s and ’70s made popular by such architects as Le Corbusier and Richard Meier, The New American Home 2012 (TNAH) will be greener, smarter — and smaller — than TNAHs of the past.

Now under construction in Winter Park, Fla., about 30 minutes from the site of the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11, TNAH 2012 is on schedule to be completed in December.

“At 4,181 square feet, it is smaller than previous TNAHs,” said architect and builder Phil Kean of Phil Kean Designs in Winter Park. “It will be displayed as a two-bedroom floor plan that will appeal to empty nesters and will have four additional rooms that can be converted to bedrooms if desired.”

In addition, the home will incorporate the latest advances in home technologies, green building and energy efficiency.

TNAH 2012 under roof

“This home will not just be a ‘smart house,’ it will be brilliant,” Kean said.

With an integrated technology package designed and installed by Architectural Electronics in Winter Park, the home will feature structured wiring and control systems that provide the home owner with a high-end experience at a reasonable price.

Builders and industry professionals touring the home during IBS will learn how to provide a custom technology package at a price and value attractive to their clients, he said.

Architectural Electronics is an active member of the Custom Electronic Design and Installation Association (CEDIA), a partner and founding sponsor in the NAHB Home Technology Alliance (HTA), which brings together housing industry professionals to create the optimal home experience powered by technology. Architectural Electronics’ founder, Peter Shipp, serves on the HTA’s board of directors.

Kean designed TNAH 2012 to take maximum advantage of Florida’s friendly climate. When completed, movable glass wall panels and motorized screens will provide a seamless traffic flow from the indoor to outdoor spaces.

He also designed the 2012 show home to achieve “Emerald Status” under the National Green Building Standard. Kean said he is hoping to achieve additional green certifications for the home, including the USGBC LEED for Homes certification; the Florida Green Building Coalition’s Platinum certification; U.S. Department of Energy’s Energy Star; the Florida Yards and Neighborhoods designation; the Florida Water Star designation; the Energy Home Advantage Program; and the DOE’s Builders Challenge.

Structured wiring and control systems provide the home owner with a high-end experience.

Green technologies being used include LOGIX insulated concrete forms with an R-value of R27, the Lennox Solar HVAC system, LED interior and exterior lighting, and solar screens.

Now in its 29th year, TNAH serves as a real-world laboratory demonstrating concepts, materials, designs and construction techniques that can be replicated — in whole or in part — in housing built in any place and for any price range.

Kean, as architect and builder of the home, is leading an extensive team of industry professionals. A list of team members can be found on the TNAH website, which . The website also features videos of the production process.

The home is being built on an infill site in an older neighborhood close to downtown Winter Park. Amenities within walking distance include shops, restaurants and a public library.

One of NAHB’s most successful and visible programs, The New American Home is produced and presented by the NAHB Leading Suppliers Council and Builder magazine. TNAH is built to showcase the NAHB Leading Suppliers’ products.

Registered IBS attendees can tour TNAH 2012 daily during the show. Free shuttle buses (tickets required) will depart every half hour from the Orange County Convention Center, site of the IBS.

Artist's rendering of the rear of The New American Home 2012

Floor Plans: A Sumptuous and Tranquil Master Bath Goes Indoor/Outdoor

The demarcation between indoor and outdoor living is often blurred in Florida, perhaps even more so when the home owners live on a 12-acre site overlooking one of the Sunshine State’s ubiquitous lakes.

While their 8,276-square-foot home has a covered patio and outdoor pool, its owners specifically requested that the design-build firm Phil Kean Designs, Inc., of Winter Park, Fla., create a resort-like grand master bedroom on the second floor, replete with an 800-square-foot bathroom that opens onto a covered lanai facing the lake.

The sumptuous master bath earned Phil Kean Designs, Inc. the 2010 Best in American Living Awards Platinum award in the Interior Design: Bath category.

Pocket glass doors and screens keep the conditioned air in and insects out.

Plenty of Light, an Outdoor Connection and Tranquility

The large, open, indoor/outdoor space was created using pocketing glass doors that provide plenty of light as well as connect to the outdoors.

Lake views, natural materials and neutral colors create a harmonious and tranquil atmosphere, while, one floor below, a waterfall tumbles into the owner’s pool with a soothing resonance that can be heard from the upper level.

A two-level vanity, separate tub and shower, Ipe wood and a lake view add to the master bath's opulence.

And His and Her Convenience

The master bath features a spacious shower and separate tub, which sits front and center in the patio/lanai.

Ipe wood, which typically grows in Central and South America, was used on the tub surround and lanai floor. 

The double-sink vanity was built with two heights — the taller side for him and the shorter side for her.

Keeping Insects and Weather’s Vagaries at Bay

While Florida’s blue skies are inviting year-round, controlling the heat and humidity — and the insects — was paramount in creating the award-wining retreat.

Phil Kean Designs installed retractable screens, which were built into the lanai, that capture up to 80% of the conditioned air — while keeping the insects out. When the owners want, they can keep the screens concealed.

First floor Click for larger image.

Second floor Click for larger image.

Features and Specifications

Design Team Architect/Designer/Builder — Phil Kean Designs, Inc., Winter Park, Fla. Features Five-bedroom, 8,276-square-foot home on 12-acre lakeside lot Grand master bedroom suite with covered lanai on second floor Indoor/outdoor resort-style 800-square-foot master bath Spa tub Large walk-in shower Glass pocket doors in master suite and bath for lake vistas Two-level heights for bath countertop Adjacent lanai with retractable screens Screens retain 80% of conditioned air, keep out insects Large walk-around closet in master suite

Builders' Show Opens Online Registration With Special Savings Available Through September

NAHB has officially opened online registration for the 2012 NAHB International Builders' Show (IBS), the largest annual light construction tradeshow in the world, with special offers for free exhibit passes, free spouse registration and more.

IBS, considered the building industry’s premier event, will be held in Orlando on Feb. 8-11.

"The NAHB International Builders' Show is the biggest event of its kind for our industry," said Larry Swank, chairman of the NAHB Conventions & Meetings Committee. "I don't know anywhere else where you can find such high-level networking opportunities, a wide variety of education sessions and an unbelievable showcase of the latest cutting-edge products, all in one location."

NAHB is introducing several new offers and incentives for attendees, including: 

• Free Exhibit Pass for NAHB Members — Register by Sept. 30
  NAHB members who register by Sept. 30 have the choice of either free admittance to the exhibit floor all four days of the show or $100 off the early registration fee of $325.
  
  
• First-time Member Attendee Registration — Reduced
  Members who plan to attend IBS for the first time are eligible for a reduced registration rate of $125, which enables them to attend any of the nearly 200 education sessions and tour the exhibit floor all four days.
  
  
• One- and Two-day Education Passes
  Attendees can purchase one- or two-day passes for IBS education sessions — with access to the exhibits on all four days of the show included. Passes will be available for education sessions held from Wednesday through Friday, Feb. 8-10. All seminars on Saturday, Feb. 11, are free for IBS registrants. To take advantage of these passes, attendees must choose which day(s) they will attend sessions when registering for the show.
  
  
• Free Spouse Registration — Register by Sept. 30
  Registration is free to spouses of members and non-members who register by Sept. 30. 

Attendees can choose from nearly 200 education sessions offered on multiple topics, including building trends, sales and marketing techniques, green building, housing finance issues and the economic outlook.

Several pre-show education courses are also available to attendees seeking to complete training and earn industry designations, such as Certified Aging-in-Place Specialist (CAPS) and Certified Green Professional (CGR). The show also will feature a number of special seminars, receptions and a line-up of notable guest speakers.

On Exhibit

More than 1,000 exhibitors covering 400,000 square feet of exhibit space will display the latest building products and services at the 2012 show. Attendees will get hands-on access to the latest products, and will be able to network and make business deals with top vendors representing more than 250 product categories.

The New American Home (TNAH) 2012, a one-of-a-kind green show home that is being built in a nearby neighborhood, will be open for attendees to tour throughout the IBS. The state-of-the-art home incorporates builders' best practices in energy efficiency, indoor-air quality, safety, convenience and aesthetics.

To Register

For more information and to register, visit www.BuildersShow.com.

NAHB Set to Launch New Economic Index That Tracks Improving Housing Markets

NAHB will launch a new monthly economic indicator — the NAHB/First American Improving Markets Index (IMI) — that will track housing markets throughout the country that are showing signs of improving economic health.

The initial list of improving markets will be unveiled on Wednesday, Sept. 7.

After the initial release, the IMI will be released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday, in which case the index will be released the following Monday.

The new indicator measures three sets of independent monthly data —  employment growth from the Bureau of Labor Statistics (BLS); house price growth data from Freddie Mac; and single-family housing permit growth data from the U.S. Census Bureau — to determine the top improving Metropolitan Statistical Areas (MSAs).

A metro area must show improvement in all three data sets for at least six months following its respective trough before being included on the improving markets list.

To sign up to receive NAHB press releases on the IMI and other topics, visit www.nahb.org/erelease.

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, visit NAHB's Eye on Housing blog at http://eyeonhousing.wordpress.com.

September Is Associate Member Appreciation Month

As they commemorate Associate Member Appreciation Month during September, home builders associations around the country will honor suppliers, service providers and other associate members who do business with home builders and remodelers.

From banks to accounting firms, landscapers to electronic systems installers and more, associate members represent the depth and breadth of the industry and the positive economic impact it has on the community, said Ann Garvey, chair of NAHB’s Associate Members Committee.

HBAs across the country will be honoring associate members with special recognition during dinner and luncheon meetings, official proclamations, discounts, coupons and the “Do Business With a Member” campaign.

Asociates represent the majority of NAHB members, they are a major source of local HBA dues and income, and they support builders, remodelers and developers in several ways, Garvey said.

She said associate members are a major source of non-dues revenue to their local HBAs through sponsorships and advertising, and “as industry partners, they are a valuable resource for business and management tips” for builders and remodelers.

In addition, associate members are strong supporters of their local and state political action committees and of BUILD-PAC, the national political action committee.

“NAHB’s associate members continue to play a critical role in ensuring BUILD-PAC has the tools to elect pro-housing candidates to Congress. I would like to thank the associate members for their endless dedication and strong commitment to strengthening BUILD-PAC's voice," said 2011 BUILD-PAC Chairman Granger MacDonald.

As NAHB honors their contributions, Garvey said it is more important than ever for associates to contribute their time and talent to the work of their local HBAs.

“Associates help to advocate for policies that promote a positive economic and regulatory environment for home building and related businesses. We are a vital part of networking opportunities on the local, state and national levels, and, yes, it can bring unparalleled opportunities to introduce your business or service to potential clients,” Garvey said.

“Even in these difficult economical times your participation in association activities will solidify your reputation and business both within the association and your community,” Garvey said. “When I started attending local meetings, my business did not grow overnight. I got involved, and made some trusted relationships through HBA contacts and activities.”

“To this day, the relationships I have formed over the years are the reason I am successful as a person and, certainly, I am a better person because of it,” she said.

Key to U.S. Recovery Is Missing; Home Construction Crucial for Growth

This year’s slump in new home sales, which is shaping up to be the worst on record, is pushing the key home-building industry into its fifth year of decline and keeping the U.S. economy from a rebound. “If the recovery is going to come, it is going to be driven by two sectors: manufacturing and construction, and it doesn’t look like there is going to be a big recovery in manufacturing,” said economist Ed Leamer, director of the UCLA Andersen Forecast. “It is going to have to come in housing; otherwise we are going to limp along as we have been.” Builders’ slower sales pace may be a kind of self-inflicted wound. The big companies are not dropping their prices, analysts said, because they can’t go any lower and continue covering their costs. Sales of foreclosed homes are keeping prices low, and builders can’t compete with those discounted levels. There are some signs of deepening retrenchment. Calabasas, Calif.-based Ryland Group Inc. recently said it was ending operations in Jacksonville, Fla., and Dallas. Several builders have diversified into other activities since the downturn. Toll Bros. Inc. is beginning to build in more luxury markets, putting up high rises in Manhattan as well as getting into managing golf courses, said S&P analyst Kenneth Leon. Beazer USA Inc. is going into the rental market, taking some of the many vacant homes in Arizona, fixing them and renting them out. KB Home has made a big push into more sustainable building and energy-efficient design. “KB holds the dominant position in going green, which I think will catch on for young families,” Leon said. “It just doesn’t play that great with such a severe downturn.” (www.latimes.com)
Los Angeles Times (9/2/11); Alejandro Lazo

Double-Whammy Hits Small Business Sector

The continued slump in the housing market is one reason for a weak economic recovery that has sapped overall demand for goods and services, and hence small businesses’ growth prospects. But many business owners also took out toxic mortgages on their homes during the bubble years. Now in default or foreclosure, they cannot access credit just as their firms’ sales are tanking. “Small business owners have a large amount of real estate and they leveraged it,” says William Dennis, Jr., a senior research fellow at the National Federation of Independent Business in Nashville, Tenn.  Now “the value of small businesses’ collateral has gone down, often by substantial amounts,” Dennis says. “You add to that weak sales, and it’s dampened their enthusiasm to hire or expand." Samuel D. Bornstein, an accounting professor at Kean University School of Business, has conducted surveys suggesting that over half of alternative-A mortgages in California alone went to small-business owners. Such high exposure to bad home loans could delay the recovery of small business hiring — and of the rest of the economy — for years. “There’s an unrecognized link between small businesses, toxic mortgages and the housing crisis,” says Bornstein. “Small business owners are always looking to quench their need for cash and the mortgage companies were eager to tap the equity in their homes to fund their operations, but then struggled when home prices dropped and access to credit shriveled.” (www.americanbanker.com)
American Banker (8/19/11); Kate Berry

Builders Go Cheap to Compete With Foreclosures, Short Sales

Welcome to the era of the $100,000 home in North Carolina. A number of factors have allowed builders to construct homes at these prices, but chief among them are lower costs of land and tight margins. And buyer financing through the U.S. Department of Agriculture’s rural housing program allows buyers with a credit score of at least 640 to purchase a home without a downpayment, widening the pool of potential buyers in all of Brunswick and Pender counties and parts of New Hanover. “Builders are now walking a tightrope as far as being profitable or not,” said Buddy Blake, who owns Re/Max Essential in Wilmington. “It’s not a matter of making a good living; it’s a matter of survival.” Margins are “staggeringly low,” he added. “In some cases, your $99,900 product may not have any margin but may be a loss leader,” said Chris Stevens of Pyramid Builders, which is constructing such homes at Windsor Park in Leland. “Sometimes someone comes to look at $99,900 but then decides on a larger house. So many times people get involved with housing and they determine they want more things.” The competition, Stevens said, is from short sales and foreclosures. But he added that for a bit more money buyers are attracted to brand-new. Not all building activity is at rock bottom prices, but builders are responding to the marketplace and building in the $150,000 to $250,000 price range, said Donna Giradot, executive officer of the Wilmington-Cape Fear Home Builders Association. “A number of our builders are shifting their marketing efforts to concentrate entirely on designing for and marketing to entry-level buyers,” she said. “They are introducing several new home designs that will cost $250,000 and below and a few of them are even focusing on the $130,000 and below price point in hopes of expanding their pool of potential buyers.” (www.starnewsonline.com)
Wilmington Star-News (8/14/11); Wayne Faulkner, McClatchy-Tribune Regional News

Investing in Energy Efficiency Pays Off in Resale Value

In a study covering existing and new houses sold between May of last year and April 30 of this year, the Earth Advantage Institute, a nonprofit group based in Portland, Ore., found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 8% more on average than noncertified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30% more. Officials caution that using average sales prices pulled from MLS data without attempting to measure “comparable” homes against one another directly may not be conclusive. For instance, newly constructed certified houses may be more expensive to start, and existing certified homes may be larger and more likely to be located in higher-cost neighborhoods where home owner adoption rates for energy-efficiency measures are higher. Nonetheless, said Dakota Gale, Earth Advantage’s manager of sustainable finance, looking back at four years of studies, “We can still see a consistent trend that third-party certification continues to result in a higher sales price, even during the past year when homes sales were down.” (www.washingtonpost.com)
Washington Post (8/27/11); Ken Harney

Boom in Granny Flats

Betsy McCann and her husband, Jim Forbes, often worried that his mother was growing isolated in her Los Angeles-area home. At 90, Lois Brokus had stopped driving and was sometimes afraid to be alone in her house. Jane and William Merrill also decided that they didn’t want his mother living on her own. Then 81, Jane Merrill, who shares her daughter-in-law’s name, was still active but in need of companionship. Both families considered nursing homes, assisted living and retirement communities. In the end, they came to the same conclusion: Their homes were the best place for their mothers. But they needed more home. So McCann and Forbes added a 400-square-foot bedroom and bathroom to their Escondido, Calif., home; the Merrills converted a two-car garage at their eight-acre spread in Carmel, a suburb of Indianapolis. Now both older women live with their adult children, with a large degree of independence and privacy. Home builders across the country say they are getting an increasing number of requests for such additions, known as mother-in-law suites, granny flats or accessory dwellings. According to NAHB, 62% of builders surveyed in 2010 were working on a home modification related to aging. About one in five builders added an entry-level bedroom. About 3.5 million American households last year included adult children and their parents — a number expected to rise as the country ages and baby boomers move into retirement, said Nancy Thompson of AARP. To meet the demand, AARP teamed up with the home builders association to create a designation for Certified Aging in Place Specialists, who are trained in designing and modifying buildings for the elderly. About 3,000 builders, contractors, remodelers and architects have been certified. (www.nj.com/times)
Times of Trenton (8/23/11); Monic Rhor, Associated Press

Easy Living; Simple, Low-Maintenance Lifestyle

Today’s new-home shopper looks for self-sufficient homes, say builders. In NAHB’s “Home of the Future” study, industry experts said low-maintenance interiors are “critical” or “very critical” in today’s new homes. The higher the square footage, the more likely buyers want maintenance-free homes. Steve Braun, sales manager for Adams Homes, agrees: “We construct houses specifically designed for low-maintenance living. Our single-family homes are built on walled slab foundations so there is never a problem with moisture or insects as with homes with a crawl space. The all-brick exteriors and the vinyl-covered soffits and gables will never need painting, nor will the synthetic products of all the exterior and garage doors and shutters. The result of the use of these types of construction materials is “a low-maintenance, high-quality home that is not only a good investment for the home owner but will save both time and money.” (www.wral.com)
WRAL.com (9/5/11); Barbara Hobbs, for New Homes & Ideas

New-Home Sales Virtually Unchanged in July, Inventory at Record Low

Sales of newly built, single-family homes held virtually unchanged in July with a 0.7% dip from the previous month to a seasonally adjusted annual rate of 298,000 units, according to U.S. Commerce Department data released on Aug. 23.

"The fact that new-home sales fell by less than 1% in July is an indication of how little conditions have changed in the housing market," said NAHB Chairman Bob Nielsen.

"While new-home inventories are exceptionally thin, home builders are still competing with large numbers of foreclosed and distressed homes on the market and with a climate of uncertainty in which consumers are reluctant to go forward with a major purchase for fear of what economic news tomorrow might bring," he said.

"The sales pace of newly built, single-family homes in July was in line with what it has been over the last year, and this is in keeping with our forecast," said NAHB Chief Economist David Crowe.

"While we expect to see some marginal gains in sales activity through the rest of 2011, we do not foresee any major advances until economic growth helps boost home buyers' confidence," Crowe said.

Regionally, new-home sales recorded declines of 7.4% in the South and 5.9% in the West, but rose 2.4% in the Midwest and actually doubled (with a 100% increase) in the Northeast from a record low number in the previous month.

The inventory of new homes for sale in July fell to a 48-year record low of just 165,000 units, which represents a 6.6-month supply at the current sales pace.

Putting this situation into perspective, said Crowe, "the current nationwide inventory of completed new homes ready for occupancy — at 61,000 units — is in keeping with what a single major metropolitan area such as Atlanta might sell in a typical year."

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Study Finds Second Home Tax Policy Important for Local Economies Across the Country

Recent analysis by NAHB economists suggests that rolling back the mortgage interest deduction for second homes, as many pundits and policymakers have suggested, could have adverse economic consequences for many parts of the country where second homes constitute a significant portion of the total housing stock.

The study shows that the stereotypical expensive beach house — which pops up frequently in discussions of tax policy and often is a rental property that is not eligible for the mortgage interest deduction — misrepresents the wide geographic range of second homes across the country.

“The geography of second homeownership is much more expansive than simply beachfront locations,” the study says.

The study uses data from the 2009 American Community Survey (the most recent available) to produce a map of the share of each county’s housing stock that consists of second homes.

Overall, 6.9 million housing units qualify as second homes, or more than 5% of all housing units nationwide.

Looking further at the distribution of second homes across the U.S.:

• 907 counties — or about 28% of the total — had at least 10% of their local housing stock consisting of second homes, with at least one of these counties in 49 of the states (with Connecticut and Washington, D.C., the exceptions).
  
  
• 339 counties — or more than 10% of the total — had at least 20% of their local housing stock comprised of second homes.
  
  
• There are 26 counties where at least half of the local housing stock was made up of second homes.
  
  Of these, six were in Michigan, five in Colorado and two each in Pennsylvania, Utah, Massachusetts and California.
  
  New York, Alaska, Idaho, Missouri, Wisconsin, Texas and New Jersey each accounted for one of these counties.
  
  
• Large overall county stocks of second homes are located in areas with larger populations and more housing, or large metropolitan areas.
  
  Keeping this in mind, these states had at least one county with at least 25,000 second homes: Florida, California, New Jersey, New York, Texas, Delaware, Michigan, South Carolina, Nevada, Massachusetts, Illinois and Arizona.

“These findings suggest caution regarding proposals that would affect second homeownership because the reasons for owning a second home are more diverse than critics usually provide,” the study says.

And as the maps in the study show, “given the economic benefits of housing, there are many locations in the country where second homes constitute a significant portion of the total housing stock.”

For the purpose of the mortgage interest deduction, the study points out, “a second home is, in general, a non-rental residence that is not the taxpayer’s primary residence.” This includes:

• A home that used to be a primary residence due to a move or a period of simultaneous ownership of two homes due to a move.
  
  
• A home under construction for which the eventual home owner acts as a builder and obtains a construction loan. (Treasury regulations permit up to 24 months of interest deductibility for such construction loans.)
  
  
• A non-rental seasonal or vacation residence.

The analysis excluded the stock of homes under construction because county-level data are not available for them.

To read the entire report, click here.

For more information, email Rob Dietz at NAHB, or call him at 800-368-5242 x8285.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Eye on the Economy: Weighed Down By Dismal Economic News, Housing Shows Mixed Results

Recent economic news has been dismal. The second estimate of growth in the gross domestic product for the second quarter was revised down from an already low level to 1.0%, following just 0.4% in the first quarter, well below where growth normally would be two years out from a recession. Consumer confidence has been plunging, falling to levels typical of the months leading to a recession.

In a recent speech at Jackson Hole, Wyo., Federal Reserve Board Chairman Ben Bernanke expressed disappointment that the recovery has been much less robust than he had hoped. He also voiced concern that housing has not been able to perform its traditional role of lifting the economy out of the recession, due to “tight credit conditions for buyers and builders, the impact of possible future housing price declines on macroeconomic growth and a vicious cycle of lower household net worth, leading to more cautious lending to households, which in turn reduces housing demand, lowers prices and reduces household net worth.”

Bernanke was optimistic, however, that “over the medium term, housing activity will stabilize and begin to grow again, if for no other reason than that ongoing population growth and household formation will ultimately demand it.”

The housing sector, weighed down by weak economic activity, has experienced mixed results:

• House prices are no longer falling, with both key indicators — the Case-Shiller and Federal Housing Finance Agency house price indexes — showing three consecutive month-over-month increases.
  
  
• The Housing Opportunity Index shows housing affordability hovering near record high levels over the past several quarters.
  
  
• The rate of foreclosures started continues to edge down, as has the stock of houses ready to enter foreclosure, i.e., mortgages with payments more than 90 days past due.
  
  
• New home sales remained steady in July, bouncing around at the same low level since the beginning of the year.
  
  
• NAHB’s Housing Market Index shows builders’ assessment of the single-family market was similarly unchanged in August.
  
  
• Existing home sales continued their downward trend with a modest decline in July,

New research by NAHB presents geographic details to answer the questions “Who Claimed the Energy Efficient Improvement Tax Credit?” and “Where are the Nation’s Second Homes?”

Latest Postings

• Consumers’ Outlook Increasingly Pessimistic
  Consumer confidence plummeted in August. Posted: Aug. 30
  
  
• Case-Shiller House Price Index Shows Further Improvement in June
  House prices continued to improve in June, with an increase in both the quarterly and monthly Case-Shiller house price indexes. Posted: Aug. 30
  
  
• Pending Home Sales Slip Back in July
  Pending home sales slipped back in July, with housing demand slowed by weak economic conditions and falling consumer confidence. Posted: Aug. 29
  
  
• Revisions to Second Quarter GDP Growth: Not as Bad as It Looks, But Far From Good
  The second estimate of real GDP growth for the second quarter of 2011 was revised downward to a 1.0% seasonally adjusted annual rate. While slower than first reported, the composition of growth improved. Posted: Aug. 26
  
  
• Bernanke: Recovery From Crisis Less Robust Than Hoped
  A recent speech by Federal Reserve Chairman Ben Bernanke outlined near-term and long-term prospects and policy considerations for the nation’s economy. However, no specifics on future policy were provided. Posted: Aug. 26
  
  
• Who Claimed the Energy Efficient Improvement Tax Credit?
  NAHB research maps the distribution of those claiming the energy efficiency tax credit for their home. Posted: Aug. 25
  
  
• Where Are the Nation’s Second Homes?
  NAHB research finds that the location of second homes is much more geographically expansive than simply beachfront locations. Posted: Aug. 24
  
  
• House Prices Improving, But Results Are Mixed
  The quarterly Federal Housing Finance Agency purchase-only house price index continued to fall in the second quarter, despite recent improvement in the monthly HPI. Posted: Aug. 24
  
  
• Mortgage Bankers: Short-term Delinquencies Rise, But Long-term Delinquencies and Foreclosure Starts Decline
  Total loan delinquencies as a share of all outstanding loans rose in the second quarter, but the share of mortgage loans in foreclosure shifted down. Posted: Aug. 23
  
  
• New Home Sales Remain Unchanged
  The annual rate of new home sales remained virtually unchanged in July, with an unusually large increase in sales in the Northeast offsetting declines in other regions. Posted: Aug. 23
  
  
• NAHB 55+ Market Survey Data Indicate Growing Optimism for Rental Sector
  NAHB members in the 55+ housing market are significantly more optimistic about production and demand for multifamily rental units than they are for sales of single-family homes or multifamily condos. Posted: Aug. 19
  
  
• Housing Affordability Near Record Levels, According to NAHB/Wells Fargo Index
  Housing affordability is hovering near record levels, with 72.6% of all new and existing homes sold in the second quarter affordable to families earning the national median income. Posted: Aug. 19
  
  
• Existing Home Sales Continue Their Downward Trend
  Existing home sales continued their recent downward trend, falling to 4.67 million units in July Posted: Aug. 18

Eye on the Economy is a bi-weekly digest of the latest economic and housing policy news, analysis and studies as posted on NAHB’s free Eye on Housing blog. The preceding is a reissue of his Sept. 2 edition. To subscribe to Eye on the Economy, click here.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Useful Links to Monitor Economic and Housing Trends

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

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

• U.S. Census Bureau Construction Price Indexes
  
  
• NAHB's Housing Forecast
  Housing starts, sales and interest rate projections through 2009.
  
  
• Latest Home Mortgage Interest Rates
  Contains current and historical data on fixed and adjustable mortgage rates. Updated weekly.
  
  
• Characteristics of New Housing
  Highlights the latest data on new-home characteristics released by the U.S. Census Department. Includes links to the complete Census report and other trends researched by NAHB.
  
  Additional breakouts of this data and other trends researched by NAHB are available at www.nahb.org/constructionstats under “Selected Characteristics of New Housing” (dated 4/3/2008).
  
  
• Housing Starts
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Home Sales
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Single-Family Median Home Prices
  Updated monthly.
  
  
• Home Price Index
  The index measures average home appreciation in more than 250 metropolitan markets. Updated quarterly.
  
  
• Metro Home Building Permits
  Local and state data on housing construction rates. Updated monthly.
  
  
• Employment Trends for Metro/State Markets
  Provides metro and state employment data nationwide. Updated monthly.
  
  
• Local Economic Impact of Housing
  Shows how building 100 homes benefits a typical metropolitan area.
  
  
• Home Building’s Direct Impact on the Economy
  
  
• Housing’s Contribution to Gross State Product
  Measures how much housing contributes to the economic output of each state.
  
  
• Housing Market Statistics from HousingEconomics.com
  Full array of statistical categories available to NAHB members, a limited number available to non-members.
  
  
• In-Depth Analysis from HousingEconomics.com
  Full array of analysis of factors affecting housing and the impact on the industry available to NAHB members, a limited number available to non-members.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Builders’ Tip: How to Easily Customize (and Apply) Caulk Colors

Click for larger image.

I needed to seal a joint between a finished oak floor and a new, inlaid granite hearth.

The granite I was trying to match is essentially dark green, and I learned some time ago that using a caulk that matches a darker color hides, rather than accentuates, the joint.

I wanted to use silicone caulk on the joint for its elasticity, ease of cleaning and to match the shiny finish of the polished granite.

My local paint supply store had silicone caulk in white, black, brown, gray and clear, but when I asked an employee if the caulk could be tinted, he told me, “No way,” that tinting wasn’t possible because the caulk will begin to skim over as soon as it is squeezed out of the tube and that there was no practical way to apply it in a joint.

Not taking “no way” for an answer, I solved the problem. Here’s what I did:

• For my project, I squeezed a load of clear silicone caulk into a plastic bag and added small amounts of green and black Mixol tints to it. Mixol is a highly concentrated pigment-based coloring agent that can be found at some paint stores and through mail-order woodworking-supply businesses.
  
  
• I then kneaded the bag with my hands and used the caulk tube as a rolling pin to mix the colors with the caulk.
  
  
• As shown in the accompanying drawing, once I mixed the caulk into a consistent color, I snipped one end of the bag and used it like a cake-frosting bag to squeeze out a consistent bead.

— Joe Luce; via email

Tips & Techniques provided by Fine Homebuilding.
©2010 The Taunton Press

To contact Fine Homebuilding, email Christina Glennon.

IBS Session Will Show Builders How to Attract Women Buyers

With women influencing 91% of home sales and a key to boosting business, the 2012 International Builders’ Show will present a new educational program on how to market to women buyers — "Sister Act 2: The Laws of Attraction.”

The program brings back the three panelists from last year’s successful IBS presentation, “Sisterhood of the Traveling Laptop: What Women Want Online AND Onsite.”

Making their return to IBS will be marketing experts and NAHB Professional Women in Building members Carol Flammer, president of Flammer Relations Inc. and a managing partner with mRelevance LLC; Kerry Mulcrone, president of Kerry & Co., which provides new home sales training and coaching; and Meredith Oliver, president of Meredith Communications.

Taking a well-rounded approach, the session will teach attendees how to attract women through websites, social media marketing and on-site demonstrations and provide a fundamental understanding of the marketing, products and sales styles that will resonate with women as they assume more roles at work, home and in the community.

“Don’t ever underestimate this most influential buying power in the new home industry,” said Mulcrone. “In today’s market women are proving to be smart, savvy and sophisticated in what they want and how they go about finding it.”

“All three of us understand the ‘power of that purse’ and how to get real women to shop for and purchase a new home,” she said, by promoting and providing the convenience, benefits and details they find most desirable in a new home.

The speakers will discuss the difference between advertising to women using social media and really interacting and engaging with them to build relationships.

The IBS session will also provide insights into where women shop, how they think and what makes them purchase. It will also focus on what women want when they go to websites and how to use search engine optimization to bring them to a particular site.

“Sister Act 2: The Laws of Attraction” will be held on Feb. 2 from 1:30-3:00 p.m.

‘Trillion Dollar Women’ Give Viewpoint, Objectives of Female Buyers

Though written for the female consumer, “Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions,” available at NAHB BuilderBooks, is a valuable resource for housing professionals to gain perspective on ways to better serve and market to this growing segment of customers.

According to a recent Harvard University study, women control 91% of home buying or remodeling decisions. “Trillion Dollar Women” provides builders and other housing professionals with a detailed look at the motivations, objectives and viewpoints of female buyers.

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

Panasonic to Showcase Energy-Efficient WhisperSense Ventilation Fans at IBS

Panasonic Home & Environment Company will be showcasing several WhisperSense high-performing, energy-efficient ventilation fans at the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

Panasonic, which was named a 2011 Energy Star Partner of the Year, will display the fans at booth W3929 in the exhibit hall. NAHB members who register for IBS in September can receive a free, four-day expo pass.

All the ventilation fans meet the requirements for a number of green building programs and are the only vent fans on the market to incorporate a dual motion and humidity sensor to improve indoor air quality.  

The fans incorporate Panasonic’s SmartAction motion sensor with a delay-off timer that activates when a person enters the bathroom and automatically turns off 20 minutes after the occupant has left. If the occupant has taken a shower or bath, the built-in humidity sensor overrides the delay timer to exhaust moisture until the humidity is back down to the pre-set level.  

The 80-110 CFM WhisperSense models are also ideal for renovation projects since the fans include Panasonic’s new Dual Duct Adapter, which gives the contractor the ability to install the fan in a 4-inch or 6-inch duct without having to purchase an additional adapter. 

Headquartered in Secaucus, N.J, Panasonic Corporation of North America is a member of NAHB’s Leading Suppliers Council.

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.

ClimateMaster to Display Geothermal Tranquility 22 Digital Series HVAC System at IBS

The ClimateMaster will display its Tranquility 22 Digital Series geothermal HVAC at its booth at the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

The Tranquility 22 Digital Series incorporates high-end features including a two-stage compressor, Energy Star-tier 3 efficiency, variable speed fan, communicating digital controls and plug-and-play functionality at a very competitive price point. It also has one of the industry’s smallest footprints, making it suitable for installation in tight places.

ClimateMaster expects that the uncapped 30% federal tax credit on residential geothermal systems and 10% on commercial systems, coupled with the ease of installation of the Tranquility 22 Digital systems, will help make geothermal systems a much larger part of the HVAC industry.

The Tranquility 22 Digital systems are available in vertical and horizontal configurations in capacities 024k, 030k, 036k, 042k, 048k and 060k Btuh.

NAHB members who register for IBS in September can receive a free, four-day expo pass.

Headquartered in Oklahoma City, ClimateMaster is a member of NAHB’s Leading Suppliers Council.

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.

Armstrong Flooring to Introduce Performance Plus Hardwood Flooring at Builders' Show

Armstrong Flooring will be introducing its newest innovation in hardwood — Performance Plus, the toughest hardwood available — at the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

Acrylic infusion gives the wood two and a half times the hardness of standard wood of the same species, and Armstrong’s new nanotechnology topcoat gives it added scratch and stain resistance.

The product will be on display at booth W2071 in the exhibit hall at IBS. NAHB members who register for IBS in September can receive a free, four-day expo pass.

 Headquartered in Lancaster, Pa., Armstrong is a member of NAHB’s Leading Suppliers Council.

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.

Hunkering Down Until Housing Markets Turn Up Seen as a Poor Business Strategy

As the housing market continues to bounce along the bottom, home builders and remodelers may think the best thing to do is to hunker down and lay low until the economy rights itself. But that’s not a good idea at all, according to panelists participating in an NAHB webinar last month.

“It’s not a viable strategy,” said moderator Ron Robichaud of Robichaud Financial Services, adding that home building professionals need to look for ways to change their business now — or they won’t survive.

When the downturn first became evident, “we listened to those predictions for a soft landing, but instead we sailed into a perfect storm” of changing consumer expectations amid a looming federal deficit. “A return to the 2004-2006 market,” when healthy profit margins were the norm for most home builders, “is not going to happen,” he said.

From 2002 to 2005, Robichaud said, an estimated 78% of the growth in builders’ profits came from land.

Robichaud spoke along with Steve Black, the owner of Stephen Black Builders Inc., and Joe Pfeiffer, president of Business RIO Inc. in the Aug. 17 webinar, "Business Operations: Successful Strategies That Work in Any Economy." A recording of the webinar is available for purchase.

“You know your market,” Robichaud said. “You know the geography and the economy, and you have relationships with the community, and you have skills and expertise, so you need to identify and maximize opportunities. No town or community is static — and in the course of change, new opportunities emerge.”

For example, depending on where they live, many baby boomers who helped fuel the hot home buying market may want to downsize because their children have left home but find moving more difficult because the value of their home has declined. Creating product for that specialized niche might be the way to thrive in those markets, he said.

“As the market stabilizes, it will be very difficult for the small builder to compete with the highly capitalized larger builder who is committed to control the housing market,” he added. “The small private builder has a very big target on his back” and must be “nimble, flexible and creative” to make the most of opportunities as they arise.

Black said that he has been able to score success by becoming a jack of all trades. “We have to start expanding how we do business,” he said.

For instance, working with restoration companies that usually outsource the work can provide an ongoing revenue stream for a builder, he said, while fostering profitable new relationships.

Black also cited retirement communities as a source of new business activity.

“These communities present a great source of work due to the constant turnover of people," he said. As residents leave independent living cottages for nursing facilities, the homes they vacate need new carpet, doors, repainting and more.

Pfeiffer agreed. “The only way home builders can expect to survive is to learn new skills, use new tools and invest their time differently,” he said. “It’s risky, but it must happen to effectively address change. That’s why hunkering down won’t work. The changing conditions and increased competition mean the change is going to be permanent — and new changes are coming,” he said.

Having an operations manual and being able to accurately value-engineer each house plan is no longer a luxury, but a necessity, he said. “You can use it to see how you can specifically react to changes in the market, the new products and segments.”

In addition, “networking is huge,” Pfeiffer said, and getting together with a group of builders or remodelers with similar businesses can reap great rewards.

In addition to spending time with other industry professionals at local home builders association meetings and events, builders can join NAHB’s  20 Clubs, which are groups of 15 to 20 members who have businesses that are alike but located in different markets across the country.

“As you build your professional network and form business relationships, it’s great to have someone to bounce ideas off of, and as you join as a group to discuss issues, this can be extremely productive and it cuts down on research time,” Pfeiffer said. “It’ll make your job a whole lot easier because you won’t have to do all of it yourself.”

Energy Star Certification Program Extended to High-Rise Residential Buildings

In an expansion of the popular energy-efficiency certification program for single-family and low-rise multifamily homes, new high-rise residential buildings can now be certified by the Environmental Protection Agency as Energy Star qualified.

“Expanding the Energy Star eligibility to such properties will not only help the EPA strengthen energy-efficiency initiatives across the nation, which save money and help protect the environment, but also provide property owners the opportunity to increase the asset value and offer tenants comfortable homes,” the agency said.

To qualify for certification, new or substantially rehabilitated multifamily high-rise buildings must meet EPA guidelines and be designed to be at least 15% more energy-efficient than buildings that meet the American Society of Heating, Refrigerating and Air-Conditioning Engineers energy use standard.

Qualified buildings feature a combination of energy-efficient improvements including:

• Effective insulation systems
• Properly sized heating and cooling equipment
• Tight construction and ducts
• Energy Star-qualified lighting and appliances
• High-performance windows

Through onsite testing and inspections, independently licensed professional engineers or architects must verify that the program’s requirements have been met.

The EPA launched Energy Star in 1992 as a market-based partnership to reduce greenhouse gas emissions through energy efficiency.

More information on Energy Star qualified multifamily high-rise buildings is available at www.energystar.gov/mfhr.

EPA Stepping Up Lead Rule Inspections; Focusing on Certification, Paperwork

The U.S. Environmental Protection Agency has stepped up its enforcement of the Lead: Renovation, Repair and Painting rule with inspections that focus on company certification and other records required under the rule governing the renovation of older homes, according to remodelers and contractors who have been subject to the inspections.

Under the EPA’s lead paint regulation, remodelers and other contractors working in homes built before 1978 must take precautions to contain lead dust — including using lead-safe work practices, establishing dust containment areas and containing dust during the renovation, cleaning up after the project and maintaining detailed records.

The regulation also requires that they obtain training and certification, and that they distribute the EPA’s "Renovate Right" lead-safe guide to their home owner clients.

 “Although the EPA requires dust containment, lead-safe work practices and cleaning verification on job sites, they’re rarely inspecting renovation activities,” said Matt Watkins, environmental policy analyst at NAHB.

“We’re hearing from the field that inspectors are reviewing records, and the most frequent lapses reported are a failure to obtain firm certification and a failure to get signatures from home owners when handing out the ‘Renovate Right’ pamphlet.”

Remodelers reported that they have been given a week’s notice about an impending inspection — either through a letter or a phone call from their EPA regional office — requesting a meeting  typically to review their business records for the last three years.

They also reported that inspectors have asked to see documents confirming their status as a certified renovator and certified firm under the lead rule. In addition, inspectors have asked to see the signatures of home owners verifying that they have received the "Renovate Right" pamphlet, as well as lead testing results and all documentation for following the lead rule’s work practices.

Be Prepared for Lead Rule Inspections

Prior to an inspection, remodelers should develop a system for keeping records on jobs applicable to the lead rule.

For example, they should note in their job record if the home they renovated was built before 1978 and keep copies of the following documents in their company records:

• Copy of their certified renovator certificate
• Copy of their certified firm certificate
• Signed verification receipts of the "Renovate Right" pamphlet — by home owners or residents
• Results of any lead testing, including EPA-recognized test kits
• Work practice checklist for the job
• Operation and maintenance records for HEPA vacuums

Some EPA inspectors have also requested verification of worker training for individuals working under the supervision of a certified renovator.

However, the agency does not have guidance on what this documentation would entail, so some remodelers have considered creating a verification form to be signed by workers stating that they have received training on lead-safe work practices required under the rule from a certified renovator.

NAHB advises remodelers to review the compliance resources and samples for record keeping available at www.nahb.org/leadcompliance. The members-only tool includes compliance and record-keeping checklists, the EPA’s "Renovate Right" pamphlet, sample home owner and tenant notification forms and more.

To prepare for the inspections, remodelers are encouraged to collect and have all pertinent records ready for the meeting with the EPA inspector. During the meeting, remodelers should allow the inspector to review all the records requested.

Remodelers should also consider contacting an attorney with experience in regulatory inspections to ensure that they have someone on hand for guidance during the process.

“Whatever you do, do not falsify records,” said Watkins. “This can lead to bigger fines and criminal prosecution. It’s best to share what you have and work with the EPA to rectify any gaps.”

Once the records have been reviewed, the EPA inspector will create a report — with possible enforcement action recommendations. The inspector’s report is then submitted for review, and remodelers and contractors may have 90 days or longer before they receive notice of any fines or other enforcement actions being taken.

EPA penalties range from as little as $130 to as much as $37,500 per violation, per day. The agency calculates fines according to its Consolidated Enforcement Response and Penalty Policy for RRP.

For more information on the lead rule, visit www.nahb.org/leadpaint; or email Matt Watkins or call him at 800-368-5242 x8327.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

EPA Opening Lines of Email Communication on Lead Paint Rule

In an effort to keep certified renovators and certified firms informed and updated on its Renovation, Repair and Painting (RRP) program for lead, the Environmental Protection Agency is using a new communication tool called GovDelivery.

By subscribing to the tool, remodelers can receive regulatory and technical RRP updates from the EPA. This may be the only way the agency reaches out directly to the regulated community.

Considering last month’s change to the "Renovate Right" brochure and the haphazard way in which it was communicated, this new tool is a welcome addition. (For a related story in the Aug. 8 Nation's Building News, click here.)

However, NAHB believes that communication with those affected by RRP should extend beyond the GovDelivery channel, because not all businesses choose to participate in e-communications.

All certified firms and certified renovators have provided the agency with contact information, but that does not always include email and web addresses.

NAHB will continue its efforts through state and local home builders associations and NAHB Remodelers to keep members informed of any updates to the RRP.

For more information, email Matt Watkins at NAHB, or call him at 800-368-5242 x8327.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

Federal Energy-Improvement Tax Credits Boosted Remodeling During Recession

The two energy-improvement tax credits offered by the federal government in 2009 and 2010 helped boost remodeling and create jobs during the recession while new-home sales slumped, according to analysis by NAHB.

According to Rob Dietz, NAHB’s assistant vice president for tax and policy issues, remodeling expenditures fared better over the 2008 through 2010 period than did new-home sales.

“In fact, it is quite reasonable to believe that the ’bump‘ in remodeling activity seen at end of 2009 and the beginning of 2010 was directly due to the improved 25C and 25D rules,” he said.

The impact of the 2009 expansion of the tax credits — the 25C $1,500 energy-efficient improvement tax credit  and the uncapped 25D 30% tax credit for home power production equipment — is examined in a recent posting, “Who Claimed the Energy Efficient Tax Credit?” on NAHB’s Eye on Housing blog.

The 25C credit was used to improve existing primary residences by installing energy-efficient windows, doors, roofing and some home appliances like water heaters. The 25D credit rewarded home owners for installing solar panels, geothermal heat pumps, small wind turbines and fuel cells in existing homes and new construction.

While more home owners in the country’s most populous states claimed either or both of the energy-improvement tax credits, the higher percentage of taxpayers who claimed the credits in each state were concentrated in the Northeast and upper Midwest, according to Dietz, who said there were two possible explanations for the concentration.

“Home owners in states in cold weather climates have more to gain from energy-efficient improvements through reduced utility bills,” Dietz said. “However, there is no reason to believe that warm weather homes also cannot benefit from energy-efficient improvements.”

The second explanation, the one Dietz said he believes is the more likely, is that the states with relatively more common use of the energy tax credits also generally have older homes.

“A home owner with a 50-year-old home is much more likely to improve their residence than a home owner who has purchased a newly constructed home — with new construction more common in the southern part of the nation,” Dietz said.

$5.9 Billion in Tax Credit Claims

Overall, in 2009 taxpayers claimed nearly $5.9 billion in 25C and 25D tax credits. Fully 93% of tax credit claims were made by taxpayers with an adjusted gross income of no more than $200,000, which is indicative of a middle class tax program, Dietz said, while noting that the Internal Revenue Service has not provided a breakout of the two credits.

In general, however, NAHB economists estimated that more taxpayers claimed the 25C credit, but that the average amount of the 25C credit was significantly smaller than the uncapped 25D tax credit. 

Because the tax credits boosted remodeling activity, they also helped create and sustain jobs in the residential and home building sector in 2009 and 2010, according to NAHB analysis. Specifically, every $100,000 in remodeling activity creates about one full time job, according to the NAHB report, “The Direct Impact of Home Building and Remodeling on the U.S. Economy.” 

The tax credits were significantly weakened for 2011 when Congress passed and the President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which scaled back both tax credits.

For more information on the current tax credit rules, read the NAHB fact sheet on the 25C and 25D programs.

For more information, email Rob Dietz, or call him at x800-368-5242-8285.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

Pre-Remodeling Show Courses Offered on Universal Design, Risk Management, More

NAHB Education is offering courses for remodelers on universal design, marketing and communications, estimating, scheduling, risk management and more on Oct. 10-13 in Chicago just prior to the Remodeling Show, which will be held Oct. 13-15.

New to the Remodeling Show is NAHB’s two-day “Universal Design/Build” course, which expands upon previous Certified Aging-in-Place Specialist (CAPS) courses by changing the focus from specific modifications that meet the needs of one resident to the successful integration of universal design into all residential construction projects.

The creative design concepts and practices presented in the course will enable industry professionals to produce marketable projects that support the changing needs of clients over their lifetimes.

A gerontologist in Buffalo, N.Y., who had taken the course earlier, praised it and said it helped expand her knowledge.

“I got great insights from the presenters who were very well versed in their field,” said Nora DeVoe. “I look forward to putting this information into practice within my business.”

Pre-Remodeling Show courses include:

Monday, Oct. 10

• “Universal Design/Build” (Advanced CAPS) (Day 1)
• “Marketing & Communications Strategies for Aging & Accessibility” (CAPS I)

• “Universal Design/Build” (Advanced CAPS) (Day 2)
• “Design/Build Solutions for Aging and Accessibility” (CAPS II)
• “Estimating for Builders and Remodelers”

Wednesday, Oct. 12

• “Scheduling”
• “Business Management for Building Professionals”
• “Risk Management”

Thursday, Oct. 13

• “PREP: Your First Step to CGR”

Course attendees can earn continuing credit toward their Certified Graduate Remodeler (CGR), CAPS and other designations.

To Register

To register and view complete course descriptions, visit www.nahb.org/RemodelingShow.

Register by Thursday, Sept. 15, and receive discounted pricing on the pre-show courses.

For complete continuing education requirements on CGR and CAPS designations, visit www.nahb.org/CGRinfo or www.nahb.org/CAPSinfo; or call 800-368-5242 x8154.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

NAHB Remodelers Resources, Networking at the Remodeling Show in Chicago, Oct. 13-15

The 2011 Remodeling Show in Chicago on Oct. 13-15 will feature NAHB Remodelers courses on marketing, estimating, scheduling, business management, aging in place, risk management, PREP and networking that will help remodelers compete in a tough economic environment.

In addition, NAHB remodelers will staff a booth on the exhibit floor — #1608 — where they will share their experience and answer tough questions on how to compete and run a successful remodeling business.

Visitors to the booth can also learn about NAHB Education offerings, the 2012 NAHB International Builders’ Show in Orlando, workforce development and training programs from the Home Builders Institute and the benefits of being a member of the NAHB Remodelers.

In addition, NAHB Remodelers will host a roundtable where staff members of local remodelers councils can network, share ideas and brainstorm — from 3:00-4:30 p.m. on Thursday, Oct. 13.

Email remodel@nahb.org to register for the roundtable.

Attend the 2011 Remodelers Gala

Remodelers can also register for the 2011 NAHB Remodelers Gala, the annual black tie event showcasing NAHB Remodelers achievements for the year. The gala will be held from 6:30-10:30 p.m. on Friday, Oct. 24, at the Art Institute of Chicago.

During the celebratory evening, NAHB Remodelers will acknowledge the 2011 CADRE recipients, National Remodeling Hall of Fame inductees, the NAHB Remodeler of the Year and the Homes for Life Award winners.

For a full list of courses and NAHB Remodelers activities at the Remodeling Show and to register, visit www.nahb.org/remodelingshow.

For more information, email Kelly Mack at NAHB, or call her at 800-368-5242 x8451.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

Recession-Defying Model Homes Capture 2011 Nationals; 2012 Competition Now Open

By Jan Mitchell

The 2011 model home winners of the National Sales and Marketing Awards — The Nationals were all about second acts and amazing transformations.

Each of the winning entries addressed a particular challenge — from revamping merchandising strategies and attracting new owners to developing difficult home sites and offering the right product in a tough market.

And each solution defied the down market and achieved sales success.

Fully Merchandised Models Boost Sales

At first, sales of the Caldwell model in the new-home community of Daybreak near Salt Lake City were less than overwhelming.

When models of three townhomes in a “mansion” by Holmes Homes resembling a grand single-family home  were first opened, only the front rooms in each were furnished.

Tailor-made for an empty nester couple or single professional, the Caldwell, with its two master bedrooms — one on the ground level, the other on the second floor — was designed for home owners who were considering the possibility of a live-in parent, privacy for guests or a roommate to share costs.

To boost sales, Jaimi Julian Thompson, president of the interior design firm Artisan Design Group, revamped the merchandising by fully furnishing the triplex models and updating their theme so prospects could better visualize living in the home.

“The trend we are seeing throughout the West Coast is cleaner, simpler, transitional or contemporary. We like to call it an urban look, even in a suburban setting,” Thompson said.

The custom drywall treatment in the dining room is an eye-catcher in the Caldwell model at Daybreak. Photo by Maggie Holmes

Tonal color and rich textures, a quartz “fly-over bar top” in the kitchen and a stunning master bath were hallmarks of the Caldwell model merchandising, which earned a 2010 Nationals award in the Best Interior Merchandising of a Home Priced Less than $300,000 category. The home sells for $233,000.

The minimalistic style helped make the 1,675-square-foot Caldwell appear more spacious, and one of the model’s most memorable elements was its custom decorative drywall treatment in the dining room.

Clean, contemporary lines and a minimalist style helped the Caldwell feel more spacious. Photo by Maggie Holmes

“This model simultaneously captured the drama of a clean-lined contemporary look in a suburban setting while maintaining an affordable, attainable design,” said Thompson.

Not only did it capture drama, it captured buyers. Between 70% and 80% of the Caldwell’s buyers chose to replicate the finishes, colors and upgrades in the model, Thompson said — the highest percentage she has ever seen.

Thompson added that the builder’s innovative and forward thinking boosted the overall presentation. The builder provides home automation standard in every home, including an iPad to run it. The builder also asks, “What can we do to make buyers happier, to stand out to gain attention at model release,” she said.

Holmes Homes apparently found the answer last year when it enjoyed brisk sales in the summer and possibly its best November and December, Thompson said.

“Models are very useful for buyers being able to utilize the lifestyle they want,” Thompson said. “These models were very compelling.”

A neutral color palette allows the view from One Lexington in Phoenix to remain the number-one "wow" factor. Photo by Mark Boisclair

Modern, But Not Too Trendy Merchandising Appeals to Sophisticated Phoenix Buyers

Now in its third iteration, One Lexington, the high-rise, loft-style condominiums in midtown Phoenix, began life as a 17-story office building before being converted to The Century Plaza condos in 2005.

Construction delays set back the opening until well into the housing downturn, so MacDonald Development Corp. purchased the building in February 2010, renamed it One Lexington and began selling the one-, two- and three-bedroom condos for half the original price of The Century Plaza.

The community’s latest incarnation helped make it one of the fastest-selling projects in Phoenix, according to Claudia Gerster, president of Creative License International, an interior design firm. Located near an area hospital and featuring resort-style amenities in a convenient, new urbanism location, One Lexington has now sold more than 85% of its units.

Gerster partly attributes this success to “less is more” merchandising — which included exposed structural beams, minimal accessories and modern, but not too trendy-contemporary, furniture.

She said the 2,846-square-foot penthouse model, priced at $981,000, was tailored for an empty-nester or an upscale professional couple, possibly a doctor and spouse, moving into a smaller home. The model’s loft-library, gold accents and large walk-in closet with granite countertops and cedar built-ins project luxury.

Gerster eschewed the typical tricks of the trade when merchandising the model and wanted the home to speak for itself.

The designer didin't use lifestyle photos in One Lexington so the penthouse home could speak for itself. Photo by Mark Boisclair

“We didn’t do photos of couples, didn’t do activity rooms,” Gerster said, adding that she believes that sophisticated buyers have become leery of these types of traditional marketing ploys.

Instead, she used a neutral color palette that enables the view from the model’s wraparound balcony to remain the number one “wow” factor. “Bold colors would have detracted from that,” Gerster said.

Apparently, The Nationals judges agreed because the penthouse earned the 2010 award for Best Interior Merchandising of a Home Priced between $500,000 and $1 Million.

One Lexington buyers have agreed as well.

“This has been an incredible story for MacDonald Development Corp. And people will continue to come to Phoenix as soon as we absorb all that’s on the market,” Gerster said.

A bonus room at BackRiver near Boston was modeled as a "swing room" so it could serve double duty as an office and a guest room for grandchildren. Photo by Eric Balston Imagery and Jeff Theibauth Photography

Field Trip Yields Some Surprising Buyer Insights 

When the Hastings Companies developed the seaside community of BackRiver Townhomes in Hingham, Mass., its target market for the homes, which ranged from 2,200-3,600 square feet and were priced between $775,000 and $1.4 million, was affluent, sophisticated buyers from the Boston area.

The builder expected them to be older buyers who wanted a maintenance-free home but who did not want to downsize their space or quality.

When the first model debuted in October 2007, it featured a super-elegant design theme, with silk fabrics and sophisticated flourishes. But the buyers turned out to be a bit different than originally envisioned.

To get a better feel for their lifestyles, Chelsi Christensen of Design East Interiors said her merchandising team toured residents’ homes — and what they found completely changed the community’s merchandising strategy.

The residents turned out to be down-to-earth, well-traveled and outdoors loving — more global than Old World — over-50, semi-retired buyers. So when a new model opened in spring 2010, its merchandising incorporated eclectic collections, pet themes and family heirlooms.

The model was adorned with a dog-themed study, statues from Asia, a reclaimed dining table and plenty of character. Master bedroom merchandising evoked an upscale hotel in Europe and the model’s fully built-out wraparound deck — offered as an upgrade — feature relaxing chairs, a grill and chiminea.

Christensen also modeled a bonus room as a “swing room,” with window seats that also could serve as beds for visiting grandchildren. A cubby in the closet stowed toys and stuffed animals.

“A lesson learned from the first model was that we needed a space for grandchildren to live. The homes we toured all seemed to have a space for them. It was important for us to tell that story,” she said.

The builder, Tom Hastings, attributed much of the 300% increase in traffic and a significant increase in be-backs to the new model, which also earned Best Interior Merchandising of a Home Priced Over $1 Million honors. 

“The new model more closely reflects our buyer profile,” Hastings said, adding that that the model’s merchandising has helped motivate buyers to purchase the floor plan with the modeled upgrades elsewhere in the community.

A media room and billards table were on the owners' wish list at Villa Como. Photo by Rixon Photography

Taking Every Aspect of the Home Owners’ Lifestyle Into Account

The home site for Villa Como, the 14,000-square-foot custom ranch home overlooking the Cocheco River in Dover, N.H., was breathtaking, but the property, itself, was problematic — 20 feet of hard clay and a 100-foot setback requirement from the river that made for a tight build site.

Undaunted, builder C.M. Ragusa, architect Fiorentino Group, landscape designer Grounds for Living and interior designer Michael Cebula of Cebula Design transformed it into a dream come true. Cebula’s interior design also earned The Nationals 2010 Best Interior Design of a Custom Home award.

When creating the home’s interiors, Cebula took every aspect of the couple’s lifestyle — including golfing, boating, wine tasting and travel — into account and built on the fact that the home’s name was derived from the home owner’s honeymoon in Italy. The designer also borrowed the blue and green color scheme from the surrounding natural environment.

A canoe hangs from the rafters in the two-story great room, helping to artfully delineate the room’s conversation and TV view areas. A coffee table in the room also doubles as a game table.

In the kitchen, European milk bottles comprise a pendant light and a mosaic above a six-burner cook top depicts a European food market.

Floor-to-ceiling windows, which can open entirely, convert the four-season great room into a porch when weather permits.

The master bedroom is decorated in navy blue and coral and features a disappearing TV and two-story closet. The master bath has a garden view.

On the lower level, the bonus room boasts a Tuscan mural, a wine room for 1,800 bottles, a golf simulator, a scotch bar and billiard table.

Sketches of Marilyn Monroe, James Dean and Paul Newman — drawn by Ron Wood of the Rolling Stones — adorn the home theater. In addition to movies, travel, wine and boating, the home owners are huge fans of the Rolling Stones.

Enter the 2012 National Sales and Marketing Awards — The Nationals

Digital entries for the 2012 National Sales and Marketing Awards — The Nationals are due Oct. 7 with entry materials due by Oct. 14.

Sponsored by NAHB’s National Sales and Marketing Council, The Nationals recognize innovation and excellence in 47 categories — including sales person and sales team of the year, advertising, websites, sales experience, interior merchandising, architectural design and community of the year — and typically draw more than 800 entries a year.

Open to individual sales and marketing professionals, home builders, associates and sales and marketing councils, winners will be recognized at an awards ceremony at the Peabody Hotel on Feb. 8 during the NAHB International Builders’ Show in Orlando.

For more information and to enter The Nationals, visit www.thenationals.com; or call 800-658-2751.

A version of this article was originally published in Sales + Marketing Ideas magazine.

Jan Mitchell is the senior editor for Sales + Marketing Ideas magazine and a freelance writer and photographer in the San Francisco Bay area who also contributes to real estate and home and garden publications. Mitchell previously served as an assistant director of the National Sales and Marketing Council and as consultant to NAHB and to several NAHB members. She also is a former contributor to Professional Builder magazine and a blogger for HousingZone.com. For more information, email Mitchell.

In Today’s Market, 'Think Sold!' With Help From NAHB BuilderBooks

“Think Sold! Creating Home Sales in Any Market,” available at NAHB BuilderBooks, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales.

The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language.

“Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives.

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

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

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

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

Six State-of-the-Art Systems Available for Waterproofing, Damp-proofing Basement Walls

Six state-of-the-art systems are available to builders who use concrete masonry, a common material choice for foundation wall construction, to help prevent water from penetrating basement walls.

Building codes typically require that basement walls are waterproofed where hydrostatic pressure exists and damp-proofed where it does not occur. Hydrostatic pressure can exist because of a high water table or poorly draining backfill, such as heavy clay soils. Damp-proofing is appropriate where groundwater drains well through granular backfill into a subsoil drainage system and no pressure exists.

Waterproof and damp-proof systems require a continuous barrier so that water does not penetrate into voids or open seams in a foundation. The barrier is typically carried above the finished grade level to prevent water from seeping between the barrier and foundation wall. The coatings are sprayed, troweled or brushed onto the foundation, providing a continuous barrier to water seepage.

The effectiveness of each system depends upon the hydrostatic pressure, the type of soil and its drainage characteristics, anticipated moisture levels, the preferred application method, elasticity, stability in moist soils, resistance to mildew and algae, and resistance to abrasion, impact and puncture.

Waterproofing and damp-proofing coatings can be sprayed onto a foundation wall.

Coatings can be troweled onto a foundation wall.

Coatings can be brushed onto a foundation wall.

Elastomeric and bentonite waterproofing panels can be attached to foundation walls.

The options include:

• Rubberized Asphalt
  
  Rubberized asphalt systems provide a continuous barrier to water and can elastically span small holes or cracks. A variety of rubberized and other polymermodified asphalt waterproofing systems is available. Most are applied as sheet membranes, although some are available as liquid coatings.
  
  Sheet membranes are applied over a primer, which is used to increase the sheet’s adhesion — one side is adhesive, the other has a polymer film. Adjacent pieces of membrane must be lapped and the top and bottom edges sealed with mastic to provide continuous protection from water entry.
  
  Once the membrane is placed on the wall, the surface is rolled with sufficient pressure to ensure adequate adhesion.
  
  Liquid rubberized asphalt can be melted at the job site and applied by airless spray, roller or brush.
  
  Both the liquid-applied and sheet membranes are covered with a protection board, which protects the waterproofing from construction traffic and during backfilling.
  
  
• Cementitious Coatings
  
  Cement-based coatings, which are troweled onto concrete masonry walls or brushed on using a coarse-fibered brush, sufficiently fill block pores, small cracks and irregularities.
  
  Some cementitious coatings are modified with polymers to increase elasticity and water penetration resistance.
  
  
• Elastomeric Products
  
  Acrylic-based elastomeric products provide a flexible barrier to water penetration for below-grade walls and are available as liquid coatings and as sheet membranes.
  
  The sheets are attached with adhesive and can be reinforced with fabric to further increase tensile strength and resistance to tears and punctures.
  
  Liquid coatings can be applied with an airless spray, roller or brush.
  
  
• Bentonite Panels
  
  Bentonite, a mineral that swells to many times its original size when wet, is dry and encased in Kraft Paper or fabric when incorporated in waterproofing panels. After the panels are installed, the bentonite swells the first time it is exposed to water — expanding between the foundation wall and backfill and forming an impervious barrier. The swelling seals small cracks in the foundation wall as well as punctures in the panels.
  
  To prevent premature hydration, bentonite panels must be protected from moisture until they are properly installed and the foundation wall has been backfilled.
  
  
• Parging and Bituminous Coatings
  
  Where drainage is good, a damp-proof coating of parging with a permanent bituminous coating has proven to function satisfactorily. A Portland cement and sand mix (1:3.5 by volume), or type M or S mortar may be used for the parge coat.
  
  Parging should be applied to damp (not saturated) concrete masonry in two 1/4-inch-thick layers. The first coat should be roughened when partially set, allowed to harden for 24 hours and then moistened before the second application.
  
  The second coat should be troweled to a smooth, dense surface. The parge coat should be beveled at the top to form a wash and thickened at the bottom to form a cove between the base of the wall and the top of the footing.
  
  To boost water-penetration resistance, a bituminous coating is applied over the parging. Coal tar or asphalt-based bitumens are available as a solvent for hot applications or as emulsions when applied at ambient temperatures. These coatings can be sprayed, brushed or troweled onto the finish coat of parging.
  
  
• Drainage Panels
  
  

  Cross section of a drainage panel installation

  Foundation drainage panel systems combine with waterproofing membranes to provide protection from ground water in areas where there is a high water table or hydrostatic pressure.
  
  The standard gravel drainage course and foundation drains with damp-proofing on the foundation are applicable in areas with occasional or no ground water.
  
  A typical foundation drainage system consists of a waterproofing membrane at the foundation with a preformed path — whether a grid system or a solid porous board — and a filter to keep the drain path clear of small particle build-up.
  
  Traditionally, filters have been a course of specially-graded aggregates, ranging from crushed stone or gravel to coarse angular sand.
  
  Filters made from geotechnical fabrics, commonly called “filter fabrics,” are a more modern — and more effective — alternative. They allow water to flow, while trapping small particles. These filters are also smaller and easier to install than traditional filters.

For more information on the systems, their application and installation, visit the National Concrete Manufacturing Association at www.ncma.org; or email the BSC at bsc@nahb.org, or call 800-368-5242.

This article was provided by industry experts of NAHB’s Concrete Home Building Coalition, part of the NAHB’s Building Systems Councils. The coalition is sponsored by the American Concrete Institute, the National Concrete Masonry Association and the Portland Cement Association.

To learn more about the various types of residential concrete construction, go to  www.nahb.org/ConcreteVideo. To learn more about the Concrete Specialization Courses through the Home Builders Institute’s Residential Construction Superintendent Series, visit www.hbi.org/concrete.

Attend SHOWCASE and Get the Systems-Built Info to Succeed; Register by Sept. 9 and Save

Builders, manufacturers and suppliers of the systems-built industry can learn about industry design trends, energy code compliance, copyright law and how to operate and market more effectively during the 2011 SHOWCASE on Oct. 23-25 in Baltimore. And if they register by Sept. 9, they can save $100 off onsite registration.

Held at the Hilton Baltimore, SHOWCASE, presented by NAHB’s Building Systems Councils (BSC), also will feature education and networking opportunities, an exhibitors’ hall and a tour of panelized home producer Shelter Systems’s 120,000-square-foot, state-of-the-art lean manufacturing facility — which maximizes efficiency, utilizes cubic space, reduces labor requirements, and improves customer responsiveness through quicker cycle times.

Tour attendees also will learn how they can incorporate lean manufacturing best-practices into their business models.

Industry Outlook, Leadership Roundtable Discussion

Baltimore's Inner Harbor

In addition, NAHB Chief Economist David Crowe will provide short- and long-term insights on the industry during an open-forum, question-and-answer session that can help attendees make crucial business decisions.

SHOWCASE also will feature an executive roundtable discussion on business strategies related to marketing, inventory, sustainability and other topics critical to the systems-built industry.

For descriptions, dates and times of the education sessions and events, check the conference schedule.

To Register

For more information and to register, visit www.nahb.org/showcase; or email bsc@nahb.org. Or call 800-368-5242 x8576, or email bsc@nahb.org, or call 800-368-5242 x8576.

Commercial Construction Wobbly in July Following Some Gains in June

After a jump in June, the dollar volume of commercial construction project starts fell 6% in July, according to McGraw-Hill Construction’s report released on Aug. 19.

Total new construction was down 10%, even with a slight 3% increase for residential building supported by multifamily projects.

“America is in a very cautious mood about the overall economy and, combined with the difficulty in obtaining financing, we are stuck in the doldrums for construction,” said Gene Graf III, chair of NAHB’s National Commercial Builders Council.

“The best advice for builders is to try to get their house in order for any opportunity in the future,” he said.

Nonresidential Building Figures

Only a few categories of commercial projects showed increases from June to July, according to McGraw-Hill.

“Nonresidential construction activity has shown a great deal of volatility in recent months, but the overall trend across most property types is negative,” said NAHB senior economist Brian Lego.

The bright spots included a 190% jump for manufacturing buildings, which was buoyed by work starting on a semiconductor plant in Arizona and a laboratory in Boston.

Smaller increases were reported for educational buildings (12%), transportation terminals (44%) and churches (48%).

Among the sectors losing ground in July, health care facilities and amusement-related projects — which were both up in June — showed the largest declines of 55% and 45%, respectively. 

Also following gains in June, hotel construction was down 32% in July and public buildings declined 21%.

Store and office construction were both down 9% in July and warehouse construction dropped 10%.

“Construction of new office space remains very weak due to still-high vacancy rates and sluggish job growth in many of the core office-using industries,” Lego said.

“While some of the fundamentals for the manufacturing sector have outperformed the U.S. economy as a whole, factory operating rates continue to lag well behind historic norms. Consequently, this has caused most construction activity for the sector to be isolated to a handful of industries and/or very specific build-to-suit projects,” he said.

“Retail and lodging construction continues to struggle as both of these consumer-oriented sectors cope with a combination of poor fundamentals on both the supply and demand side,” he added.

Nonresidential Architecture Billings

Another indication of the wobbly state of nonresidential construction, the American Institute of Architects (AIA) reported that its Architecture Billings Index (ABI) dropped more than a point in July.

This index shows the nine- to 12-month lag time between architecture billings and construction spending. A drop in the index reflects a decrease in the demand for design services. A score over 50 indicates that billings are on the increase, and a score below 50 shows billings are decrlining.

The July ABI score was 45.1, following a score of 46.3 in June — the steepest decline in billings since February 2010.

The scores by sector were: commercial/industrial (47.9), institutional (47.2), mixed practice (47.1) and multifamily residential (44.7)

Rise in Construction Services Prices

The amount contractors paid for construction materials and charged for completed projects both increased in July, according to an analysis of producer price index figures by the Associated General Contractors of America (AGC). However, AGC officials said that it was too early to tell whether contractors will continue to be able to raise prices.

The index for what contractors charge for construction projects increased between 1.0% and 1.3% in July and from 2.3% to 3.1% for the year, depending on building type.

With the exception of school construction, the monthly increases were at their highest rate of growth in two years, and the annual increases for all types of new construction were all at two-year highs.

The producer price index for all construction materials increased by 0.3% in July and 8.9% over the past 12 months.

Prices rose for copper ores, copper and brass mill shapes, prepared asphalt and tar roofing and siding products, and plastic resins and materials.

Diesel prices declined by 1.8% for the month, but remained 49.9% higher than a year earlier.

For information on commercial building resources available from NAHB, click here, or email Lisa Leone at NAHB, or call her at 800-368-5242 x8455.

Sept. 14: Webinar to Teach Builders How to Use YouTube and Photo Sites to Market, Sell Homes

While much of the focus on how to use social media centers around Twitter, Facebook and LinkedIn, the “YouTube 101” webinar will teach builders how to use video and photo sites to market and sell homes through other popular sites such as YouTube and Flickr.

The webinar, sponsored by the National Sales and Marketing Council, will help attendees determine if focusing on video and photos is right for their business and possibly keep a builder from missing an opportunity to reach a prospective buyer.

The webinar will be held from 2:00-3:00 p.m. EDT on Wednesday, Sept. 14.

Participants will:

• Understand the impact and relevance of YouTube/Flickr sites in the home building industry
• Learn best practices for creating and uploading video/photos
• Get ideas for creative and practical applications of video/photo sites in new home sales and marketing

Speakers include IRM Second Vice Chair Meredith Oliver, MIRM, CMP, of Meredith Communications Inc.; and Rich Carleson, MIRM, CMP, CAASH, of Carlson Communications. Ross Robbins, MIRM, CMP, CSP, will moderate the discussion.

Participants can earn one hour of continuing education credit toward their designations.

To Register

The fee is $19.95 for NSMC members, $24.95 for NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

For more information, email Tamsin Ayer at NAHB, or call her at 800-368-5242 x8673.

'Social Media for Home Builders 2.0' Available at NAHB BuilderBooks

“Social Media for Home Builders 2.0: It’s Easier Than You Think,” available through NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry.

The publication explains how builder can use social media sites to build their brand, engage new and existing consumers, manage their online reputation and sell more homes.

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

Sept. 28: Webinar Looks at What’s Cooking in Kitchen Design

With current home design trending to less space and more quality, a panel of architects and designers participating in a webinar on "Reinventing the Kitchen” will explore the dynamic concepts, products and materials that add value to today's kitchens.

Sponsored by the NAHB Design Committee, the webinar will be held from 2:00-3:00 p.m. on Wednesday, Sept. 28.

Panelists will discuss a survey of lifestyles and trends that affect home owners' preferences and provide insights into how to compete in the current housing market.

Attendees will:

• Learn how priorities are changing in kitchen design, products and materials
• Take away a list of action points for improving their next kitchen plans
• Increase their knowledge of current trends in kitchen design
• Broaden their understanding of the kitchen elements that are most attractive to buyers

Participants can earn one hour of continuing education credit toward their designations.

To Register

The fee is $19.95 for Design Committee members, $24.95 for NAHB members and $44.95 for non-members.

To register online, visit the NAHB Webinar Wednesdays registration page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

For more information, email Jaclyn Toole at NAHB, or call her at 800-368-5242 x8469.

Oct. 5: Webinar to Provide Proven Value-Match Selling Techniques to Sell More Homes

NAHB BuilderBooks will host the webinar, "Sell More Homes Using Value-Based Selling Techniques," providing proven sales techniques that will help builders and salespeople uncover the values that drive their prospective home buyers’ buying decisions. The webinar also will provide tips on how to successfully close the sale.

The webinar will be held from 2:00-3:00 p.m. EDT on Wednesday, October 5.

During the webinar participants will learn how to:

• Understand the role of love and fear in the sales process and how these powerful values affect the sales process
  
  
• Listen for and make the most of hidden emotions to build unbreakable relationships, establish powerful competitive advantages and rapidly close the sale
  
  
• Ask for the close at least four times on every presentation

The program will feature William Nowell, president and owner of ServiceTrac, LLC and author of "ValueMatch Selling for Home Builders: How to Sell What Matters the Most.”

Participants are encouraged to email questions for the webinar to Patricia Potts at NAHB by Friday, Sept. 30.

Participants can earn one hour of continuing education credit for their NAHB professional designation.

Participants can also save 50% off Nowell’s publication, “ValueMatch Selling for Home Builders: How to Sell What Matters the Most” available at BuilderBooks.com.

To Register

The webinar is $19.95 for NAHB council members, $24.95 for NAHB members and $44.95 for non-members.

To register, visit www.nahb.org/builderbookslive. Registrants will receive an email confirmation.

For more information, email Patricia Potts, or call her at 800-368-5242 x8224.

Oct. 19: Webinar on How to Boost Leases and Sales in Multifamily Communities

A panel of marketing professionals will share creative, value-added marketing strategies that will increase occupancy and sales in multifamily communities — without breaking the budget — during the “Successful Marketing Strategies to Boost Leases and Sales in Multifamily Communities” webinar beginning at 2:00 p.m. ET on Wednesday, Oct. 19.