2014 To Be Second Best Year Ever For Texas Housing Market

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In a report issued by Texas A&M’s Real Estate Center, economists say they expect 2014 to be a record-setter for the Texas real estate market.

Jim Gaines, an economist with the center, says that “Last year was the second-best year ever in the state of Texas for home sales volume,” adding that, “It was second only to 2006, which was at the height of the housing boom and all the easy financing. And 2013 wasn’t that far off from that. This is going to become the new second-best year ever. We are having a really terrific year.” The report goes on to say that 217,690 homes had been sold in Texas as of the end of September, which is a 1% gain over last year’s booming numbers.

Gaines attributes the record sales to “a slowdown in the rate of increase,” with 2013 sales jumping 16% over 2012, but 2014’s numbers increasing only slightly over the previous year’s. “There’s been a step-up in prices the last five years,” Gaines explains, “and we’re still seeing that step up. But the rise of the step isn’t quite as high.” Home prices conform to the trending rate increases.

Steve Fithian, an agent with Sperry Van Ness/Visions Commercial has brokered quite a few deals in the DFW area during 2014, most notably a long-vacant Blockbuster Video building and a small office complex in central Dallas. According to Fithian, sales like this indicate that “The economic recovery is apparent in DFW, Job opportunities are expanding, industries are growing,” states Fithian, “and the real estate market is heating up. Considering where things were five years ago, it’s exciting to see how healthy the real estate market is becoming.”

Real Estate power site Zillow has predicted that homes in the DFW area will rise 4.4% by the end of 2014. The median home value is up 6.1% over a year ago, with median prices sitting at $148,000. Zillow confirms that these increases have placed the DFW housing market squarely within pre-2007-2010 recession levels.

10% Jump in Construction Starts for September

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According to McGraw Hill Construction, the seasonally adjusted annual rate of $604.1 billion amounts to a 10% increase nationwide in September. This welcome increase follows a the disappointing yo-yo pattern of July and August, and marks the highest level in construction activity so far for 2014.

Commercial, institutional, and other non-residential construction gained sharply during September, with noticeable increases in manufacturing plants and public utility repair and refurbishment construction. Residential building, on the other hand, declined in the month-to-month numbers for the year-to date, although the 9 months of unadjusted construction starts averaged $419.5 billion, marking a 5% increase over the numbers in September 2013.

The Dodge Momentum index rose 12 points from August levels, which places it slightly ahead of July’s rating of 126, according to construction data expert McGraw Hill Construction. McGraw Hill economist Robert A. Murray explains that although construction starts dropped 10% in Q1 and 6% inQ3 for 2014, “A key factor in keeping the construction expansion going in 2014 has been the greater role now being played by non-residential building.  Commercial building has continued to see moderate growth from low levels, and the manufacturing building category is still showing a surge of chemical and energy-related plants reach groundbreaking.”

Institutional categories are up across the board, which translates to the construction of institutional structures being able to contribute to the non-residential building boom.   According to Murray, “residential building is now providing a much smaller lift than in the past two years, as the sluggish performance by single family housing has outweighed further gains by multifamily housing.”

The year-to-date drop in residential amounts to 9%, leveling off at $212.7 billion. The year’s hottest sector, multifamily housing, fell a staggering 23% from the strong August levels. September saw four major multifamily projects valued in excess of %100 million apiece, break ground. A $266 million condominium hotel in Hollywood, a $230 million multifamily project in Washington, D.C., a new condominium complex in Honolulu totaling $215 million, and a $183 million condo tower in Miami, Fl. New York, NY, Washington, D.C., Miami, FL, Los Angeles, CA, and San Francisco, CA were the five largest-spending metropolitan areas in September. 

The 3% dip in single family-housing for September is the third consecutive month of decline after the spike in late spring. The flat residential pattern nationwide for 2014 continues. Single family construction weakened by 6% in the Southeast, 4% in the Gulf Coast, and 3% in the West. However, modest gains of 2% in the Midwest and 4% in the Northeast were made.

According to Murray, “This year’s stall for single family housing means that the lift provided to total construction is much less than what occurred during the prior two years, when single family housing advanced 29% in 2012 and 26% in 2013.  The 20% down payment requirement, generally in effect since the end of the financial crisis, has made it difficult for lower and middle income households to get approved for a mortgage, and more attention is now being directed by federal officials at ways to expand access to home loans.”

Officially Released: the Reorganized ACI 318-14 Concrete Construction Guide

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The American Concrete Institute (ACI), has finally released the updated and reorganized ACI 318-14: Building Code Requirements for Structural Concrete. The 2015 International Building Code will reference 318-14.

While the American Concrete Institute’s mission has always been to create and distribute industry-gleaned consensus knowledge about the uses and types of structural concrete, 318-14 marks the first time in decades that they leapt forward in realizing those goals. After decades of near-unintelligiblity, the 318 has been revised and reorganized, making it more user-friendly for building code enforcement in the construction industry. Many see the current update as the most dramatic changes since 1971. Whereas the entire industry had previously seen ACI 318 as a ponderous document that was tedious to read and difficult to understand, the current edit, which streamlines several chapters, rearranges key information, and simplifies the language being used, is a welcome change.

The changes to the code have come about in response to the improved knowledge of innovation in concrete materials, of how structural concrete behaves, and of increased sophistication in structural concrete technology. The latest changes, however, give a new, clearer, context for that information. According to award-winning structural engineer Cary Kopczynski, the current revisions “revolve mainly around the organization of the code requirements, shifting the focus from a “force-based” to “element-based” format.” For example, instead of organizing the document according to the different forces that affect concrete such as shear and flexure, the new code addresses how concrete performs when it is used in particular building elements such as slabs, columns, and beams.

In older versions of the code, builders had to flip back and forth madly between chapters, piecing together the code for a given structure. In the newly updated code, the structure being built has everything you need to know about the proper code compiled cleanly together in a single chapter. In cases where a complex design incorporating multiple elements is being built, take rebar bends, for example, the information will be published in a “toolbox chapter” that will avoid needlessly repeating information by referencing the previous chapters.

  • Improved language and style consistency
  • More expansive use of tables and charts
  • Improved logic and flow of information
  • Member-based organization to quickly locate relevant code information
  • Construction requirements centralized in one chapter
  • Significant highlights of the new ACI 318 include:
  • Improved language and style consistency
  • More expansive use of tables and charts
  • Improved logic and flow of information
  • Member-based organization to quickly locate relevant code information
  • Construction requirements centralized in one chapterThe building code committee of the American Concrete Institute updates ACI 318 every three years. The ACI standardization procedure mandates that the draft of these changes be made available for public review for a period for 45 days prior to the update being submitted to the International Code Council. To review the new code, visit the ICC website.
  • It was clear to the committee that further updates are needed as soon as possible, but the need to both update and reorganize the information was a daunting and time-consuming task. Many vital updates have been postponed until the 2017 update. The current edition isn’t a simpler or condensed version of the structural concrete building code, but it is a clearer and more user-friendly one that designers and builders will be very happy to see.

Mixing It Up in Suburbia- Mixed Use Property Skyrockets in Dallas Submarkets

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The suburbs of Richardson and Plano are upping the ante in the Dallas real estate market. In an effort to anticipate the demands of an increasing population density in the region, both cities are raising height limits for office towers and expanding their zoning for mixed-use properties. Fully entitled, vacant land is becoming scarce in the Dallas area, which the raised height limits and mixed-use zoning for both cities are hoped to alleviate.

A 55-acre tract along U.S. Highway 75 and Renner Road in Richardson has received increased office tower height limits. The maximum building height for the office building along central Expressway and the Bush Turnpike was raised from 180 feet to 300 feet. The growing demand for more office development is reflected in the increased project height. The development will be build beside the 1.5 million-square-foot State Farm Insurance Corp. campus currently being built in the CityLine development. As yet unnamed, this project will combine retail, residential, and commercial office space plotted along a central boulevard.

Richardson mayor Laura Maczka acknowledges that although multifamily developments “are a hot-button [topic] in this community,” the multifamily provision for the tract has been in place for years, and they aren’t “adding more multifamily that’s not already on the books.” In fact, The number of multifamily residential units has dropped to 100 units from the 1,250 that were originally planned.

Last February, retail giant J. C. Penney partnered with Karahan Companies, Columbus Realty, and KDC to develop the Legacy West business park on 240 acres of vacant land surrounding its Plano headquarters. last week, the Plano town council approved of zoning changes for the first phase of the Legacy West project that will include mid-rise residential towers of 5-12 stories in height. Similar to the Karahan’s other project, Legacy Town Center, this $300 million project will include a hotel, shops, restaurants, and offices along with the multifamily housing. The Council also approved Legacy West’s rezoning request to include 800 units of multifamily housing and single-family homes on 70 acres along the southwest corner of Dallas North Tollway and Headquarters Drive. The project will also include a highly concentrated business center near State Highway 121 and the Dallas North Tollway that will include up to 1,000 multifamily units.

This rezoning has allowed the Legacy West timetable to be accelerated. According to developer Fehmi Karahan, the partners plan to have Legacy West ready for the arrival of Toyota’s North American headquarters in California that will serve the 4,000 workers who will be employed at the company’s new U.S. Headquarters. The developers’ decision to make the area pedestrian-friendly was one of the Council’s major motivating factors.

 

 

 

Aubuchon Homes Expands into Southwest Florida

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HBW subscribers know that Southwest Florida is a boom market for residential construction. The boom has grown so strong that Cape Coral builder Aubuchon Homes is expanding deeper into the region. Aubuchon Homes is accomplishing this goal by taking its Sterling collection to Fort Meyers. They are showcasing their new collection with one display home located on McGregor Boulevard, and plan to build another on an adjacent lot. Unlike model homes, which are for show only, these furnished display homes are being built for market.

Public perception of Aubuchon Homes as a Cape Coral builder is part of why they decided to build in Fort Meyers. Company president Gary Aubuchon says that, “people associate us as a Cape Coral builder and we want to change that,” said Gary Aubuchon, president of Aubuchon Homes.”

Aubuchon builds homes in every county of Southwest Florida, and they plan to strengthen their presence as a regional builder by opening an office near Bonita Beach Road. The office is slated for a January opening. Bonita Springs Chamber of Commerce president  and CEO Christine Ross is thrilled to see Aubuchon move into the city. “[Businesses] are returning to the community and it’s really exciting for us,” she says, adding, “I think it speaks to the health of the market and to the progressive protocols we have in place in the city of Bonita Springs to be builder-friendly and a one-stop shop.”

Ross’ enthusiasm is matched by Aubuchon’s excitement at solidifying their operation expansion into the region. According to Aubuchon, “Our plan is to be known as a regional builder in Southwest Florida.” They are still building homes in the Cape Coral and Lee County markets, and they are returning to Collier County after a 20-year absence. “We are building our first Collier County home since the 1990s,” says Aubuchon.

Homes in the Sterling collection are based on the company’s older styles, but they have been considerably revamped for the mid-range market. The seven home styles will range from $259,900 to $384,900. Another selling point for Aubuchon is that each of the seven floorplans can be modified; bedrooms and walls can be added or removed, and double doors can be substituted for walls. Of this design flexibility, Aubuchon states, “there are a lot of different ways the house works depending on the client’s needs.”

Of his company’s unique homes, Aubuchon says that “they have been designed for maximum value; it’s all the home you need without the home you don’t need.”

Building professionals seeking residential construction permit information or home building job leads with Aubuchon Homes and other Southwest Florida builders should investigate HBW’s permit reports and building activity data. Or, save yourself  time and energy by searching for Aubuchon’s latest projects in HBW’s cloud-based database.

Quality May Falter During Construction Industry Boom

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The enormous growth in residential and commercial construction might suffer from quality issues, according to Quality Built, LLC, a firm that offers quality assurance and risk management support to the construction industry.  Quality Built’s construction defect data bank is the largest in the nation. That, along with their quality assurance program, makes them one of the “Big Data” authorities for the construction industry.

Brian Kramer, P.E. and C.E.O. of Quality Built, says the firm’s available data indicates that “construction [is] continuing to grow at a rate that is nearing long-term averages on a national scale…while at the same time approach[ing], if not nearing, “boom levels” in certain markets.” In areas with significant construction activity, there seems to be “little that will slow demand for new construction as low-interest rates, available capital, and strong demand from lack of construction during the post boom years,” and these conditions are driving market demand for residential and commercial construction.

But, Kramer, explains, these boom trends bring a spike in risk that needs to be properly managed. In their recently published white paper report, “A Decade in Construction Inspections,” it was revealed that the quality levels for construction for all asset classes had reached its lowest point just as the real estate market began to recover from the depths of the recession. The report identified a “perfect storm” of factors which contribute to the current situation. Builders are under increasing pressure to meet difficult delivery demands with shorter deadlines and tighter budget controls, and the in-house quality assurance programming is often sacrificed to meet budget and time constraints. The recession drove a roughly 40% of the skilled and experienced trades professionals out of the industry, leading to the current shortage of experienced, qualified labor and field management personnel.  The tighter budget and time constraints squeezing quality assurance endeavors out of the planning and building process, along with the lack of builders skilled in producing high-quality work, has resulted in the “perfect storm” of otherwise preventable construction defects and lower construction quality across the board.

To meet this powerful need in the construction industry, Quality Built has specifically designed its quality assurance and risk management program to meet the needs of today’s market. Quality Built president Beth Michaels explains that the firm has responded to the current crisis “by expanding our risk assessment protocols to integrate educational programs, trade contractors and internal QA metrics into a closed-loop process guaranteed to promote continuous improvement in a cost-effective manner.” Additionally, Quality Built’s 3rd-party quality assurance program offers “a second set of eyes in the field,” to aid with “quality assurance inspections and technical peer plan reviews,” in addition to offering “web-based technical training on construction defects and how to avoid them,” with programs tailored to meet the individual needs of the builders.

To learn more about Quality Built’s programs and products, contact them, or visit their website.

KB Home Moves in to Converse

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HBW subscribers looking for residential construction job leads and home building permit activity information have their eyes on KB Homes’ new Converse, Texas development. KB Homes welcomes all to Windfield, their expansive new planned community in Converse, Texas. Homebuyers will be able to choose from over a dozen fully customizable one- and two- story floor plans.  Residents will enjoy living within minutes of the Houston Loops 1604, 410, as well as IH -35 & IH-10, which places them near major employment corridors, For Sam Houston, Randolph Air force Base, Brooke Army Medical Center, and attractions throughout central Texas.  Families in Windfield will also find themselves convenient to A-rated middle schools and high schools.

 

The floor plans featured in Windfield come from KB Home’s signature Sterling collection. The development will feature 115 single-family homes ranging from 1,516-2,960 square feet, with accomodation for up to 6 bedrooms, 3½ baths and a two-car garage. KB Home’s San Antonio division president Brett Dietz says that “we are excited to invite home shoppers to visit Windfield and discover everything this new neighborhood has to offer.” Dietz stresses that the Sterling offers everything “from exquisite exteriors and curb appeal, to spacious living areas perfect for family gatherings and entertaining.”

 

If Windfield’s configurable lofts, open kitchens, and spacious master suites aren’t impressive enough, KB Homes is offering Energy Star appliances and other energy-efficient features. Each home is Build San Antonio Green certified to be water- and energy- efficient to conserve natural resources as well as cut down on the monthly utility bills. The WaterSense water fixtures that are standard in all of Windfield’s homes will help homeowners conserve almost 30,000 gallons of water and nearly $300 on their utility bill each year. High-performance windows and insulation, along with radiant barrier roofing and programmable thermostats will help reduce household energy usage as well.

USGBC Announces 3 LEED Courses to Grow Your Business

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LEED certification has become a highly-sought-after credential for developers and builders alike. But initial LEED certification is only the first step in a career-length journey into mastery of LEED principles. Continuing education units are integral to the LEED certification system, because you need to accumulate a number of units to qualify for re-certification every four years. The United States Green Building Council offers online courses to help LEED-qualified professionals earn their CEU’s and keep their knowledge and skills up-to-date.

One webinar offered by the USGBC is the “Optimization of Commercial Building Systems: Technologies, Practices and Strategies” course. This course focuses on the tools, tech, and best practices for energy management in commercial buildings. The course will teach building professionals how to minimize energy use by maximizing their HVAC and lighting systems. Variable-frequency drive (VFD) and Light-Emitting Diode (LED) retrofits will also be discussed. According to the USGBC, “operational practices, often the lowest cost energy conservation measures, can provide significant returns in energy and dollar savings. Efficient scheduling and sensor error remediation can produce results with very little investment.” This webinar will cover operational adjustments, airside economizer optimization, slider controls for lighting and ventilation as well as fan controls for improving indoor air quality. 1 CEU, $45.

Another popular webinar offered by the USGBC is the “Basics of Building Sciences” course. The course is designed to provide a solid foundation in basic building science principles. Participants will be introduced to the “house as a system” model. In addition to addressing the fundamentals of heat, air, and moisture flow in buildings, this model is useful for improving and assessing building performance.  Two key objective of the course are to “recognize the basic principles of building science as they relate to heat, air, and moisture movement in a building, and to examine the multiple components of the building envelope and how they interact with each other to produce an efficient system.” The review questions that appear throughout the presentation aid participants’ retention of information, to help pass the end-of-webinar test in order to receive the CE credit. 1 CEU, $45.

To learn more, or to enroll in these webinars or any of the USGB’s LEED courses, check out Education @ USGBC.

Build Faster, Cheaper, and Greener With 3D Modeling

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3D modeling technology is gaining ground as a means to drive efficient, green construction efforts. Use of 3D modeling as a design tool improves the quality of technical information that builders can get from tech specs.

Higher-quality information will help builders greatly reduce production time, waste in offcuts, abortive work, and bring an end to chronic over-ordering of building materials. When laid out in the 3D Building Information Model (BIM), new build properties can be tested before implementation, a move that can reduce the cost of property development by 20% or more.

Even better, 3D modeling can help reduce waste and costs for remodeling and refurbishing existing buildings, too. This is especially important for historic preservation efforts, where detailed historic architectural information must be overlaid with the more recent infrastructural information as well as the proposed renovations and alterations.

3D BIM begins by scanning the building inside and outside with a tripod-mounted laser scanner that is calibrated to millimeter accuracy. The laser scanner charts all building surfaces as coordinate points along an x-y-z graphical plain. The laser scans are repeated from multiple angles to make sure that nothing is missing or left out. The laser data is then uploaded to the computer and rendered to link the coordinates from each of the scans, which process creates a detailed 3D digital model of the building.

Regardless of whether it’s built from scratch or made from scans of an existing building, once constructed, the 3D model is attached to a number of cross-indexed databases, which allows for a number of different stakeholders to access real-time updates and alterations that have been made to the 3D model.

In addition to the 3D structural model, 3D models of the water, electrical, gas, HVAC, and other utility infrastructure can be superimposed on the existing model. These infrastructural renderings are also uploaded to the shared database. This allows stakeholders to easily and quickly access the specific information about particular plumbing and power junctures without having to trawl through masses of renderings and information. It also allows designers to test green technology retrofits and improvements virtually to measure the benefits before those improvements are implemented.

Lennar Hiring Builders & Subcontractors

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The huge shortfall in the national construction labor industry has hampered expansion and growth in the construction industry, and Lennar plans to do something about it. Lennar’s expansion across of South Florida has been stymied by the lack of builders to help realize their goals. To remedy this shortage, Lennar held an employment expo on October 9 at the Signature Grande in Davie to recruit contractors and subcontractors.

Lennar is seeking subcontractor specialists in roofing, fencing, painting, electrical, plumbing, masonry, and other trades. Project managers and construction managers are also invited to see what Lennar has to offer. Positions are available with Lennar properties all across Palm Beach and Broward counties.

Lennar’s Mira Lago development in Parkland has 700 home sites ready to be built on. This extraordinary development features custom homes situated along the shores of Parkland’s largest lake. Many homes will be nestled onto their won private lake peninsulas. Nearly every home in Mira Lago will have a panoramic lake view, and home prices begin in the mid-$500k range.

Vaquero Trails in Davie is a 16-acre property that will feature 78 townhomes ranging from 1,887-2,208 square feet, and range in price from $347,990 – $382,990. This pocket neighborhood will feature a community recenter with a fitness room, swimming pool, and cabana.

Lennar’s intimately-scaled Aspen Glen property in Boynton Beach will feature 45 luxurious homes featuring 4 & 5-bedroom floorplans ranging from 2,014-3,130 square feet. Homes being in the mid-$300k range. Located between Delray Beach and Palm Beach, Aspen Glen is close to A-rated schools, shopping & dining, and world-class entertainment.

Located in the heart of Palm Beach county, Lennar’s Capistara development offers 7 unique designs in an exclusive gated community of only 110 homes, many of which are situated on oversized lots. The close proximity to A-rated schools, shopping dining, and local attractions, along with a convenient commute to I-95 make this development an ideal place to call home. Floorplans range from 1,882-3,528 feet and 3-5 bedrooms, and home prices start at $325,990.

If you are interested in working with Lennar to develop any of these fine properties, email Lennarcontractors@Lennar.com or visit the Lennar website for more information.