Dave’s County Spotlight: Coweta and DeKalb Counties.

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Hello All! Dave Taylor here, checking in with you today about the construction boom that’s been happening in the state of Georgia’s Coweta and DeKalb Counties for the first and second quarters of 2014.  HBW subscribers know that our Building Permit Information reports are a solid source of residential construction job leads. But they may not realize that HBW offers unparalleled market analytics and construction activity trend reports on a county-by-county basis to help construction trades professionals fine-tune their marketing and promotion efforts.

Located just south of Atlanta’s Fulton County, Coweta has always been a popular county for commuters. Its picturesque landscapes, storied history, and charming small towns are very appealing for folks who like a more livable pace of life. As of July 1, 2014, 250 new homes have been built in the county, with construction revenues totaling over $84.6 million. 67% of new homes fell into the $200-399k range, with 47% of new home prices set at $400k+. The county’s 43 residential remodeling projects brought in a total of $2.7 million. 35 Coweta County residents decided to beat the heat by installing new swimming pools this summer, which generated more than $1.2 million in construction revenues. Commercial construction activity was solid throughout the first two quarters, with 26 new commercial developments valued at $27.4 million being built, and 13 commercial properties generating $13.2 million in remodeling and renovation activity.

Boasting the highest population density of any Atlanta metro area counties, DeKalb County is home to many Atlanta business commuters. But the presence of the Centers for Disease Control, the American Cancer Society,  Emory University and Healthcare, Cox Communications, AT&T Mobility and the Kroger Corporate Office give DeKalb a degree of economic self-sufficiency and independence that other commuter counties lack. DeKalb is also noteworthy for its focus on green building, mixed-use developments, and environmental sustainability. The first half of 2014 has seen 316 new homes built in DeKalb county, which has generated more than $102.5 million. 31% of new homes had median prices of $200-299k, and 28% of new homes fell into the $300-399k range. DeKalb’s 370 residential remodels and alterations brought in nearly $33 million.  The swimming pool industry in DeKalb has been slower than expected, with only 18 new installations totaling just about $292k for the year. On the other hand, DeKalb’s commercial construction industry is performingextremely well, with 19 new developments totaling $82.4 million and 215 commercial alterations/remodels generating just over $100 million to date.

HBW serves building trades professionals in Georgia, Alabama, Florida, Texas, and Oklahoma. This brief overview is just one small example of the sort of depth and detail that HBW customers get from our construction activity reports and white paper reports. Building professionals who are proactive and informed can count on HBW’s newsletter to deliver the latest in building trends, construction technology innovation, and regulatory activity. To show you how we can help your business succeed, HBW is glad 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!

Design-Build Remodeling Strategy Gains Momentum

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The process for residential remodeling has evolved significantly over the last decade. One major effect of this change has been the rise of the more cost-conscious design-build firms that are as involved in the actual construction as they are in the designing and planning of the remodels.  Residential construction professionals looking to branch out into the remodeling business should keep in mind that these days, they are as likely to be hired by an architect or design firm as by a general contractor.

Design-Bid-Build

Prior to the housing bubble crash of 2007-2009, residential remodeling was an involved yet leisurely process of drawing up the plans, submitting them for bids to three or four contractors, and then doing the build. This model allowed homeowners to dream big and worry about negotiating more reasonable prices later. But it also often led to seriously over-budget bids,which were usually handled one of two ways: phone the bank to arrange a higher credit line—which is what most people did, or have the designer scale back the plan and draw up another expensive set of documents—which rarely happened. The design-bid-build process worked well until the days of easy credit were ended by the housing crash. At this point, homeowners started looking for a more cost-effective process.

Design-Build

Today, homeowners are likely to begin with a firm budget and a few ideas. Their next step is to contact a company that offers both the design and the contracting services in-house. Homeowners then collaborate with the designer to craft a remodel that fits their needs, fulfills, their hopes, and stays under budget. Because there is no bidding and re-planning phase, construction can begin as soon as the plans are drawn up. Design-build projects tend to move more quickly and project completion takes much less time.

When money’s no object, homeowners gladly opt for the design-bid-build process. But for the majority of budget-conscious clients, the design-build process is their preferred option. Residential construction subcontractors seeking jobs in the lucrative remodeling market need to network with the designers and architects who have spearheaded the design-build revolution.

Brasfield and Gorrie: 50 Years Strong

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It’s no overstatement to say that contemporary Birmingham was built by Brasfield & Gorrie. One can’t visit the city without noticing the incredible impression the firm has left during its 50-year history as the city’s most prestigious builder. Regions Harbert Tower, McWayne Science Center, the Hugo Black Courthouse, Kirklin Clinic, and Birmingham Green are but a handful of the iconic buildings that define the city’s atmosphere, and all of them are Brasfield & Gorrie projects. These immense successes belie the company’s humble and diligent beginnings.

Company founder Miller Gorrie became interested in construction and engineering while helping his father, an IBM salesman, build a cabin on farmland the family owned. Beginning in his late teens, Gorrie invested into two things: IBM stock and his engineering education. Three years with the US Navy’s Civil Engineer Corps, a degree in civil engineering, and career experience with Brice Building, Daniel Construction, and Rust Engineering readied Gorrie to realize his ambition of running the most successful construction firm in Alabama.

Gorrie needed two things to get his business started: a successful brand and startup capital. The first he got by striking a deal with veteran builder Thomas Brasfield, who’d already established a powerful reputation in the local construction industry but was looking to retire. Gorrie cashed in his IBM stock, purchased the “Thomas C. Brasfield Co.” trade name with $45,000 of his IBM sale profits, and took Brasfield on as his vice-president. Their first job was a $475 renovation for First National Bank.

Two major factors contributed to Brasfield & Gorrie’s success. The experience Gorrie got in building with reinforced concrete while working for Daniel Construction led him to bid more confidently on large-scale commercial and civil construction projects than his competitors could. His decision to branch out into the Georgia commercial market and the Florida condominium business during the boom years of the 1980’s and early 90’s led the company to greener pastures.

Fifty years on, the company is still going strong. Brasfield & Gorrie has annual revenues of $2.3 billion and over 2,600 employees and offices in Georgia, Texas, North Carolina, Tennessee, and Florida. But true to their roots, their headquarters remain in Birmingham. Their most recent contract is for a $672-million baseball stadium and commercial development for the Atlanta Braves.

The secret to the company’s success, according to Gorrie, is “integrity,” always making sure to “do what you say and you meet your commitments.”

Houston-Area Master Planned Community Breaks Ground

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Houston-area residential building professionals are excited to see that development is moving forward in Cypress, Texas. After months of waiting, the master-planned community of Bridgeland has finally broken ground on Hidden Creek and the Lakeland Village expansion. The upscale residential development of Hidden Creek features 1000 homesites spread across 142 acres of lakes, parks, and waterways. Home prices are expected to range from $250,000 to multi-millions, and several lots will become available before the fall season. Peter Houghton, the VP of master-planned communities for Bridgeland’s parent company, Howard Hughes Corp.,  reports that “[w]e have been close to sold-out over the last six months.”

The builders who have been chosen for the Hidden Creek development are Meritage Homes, Perry Homes, Ryland Homes, Taylor Morrison Homes, Village Builders, Beazer Homes, Darling Homes, and Westin Homes. Bridgeland’s master plan was designed by Massachusetts-based Sasaki Associates, who also designed much of The Woodlands.

A dazzling array of amenities are slated for inclusion in the Hidden Creek addition such as Tree House Park, an elevated park built into century-old live oak trees, and a heated lap pool that will be open year-round. Tennis courts, pavilions, picnic areas, and playgrounds round out the amenities to be offered in Hidden Creek. The 20-acre Lakeland Village Park will include an enclosed dog park, a skate park, a canoe launch site and basketball court. The development is also very pedestrian-friendly, as the major walk/bike trail for the community will abut Bridgeland Creek parkway and lead to the Bridgeland Town Center.

While the homes of Hidden Creek are expected to be thoroughly contemporary in design, Bridgeland has also established Lakeland Village’s Lakeland Heights as a Traditional Neighborhood Design development, offering 144 new homesites which will be built in the Craftsmen, English Tudor, Classical, and French architectural styles found in Houston’s classic neighborhoods. This addition will be walking-distance from parks, schools, and recreation areas with plans for convenient pedestrian access to Lakeland Village Center.  David Weekley Homes, J. Kyle Homes, and Perry Homes have been contracted to build the Lakeland Heights addition.

Top 4 Jobsite Apps for Builders

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Like every other business sector, the commercial construction and residential home building industries have embraced the smartphone app as a valuable productivity tool for the jobsite. The only problem is that there are thousands of apps to choose from and it’s hard to know which apps are useful, functional, and cost-effective. Here are four affordable apps that could drastically improve working at your jobsite.

1. Ladder Safety App

Improperly placed ladders can cause injury and property damage, but setting ladders correctly is often a tricky task, especially for extension ladders. The National Institute for Occupational Safety and Health launched the Ladder Safety app to address this issue. Simply place your smartphone of tablet against the ladder and the app will indicate whether the ladder is properly set at the ideal angle of 77.5 degrees—if it isn’t, the app provides visual feedback to help align the ladder. Ladder safety has never been this easy. Available as a free download from the iTunes and Google Play stores.

2. AroundMe

Going to work at a new jobsite can be a bit of a pain if it’s in an unfamiliar neighborhood. Finding parking, an ATM, the cheapest gas station, a good coffee shop, the nearest construction supply store and great lunch options can take a lot of trial-and-error. The AroundMe app solves your problem by helping to quickly find out what is nearby. The map includes location, listing information and routes, and allows you to email, text, or Facebook the information so friends can meet you there. Available from the iTunes and Google Play stores.

3. GoToMeeting

It’s awfully difficult to schedule a meeting between the different stakeholders of a construction project. GoToMeeting solves that issue. This app allows everyone involved in a project to collaborate in real-time, regardless of where they are. Users can schedule, host, and join meetings, view slide presentations, and create spreadsheets and mockups all from their smartphone or tablet. Available from the iTunes and Google Play stores.

4. PlanGrid

An ultra-fast blueprint viewer for Android and iOS, PlanGrid allows builders to mark-up and store project designs and forward them directly to their work crew members’ phones. PlanGrid can be used off-line, progress photos can be pinned to the blueprints, detail callouts are automatically hyperlinked, all markups and notes instantly sync across all platforms, and there is a searchable, automatic rolling issues log. It can also be used to create, maintain, and share punchlists. Available in a variety of price plans including a free version, PlanGrid can be downloaded and installed from the Google Play and iTunes stores.

Home Is Where the Tech Is

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Today’s homeowners are a varied bunch, but they all have one thing in common: they’re more dependent upon technology than any previous generation. From dazzling home entertainment centers and T-1 lines with built-in Wi-Fi to less obvious things like HVAC and security, even our humblest homes have grown surprisingly technology-driven.  Here are the three biggest trends for hi-tech homes.

Given that heating and air-conditioning costs run $200 billion annually nationwide and amounts to our second largest source of energy consumption, it shouldn’t be surprising that technological advances have unassumingly revolutionized the industry. Perhaps the most obvious advancement is in ductless heating and cooling systems like the mini-split system. These systems allow different rooms to be controlled individually instead of having to heat or cool an entire house.  Other innovations in residential HVAC are part of the smart house revolution—the heating and cooling are controlled with apps installed on the homeowner’s smartphone, which enables more precise climate control.

Another area where homes go hi-tech is security. Today’s homeowner can install video cameras in every area of the house and yard, and control them all through a smartphone app. This has made a tremendous difference in the effectiveness of home security. While about 20% of American homes are equipped with security systems, about 50% of those systems are used regularly because manually turning it off and on is such a hassle. The ease of app-based security means that security systems will be used regularly after they are installed, and homeowners are more likely demand security systems be built into new homes. With remote appliance and lighting controls, the smart house revolution also makes it easier for frequent travelers to create the illusion that their house is occupied more often than it really is.

Our demand for instant entertainment has marched lock-step with the tech revolution, and it has colonized our homes in the form of truly awe-inspiring home theater systems. Some of the biggest trends in home theaters are also, for the first time, the most affordable. The size of the home theater room is increasing, and it’s likely to be incorporated into the existing den or family room in order to maximize space. Buyers are also demanding multimedia networking capability that incorporates their video, music, gaming, and streaming service into one system. Folks who want more flexibility in from their sound systems are shying away from built-in speakers and opting for free-standing sound bars and wall-mounted speakers. The value for money spent on home theater systems is at an all-time high and is only going to increase.

Philanthropy Begins at Home for Houston Builders

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HomeAid Houston recently got a welcome boost for its homlessness-abatement efforts. HAH, a 501c3 nonprofit that provides remodeling and new construction aid to qualified homeless care providers, is being sponsored by the Benefit Homes project,a 34-year old charitable initiative of the Greater Houston Builders Association. HomeAid is one of three charities supported by the GHBA, the other two being the Texas Children’s Cancer Center and the Alzheimer’s Association. The Benefit Homes program builds luxury residences in upscale neighborhoods using donated land, labor, materials, and cutting-edge upgrades.

In April, The Woodlands Development Company and M/I Homes began the first of three GHBA Benefit Home Project residences. The Woodlands Development Company donated a homesite in the Jagged Ridge neighborhood of Creekside Park. The Woodlands is a master-planned community where over 100,000 people enjoy the 28,000 acres of forest trails, shopping, dining, sports, and entertainment. M/I, which has donated the general contracting and design services for the project, are building their signature Steffany II home, a 2,629-square foot three-bedroom luxury home.

May saw the completion of a GHBA-sponsored luxury residence in the WaterStonecommunity of Lake Conroe. Located near Sam Houston National Forest, WaterStone is a gated community with sports fields, a pavilion, and 7.8-acre park. Virgin Homes donated their general contractor services, while almost 100 vendors and subcontractors donated their materials, labor, and services to the project. WaterStone developer Steve Bowen donated the lot as well as project management for the home.

The Greater Houston Builder’s Association Remodelers Council also sponsors charitable activities. One weekend in April and another in May saw members of the GHBA Remodeler’s Council volunteer to renovate Sonrise Shelter.The shelter is a faith-based nonprofit dedicated to providing solution-based ministry and material assistance to the homeless denizens of Houston. Improvements were made to the drywall, electrical, floors, painting, and updated furniture for the common areas. Over twenty vendors, plumbers, electricians, painters, and other subcontractors were on hand to make the much-needed improvements.

OKC Home Construction Has Lots of Delay

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Oklahoma City isn’t always recognized for its ability to keep up with national trends, but there’s one trend it’s keeping pace with: the severe shortage of entitled lots for residential construction. Accompanying this shortage are record-high prices for A and B grade lots.

According to a report presented by Metrostudy, the housing research division of Washington, D.C.-based Hanley Wood company, “Lot production is increasing, but it is not increasing as fast as home construction.” The report, which was recently presented at the National Association of Real Estate Editors annual conference, went on to add that, “Lot shortages will continue to be a significant issue for the builders all year.” Metrostudy spokesman Brad Hunter acknowledged that there are buildable lots available in the city, “but not where builders want to build and people want to buy.”

The last time that OKC-metro builders faced this level of lot shortage coupled with rising prices was in the third quarter of 2012. That year marked a recovery period in the OKC residential construction market, which had reached a low point in 2009. However, even OKC’s low point was significantly less dire than the home building crash that raged from 2007-2009. This is because the city had also missed out on the home construction bubble that swept the rest of the nation form 2004-2006. The recovery was easier because there was less to recover, but in the meantime housing prices lowered but didn’t bottom out, and foreclosure rates rose but didn’t explode.

According to David Weekley Homes CEO John Johnson, consumer confidence is key to a healthy residential construction industry, and much of that confidence is based on employment levels. The resurgence in construction now growing in the OKC market is due to low unemployment rates, a relatively strong local economy, and the revitalization of the energy business.

3 Savvy Tips for Remodeling Your Bathroom

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Realtors know that bathrooms and kitchens sell houses. But rather than doing a remodel for their family’s enjoyment, too many homeowners wait until they’re ready to sell and then do a quick superficial facelift. According to renovation expert Ken Perrin, people who want to do a bathroom remodeling job should “do it and enjoy it, and if [they] do it well and it’s quality workmanship, [they’ll] get your money out of it because the house will sell.”

#1: The Bathroom is a Sanctuary

At the end of the day, buys, overworked folks just want to unwind. Many homeowners want to seek refuge in spa-quality bathrooms. Bathrooms are much larger than in the past, with larger windows, designer lighting, and radiant heat floors. The toilet is walled off into its own area and the two sinks are standard in the enlarged vanity. The tub and shower are separated into a deep soaking tub and an open, airy, multi-head shower. Where space is at a premium, many homeowners forgo a tub altogether in favor of a luxurious spa shower.

#2: Smart Upgrades

Entertainment systems equipped with satellite radio, internet, and cable television are popping up more frequently in spa bathrooms, but these showy features aren’t the best bet for a high return on investment. Instead, consider upgrading the storage and green factors in the room. Low-flow water fixtures for the multiple shower heads, sinks, and toilets are very desirable, as are on-demand tankless water heaters that conserve both water and energy. LED lighting fixtures also cut down on bathroom energy use. Adding floor-to-ceiling vertical cabinets featuring shallow drawers with dividers and electrical outlets inside the cabinet will yield sensible but sensational storage to the bathroom.

#3: Remodeling Starts at the Studs

Bathroom remodeling projects need to go deeper than superficial fixture swapping, re-tiling, and painting if the improvement is to hold its value. To make sure that the bathroom can stand up to everyday sink splashes and over-full tub sploshes, the walls, ceilings, and sub-floors should be upgraded. Mold-and-moisture-resistant drywall for the room and cement board for the shower and tub areas are keys to making your remodel a lasting improvement.

New Home Construction Crimped by Lot Shortage

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As it turns out, labor isn’t the only shortage the residential construction industry currently faces. According to the Wall Street Journal’s Market Watch report, 59% of home builders nationwide have reported a “low” or “very low” supply of developed lots, or properties that are ready to be built on right away, in their areas.

Lots rated “A” located in prime areas or near transportation corridors are also scarce. 69% of surveyed builders report that the prices for A-grade lots have risen “substantially” or “somewhat” higher than a year ago. The prices for “B”-grade properties have also gone up.

Industry leaders are well aware of why there are so few developed lots. The first problem is that it takes three years to develop parcels of land entitled with sufficient zoning, utilities, and land-prep before they can be built on. The harsh economic climate of the last six years led to a sharp downturn in new home construction, which in turn caused the land development pipeline to shut down almost entirely. The situation has been worsened by the revised land entitlement procedures adopted in several states and municipalities that have complicated the process and lengthened it to an average of two years.

As a result of the land entitlement bottleneck, large residential building corporations like PulteGroup who have sizeable holdings of already-entitled land are set to greatly increase their market share as the market for new home building continues to strengthen.

As the job market improves, the number of young families seeking to buy new single-family homes will increase. What they will find as they search for a new home is that lot prices, which once accounted for only 10% of the house price, will now account for at least 40% of the house price. The market is projected to stabilize by 2016, but some say builders should remain cautious, if optimistic, till then.