USGBC’s Greenbuild Expo Adding Sustainability Summits to 2014 Program

Posted on by

Greenbuild , the United States Green Building Council’s annual conference and exposition, will be happening from October 21-23 this year as the Morial Convention Center in New Orleans. Already well-known for educational presentations and exhibits featured on the showroom floor, Greenbuild is enhancing its educational offerings with three summits at this year’s expo.

The Affordable Homes and Sustainable Communities Summit will take place on Tuesday, October 21, 2014 from 9:00 AM-5:30 PM. Dedicated to sharing knowledge and problem-solving  about green affordable housing and sustainable community development, attendees are dedicated to “expediting the economic, social, and ecological health of underserved communities. Dr.  Antwi A. Akom, associate professor of Environmental Sociology at San Francisco State University and co-founder of the Institute for Sustainable economic, Educational, Environmental Design will deliver the opening address. Sessions on healthy housing, community engagement, profitability and affordable green housing,  gentrification, and investment in underserved communities will be featured at the summit.

The Materials and Human Health Summit will also take place on Tuesday October 21, from 9:00AM-5:30PM. Internationally renowned designer, strategist, and sustainable growth pioneer William McDonough  will present the opening address. Sessions will focus on on purchasing and spec transactions, life-cycle assessment for whole buildings, LEED v4’s impact on the materials market, how to interpret environmental product descriptions (EPD) & health product declarations (HPD) when crafting a bill of materials, and building a sustainable materials workforce.

Both the Materials and Human Health Summit and the Affordable Homes and Sustainable Communities Summit  will share a closing keynote address by  Acting U.S. Surgeon General, Rear Admiral Boris D. Lushniak, MD, MPH, who will be discussing the role of the U.S. Public Health Service in collaborating to with the building and materials industries to improve and promote the health of individuals, families, and communities.

The Vision 2020 Sustainability Summit also takes place on Tuesday the 21st, but runs from 7:45AM-4:30PM. This summit offers continuing education units to maintain your LEED certification, and affords networking opportunities for those working in sustainable building. The focus of Vision 2020 is to demarcate critical sustainability goals and determine what needs to happen in order to meet these goals by 2020. Energy and water efficiency, building science, indoor environmental health,  materials and products, design, economics and financing, underwriters, codes and regulations, and sustainable communities will be discussed at this summit.

Strong Sales and Slow Building Starts Split Oklahoma City Housing Market

Posted on by

2014 saw the Oklahoma City housing market slowly build back up. Pre-existing home sales have steadily increased. But even as areas near Moore and Edmond have expanded out, the home building market in Oklahoma city hasn’t quite rallied to the level market prospectors hade hoped.

According to the Central Oklahoma Home Builders Association and Oklahoma City Metro Association of Realtors, buyers have been paying more for their houses, but this positive development has been offset by a drastic shortfall in the supply of new housing and labor shortages. The inventory of new homes is dropping drastically, and while the prices are higher, demand has dipped.

With the strong local economy, high employment rates, and low mortgage rates, it’s difficult to tell exactly why the single-family new homebuilding market is underperforming even as the sale of existing housing remains strong.

Construction was slower this year in part because of the weather. The severe winter conditions caused construction delays, as did the exceptionally wet spring season. But as things warmed up and dried out, the awaited upturn hasn’t quite materialized.

According to the building permit reports, home building stats are down 8.9% compared to last summer across Canadian, Cleveland, and Oklahoma counties. Permits were down 10.3% in Oklahoma City, Edmond, Midwest City, and Norman for the first half of 2014.

Part of the problem lies in the lack of developed land. When the real estate market tanked in 2008, land investment and acquisition did, too. Because it takes an average of two years to credential and entitle land tracts in preparation for development and building, and nobody has been buying land since 2008, there aren’t a lot of lots that are ready to become developed subdivisions. Developers are just now beginning to invest in land again, and these lots won’t be ready for another 2 years.

Another issue is that the supply of new homes has been so low that the prices for new homes, as compared to prices for existing homes, has been disproportionately high, which has kept buyers from entering the game. the Oklahoma City Metro Association of Realtors report a 2.58 increase in home sales for July, with and overall increase of 12.07% over the last summer’s rates.  The housing inventory of newly built homes is lowest in the middle- and lower-middle price range where most people live. There is a 3.3 month supply for homes priced $125,001-$200,000, and a 3.4-month supply for homes priced $75,000-$125,000.

Modest New Home Market Expected to Continue

Posted on by

After 6 years of doldrums, the overall housing market in the U.S. is finally back on track. But the new residence sector of the market is “running in place,” maintaining the modest gains made over the beginning of the year but not quite breaking through to growth levels.

According to Regions Financial chief economist Richard Moody, “the new-home sales figures by now have that lived-in feeling, with few signs of a significant change, in either direction, over the near term.” The sales pace of newly built homes is approximately 8% lower than last year’s figures, with July’s seasonally adjusted sales rate running 2.4% lower than June.  The median price for a new home was 269,800 for July, with is the lowest rate since February.

Despite appearances, these numbers aren’t quite as terrible as they seem. New home sales in the South region are up by 5.4%. More importantly, the inventory of newly built homes reached a four-year high in July, with the six-month supply rate running over 5%. Given the serious labor and lot shortages that have strained residential homebuilding in recent years, these numbers are a positive indicator that the market grown for new homes is stabilizing, which experts consider a precursor to steady future market growth.

Patrick Newport and Stephanie Karol, economists for IHS Global, identify the modest pace of new home sales as a “temporary result of an inadequate supply of new homes,” which has driven the house prices up in the hotter housing markets.

The current mortgage rates are also beneficial for the US Housing market. According to Freddie Mac, the current average interest rates on mortgages sits at 4.10%, down from the 4.58% rate of a year ago.

Architecture Billings Index Reaches 7-Year High

Posted on by

According to the American Institute of Architects, commercial building has reached its highest point since 2007. The Architectural Billings Index, which is used to predict construction spending for the next 9-12 months, scored the current market at 55.8. Scores of 50 or higher indicate market growth. According to AIA chief economist Kermit Baker, “We’re going to see some reasonably healthy numbers for architecture billing.”

While the commercial and residential markets are strong, the institutional market, which includes hospitals, government buildings, and schools, has been lagging somewhat. Although institutional construction did pick up later in the fiscal cycle, Baker said that the lag is “holding back a broad-based recovery.”

The Index projections indicate that demand for manufacturing, retail, hotel, and distribution will increase to about 8% in 2015. The institutional market is expected to improve in 2015 as well. The architectural billings will doubtless increase as long as client confidence in the economy remains high.

Regional scores for the index also indicate market gains in each area, with 55.5 in the Northeast, 55.1 in the South, 54.1 in the Midwest, and 53.5 in the West. The gains were particularly strong in the West, which saw a jump from 48.7 in June, bringing an end to the 3-month slump in that regional market. The South continues its reign as leader in new design activity, having shown steady increases for 25 consecutive months.

The Architectural Billings Index is taken from AIA’s Work-on-the-Boards Survey and Panel, a monthly study conducted by the AIA’s Economics and Market Research Group. The survey tracks an architectural firm’s availability to engage additional work as well as the rate of billings as compared do the previous month.

Major Development in Dallas Enters Phase II Construction

Posted on by

Many HBWeekly subscribers in the Dallas construction market seeking residential building leads and commercial construction job leads have been following the building activity of Preston Hollow Village, at the corner of Walnut Hill and North Central Expressway, with tremendous interest.

The development has been under construction since August of last year. Currently, office and retail projects are underway at Preston Hollow Village. The retail center will be anchored by a Trader Joe’s grocery store, and Frost Bank will anchor the office park. Within the next 60 days, the 42-acre development will begin Phase II of its construction, adding 508 rental units to the complex. The residential component will be comprised of three 7-story apartment buildings.

The residential units will feature landscaped courtyards, a resort-style pool with open-air loggia and swim-up bar, a fitness center as well as a club house with a greatroom, outdoor and gourmet kitchens, a private dining room, a movie theater, and an arcade and virtual golf facility. Each building will cater to a specific demographic, ranging from young professionals to empty-nesters.

Phase I of the project included the 14,000 sq. ft. Trader Joe’s store, 61,000 feet of retail space, and the 3-story, 46,000 sq. ft. Frost Bank office building, all of which wraps around a multi-level parking garage. Gensler, an international architecture firm, designed the retail and office construction of Preston Hollow Village. Ziegler Cooper Architects of Houston were brought on to design the residential portion of Preston Hollow. The buildings will feature sleek, contemporary styling in a mixture of brick, stone, and glass, as well as green spaces, patios, and outdoor dining.

Preston Hollow Village sits on the site formerly occupied by Willow Creek Apartments, an aging rental housing complex demolished in 2008. Due to the severe economic downturn, the expanse remained vacant until last year, when new investors stepped in. Kroenke Holdings of Missouri purchased the property in 2010, and retained Provident Realty Advisors, Inc—the site’s original developers–to develop the property.

Contact HBWeekly today to get information on home building and commercial construction job leads in the Dallas area. HBWeekly has proudly served builders fin Florida, Georgia, Alabama, Texas, and now Oklahoma for more than two decades. We provide the latest and best building permit data information, as well as building activity reports and market analysis. To see how HBW can help your business succeed, we are happy to provide you with complementary building data report or one of our specialized White Paper Reports. Contact us today and start making your business more profitable.

August Finds Homebuilder Confidence Riding High

Posted on by

According to the National Association of Home Builders/Wells Fargo Housing Market Index, confidence in the national homebuilder market is decidedly up, marking August as the third consecutive month for gain in the index. August brought the average two points higher to 55, which is the highest level since January. Index ratings of 50 or higher indicate good conditions in the housing market.

The NAHB compiles the index from a monthly survey, which generates a confidence score from 1 to 100. Optimism regarding sales growth in the next six months measured 65, with the confidence in current sales sitting at 58.

Reasons for the uptick include continuing low interest rates, lower than expected home prices in most of the nation’s markets, and an improving job market. David Crowe, NAHB’s Chief Economist, says that “each of the three components of the HMI registered consecutive gains for the past three months, which is a positive sign that builder confidence appears to be firming following an uneven spring,” and that “Factors contributing to this rise include sustained job growth, historically low mortgage rates and affordable home prices, which are helping to unleash pent-up demand.”

Each of the NAHB’s regions saw gains in the index, with the Midwest showing a seven-point increase to 55, the West increasing four points to 56, and the South gaining a point to 52. The Northeast gained two points but still ranked last at 38.

NAHB Chair Kevin Kelly says that, “as the employment picture brightens, builders are seeing a noticeable increase in the number of serious buyers entering the market,” although he is quick to add that “builders still face a number of challenges, including tight credit conditions for borrowers and shortages of finished lots and labor.”

The steady increase in homebuilder confidence is welcome news. The second half of 2013 brought a housing slowdown, which was exacerbated by the building delays caused by winter weather. This slowdown was also worsened by the shortage of lots and lack of skilled labor combined with rising materials costs. This led to a low housing inventory and high house prices, which along with a mortgage rate spike further discouraged new home buyers.

Meritage Makes Itself at Home in Atlanta

Posted on by

Meritage Homes Corp. is coming to Atlanta. The veteran home building firm has opened a South Region division that will be based in Atlanta. The move is an exciting one for the Scottsdale, Arizona-based Mertiage, which is America’s ninth-largest home builder. The South Region will serve the Atlanta, Nashville, and Greenville-Spartanburg markets, with plans to expand as the division gains footing. Meritage currently has three other divisions: Wet, Central, and North.

The move follows on the heels of Meritage’s decision to acquire the Douglasville, Georgia-based Legendary Communities for nearly $130 million. Legendary has built more tan 80,000 homes in the last 28 years, and during 2013, the company generated over $156 million in revenue from the sales of 500 homes. Given the stalled development pipeline that is currently strangling the otherwise keen American housing market, Meritage was especially attracted to Legendary’s inventory of 4,000 ready-to-build home sites.

The single-family housing market in Atlanta is the second-largest and fastest-growing in America. Projections indicate that the Greenville-Spartanburg single-family housing market will grow about 20% from now through 2015.

Steven Hilton, CEO of Meritage Homes, says the company plans to focus intensely on building the South Region division. “We are going to be putting more capital into Atlanta, we are buying this as a five parameter growth, starting point to ending point,” Hilton said, adding, “I’m just bullish about Atlanta.”

Meritage plans to build 1,000 homes in metro Atlanta sites between 2014-2017. This would seem to put them in stiff competition with PulteGroup and D. R. Horton, two other home building giants with major development plans in Atlanta. Hilton isn’t terribly concerned with the competition, he says, “Horton can get theirs and we can get ours and I think we can both do really well.”

To solidify Meritage’s business strategy, the company hired James Thrower as president of the South Region division, bringing 25 years of experience in home building and real estate in Georgia and the Carolinas. Of the company’s decision to hire thrower, Hilton says that “we are excited to have Jay join us to lead and grow our new South Region. Jay brings a wealth of experience in this region and an impressive record of accomplishments in such areas as land acquisition and development, product design and development, sales, construction, finance, purchasing, estimating, marketing, operations, and management. He will be a valuable addition to our organization and help us continue to expand and diversify our geographic footprint.”

Phased Building Permits Kickstart Construction in Miami.

Posted on by

HBW subscribers in the Miami area have already noticed the sharp uptick in phased permits, and how it affects their potential for residential construction job leads and commercial construction job leads. The economic meltdown of the last six years has left the land development pipeline running dry nationwide, but developers in Miami and Miami Beach are increasingly turning to phased building permits  as a way to get the pipeline flowing again.

The phased permit process allows for developers to begin construction on a property much more quickly than traditional building permits do. The Florida building code authorizes city permit offices to issue phased permits at the discretion of the permit officials, as per Section 105.13 of the Florida Building Code. Builders may also seek trade-phased permits (electrical, plumbing, mechanical, etc.) during the construction process..

Developers in Miami and Miami Beach are increasingly turning to phased permits to keep the construction process running until the master permit is issued. Both areas have recently added the requirements of approval from the Department of Environmental resources management, and verification from the Water and Sewer division before phased permits can be obtained. Applicants in those areas must also execute a hold Harmless letter that relieves the municipality

Each phased permit lasts for only six months, within which time the Master permit on the property must be issued. The costs of phased permits are not applied to the cost of the final, master permit. It’s important to remember that a phased permit is issued as “pending” a master permit, and does not stand ‘in lieu of’ a master permit. Developers who seek these permits do so in agreement to undertake construction at their own risk and with no liability held against the city for problems that may rise in connection with the phased permit. Phased permit construction proceeds with the understanding that any and all construction may have to me modified or even removed in order to receive the master permit.

Although there are significant risks to take into account when deciding to apply for phased building permits, there is one major benefit to working with them. Phased building permits allow construction to proceed according to the preferred completion schedule. It is easier for projects to stay on schedule and meet deadlines, and not be handicapped due to bureaucracy in the permit office. Phased building permits make developers more ready to capitalize on market demand.

HBW serves builders in Florida, Georgia, Alabama, Oklahoma, and Texas.  In addition to our Building Trend Activity for Residential Construction Reports, HBW can create a number of custom reports for any need you might have. We also offer exclusive White Paper Reports to help you market your business. Upon request, HBW is glad to provide you with complementary building data report or one of our specialized White Papers. Contact us today and start making your business more profitable! Check our newsletter for more information!

 

New Construction Boom Reined In By Consumer Caution

Posted on by

Fannie Mae’s July 2014 National Housing Survey takes a conservative view of the current home building boom. Mixed attitudes toward the housing market drive consumer caution toward buying new homes, although an increasingly positive personal financial outlook may cause those attitudes to shift throughout the third quarter of 2014.

The phone survey is conducted on a monthly basis, and polls an average of 1,000 Americans on their view of current housing market conditions. Respondents are asked to weigh in on the topics of “owning and renting a home, home and rental price changes, home ownership distress, the economy, household finances, and overall consumer confidence.”

Of those surveyed, 67% of Americans felt it is a good time to buy a house, but only 43% felt it was a good time to sell. The closing gape between these percentages indicates that the supply and demand in the market seem to be evening out. 42% overall felt that home prices would increase in the coming 12 months 54% thought that Americans will see an increase in mortgage rates, with fully 50% responding that it would be difficult for them to qualify for a mortgage. 43 % of those surveyed said they felt their personal financial situation was likely to improve in the next 12 months, and this optimism is predicted to positively impact home ownership attitudes in the next year.

Of July’s survey results, Fannie Mas senior vice president and chief economist Doug Duncan noted a distinct slowdown, saying that “[the] continued cautious sentiment expressed across the range of consumer indicators this month gives weight to our view that the first phase of the housing recovery is decelerating, and 2014 will be a year of mixed housing outcomes with home prices rising more slowly and home sales falling slightly.”

However, Duncan added that the long-term numbers are likely to improve, because “[r]ecent data indicating the creation of more than 200,000 jobs over each of the last six months, combined with this month’s improvement in the share of consumers reporting significantly higher household income than a year ago, does provide some reason for optimism. If these trends continue, they could lead to some upside in housing in 2015.”

Appealing to the Strong Senior Housing Market

Posted on by

Builder confidence in the 55+ senior housing market, according to the National Association of Home Builders’ 55+ Housing Market Survey. The two major sub-markets for this demographic are the single-family and multifamily condominium home buyer markets. One of the factors contributing to builder confidence is the slow, steady increase in sales of existing homes. The 55+ market “is strongly driven by consumers being able to sell their existing homes at a favorable price,” says NAHB Chief economist David Crowe.

With builder confidence in the 55+ market running high, it’s a good idea to understand what, exactly, seniors are looking for when they buy homes. According to a recent article by Forbes, there are 6 major considerations seniors have when buying a new home: renting, buying, cost, neighbors, location and meals. Builders who plan to serve this burgeoning market need to keep those things in mind. Seniors who plan to purchase a new property rather than rent a residence are looking for a solid cost-to-square footage ratio and good community amenities. They also demand close proximity to health care, grocery shopping, and healthy restaurants with robust take-out offerings.

When building for a senior demographic, it helps to understand that today’s seniors—of whom there are 77 million in the continental US, with the number growing every day—wish to remain active mentally and physically. And they need to do so economically, because the economic downturn left the average boomer $500,000 short of the cash they need to have the lifestyle they prefer. This has left many seniors in a state of part-time employment and semi-retirement and working from home. Amenities such as public transit, continuing education course providers, pre-wired broadband or T1 line, and home office space are as important for seniors as for young professionals.

The most important thing for investors in the senior housing market to realize is that buyers are looking at properties that will continue to meet their health and social needs as the progress from independent living, to assisted living, to full-time care. Properties that can be easily modified to meet future healthcare needs are much more appealing than those that aren’t.