The article below was written by Dr. Robert Dietz, Chief Economist at the National Home Builders Association.
The 2024 election offers both upside and downside risks for housing and home building, given both the scale and scope of policy change now underway in Washington, D.C. Regulatory reform and cost reduction offer the most upside risk for the persistent problems that plague the housing market, namely growing construction costs and poor housing affordability due to limited inventory. Extension of the 2017 tax cuts would also be a net positive for home builders and remodelers.
However, negative risks for residential construction include tariffs on imported building materials, concerns regarding immigration and workforce availability, and general policy uncertainty given the daily headlines of proposals and executive orders. The bond market also has long-run concerns over inflation and long-term government deficits
As a result, home builder sentiment fell after a post-election gain. The NAHB/Wells Fargo HMI was 42 in February, down five points from January and the lowest level in five months. While builders hold out hope for pro-development policies, particularly for regulatory reform, policy uncertainty and cost factors created a reset for builders’ 2025 outlook. Uncertainty on the tariff front helped push builders’ expectations for future sales volume down to the lowest level since December 2023.
Similarly, the NAHB Multifamily Production Index (MPI) remains below the break-even level of 50, although it did show signs of improvement at the end of 2024 by increasing seven points to a level of 48. The MPI is pointing to eventual stabilization of the multifamily construction market in 2025.
Reflecting the sentiment indicators, single-family starts in January decreased 8.4% to a 993,000 seasonally adjusted annual rate; 1.8% lower than a year ago. Multifamily starts decreased 13.5% to an annualized 373,000 pace. There were 669,000 multifamily completions in January, up 11% from January 2024. For each apartment starting construction, there are 1.8 apartments completing the construction process.
Higher construction financing costs and elevated mortgage interest rates continue to hold back the housing market, and the future of interest rates will depend on inflation data and policy change. During the past 12 months, on a non-seasonally adjusted basis, the Consumer Price Index rose by 3.0% in January. This was higher than the 2.9% rate recorded in December and is a warning that policies that increase costs on the supply side of the market, like tariffs, may push inflation higher in 2025 and keep the Federal Reserve on an extended hold.
The article below was written by Dr. Robert Dietz, National Home Builders Association Chief Economist.
Despite ongoing easing of short-term interest rates by the Federal Reserve, long-term interest rates remain in the same range they have been in for the last two years. Frustratingly, the 10-year Treasury rate began the week at 4.6%, about 100 basis points above NAHB's forecast from a year ago. With the average 30-year fixed-rate mortgage now near 6.9%, interest rates for home buyers are back to levels from last July but remain below October 2023 cycle peaks.
The rise in long-term rates has been driven by bond market concerns rather than monetary policy. After cutting the federal funds rate by 25 basis points in December, the Fed's policy rate target is now 75 basis points off the cycle high. Long-term interest rates have been driven higher because of improved economic growth prospects (a positive) as well as concerns over tariffs, a tight labor market and a potential increase to the federal deficit — all post-election changes for the economic outlook. Indeed, the Fed is projecting just two rate cuts for 2025, compared to earlier projections of four rate cuts, with a terminal rate for this cycle at 3.25% in 2026. The central bank also lifted its inflation forecast for 2025 to 2.5% (up from 2.1%), reflecting an even slower path back to its inflation target of 2.0%.
Amid these financial challenges, builder sentiment in December, as measured by the NAHB/HMI Housing Market Index (HMI), held steady at a level of 46. Nonetheless, builders remain confident that the positive factors of the outlook, including expectations for an improved regulatory environment and faster economic growth, will help spur the industry in 2025. As a reflection of that sentiment, the future sales component of the HMI increased three points in December — the highest reading since April 2022.
In November, single-family starts increased to a 1.01 million annual rate, rising 6.4% from the month prior and up 7.2% on a year-to-date basis. Multifamily construction slowed 23% in November to a 278,000 annual rate, with apartment construction on a path to be down almost 30% for the 2024 data.
In addition to elevated interest rates and a multi-decade low for housing affordability, inventory is rising and becoming a concern in some local markets. However, on a national level, inventory remains below historical norms. The 8.9-month supply of new construction combined with a 3.8-month supply for single-family resale homes yields a still-low total of a 4.5-month supply of all for-sale housing. While inventory is expected to rise in 2025, solid economic growth and a positive labor market should support demand for housing.
The article below was written by Dr. Robert Dietz, National Home Builders Association Chief Economist.
With the election in the rearview mirror, and personnel and policy decisions coming into focus for the incoming Trump administration, markets absorbed inflation data and elevated future risks. Inflation, which was a critical issue during the election, ticked higher in October as the Consumer Price Index (CPI) posted a 2.6% year-over-year growth rate. Overall, prices since the start of 2020 are up 20.2% — the largest spate of inflation in almost five decades. Due to higher construction costs and other supply-side factors, housing sector inflation continues to be a driving factor for the CPI. Shelter inflation increased at a 4.9% year-over-year rate in October and was responsible for 65% of total inflation over the last 12 months.
Due to lingering inflation pressure and possible future policy risks for prices, long-term interest rates remain elevated even as the Fed reduces short-term rates. The 10-year Treasury is near 4.4% — the highest level since the start of July. Fiscal policymakers need to show they will exert discipline for the federal deficit if risk increases. The 30-year fixed-rate mortgage is above 6.8% — also the highest rate since July due to similar concerns. NAHB’s forecast is for future declines in these interest rates over the next two years.
Ongoing elevated mortgage rates, combined with higher home prices, leave housing affordability in crisis-level conditions. The NAHB/Wells Fargo Cost of Housing Index (CHI) indicates that for the typical family, 38% of their income is required to buy a median-priced new or existing home. Low-income families would require three-quarters of their income. These affordability conditions are holding back home sales volume, although existing home sales improved in October. For the month, resales increased 3.4% to a 3.96 million annual rate — up 2.9% from a year ago and the first year-over-year gain for transaction volume in three years. Total inventory remains lean at a 4.2-month supply.
The November reading of builder sentiment, via the NAHB/Wells Fargo Housing Market Index (HMI), noted a post-election gain despite ongoing challenges for affordability and home construction costs. The HMI increased by three points to a still soft reading of 46. However, the measure of future sales expectations increased by seven points to a positive reading of 64, reflecting builders’ optimism for the economy and sales conditions, while mindful of current policy risks. For example, single-family construction starts were down 6.9% to a 970,000 seasonally adjusted annual rate in October, although on a year-to-date basis, single-family home building is up more than 9%. Multifamily construction is down 29% on a year-to-date basis, as that market continues to face localized oversupply and tight financing conditions. NAHB is forecasting a small gain for single-family construction in 2025, while apartment development will level off later in the year.
Every year it is a privilege of the Oklahoma Home Builders Aassociation to hold the annual OK Building Summit & Expo. The initial idea behind the Summit was to help those builders and associates who cannot attend the International Builders Show an alternative – a mini-IBS if you will. It provides great education with an opportunity to meet and greet local vendors. It has grown where those that attend can obtain all the hours they need to complete their annual continuing education requirements for their Certified Professional Builder credentials.
This year we are stretching to do even more. With the slate of speakers, we have lined up, there is education, not only for the builder, but their superintendents, their sales staff, and even their framers! While not everyone needs CEU credits, everyone can utilize the education they will receive. Then add to that the networking environment and the great vendors and sponsors – it is a Summit you do not want to miss!
Let’s look at a few examples. Not only do we have Scott Sedam back with his amazing knowledge of processes, but we also are bringing in Charlie Scott to help sales staff and builders know what it takes to make an ultimate sales team. Realtors will gain invaluable knowledge in selling new home construction.
We also have Dr. Chris Ramseyer, a structural engineer, along with Mike Hancock, another engineer, sharing their insights and knowledge in proper techniques from framing to water barrier installations. These are classes your field guys will really appreciate.
Last one for everyone, even though there is much, much more. Ted Jones, recently retired chief economist for Stewart Title, brings his unique presentation methods to understanding the economic picture and what he expects to happen in the near future.
So, I call this one a Summit for Everyone. Take time to come and join us! You can sign up here to attend.
The article below was written by Dr. Robert Dietz, National Home Builders Association Chief Economist.
With the Federal Reserve expected to cut short-term interest rates at the conclusion of its upcoming September monetary policy meeting, long-term interest rates have already priced in some of the impact of future easing. The average 30-year fixed-rate mortgage last week was 6.35% — the lowest since May 2023. As interest rates gradually and unevenly move lower in the quarters ahead, housing demand will improve in most markets and opportunities will expand for prospective home buyers currently waiting on the sidelines.
Home sales have picked up as long-term interest rates trend lower. Total existing home sales increased 1.3% to an annual rate of 3.95 million in July. This was the first monthly gain in four months, although the pace of sales is still down 2.5% from a year ago. Inventory remains lean at just a 4-month supply, although inventory levels are rising (up 19.1% on a year-over-year basis).
New home sales surprisingly increased 10.6% in July to an annual rate of 739,000, elevating the pace of sales 5.6% from a year ago. However, this gain was at odds with recent industry surveys, suggesting a downward revision is likely for the July data.
New home inventory stands at 462,000 homes, down 1.1% from June but at a seemingly elevated 7.5-month supply. However, the combined inventory of both new and existing homes stands at a low 4.5-month supply. As this metric rises, the pace of home price gains will continue to slow. The Case Shiller Home Price Index has been trending downward for several months, declining from an annual rate of 9.76% in August 2023 to 1.89% in June 2024.
New research from NAHB examined several of the challenges home builders faced in recent years. For example, analysis of 2023 data found that it takes an average of 8.6 months to build a single-family home, up from 7.2 in 2015. Additional analysis explains why cost is a key barrier to adding entry-level housing. The data show that the median cost per square foot rises significantly as homes get smaller: from $132 per square foot for a home over 5,000 square feet, to $200 per square foot for a home under 1,200 square feet.
And new labor market analysis finds that the share of white-collar workers in the construction industry is on the rise, while the share of trades workers has fallen from 71% in 2005 to 61% in 2022. Some view this as an indication of technology adoption. However, lackluster productivity gains for the sector during this period suggest the rising presence of white-collar workers is a result of the industry’s ever-expanding regulatory environment.
The article below was written by Dr. Robert Dietz, National Home Builders Association Chief Economist.
The residential construction industry is in a holding pattern until the Federal Reserve moves forward with interest rate reductions. However, this monetary policy move now appears to be firmly in view, as economic data continue to soften. Inflation readings are moderating after an unexpected uptick during the first half of the year. And the bond market is investing as if the first rate reduction will arrive at the Fed’s September meeting, with a series of further reductions through the end of 2025.
With macro data slowing but reasonably solid, inflation expectations anchored, and short-term rates likely to fall, the 10-year Treasury rate has fallen back to around 3.8%. This is down almost 100 basis points from late April. Mortgage rates have moved lower as well, averaging approximately 6.5% last week, per Freddie Mac — the lowest reading in a year. Consumer inflation is also slowing, with a 2.9% year-over-year estimate for the Consumer Price Index in July. However, shelter inflation continues to be the last leg of the inflation fights, with housing costs up 5.1% year-over-year. Shelter inflation has been responsible for 70% of the overall rise in consumer costs over the last 12 months. And like other sectors, these costs are up because of underlying business cost growth. For example, residential construction material costs rose 2% year over year in July — the sixth straight month with that rate of growth. Meanwhile, residential construction wages were up 9% year over year.
Despite the outlook for lower interest rates, current housing data have been weak because of the lagging effects of prior elevated interest rates and ongoing price and cost growth. Single-family housing starts decreased 14.1% in July to an 851,000 seasonally adjusted annual rate. Nonetheless, on a year-to-date basis, single-family starts are up 11.4% for the first half of 2024. The July drop for single-family home building mirrors recent softening for the NAHB/Wells Fargo Housing Market Index (HMI), which dipped another two points in August to a weak reading of 39. The HMI should improve as the Fed provides more details about the eventual reduction of short-term interest rates.
In the meantime, elevated short-term interest rates are holding back the acquisition, development and construction (AD&C) loan market for private builders. Average effective interest rates increased for three of the four categories of NAHB's second quarter AD&C financing survey. For the quarter, the average effective interest rate increased from 11.09% to 12.22% on loans for land acquisition, from 13.35% to 14.32% on loans for speculative single-family construction, and from 12.95% to 13.08% on loans for pre-sold single-family construction.
Multifamily construction of apartment buildings and condos increased 14.5% to an annualized 387,000 pace in July. Because the monthly multifamily data are volatile, the year-to-date data are more instructive. Multifamily 5-plus unit construction is down 35% thus far in 2024 due to tight financing and an ongoing rise of completed apartments. This weakness is consistent with NAHB's Multifamily Production Index, which had a second quarter reading of just 44, marking a year-over-year decrease of 12 points. Multifamily developers are less optimistic than they were at this time last year, given high interest rates and tight financing conditions.
The OkHBA held its Spring Board of Directors meeting last week. Among the many items of business, the directors heard a report from the Oklahoma Housing Finance Authority about the Housing Stability Fund recently approved by the Oklahoma Legislature. The idea behind the fund is to not only increase housing, but especially in rural communities in Oklahoma.
One of the ways to entice builders to build in rural communities is zero percent (0%) construction loans for 24 months. To qualify a builder must supply 10% and build a minimum of 5 homes with a maximum of 25 homes. They can be on scattered sites – meaning a builder could build in surrounding rural communities. The construction loan must be repaid before submitting another application.
While we would like to have seen some kind of partnership with those rural communities, such as in-fill lots at no cost or greatly reduced cost, there are some aspects of the program we like. The size of the homes are those we think typically are in the attainable range – 1,000 to 2,000 square feet.
There is also down payment assistance to the buyers via OHFA. They can qualify for a grant of 5% down payment assistance, but they must maintain their residency in the home for 3 years.
The article below is from the National Association of Home Builder's "Eye on the Economy".
Despite elevated interest rates, home builder sentiment and construction starts are showing the potential for housing sector growth in the coming months. In fact, the reason for recent increases for the 10-year Treasury rate, which is now hovering near 4.3%, is ongoing solid economic conditions. For example, in February, wages were 4.3% higher than a year ago and 275,000 jobs were created. The unemployment rate remains low at 3.9%, which is helping to support for-rent and for-sale housing growth.
Indeed, the moderately strong economic data are keeping upward pressure on what had been a declining trend for inflation. In February, the Consumer Price Index (CPI), the broadest measure of inflation, was up 3.2% from a year ago. While inflation data made progress in late 2022 and early 2023, the CPI has been in the 3% range since May 2023. The reason for the lingering and unfinished inflation challenge continues to be housing inflation, which is due to a lack of housing supply. The shelter inflation component of overall inflation was up 5.7% from a year ago. This is lower than at the start of the year, but for shelter to fall back to the inflation reported in the rest of the economy, additional home building will be required.
Home construction continues to be challenged by supply-side issues. For example, gypsum pricing was up 3% in February, and concrete prices are up more than 7% from a year ago. Meanwhile, a shortage of skilled labor continues, with 413,000 open construction sector jobs. There were only 293,000 open jobs a year ago, a sign of ongoing growth for construction workers.
Despite these challenges, with the Fed expected to cut the short-term federal funds rate later this year, builders are anticipating more gains for building. The NAHB/Wells Fargo Housing Market Index (HMI) increased to a level of 51 in March. This was the first time HMI was above the break-even level of 50 since last July. Only 24% of builders reported using price cuts in March, which was the lowest share since last summer.
Consistent with improving builder sentiment, housing starts expanded in February. Single-family starts increased 11.6% to a 1.13 million seasonally adjusted annual rate, up 35.2% compared to a year ago. The three-month moving average (a useful gauge, given the recent volatility) is up to over 1 million starts. The multifamily sector increased 8.3% to an annualized 392,000 pace for 2+ unit construction in February. However, multifamily construction is down 34.8% on a year-over-year basis, with additional declines expected ahead as housing supply for apartments increases later this year.
The following article was written by Robert Dietz, Chief Economist at the National Association of Home Builders.
The economy continues to post solid gains, leading the bond market to reverse earlier bets that the Federal Reserve would begin cutting the benchmark federal funds interest rate as early as March. Better-than-expected economic performance will reduce the rate of improvement for inflation data, meaning the Fed will need to maintain its long-stated monetary policy of higher rates for longer. In January, the Consumer Price Index increased by 3.1%, following a 3.4% increase in December.
Improved expectations for macroeconomic conditions led the 10-year Treasury to test a 4.3% rate this week, after starting the year just below 3.8%. This has led the 30-year fixed-rate mortgage to rise, albeit by a smaller amount, from 6.6% to approximately 6.8% over the same period. Nonetheless, the NAHB forecast continues to call for mortgage rates to move moderately lower over the course of 2024 and 2025 before settling in the high-5% range.
Ongoing elevated interest rates left the NAHB/Wells Fargo Housing Opportunity Index (HOI) at a 37.7 reading, meaning only 37.7% of new and existing home sales during the fourth quarter of 2023 were affordable for a median-income household. (This was the final edition of the HOI, which will be replaced in May by a new affordability index: the Cost of Housing Index.) The final read of the HOI was near a multi-decade low for housing affordability because of both high interest rates and limited housing inventory.
Despite the recent uptick for interest rates, a combination of several key factors — including expectations that mortgage rates will continue to moderate in the coming months, the prospect of future rate cuts by the Federal Reserve later this year, and a protracted lack of existing inventory — provided a boost to builder sentiment for the third straight month. Builder confidence in the market for newly built single-family homes climbed four points to 48 in February, according to the NAHB/Wells Fargo Housing Market Index. This is the highest level since August 2023, and it suggests gains for single-family starts ahead.
January construction data suggest competing directions for multifamily and single-family construction volume in 2024. For the first month of the year, single-family construction starts decreased 4.7% to an annual rate of 1 million. However, single-family starts are up 22% compared to a year ago, and single-family permits have increased 1.6% to an annual rate of 1.02 million — the highest since May 2022. Meanwhile, multifamily construction starts decreased 35.6% to an annualized 327,000 pace in January, and multifamily permits decreased 7.9% to an annualized 455,000 pace — their lowest since April 2020.
Residential building material costs may heat up in 2024 as single-family construction volume increases. The latest Producer Price Index indicated that prices of residential building materials increased 1.28% between December 2023 and January 2024. This was the largest monthly change for the index since March 2022.
Finally, new data indicate that the long-run demand for home construction may be larger than many analysts expect. The Congressional Budget Office released new 30-year population growth projections that include substantial upward revisions. The latest estimates include an additional 8.9 million people in 2053, a 2.4% increase from its previous forecast. A faster growing population will undoubtedly increase demand for housing (including both for-sale and for-rent multifamily and single-family), creating added pressure on the persistently underbuilt housing market.
Now that it’s a new year, and we all survived 2023, many of us have sat down to create New Years’ resolutions. Be it health, family, or business. We have all been around long enough to know that most don’t stick long-term, and unless we put the time in to create a smart, adequately researched, and timely plan, our chances for success drop significantly.
That is why we formed our affinity partnership with Small Business Growth Partners (SBGP) and why an annual Business Plan of Actions (BPA) is included 100% with your HBA Member Benefits.
SBGP is a private national coaching firm and specializes in working with construction and trade companies. Over 40% of the country’s Home Builders Associations from the NAHB work exclusively with SBGP, and we feel fortunate to be one of them. They understand the building industry and have helped thousands of construction & trade companies across the country.
Here are some of the most common results I’ve heard from members who implemented a BPA…
A significant increase in gross & net margins
Being able to breakthrough growth ceilings and achieve record volume numbers
Creating clear roles and responsibilities between team members and stopping the blame game.
Getting teams on the same page with a simple and effective planning system.
Significant increases in sales conversion rates
Considerable increases in employee morale
Significantly reduced “firefighting” and getting pulled back into day-to-day operations
And most importantly, having substantially more money on the bottom line and truly feeling in control of your business.
If you have not yet taken advantage of this OKHBA Member Benefit, please do it now.
Once again, a 2024 BPA is included 100% in your OKHBA Members Benefits.
This article was taken from the The Journal Record.
OKLAHOMA CITY – Legislators on Tuesday received an update on the housing stability program and examined ways to further address the housing crisis in Oklahoma.
State Rep. Daniel Pae, R-Lawton, and state Rep. Forrest Bennett, D-Oklahoma City, organized the study to explore the development of and access to affordable housing. They say the Business and Commerce Committee study will help them determine how to direct their focus with legislation pertaining to this ongoing issue in next year’s legislative session.
“We’ve been working for the last several months with many stakeholders and partners in housing to try to identify opportunities for the state of Oklahoma to put ourselves on a good path when it comes to affordable housing and workforce housing,” Bennett said.
Program nears end of public comment period
The committee learned the latest on the development of a program designed to help address the long-standing housing shortage in Oklahoma.
The Oklahoma Legislature looks to build off momentum created from the passage of House Bill 1031X during the 2023 special session that ran concurrently with the regular session. The bill appropriated $215 million for the creation of the Oklahoma Housing Stability Program.
The Oklahoma Housing Finance Agency is the program administrator. Agency Housing Development Director Darrell Beavers said they split the state funds into three initiatives.
This is an article taken from The National Association of Home Builders website. To view the full article, read here.
Today’s home buyer doesn’t just want a personalized purchasing experience — they expect it. And the numbers speak for themselves:
70% of buyers expect personalized interactions with businesses
76% of customers get frustrated when companies don’t deliver personalized interactions
The fastest-growing companies drive 40% more revenue from personalization than their counterparts.
A home is arguably the most personal product in the world. So home builders must incorporate the right technology — like online buyer experiences and 3D visualizations — into their business to enable the personalized experience today’s home buyers want and expect.
By being authentic, understanding your audience, and embracing technology, you can enhance your brand and provide a personalized experience for customers – making you a builder of choice.
Use Human-Centric Messaging
People don’t just buy products; they are buying better versions of themselves. When a home builder can authentically help buyers see themselves living better lives and achieving their aspirations by engaging with their product, that product becomes more valuable and differentiated.
Prospective buyers are more likely to choose your brand over competitors when they see themselves in your product and story.
Close Sales through Personalization
What if you could bring the high-touch, personal experience buyers get in a Design Center right to the buyer’s home? And in doing so, speed up the sales cycle?
Giving buyers a level of control to make decisions about their home and visualize it in the process can empower them to truly build a home they love that fits their needs and preferences.
This personalization in the sales cycle doesn’t just benefit buyers. It also helps you as the home builder by easily increasing option take rates and earning more revenue in each transaction.
This article is excerpted from Construction Utopia, an SGC Horizon publication. To read the full article, click here. .
Design firm Mary Cook Associates (MCA) recently released its third white paper dedicated to interior design methodology and fundamentals. This eight-part series from MCA highlights the ways developers and builders of multifamily and single-family units can respond to recent shifts in home life.
The paper, “Living It Up,” develops ‘Five Ps’ recharacterizing livability in single-family and multifamily interiors since the COVID-19 pandemic. These are factors that were not only relevant a year ago, but remain as mainstays for many design projects.
The ‘5 Ps’ impacting home design in the age of ‘work from home’:
Packages: The increase in delivery-based consumerism is directly impacting design. Making spaces that accommodate packages of all shapes and sizes has become a major new priority.
Pets: With the increase in pet adoption and ownership during the pandemic, functionality is vital for the wellbeing of pet and owner alike. Communities and homes with interior and exterior pet-friendly spaces and functional amenities, from dog wash areas to feeding and sleeping stations, is a significant draw for pet lovers.
Plug-ins: The evolving work-from-home (WFH) lifestyle has set new technology standards. Multifamily residents seek collaborative workspaces, strong WiFi, and well-thought-out places to plug in devices, while adaptable spaces are key for supporting WFH in single-family homes.
Play: Coping with the challenges of the pandemic amplified almost everyone’s need for play, driving demand for recreational spaces and those that promote fitness and healthy habits, including curated space that fosters activity transitions.
Personal Space/Privacy: Remote work, virtual school, more family members at home and changing quarantining restrictions have created the need for more personal space and privacy within the home, with “pocket spaces” that create mini-territories for specific activities emerging as a design solution.
In the era of WFH, it’s important that home design match increasingly complex necessities. A well-designed interior space may just turn someone’s simple home into an oasis.
President Biden says he feels your pain regarding inflation, and he’s made public-relations moves to show it, begging ports to move goods faster and OPEC to produce more oil. Too bad his Administration’s policies reveal different priorities. Witness the Commerce Department’s decision to raise tariffs on lumber, which will raise building costs in an already strained housing market.
The Commerce Department said last week that it will double the average tariff on Canadian softwood lumber to 17.9% from 8.99%. Softwoods like spruce and pine are the backbone of light construction, and a steady supply is key to restraining the rising cost of home building. For decades U.S. sawmills haven’t been able to meet domestic demand, but they’ve leaned on government to protect their market share.
Now the Biden Administration is taking up their cause, squeezing imported wood. Commerce Secretary Gina Raimondo has framed the decision as a bargaining move, pressuring Canada to curb its lumber subsidies. But the U.S. lobby admits the tariffs are a boon to American producers.
“This is exactly what must happen for further expansion of U.S. softwood lumber manufacturing and jobs,” said U.S. Lumber Coalition co-chair Jason Brochu when the tariff hike was proposed in May. That’s what tariff beneficiaries always say as they charge customers more amid limited supply.
There’s rarely a good time for trade restrictions, but the timing of this one is tragicomical. The same month Commerce revealed its tariff plan, lumber hit a record price of $1,650 per
thousand board-feet, more than three times the level before pandemic supply shortages began. Restored production drove prices down over the summer, but prices have risen in recent months amid rising construction demand, and now stand more than 75% above their pre-pandemic level.
The shortage would be much worse if not for Canadian lumber, which backs up U.S. output. Canada’s provincial governments give a guaranteed price to timber growers, so U.S. producers have a point when they say the playing field is uneven. But Canada’s subsidies are a small and likely shrinking part of its competitive footing. According to Working Forest, a trade publication, U.S. production has topped out at some 70% of domestic demand since the 1990s. Foreign producers fill the gap, led by Canada with a roughly 26% share.
The Biden Administration’s tariff resumes the U.S.-Canada lumber war where President Trump left off. After a 2006 agreement on softwood lumber expired in 2015, Trump Commerce Secretary Wilbur Ross later proposed to raise tariffs on imports. Washington and Ottawa continued to haggle over each other’s trade protections, but the Commerce announcement is an escalation that will do more harm to American home builders and home buyers.
President Biden campaigned against his predecessor’s tariffs, but his trade policy in office has been nearly as protectionist. He’s kept most tariffs in place, though cutting these border taxes would be a fast and easy way to reduce inflationary cost pressure. The Administration’s priority is pleasing unions and favored businesses, not reducing inflation.
Appeared in the November 30, 2021, print edition as 'Biden Joins the Lumber Tariff Wars.'
In a blow to housing affordability and a move strongly opposed by NAHB, the Commerce Department today moved forward today with its next administrative review to double the tariffs on Canadian lumber shipments into the U.S. from 9% to 17.9%.
In response to the Commerce action, NAHB Chairman Chuck Fowke issued the following statement:
“With the nation in the midst of a housing affordability crisis, the Biden administration has moved to slap a huge, unwanted tax hike on American home buyers and renters by doubling the tariffs on Canadian lumber shipments into the U.S. This is the worst time to add needless housing costs onto the backs of hardworking American families. Home builders are grappling with lumber and other building material supply chain bottlenecks that are raising construction costs. And consumers are dealing with rising inflation that is pushing mortgage interest rates higher.
“This decision undermines the historic funding commitment made to housing in the Build Back Better legislation and erodes efforts by Commerce Secretary Raimondo and other Biden administration officials to tackle the lumber and building materials supply issues plaguing the industry. Doubling the tariffs will only exacerbate market volatility, put upward pressure on lumber prices and make housing more expensive. Rather than placating China and Europe with sweetheart trade deals, the White House needs to change course and move immediately to engage with our Canadian partners on a long-term solution to the trade dispute that will end tariffs and help restore price stability to the lumber market.”
Prices paid for goods used in residential construction ex-energy rose 0.2% in July after climbing 3.0% in June (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. Building materials (i.e., inputs to residential construction less food and energy) prices have declined just twice since December 2019 and have increased 19.4% over the past 12 months.
The index for inputs to residential construction, including food and energy, increased more (+0.6%) and is up 22.3%, year-over year. This increase closely mirrors the 26% increase found in a recent NAHB survey.
Building materials prices have increased 13.0% year-to-date (YTD) in stark contrast with the same period in 2020 during which prices increased 1.1%. The average change in the building materials PPI between January and July was +1.2% from 2015 through 2019 (the most recent data available), less than one-tenth the gain thus far in 2021.
Steel Products
Steel mill products prices climbed 10.8% in July following a 6.2% increase in June. The pace of increases has hastened each of the past two months and prices have climbed 108.6 % over the past 12 months and 87.6% in 2021 alone.
The rate of monthly steel price increases slowed to 2.4% in May 2021, snapping an eight-month stretch during which the PPI for steel mill products rose each month by more than it had the prior month.
The monthly change in the steel mill products PPI increased by more than 10% only three times (in 1947, 1948, and 2008) over the 80-year period ending in 2020. Monthly increases have already exceeded that mark four times in 2021.
Softwood Lumber
The PPI for softwood lumber (seasonally adjusted) decreased 29.0% in July—the largest monthly decline since tracking of the series began in 1947. Prior to 2020, the largest monthly drop in the softwood lumber PPI was a -10.7% reading from April 1980. The steep decrease came on the heels of an unexpectedly mild 0.7% decline in June as the cash price of lumber began falling precipitously in mid-May. The PPI for softwood lumber has fallen 29.5% from its peak but remains 71.9% above its January 2020 level.
Although the direction of the index value change is encouraging, the continued volatility is not. Price volatility as measured monthly by the PPI or weekly by industry publications remains at an all-time high for a 12-month period.
Gypsum Products
Prices paid for gypsum products increased 2.5% in July and is up 15.8% year-to-date. Over the past 12 months, the index has climbed 21.7%–the largest 12-month increase since July 2006 (NSA).
Ready-Mix Concrete
Prices paid for ready-mix concrete (RMC) were unchanged in July (seasonally adjusted) after increasing 1.1% increase in June.
On a regional basis, prices increased in the Midwest (+0.6%) and West (0.8%), declined in the South (-0.6%), and were unchanged in the Northeast.
Although recent regional price changes have tended to balance out month-to-month, price gains in the Northeast and West have far outpaced those in the Midwest and South over the past four years. Since July 2017, prices paid for ready-mix concrete have increased by roughly 20% in the NE and W, while prices have increased less than half as much in the MW and S (+9%).
Other Building Materials
The chart below shows the 12-month and year-to-date price changes of other price indices relevant to the residential construction industry.
As Congress continues to work on an infrastructure package, the Construction Materials index is particularly salient. This index is much more heavily weighted with products necessary and used in large amounts in the production of “traditional” infrastructure (e.g., roads, bridges, rail).
I am pleased to report that NAHB’s tireless efforts to engage the White House to convene a home building materials supply chain summit to seek out solutions to end production bottlenecks that have resulted in soaring material prices has borne fruit.
This afternoon, NAHB, along with a diverse group of stakeholders, participated in a virtual discussion regarding current challenges across the home building supply chain, its implications for the broader housing market, and possible solutions. Administration officials participating in the event included Commerce Secretary Gina Raimondo, HUD Secretary Marcia Fudge, Assistant to the President and Director of the National Economic Council Brian Deese, Assistant to the President and Director of the Domestic Policy Council Ambassador Susan Rice, and Chair of the Council of Economic Advisers Cecelia Rouse.
Thanks to our ongoing efforts, the issue of rising material prices and supply shortages has been brought front and center to the Biden administration. NAHB stressed at this meeting that it is imperative that lumber mill producers boost production in order to meet rising demand.
A Year-Long Effort
I want to stress that this meeting was the culmination of a year-long effort where NAHB has been in the forefront in educating the public and policymakers about how rising lumber and building material prices are harming home builders, home buyers and the economic recovery.
NAHB leaders have appeared on CBS This Morning and numerous times on Fox Business News. We have also been featured in Bloomberg, CNN Business, Fortune, CNBC and scores of local media outlets across the nation calling for action to address rising prices and supply shortages. Overall on the media front, we have earned more than $50 million in media coverage, with over 11,000 stories featured in national and local news. Effectively, we got $50 million in national publicity for free rather than having to pay for it.
In the policy arena, we have reached out to virtually every member of Congress on this issue and held talks with top White House officials and Cabinet leaders. Thanks to the outreach of NAHB and our grassroots membership, several House and Senate leaders have openly raised the issue of soaring lumber prices and housing affordability with Secretary Raimondo and U.S. Trade Representative Katherine Tai. These efforts helped pave the way for today’s meeting. In fact, Secretary Raimondo addressed the NAHB Leadership Council on June 28 and said that “supply chain disruptions are at the top of my mind.”
Moving Forward
In another positive development, many of you may have seen media reports about the recent sharp drop in lumber prices. While this is good news, the lumber crisis is far from over. Most builders have not been able to take advantage of this development because producers are still selling off lumber that they purchased from mills when prices were at their peak. Moreover, sawmill output continues to lag. During today’s meeting, we underscored that if supply does not increase fast enough to meet demand, we may find ourselves in the same situation as last November, when lumber prices posted a similar steep reduction only to reverse course and move to record-high levels.
And while lumber prices have just recently begun to move downward, the price for other building materials, such as oriented strand board, continue to soar.
While today’s White House meeting was a step forward, we are not out of the woods yet. Looking ahead, we will remain laser-focused on not only lowering lumber prices and increasing supply, but also keeping pressure on policymakers to improve supply chains for all building materials in order to protect housing affordability. I want you to know that NAHB will continue to work relentlessly on all fronts to find solutions that will ensure a lasting and stable supply of lumber and other building materials for the home building industry at a competitive price.
I invite you to learn more about what NAHB is doing to resolve the lumber crisis by visiting our lumber page at nahb.org.
Sales of newly built, single-family homes fell 6.6% in June to a 676,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The June number follows downward revisions to the May estimate and marks the lowest rate since April 2020. Despite the recent cooling trend, new home sales are up 13.5% on a year-to-date basis.
“Sales continued to trend lower in June as some builders slow sales contracts to manage supply-chains, amidst longer delivery times and higher construction costs,” said NAHB Chairman Chuck Fowke. “While lumber prices have shown some improvement in spot markets, these declines take time to translate into lower construction costs. Moreover, other items like OSB remain elevated.”
“The June data came in lower than expected, and we anticipate an upward revision next month,” said NAHB Chief Economist Robert Dietz. “Nonetheless, sales have trended lower as construction costs have increased and builders have sought to manage material delays and cost challenges in the construction pipeline, in addition to dealing with shortages of lots and labor in many housing markets.”
A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the June reading of 676,000 units is the number of homes that would sell if this pace continued for the next 12 months.
Inventory ticked up slightly, but remains low at a 6.3-month supply, with 353,000 new single-family homes for sale, 46.5% higher than June 2020. Inventory of homes available for sale, but not begun construction was up 84% year-over-year, a clear sign of supply-side limitations in the building market. In contrast, completed, ready-to-occupy inventory is down 44% year-over-year, to just 36,000 homes.
The median sales price was $361,800, up 6% from the $341,100 median sales price posted a year earlier.
Regionally, on a year-to-date basis, new home sales rose in all four regions, up 19.5% in the Northeast, 23.9% in the Midwest, 15.6% in the South and 4.1% in the West. These significant increases are due in part to lower sales volume during the Covid crisis a year ago.
Perhaps no manufactured good is less technologically sophisticated than a 2×4, while none is more complex than the latest microprocessors. Yet the U.S. economy is currently suffering from shortages of both lumber and chips—and for similar reasons.
In both cases, today’s shortages are the legacy of past busts, which then led to years of underinvestment that has left producers unable to respond to sudden surges in demand. Start with lumber, which is an essential material input for home building. Sawmills and other wood product manufacturers cut their production capacity by about a quarter after the housing bust. While investment has since recovered, productive capacity in March was still about 11% below the 2006 peak.
Until recently, that seemed like a sound business decision. Most lumber and other wood products are used for construction and furniture manufacturing—two industries that looked to be permanently smaller after the mortgage debt bubble popped. The number of single-family housing starts from 2017 to 2019 was about half what it was from 2003 to 2005. Despite the capacity cuts, the Federal Reserve estimates that sawmills and other wood product manufacturers were operating at about 78% of capacity in the years immediately preceding the pandemic, compared with 79% during the peak of the housing bubble.
The problem—for both home builders and home buyers—is that the construction industry’s lost decade- plus ended so suddenly. Since July, Americans have bought about 79,000 new single-family homes each month, up roughly 50% from the recent pre-pandemic average—and the pace of purchases seems to be accelerating.
Even during the best of circumstances, builders would have struggled to meet that surge in demand, because construction takes time. That’s why the number of completed new homes available for sale has plunged to its lowest level ever. Builders have only been able to prevent overall inventory from collapsing by selling homes where construction hasn’t yet started.
The current situation is being exacerbated by the atrophied lumber supply chain. Just as it takes time to build a house, it takes time for sawmills to boost their capacity. Until then, markets ration scarce quantities through higher prices. The producer-price index—businesses’ version of the consumer-price index—shows that the cost of goods sold by sawmills are up more than 70% since the pandemic began, while the price index for all materials used in construction is up more than 13%.
Despite the strength in demand, soaring costs are causing home builders to begin cutting back on construction starts for new single-family homes.
The situation with chips may seem different, but it’s actually the same. The first key piece of context is the boom-bust cycle that hit America’s semiconductor industry in the 1990s and 2000s. Sales of American-made semiconductors and related devices fell from $94 billion at the peak in 2000 to less than $66 billion the following year. As of 2019, sales were worth less than $65 billion. Similarly, revenues from printed circuit assembly fell from a peak of $37 billion in 2000 to $24 billion by 2002, and were also $24 billion in 2019.
Unsurprisingly, businesses responded to the lack of sales by keeping a tight lid on their investment in property, plant, and equipment. After hitting at a little more than $33 billion in 2000, capital spending on physical manufacturing capacity by the total computer and electronics manufacturing sector was just $25 billion 2019.
Producers in the rest of the world made up the difference as demand from the U.S. and elsewhere continued to rise over the past two decades. But like American sawmills, those foreign producers were similarly unprepared to handle the surge in demand for chips during the pandemic.
Being stuck at home and flush with cash from economic impact payments and enhanced unemployment benefits led to a huge spike in spending on consumer goods that require microprocessors, including phones, TVs, laptops, tablets, exercise equipment, and cars and trucks.
At the same time, businesses felt compelled to spend more on computers, phones, and specialist medical devices either to support their remote workforces or to respond to the pandemic itself.
The combined effect has been similar to the impact of the demand for new homes on the lumber market. But instead of home builders cutting back on construction starts, we have auto makers restraining their production in a hot market even as they get stuck with inventories of parts for unfinished vehicles.
Ultimately, both the lumber shortage and the chip shortage will be resolved with some combination of lower demand and higher supply. The question is how long will it take. Investment takes time, and businesses reasonably want to be confident they won’t get burned with an overhang of excess capacity if the current demand spikes prove short-lived.
This means that the fastest way to fix the current shortages and bring prices back to normal—at least, the fastest way that doesn’t involve tanking the economy—is to keep the boom going. And that seems like the plan of both the Federal Reserve and elected officials.
Write to Matthew C. Klein at matthew.klein@barrons.com
The Oklahoma Home Builders Association has selected Jim Schuff, co-owner of Vesta Homes, as 2021 president.
Other officers are Brandon Jackson, of Tara Custom Homes in Tulsa, vice president-treasurer; and Ron Nance, of The Oaks in Lawton, vice president-secretary. Steve Taylor, of CenterPoint Energy, is chairman of the Associates Council.
Four people have been added to the Oklahoma Housing Hall of Fame.
Irvin “Bud” Blakley, as both a past president of the Oklahoma Home Builders Association and the Oklahoma Lumbermen’s Association, was a leader in housing for rural Oklahoma. Through his building company and lumber company in Chandler, he was involved in thousands of homes.
He was active in civics both in Davenport and Chandler. He also was active with the state associations, and the National Association of Home Builders. He was Oklahoma Builder of the Year in 1984 and was one of the state’s first Certified Professional Builders.
Leo Cravens served as the Oklahoma Home Builders Association’s executive officer from 1973 to 2004. He was also principal lobbyist for the association. He was also a past president of the Oklahoma Society of Association Executives and held the Certified Association Executive designation.
He helped shape the housing industry in regard to licensing, workers compensation reform and the association’s support of state "right-to-work" policies.
Ben Newcomer was a homebuilder and developer in the Norman area for more than 40 years. He was in the local and state associations and served was president of the state association in 1983. He most influential as a mentor to many, helping young builders and developers learn the intricacy of their profession. He also was an avid golfer and used lessons learned on the course in many of his business dealings.
Tom Wenrick is a developer, Realtor, and appraiser with 50-plus years of real estate experience, recognized as one of Tulsa’s foremost developers of residential subdivisions and commercial properties.
"It is Tom’s successful legislative advocacy where a developer’s lot inventory to be taxed at cost rather than retail until sold to a third party that distinguishes him among his peers and that has saved builders thousands, if not hundreds of thousands, of dollars over the years," the state association said, noting that Wenrick is a past president of the Tulsa and state associations and both have honored him with Builder of the Year awards.
After drifting lower from mid-September to mid-November, lumber prices are on the rise again. Prices peaked at an all-time high of roughly $950 per thousand board feet in September before gradually moving down to around $550 per thousand board feet last month.
However, according to Random Lengths, lumber prices are now above $650 per thousand board — up nearly 20% over the past four weeks.
Elevated lumber prices since mid-April have added thousands of dollars to the cost of new single-family homes and apartment units.
Indications are that lumber producers are reducing production heading into the slower winter building season, even as new residential construction continues to outpace seasonal norms.
However, there is some good news on the lumber front regarding tariffs on Canadian softwood lumber.
The U.S. Commerce Department’s International Trade Administration published an administrative review of anti-dumping duties in late November, followed by an administrative review of countervailing duties on Dec. 1.
The effect of the reviews is that duties on shipments of Canadian lumber into the United States, which currently stand at 20%, will be reduced by more than half, to roughly 9%. The tariff reductions are expected to go into effect in mid-December.
“This is a step in the right direction, as tariffs have contributed to unprecedented price volatility in the lumber market, leading to higher prices and harming housing affordability for American families,” said NAHB Chairman Chuck Fowke. “The United States needs to work with Canadian officials to end the tariffs and achieve a long-term, stable solution in lumber trade that provides for a consistent and fairly priced lumber supply.”
NAHB continues to work on all fronts to find solutions that will ensure a lasting and stable supply of lumber for the home building industry at a competitive price.
For more information on the tariff reduction, contact Felicia Watson at 800-368-5242 x8229 or David Logan at x8448.
Registration is open for IBSx, the new International Builders’ Show® virtual experience from NAHB. The in-person event was transitioned to a virtual show due to health and safety concerns surrounding the COVID-19 pandemic.
This online alternative to IBS, the most comprehensive business-building event in residential construction, will showcase the most innovative new products, offer live and semi-live interactive education sessions with on-demand recordings, feature creative networking opportunities such as live chat and one-on-one meeting requests, and much more. Registrants can participate in all of the IBSx offerings, Feb. 9-12, from 10 a.m.-6 p.m. ET daily.
“IBS has always been the premier show of the industry, and this year is no exception. While this year’s show is a different format than our attendees are used to, we think they will really be impressed with the new offerings and top-notch industry access they have come to expect,” said NAHB Chairman Chuck Fowke. “NAHB is excited about the new IBSx virtual experience where participants can log in and have access to innovative product demos, networking opportunities and education sessions — all available from home or the jobsite, on-demand and when they want the information.”
The week will kick off with a special keynote address from well-known television host Mike Rowe. Participants will also be able to stay on top of the latest industry trends and exciting new product launches and demos through product areas such as the Home Tech Zone and Start-up Zone. Networking opportunities and one-on-one live meetings with top industry suppliers and service providers will also be part of the week.
Participants who register with an All Access pass can expand their skills and learn about a variety of cutting-edge topics offered in the more than 100 exclusive education sessions featuring top industry speakers. Another big draw of the week is the unveiling of NAHB’s official show homes, The New American Home® and The New American Remodel®, through a series of virtual tours and presentations. The homes are designed to showcase innovative building technologies, emerging design trends and the latest building products.
IBSx is not open to the public. Industry professionals should register at BuildersShow.com. Expo passes for the virtual event are free for NAHB members, and $50 for non-members. Early-bird pricing — available through Jan. 8 — for an All Access: Education + Expo pass is $199 for NAHB members and $299 for non-members.
Further details on the virtual offerings will be forthcoming. For more information on IBSx or the International Builders’ Show, visit BuildersShow.com.
Trends in design are inevitable. Some stay for a while, and others just last for a season or two. During the fall season, the trend toward design that elicits feelings of warmth and comfort is prevalent. And with the unwelcome addition of COVID-19 to our daily lives, there has been a trend to create multifunctional spaces that foster feelings of well-being. Merchandisers share how you can incorporate these trending design details into your projects and create positive vibes with prospective buyers.
Materials
As home buyers are looking more and more to their homes as a sanctuary, there is a trend to design with more natural and organic materials. Biophilic design and bringing in greenery with art, wall coverings, or plants into the design continues to be an important trend. And it makes sense when you consider the proven power of nature and natural elements in design. Organic, natural materials incorporated into design can reduce stress, blood pressure and anxiety, as well as enhance a sense of wellbeing.
GrandPeaks Copperleaf Clubhouse, photo courtesy of Lita Dirks & Co.
Parkwood Homes, photo courtesy of Lita Dirks & Co.
Taylor Morrison NEXTadventure Home, photo courtesy of Lita Dirks & Co.
Alliance Residential Lowry Park Clubhouse, photo courtesy of Lita Dirks & Co.
Fabrics
Creating a cozy, lush environment that promotes relaxing at home is something buyers will be looking for. Textural throws, layered area rugs, and chunky, oversized knit pillows are a great way to meet this expectation. Another fabric that can instantly give a cozy feel is velvet. Very few things say “cozy and safe at home” like velvet upholstered furniture.
Outdoors
We have discussed at length the importance of bringing the outdoors in, and to no one’s surprise, this will continue to be a trend this fall. As more buyers are spending more time in their homes, they want to know they have options for work and entertainment. They need to see that their living area is not limited to the four walls of the house. Bringing the outdoors in either literally by walls that fully retract or visually by floor to ceiling windows continues to be an important trend.
Fall traditionally spurs the trend for designs that promote warmth and comfort. This year is no different. In fact, we would say it is even more so with COVID as part our world (for now). Designing spaces that foster feelings of well-being is most definitely on trend.
This post originally appeared on Best in American Living. Post courtesy of Sue Ridgeway, Director of Marketing at Lita Dirks & Co., an interior design and merchandising firm based in Greenwood Village, Colo.
In the wake of the COVID-19 pandemic, certain patterns and trends have begun to emerge in the housing industry — in particular, higher demand for housing in lower-density areas. How much of these trends, though, are actually a change in demand or behavior, or just a continuation of existing trends that may have been accelerated through COVID?
“When we think about the conversation around suburban and urban development, it’s really thinking about the extent the trends are on the curve, or if this is really a shift,” moderator Richard Gollis observed during NAHB’s recent The Future of Urban and Suburban Housing in the Wake of COVID-19 webinar. Gollis was join by panelists from NAHB, CoStar, Zillow and Toll Brothers Apartment Living, who presented information from various segments of the industry to highlight growing trends.
According to NAHB Chief Economist Dr. Robert Dietz, increased construction activity in lower-density markets was already occurring as part of the housing affordability crisis, with the COVID-related shift to telecommuting accelerating the trend as people have more flexibility to live outside of large metro areas. Supply can respond better in lower-density areas as well because of the lower cost to build, and may affect the size and design of single-family homes and types of multifamily projects being built in these areas as well.
The same can be said for demand for multifamily rentals, according to John Affleck, vice president of market analytics at CoStar. Supply and demand have geared toward the suburban markets — a trend already in progress pre-COVID — with suburban multifamily products comprising all the rental demand in the second quarter of 2020.
This has impacted rents, as historically expensive markets such as San Francisco, San Jose, Seattle and Boston have seen double-digit decreases in asking rents since their March peak. Meanwhile, smaller suburbs and cities such as Inland Empire, Calif. (a bedroom community of Los Angeles), Norfolk and Richmond, Va., and Memphis, Tenn., have seen rents increase between 3.6% to 5.3%.
Not every suburb is the same, though, noted Charles Elliott, president of Toll Brothers Apartment Living — both in terms of performance as well as mindset.
“The meaning of suburbs is very relative to people,” he stated, providing Toll Brothers’ success in the urban core of New Jersey — which can be considered a suburb of New York City — as an example.
Elliott predicts the urban and walkable suburban markets will come back strong because of rising interest among Gen Z, and also noted increased interest in second homes as a result of the increased flexibility of working from home.
Gen Z and millennials are key drivers in the real estate market, observed Svenja Gudell, chief economist for Zillow Group, as many millennials are reaching or have reached 34 — the median age of first-time home buyers. Those with the means to buy are facing an increasingly competitive market, however; although interested home buyers have been active, sellers have been apprehensive to put their properties on the market, leading to tight inventory and quick sales. Low interest rates are helping buyers, she added, but they aren’t going to make up for the extremely high prices.
Other trends to watch include the size of single-family homes, which had been on a decline but is likely to increase as people look to expand their available space. Flexible design will play a key role in that as well. Higher unemployment rates among younger age groups is also likely to have a lasting impact on the rental market, with an increased number of young adults moving back in with their parents as a result.
A replay of the webinar is available at nahb.org, and is free for members of the Multifamily Council and Housing Credit Group.
Despite what many believe, Gen Z and Millennials do want to become homeowners and they’re excited by the prospect. However, they face different obstacles than their parents and grandparents did. These challenges include lack of mortgage education, lack of suitable housing supply, and an unprecedented amount of debt that limits buying power and makes them fearful of taking on more. Any long-term effects on the attitudes and intentions due to COVID-19 are still unknown, but we have yet to see indications of major changes in sentiment.
In a 2019 Fannie Mae survey of homebuyers aged 18-34, 88% said they are confident they will achieve homeownership someday. But contrary to previous generations, their desire to be homeowners is more emotionally driven than financial. 80% say homeownership is the best way to make it on their own, and less than 50% say they want to use their home as an asset.
As for what they desire in a home, 69% say they are open to a smaller home as long as it meets their needs. According to the Joint Center for Housing Studies, between 2018 and 2023, there is expected to be a 7% rise in homebuyers who are single and a 6% increase in those who are married with no children, which may signal the need for smaller homes. Smaller homes, however, are in short supply, in comparison to the larger homes that previous generations sought. 63% also say that they are open to fixer-uppers but, despite their flexibility, only 31% believe they would be able to find a home in their price range.
Among their biggest struggles is the high amount of debt that plagues these generations, in part, due to the rising costs of higher education. According to Northwestern Mutual’s 2019 Planning and Progress Study, U.S. adults aged 18+ report having an average of $29,800 in personal debt, exclusive of mortgages. This could be one of the many reasons that 55% of those surveyed believe homeownership is out of reach financially.
There is also a considerable lack of education preventing younger homebuyers from taking the next step. For instance, 73% were unaware of affordable down payment mortgage options, as low as 3%. Fannie Mae findings also indicate a low awareness of affordable housing solutions that go beyond traditional site-built models. Only 39% of respondents were aware of manufactured homes as a more affordable option. And when shown what the newest generation of manufactured homes looks like, the number of respondents who were interested increased by 31%.
The silver lining, however, is that housing professionals have an opportunity to help reach these generations simply by understanding their needs. 64% said that they expect lenders to educate them about the mortgage process, and many future homebuyers can benefit from housing counseling from a HUD-approved nonprofit housing counseling agency. As an industry, if we are willing to step into that advisory role, we can be more successful in helping prospective homebuyers become homeowners.
Steve Shoemaker, new president of Ideal Homes of Norman. [PHOTO PROVIDED]
NORMAN — Ideal Homes has promoted Steve Shoemaker from vice president of sales and marketing to president of Ideal Homes.
Shoemaker has led marketing for the company since 2003. He is the first company president to be named from outside the original ownership group.
“Steve and I have worked closely together for the last 16 years. He loves this company and its people,” said Vernon McKown, founder and CEO. “While his primary strategic focus has been on the sales, marketing, and design center side of our organization, he has a great strategic mind for the big picture and has played a vital role on our senior management team as we’ve set big goals for growth and leadership development.”
McKown remains as CEO and chairman of the management team. As part of the ownership group that started the company in 1990, he has led the company’s sales, marketing, land development and day-to-day operations.
Going forward, he plans to focus on setting the stage for Ideal’s future growth. Shoemaker will continue to guide sales, marketing and the design center while taking on IT and company leadership development initiatives.
Shoemaker holds a Bachelor of Science degree in mass communications/public relations from Oklahoma Christian University and holds the MIRM designation — Master in Residential Marketing — from the National Association of Home Builders. He has served on the Oklahoma Occupational Licensing Advisory Commission since 2018.
He and his wife, Jama, have three sons.
Ideal Homes has developed and builds in 18 neighborhoods in the Oklahoma City metro area, including Blanchard, Choctaw, Deer Creek-Edmond, Guthrie, Moore, Mustang, Norman, Piedmont and Yukon, and in Stillwater.
Only a developer as seasoned as David Yost could pull this off
Richard Mize
Living room of “the Perfect House,” 12209 Grand Cedar Lane. [BRYAN TERRY PHOTOS/THE OKLAHOMAN]
Developer David Yost and designer-real estate agent Joyce Brown worked together to build “the Perfect House” at 12209 Grand Cedar Lane in Yost’s Stonemill Manor neighborhood, a small enclave next to his larger Stonemill addition a quarter-mile west of Coltrane Road on the south side of NE 122.
Developer David Yost and designer-real estate agent Joyce Brown in “the Perfect House” at 12209 Grand Cedar Lane.
Kitchen at 12209 Grand Cedar Lane, which David Yost has dubbed “the Perfect House.”
A view of the multipurpose utility room at 12209 Grand Cedar Lane.
A view of the master bedroom at 12209 Grand Cedar Lane. [BRYAN TERRY PHOTOS/THE OKLAHOMAN]
A view of the master bathroom at 12209 Grand Cedar Lane.
Park and trails at Stonemill Manor, a quarter-mile west of Coltrane Road on the south side of NE 122.
Pergola in the park at Stonemill Manor, a small enclave next to the larger Stonemill neighborhood by developer David Yost.
A couple of years ago, seasoned developer David Yost hit upon an idea to stimulate interest in one of his neighborhoods: A show house, but more than a show house: “the Perfect House.”
It took a couple of years to build: 4,720 square feet, two bedrooms down and two bedrooms up, three baths, a half-bath, a study, formal dining room, casual dining area, big game room and a multipurpose utility room at 12209 Grand Cedar Lane in Stonemill Manor, a small enclave next to his larger Stonemill neighborhood a quarter-mile west of Coltrane Road on the south side of NE 122.
It took a village to put bricks and mortar and style and finish to the vision that Yost and Joyce Brown brainstormed. Brown is a real estate agent, designer and Yost’s sometimes business partner. Lots are available in Stonemill Manor. The idea was to literally set the standard for what is expected of custom builders.
“We came up with a novel — maybe crazy — idea: Why couldn’t a developer with 35-plus years’ experience working with luxury homebuilders, and a multiple winner of the Realtor Readers’ Choice Award, who is a gifted interior designer, who studied design in Paris, build a perfect home? A home that would showcase the quality that we demand in Stonemill Manor?” he wondered. “My close relationship with the best-ofthe-best subcontractors would assure excellent craftsmanship.
“There would be no financial or time constraints, Joyce would have the time and budget to give full expression to her superb interior design and staging talents, and I could obtain a retired builder/ subcontractor to oversee and manage all phases of construction. The idea, once germinated, became an obsession and we dived in. Well, 22 months later, we have finished the epic endeavor, and darned if it doesn’t seem, to us, like it is ‘Perfect.’
What makes it perfect? That takes some telling, as well as photography.
“The house is a perfect balance of form and function. The performance of the house makes you feel comfortable, and the beauty of the house makes you want to stay, to linger,” Brown said. “A home should be designed in such a way to make everyday living easier and more enjoyable. This house manifests those principles into tangible elements that embrace you and draw you in.
“We wanted the style of the home to stand the test of time. Our inspiration was an old-mansion look mixed with modern elements.”
How did they get to “perfection”?
“Caveats aside, I think we were able to build the house to the highest standards because we had no timetable for completion and no budget constraints,” Yost said. “We were convinced that if we treated each aspect of the building process as if it were the most important of all, and not accept the result until it was flawless, we could build the ‘perfect’ house. And from building the pad and footing, to hanging the mirrors, and final paint touch-up, that’s what we did.
“Of course the key to that being possible was to have the most talented and experienced subcontractors available and willing to work for us, and I believe we were able to do that.”
Drawing upon experience
A less seasoned developer wouldn’t dare, and probably couldn’t.
“For the past 45 years, I’ve been totally immersed in the world of land development, and have known the great builders from Henry Coffeen, Earl Austin, J.W. Mashburn and Mark Dale to name a few, through our present group of highquality, young builders,” Yost said. “I have worked with their architects and designers, their engineers and subcontractors and have developed friendships and working relationships with many of the best of them. I knew the subcontractors I wanted to actually build our house, and I had to be very patient when scheduling them.”
Yost is perhaps known best for his commitment to natural resource conservation, especially tree preservation. He has his own tree farm. A builder in one of his neighborhoods has to be willing to sculpt a lot from the woods, surrendering any trees only to the footprint of the house itself. Choosing the best lot for that, with big, mature trees, was the first step toward the “Perfect house.”
“I worked with Tim Johnson, my engineer, to establish a pad elevation that would take most runoff away from the house and to the street, which fits the overall neighborhood drainage plan. This involved a good amount of fill (dirt), which was carefully compacted to avoid settling,” Yost said. “Raising the pad elevation gave the facade of the house a more imposing look from the street and provided a superb view of the adjacent park with the waterfall and stream, and made them not only visible, but audible, as well.”
Then, a highly sought after foundation contractor was brought in to build an oversize footing and stem wall for extra support; a framing contractor recommended by Don Chesser used upgraded 2-by-6’s for outside walls, heavier-duty trusses at closer spacing than is typical, and erected one especially long clear span requiring a Glulam beam (glued laminated timber) specified by a structural engineer, who also double checked other loading.
The ‘Perfect house’ has Grand Manor roofing shingles by CertainTeed, more expensive but worth it, Yost said, open-cell spray foam insulation instead of typical blown-in insulation, for extra energy efficiency and quiet, and three Carrier heatand-air units.
Yost drew on decades of relationship and experience: A-list plumbing contractor, electrician, drywall installer, painter, a tile contractor “who turned out to be a true artiste” and did “stunning” work, heat-and-air contractor Don Hawkins, whose father installed the HVAC in Yost’s first rental project 45 years ago.
“Joyce and I couldn’t be happier with our Stonemill Manor show home,” Yost said. “As the developer of the neighborhood, I wanted it to represent my commitment to be the best upscale neighborhood in our market area.”
Brown explained what makes the rooms and spaces “Perfect.”
Kitchen
“Is it possible to have a love affair with your kitchen? The allure of this kitchen attracts you to spend time in it, whether you’re cooking or not,” Brown said. “The reason you may feel a seductive attraction to the space is the perfect balance of form and function. The form is shaped by floor-to-ceiling cabinetry, sparkling lighting, quartz exterior countertops, designer backsplash and a skillfully crafted built-in china hutch,” Brown said.
“The function is attained by way of a carefully planned appliance layout, which makes everyday cooking & social gatherings a breeze.
“To help keep everything clutter-free, a working pantry provides space to stow the unsightly countertop appliances, while providing additional work space. Joining form and function together is a large 5-by-9-foot island, crowned with a gorgeous slab of granite to become the focal point of the space. The island is free from built-in appliances to create an unobstructed centerpiece, and provide uninhibited space for party layouts and work space.”
Living room
“The living room has a cathedral ceiling with wood beams and the cast-stone fireplace has a mirrored focal wall above. All the main living areas are open and flow one space to another — even out to a 600-square-foot outdoor living area. Three large sliding glass doors open from the indoor living to the outdoor living. Remote control Phantom screens enclose the tiled patio, with fireplace, making it useable year-round and doubling the entertaining space,” Brown said.
Dining area
“The spacious formal dining area sparkles from the light of a crystal chandelier, against the backdrop of a hand-painted focal wall ... the ‘final touch,’ (using) the other areas and colors of the home as inspiration so the wall would feel like an organic part of the overall design. A traditional coffered ceiling, columns and chevron wood floor frame the space,” she said.
Utility room
“Every woman dreams of this space,” Brown said. “To begin with, the room is beautiful, with vintage marble floors, glass pendant lighting, quartz counters and shiplap feature wall with open shelves. If you’re enjoying a game or HGTV in the outdoor living area and feel a little thirsty — no problem. The multipurpose utility space is conveniently located nearby, where a refrigerator space & wet bar/utility sink are tucked just inside its carefully planned layout.
“At the opposite end is a built-in floating desk with leathered granite top for your favorite project, and a walk-in storage closet to stow whatever your heart desires. The finishing touch is a swinging butler’s pantry door — just in case your hands are full.
Master bedroom
“Traditional trims are combined with modern finishes to create a relaxing, elegant space,” Brown said. “From its generously sized sitting area, gorgeous park views can be enjoyed through the large picture window. A door adjoins the bedroom to the outdoor living area for a cozy snuggle by the fireplace. The tray ceiling with dental molding exhibits the attention to detail, as each of the 400 blocks of dental molding were individually cut and installed by hand.
Master bath, closet
“Floor-to-ceiling marble tile, herringbone marble tile floor, marble countertops, soaker tub, incredible walk-in shower completely encased in marble tile. The closet was designed like a boutique with pull-down hanging rods, designer lighting, and a floor-to-ceiling mirror with a hidden velvet-lined jewelry cabinet,” she said.
Study
“The mix of traditional, warm, stained wainscoting and new-trend Sputnik lighting. It’s not at the front door entry, so you won’t have to apologize for a messy desk when an unexpected guest pops by for a visit. The gorgeous view to the park and lots of natural light.
What else?
“The views, the views the views. The house was designed to take advantage of the truly enchanted park that it adjoins. You can hear the sounds and see the beauty of the park stream and waterfalls, and take a quick stroll on the park trails to the putting green and picnic in the rock pavilion with a working water wheel. ... The outdoor grill is tucked away on a connected grilling enclosure. Accessibility to outdoor spaces was carefully planned, with four doors opening to the 600-square-foot outdoor living space. The window placement was designed to provide natural light to every part of the home, while every window also provides a gorgeous view.
For privacy, the guest suite is positioned at the opposite end of the home from the master. The only problem may be that your guests will never want to leave. Highfashion lighting, white oak cabinetry, leathered counter and vessel sink. Floating staircase with hand-made, custom-designed, wroughtiron railing.”
NAHB sent a letter to President Trump expressing the housing industry’s growing concern and seeking prompt action regarding soaring lumber prices and supply shortages that are harming the housing sector and the economy.
NAHB is urging the White House to play a constructive role to alleviate this growing threat to housing and the economy by calling on domestic lumber producers to ramp up production to ease growing shortages and making it a priority to work with Canada on a new softwood lumber agreement that would end tariffs averaging more than 20% on Canadian lumber shipments into the United States.
As the nation fights to rebound from the effects of the COVID-19 pandemic, housing has been a bright spot for the U.S. economy, particularly single-family construction, with permits running 3.4% higher during the first half of 2020 compared to the first half of 2019.
However, builders are seeing shortages of lumber resulting in an 80% increase in lumber prices since mid-April. Framing lumber prices reached a record high in late July, while oriented strand board prices have increased 138% over the past year. These sharp increases are unsustainable, particularly in light of the housing affordability crisis.
NAHB’s letter to the White House stressed that housing can do its part to create jobs and lead the economy forward; but in order to do so, we need to address skyrocketing lumber prices and chronic shortages.
NAHB recently sent a similar message to Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer and Zoltan van Heyningen, executive director of the U.S. Lumber Coalition.
The National Stone, Sand & Gravel Association (NSSGA) has awarded multiple Dolese Bros. Co. locations with Safety Excellence Awards, including Coleman Quarry, Hartshorne Quarry, Ponca City’s 7 Mile Mine, Mustang Sand and OKC East Sand. NSSGA will present the awards at its virtual 2020 Legislative & Policy Forum in September.
“These Safety Excellence awards are a direct result of Dolese employees making safety a personal value on the job each day,” Dolese President and CEO Mark Helm said. "The fact that numerous locations were recognized is something to be celebrated. It is also a challenge for us to continue delivering on our commitment to safety.”
The NSSGA Safety Excellence Awards originated in 1987 and are presented to aggregates operations that maintain a safe workplace, evidenced by their safety performance over a consecutive period of time without a Mine Safety Health Administration (MSHA) reportable injury.
MSHA uses the metric of Total Reportable Injury Rate (TRIR) to monitor reportable injuries. Dolese has seen a consistent decrease in its TRIR as its safety practices have continued to improve during the previous several years.
The NSSGA Safety Excellence Awards recognize operations based upon TRIR performance compared to the rest of the aggregates industry. NSSGA’s safety awards recognize individual operations as well as companies.
“Dolese is focused on improving our safety culture even more by making safety a personal value of all our team members,” Dolese Health, Safety and Environmental Department Director David Finley said. “It’s an honor to receive these awards from the NSSGA because it is an indication of our success compared to our peers in the country.”
Dolese, headquartered in Oklahoma City, has more than 60 facilities across the state. Learn more about Dolese at www.dolese.com
Housing affordability has long been at the forefront of housing policy and attention. It’s been even further ignited by the COVID-19 pandemic’s effect on employment and people’s ability to afford somewhere to live.
Recent land use trends — such as form-based codes (FBCs), planned unit development (PUD) and traditional neighborhood development (TND) overlay zones — provide additional development methods to make the residential development and regulation process more efficient. However, some localities are moving in the opposite direction by enacting burdensome residential design standards that go well past good design principles, and into regulation that increases costs, limits consumer options, prices out certain populations and raises a number of legal concerns.
NAHB’s Residential Design Standards: How Stringent Regulations Restrict Affordability and Choice report addresses this issue. Included in the primer are examples of communities across the country that have attempted to implement these types of standards. Traditionally, design standards have allowed communities to control the physical characteristics of their housing stock, preserve community character, protect property values, and attract certain populations of home buyers and renters.
Common examples of highly prescriptive design standards include:
Prohibiting or limiting the use of exterior materials such as vinyl siding and metal;
Requiring specific and often expensive materials for siding and fences; and
Dictating the amount of relief and surface area dedicated to windows and the number of architectural details on the roof.
In a 2019 survey, NAHB found that 47% of builders has encountered such standards; in communities where design requirements exist, 85% of respondents stated that they increased construction prices. Not only is this additional price passed on to home buyers and renters, but home buyers and communities also suffer from reduced production and choice.
The primer details the legal implications of these standards and efforts by local home builders associations (HBAs) and home builders to fight back. In several states, including Arkansas, Texas, North Carolina, Georgia and Oklahoma, these groups have successfully challenged these standards to limit or prohibit their adoption. Better tools exist for design that can influence residential design without limiting choice, affecting housing affordability or being exclusionary.
The fundamental issue is not the physical characteristics of homes, but what they can mean for affordability. Regulations that artificially raise housing prices without direct ties to public health and safety should not be prioritized over meeting the shortage of affordable homes for families. Housing affordability and attainability should be prioritized through effective planning tools, but unfortunately, barriers to the development process remain.
The primer is available through NAHB’s Land Use 101 toolkit. For more information, and to be connected to other resources, contact Nicholas Julian, Program Manager of Land Use.
Hanley Wood/Meyers Research and NAHB today announced that BUILDER will cease to be the official magazine of NAHB at the end of 2020, as the two organizations prepare to launch a new home building data platform for NAHB members.
Hanley Wood/Meyers Research will continue to publish BUILDER magazine, BUILDER Online and BUILDER newsletters as well as produce leading events, like BUILDER 100.
For more than 40 years, Hanley Wood/Meyers Research and NAHB have worked together to provide timely resources and insights to builders nationwide, and Hanley Wood/Meyers Research has always maintained an annual presence at the NAHB International Builders’ Show.
“We are proud of the 40-year relationship with the NAHB centered around our media proposition and BUILDER magazine,” said Jeff Meyers, CEO of Hanley Wood/Meyers Research. “Given the evolving media landscape the time was right to pivot our relationship towards a new approach driven by the wide breadth of localized data we provide to best serve the NAHB’s community builder membership and the broader information needs of the industry as a whole.”
The new home building data platform powered by Zonda will help the two organizations meet the growing demand for local market data and analysis in the home building industry.
“NAHB is excited to join with Hanley Wood/Meyers Research to bring the Zonda platform to our community of builder members and complement NAHB’s own economic research,” said NAHB CEO Jerry Howard. “Zonda has long been an important and valuable resource for the builder community.”
With Zonda’s comprehensive data and market intelligence, BUILDER will more accurately identify its audience and allow marketers to reach home builders who drive more than 90% of U.S. annual closings. More information can be found at builderonline.com.
NORMAN – Builders and contractors have maligned the city of Norman’s permitting process for years, calling it slow, inefficient, and costly to their businesses. They consider Norman among the hardest communities in the metro to work in and some have stopped doing business there.
But now, City Manager Darrel Pyle is hoping to change all that. He says Norman’s bad rap has been at the top of his priority list since he moved here from his former post in Hanford, California, last July.
With support from the Norman City Council, Pyle is overhauling Norman’s permitting process, hoping to restore the city’s tarnished reputation among builders in the Oklahoma City metro area.
At the center of his effort is a $7.8 million facility renovation project that will bring the city’s entire permitting process under one roof, creating a one-stop shop for builders and contractors hoping to move projects through City Hall as fast as possible.
Pyle is turning a 40,000-square-foot building adjacent to Norman’s city administration complex into a permitting headquarters with office space for more than 100 city staff members. The building, which used to serve as Norman’s central library, will open next year and will house the city’s fire inspectors, engineering department, planning department and finance department.
Any function associated with obtaining a building permit will be handled in that building, Pyle says. Issues or questions will be resolved efficiently with a quick phone call or a trip down the hall.
That will be a big improvement from years past, Pyle says. Until recently, the system and the staff were not cohesive. Some staff members had never met other colleagues involved in the permitting process, and many weren’t even sure how the entire system worked.
Several months ago, Pyle began to change that by bringing everyone together for a week of discussions facilitated by Management Partners, a California-based consulting group.
Since then, Pyle and his permitting team have been on a roll, looking for opportunities to improve efficiency and finding ways to push permits out the door faster.
The city now can self-certify certain types of sewer-line construction, which speeds the permitting process by sidestepping the need for a state Department of Environmental Quality inspection, which can take 45 days to complete.
The city has also hired third-party plan checkers to help when full-time staff members are bogged down by surging workloads, and inspectors can now inspect some types of construction virtually, rather than drive to job sites for every inspection, Pyle said.
Rigid work schedules are a thing of the past, he says. Now, building inspectors are available to visit worksites at sunrise if necessary, to allow construction projects to proceed without costly delays, waiting for inspectors to start their normal workdays.
The city also has developed a new website that builders can use to submit plans and communicate with city staff. The site is more technologically advanced, and, for the first time, it is Americans with Disabilities Act-compliant.
“I couldn’t be more pleased with our staff,” Pyle said. “The biggest change has been in attitude, realizing that just because we’ve always done it that way doesn’t mean we always have to do it that way. There is a realization that developers are the priority.”
“We have only one goal here at the city of Norman. We want to be the best there is,” he said.
Norman Chamber of Commerce President Scott Martin said he’s thrilled with the changes.
He’s heard story after story from people who have faced challenges going through Norman’s permitting process, including from a couple of Norman’s City Council members.
“This has been a priority of the chambers for many years now,” Martin said. “Permitting is critical to the development community, but it needs to be fair and responsive. I have yet to talk to anyone who is not supportive of high standards, but when the process is extra challenging and particularly hard, that’s where the frustration is.”
“Around the metro, Norman has had the reputation of being a hard place to do business, and this is going to improve that reputation,” he said.
Tim Grissom, owner of TC Grissom Building Co., says he’s been building in Norman for 25 years, and he’s glad to hear changes are on the horizon.
“That’s a good thing, because the process can be frustrating,” Grissom said. “It has been for years.”
He said the city staff members he works with are nice people, but the system they work in has been a typical government bureaucracy, and they’ve never shown much interest in changing it.
“I just think they could do a better job.”
Curtis McCarty, a former member of the Norman Planning Commission, says he’s been building homes in Norman for nearly 30 years, and over time, he’s learned how to adapt to the city’s way of doing things.
McCarty, owner of McCarty Construction, said the city has asked him and other builders for suggestions, and he can see they’re trying to improve.
The residential side has been better the last few years, and if the city can improve service on the commercial side, it will improve Norman’s reputation among builders in the metro area.
“I think it’s working, and they’re going in the right direction,” McCarty said.
Purchase apps last week were 6.7% higher than a year ago, MBA says
Applications for mortgages to purchase homes gained for the sixth consecutive week to a level that was 6.7% higher than a year ago, back when a deadly pandemic wasn’t interrupting the spring home-buying season.
A seasonally adjusted index measuring purchase applications jumped 9% last week, according to a report from the Mortgage Bankers Association. Applications for refinancings fell 0.2% from the prior week, though the level was 176% higher than a year ago, MBA said.
Last week’s so-called purchase apps were up 54% from early April when most U.S. states were under lockdown orders to keep people at home in an effort to stem the spread of COVID-19, said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
“The housing market is continuing its path to recovery as various states reopen, leading to more buyers resuming their home search,” said Joel Kan, an MBA associate vice president.
The surge in purchase demand drove the overall index, measuring both purchase and refi applications, higher by 2.7% on a seasonality adjusted basis from the prior week, the report said.
Demand is being driven by a shortage of homes on the market that preceded the epidemic, coupled with mortgage rates near the lowest level ever recorded.
The supply of properties on the market at the end of April was 1.47 million, the National Association of Realtors said last week. That’s the lowest level ever recorded for the month, said Lawrence Yun, NAR’s chief economist.
Last week, the average U.S. rate for a 30-year fixed mortgage dropped to 3.24%, within one basis point of the all-time low set two weeks earlier, according to Freddie Mac.
The share of applications for mortgages backed by the Federal Housing Administration decreased to 11.2% from 11.5% in the week prior, the report said. The share of applications backed by the Veterans Administration fell to 12.4% from 13.4%, the report said.
OKLAHOMA CITY – After a coordinated effort by a handful of statewide organizations concerned with residential real estate, legislation to keep municipalities from imposing purely aesthetic design standards has now become law.
Senate Bill 1713 became effective when Gov. Kevin Stitt signed the measure on Thursday.
SB 1713, by state Sen. Kim David, R-Porter, and state Rep. Ryan Martinez, R-Edmond, was written to prevent municipalities from imposing building design regulations for single-family residential zones based on aesthetics alone.
Such regulations drive up the cost of construction, making it harder for builders to provide the amount of affordable housing that Oklahoma is projected to need over the next few years. The Oklahoma Home Builders Association, Oklahoma Association of Realtors and Oklahoma Coalition for Affordable Housing came together to urge lawmakers to pass the legislation.
“The ability of persons from all economic segments to own a home is one of many reasons America is who we are,” said David in a statement provided by the OkHBA. “The commitment from home builders to defend property rights and continue to protect all Americans is why we were so pleased to work alongside OkHBA and pass legislation that will continue to uphold these ideas.”
The Oklahoma Senate held an interim study on the matter in October. Daniel McClure, deputy general counsel, Oklahoma Municipal League, had defended municipalities’ efforts to ensure that builders used high-quality materials in construction, asserting that design standards improve the quality of affordable housing in the towns that implement such rules.
A 2017 study by the Washington, D.C.-based Cato Institute found that municipalities across the country have a history of using such design standards – addressing no safety need but purely based on aesthetics – to deliberately keep prices high and keep lower-income individuals from buying homes in certain neighborhoods. However, the study ranked Oklahoma as having the least amount of unnecessary restrictions of all 50 states.
Still, some municipalities in Oklahoma, such as Tuttle and Bixby, had passed some regulations restricting some exterior finishes such as vinyl, wood and aluminum siding that would otherwise be permitted under the International Residential Code.
According to the U.S. Department of Housing and Urban Development, families that pay more than 30% of their income for housing are considered cost-burdened. According to that standard, more than 40% of Oklahomans are cost-burdened and would have to make at least $15.54 per hour to afford a modest two-bedroom apartment. Oklahoma is projected to need 7,454 housing units and 11,630 rental housing units for families earning 60% or less of the area median income.
Some neighborhoods within Oklahoma municipalities have special designations – such as historic preservation – that prevent certain materials to be used on the exterior of homes. SB 1713 includes provisions for historic districts, planned unit developments and other neighborhoods where homeowners have agreed to maintain certain design standards to preserve those restrictions.
Curtis McCarty, a homebuilder and president of the OkHBA, said the legislation would help first-time homebuyers get into a home.
“If we don’t find ways to keep housing affordable, we will eliminate a group of people that would like to be homebuyers but end up renting,” said McCarty.
“Cities and states might not be able to prevent the high product costs and rising interest rates that affect the housing industry nationwide, but fortunately they can prevent more costs that come from adding unnecessary design regulations to homes,” said builder M.J. Farzaneh of Home Creations.
Oklahoma City houses are priced at an average of $197,000, up 8.2% year- over-year,
with 20 days average on the market, reports Redfin. In Edmond, the average price is $257,000,
up 2.9%, averaging 22 days on the market. (Journal Record file photo)
Real estate agent Jared Kennedy picked up the phone and heard, “Water is pouring through the ceiling!”
Hmm, this could be bad, he thought. But he said he hoped just a little water had seeped into the house. He figured it could be patched up in a couple of days.
The agent had sold the vacant house and set up an April 6 close date, well into the coronavirus outbreak. The buyers initially declined the pre-closing walk- through because of COVID-19 concerns.
Then, at the last minute, the buyers decided to walk through the house.
“Good thing they did,” Kennedy said.
“When they got to the house, the upstairs mini-fridge had an ice maker. The line busted off it. And it flooded the entire house,” said Kennedy, Oklahoma City Metropolitan Association of Realtors board member. “It caved in the ceiling. Everything had to be completely gutted and remodeled.”
The repair bill hit $128,000. Insurance handled the costs for the 4,800-square-foot house after the $3,000 deductible.
“Everyone took it well,” said Kennedy. “And the house is still set to close.”
The COVID-19 near-disaster demonstrates how people’s attitudes have changed toward buying and selling homes.
Oklahoma is adjusting, though national home sales suffered the biggest drop in almost 10 years in April as much of the country remained locked down by the coronavirus.
Existing home sales plummeted 17.8% to a seasonally adjusted annual rate of 4.33 million units last month, according to the National Association of Realtors. The drop was the greatest since July 2010.
Bucking the trend
The state is not just adjusting. Under the relaxing restrictions, Oklahoma real estate is rocking. “Oklahoma is really bucking the national trend,” Kennedy said.
“Given the circumstances, I think everyone was expecting this to be a down year,” he added.
Kennedy chose this seemingly unfortunate time to open his own firm, Lime Realty, in January shortly before the coronavirus raced onto the scene.
“Three months in and the world shuts down,” Kennedy said. “It was pretty terrifying.” But he said the real estate market has been incredible for him despite the pandemic.
“I will sell twice as many houses this year as I did last year,” Kennedy said. He said he usually sells about 20 to 25 houses yearly.
Houses priced from $90,000 to nearly $2 million are all selling well, he said.
Eager buyers are flooding the market and some are even buying sight unseen to limit contact, said Nicca Collier with Metro First Realty Premier in Edmond.
“Properties that are positioned properly are selling within a few days of being listed on the MLS,” Collier said, referring to the multiple listing service available to brokers that lists properties for sale.
Tulsa home sales have recently picked up considerably, too, according to Paul Wheeler, owner of Accent Realtors in Tulsa.
“We’re selling about a house a day right now with our small team,” Wheeler said. “The average Realtor sells six a year.”
The Oklahoma City metro had 2,081 closings in April 2019, averaging $204,609, with 51 days on the market, according to MLSOK.
That compares with this April’s 1,908 closings (down 8.3%), averaging $215,990 (up 5.56%), with just 41 days on the market.
Tulsa closings fell to 1,309 in April, down 7.1% from last year. Average selling price hit $184,726 (up 4.64% over 2019), according to RE Datum. Houses stayed on the market about 37 days, versus 43 days in April 2019.
Weird times
Meanwhile, in the face of the coronavirus, the business of buying and selling houses has dramatically changed. “I don’t know that I’ve seen anything much weirder than this,” said Wheeler.
One in four home sellers have changed how they sell their houses in response to the virus, according to the National Association of Realtors.
Wheeler said people living in the houses they’ve put up for sale initially said, “I’m not sure I want strangers, potentially ill strangers, going through our home.”
Some sellers have requested virtual home tours to cut personal contact. Agents say they have experienced sellers backing out of open houses, though more have recently begun accepting the idea of holding an open house – with safety stipulations.
Listings drop
With concerns and shelter-in-place recommendations still fresh, the state’s home listings slowed significantly in April, according to MLSOK Inc.
New listings in Oklahoma dropped 13.4% for single-family homes, while pending sales fell 9% in April.
There are about 10,496 homes for sale in Oklahoma, listed at a median price of $269,900, averaging about $106 per square foot, according to Redfin.
The lack of inventory is good news for sellers, bad news for buyers. Inventory in Tulsa, Creek, Okmulgee, Osage, Pawnee, Rogers and Wagoner counties plummeted by 36.6% to 4,981 homes for sale, according to RE Datum.
Consequently, buyers have readily accepted the masks, gloves, hand sanitizers, booties and social distancing requested in today’s house showings, agents say.
Buyers and agents typically mention they will be wearing masks, at least, when requesting a house showing.
Open houses virtually shut down for a couple of months during the heat of the pandemic restrictions. But agents say open houses are happening more often now in the Oklahoma City area.
In Tulsa, sellers of only one occupied house represented by Kennedy have wanted an open house, he said.
“I have seven active listings right now. And three will be open this weekend,” he said.
“Under normal circumstances, probably all seven would be open.”
So, the business of selling houses has become more complicated, while the Oklahoma market currently appears healthy.
Market drivers apparently include fewer houses for sale, pent-up demand after eased restrictions, approach of the moving season and – likely most of all – near-record low interest rates of about 3.3% for a 30-year loan.
Future unknown
No one knows how COVID-19 will affect the local market over the rest of the year.
The usual spring buying season will be missed, NAR chief economist Lawrence Yun said in a statement, so a later bounce-back won’t make up for lost sales in April through June. He projects sales will be down 14% nationally for the year.
Oklahoma tends to lag behind much of the country in economic trends, so it’s likely to take about six months before the true effects of a coronavirus economy show up. But Kennedy, Wheeler, Collier and others agree on how local real estate may look going forward.
“We’re feeling it already,” said Wheeler. “We’re calling it the bounce.”
The Pandemic surrounding us has sent shock waves into the lives of individuals and families worldwide. With so many deaths and the continuing illnesses almost everyone is scared, frustrated, and confused.
There are currently 26 MILLION Americans who have filed for unemployment. One in every six of us have lost our jobs. How do we cope?The debate of whether to reopen more retail businesses or remain at home is raging. When can people safely go back to work and earn a living?
To give some financial relief, mortgage loan servicers have been instructed to allow forbearance from monthly mortgage payments. Homeowners can ask for and receive delays in making those payments. Here is how Experian, one of the three major credit bureaus, describes forbearance (thanks Debra P):
“Loan forbearance—a short-term reduction or suspension of payments in response to a borrower's temporary hardship—can preserve household cash flow in times of economic difficulty. It can also have significant impacts on your credit history and credit scores.”
Did you read that last sentence? That is the part of forbearance NO ONE is discussing. When a loan payment is missed it is required that the loan servicer report that event to the credit bureaus. Late payments on a mortgage loan are much worse on credit scores than missing a payment on a vehicle or credit card.
In reading thousands of credit reports over the years, I have never seen a forbearance listing. Foreclosures, short sales, late payments are listed. Not forbearance. How will the policymakers handle this current crisis? Will they instruct loan servicers to not report forbearance files the same way? We cannot depend on that.
If you must ask for forbearance, do it. If it seems like a convenience during this time of stimulus checks, etc., I recommend avoiding that path for as long as possible. You do not want late mortgage payments to be reflected on your credit reports for years. Those listings will damage your ability to get the best deals on most everything you buy.
HINT: Fannie Mae and Freddie Mac who buy packaged loans from mortgage lenders are charging the lender from 5 – 7% of the loan amount to purchase loans in forbearance. That is far more than any profit made for originating, processing, underwriting, and closing the loan. Lenders are being forced to offer forbearance with no place to go for liquidity which they need to keep making loans.
My days are full of borrowers executing refinance or purchase transactions as interest rates are terrific. I took time for this article because of the gravity of making the wrong decision.
It is important to have a trusted guide when in the wilderness. I am that guide for your mortgage needs. Be safe, be mindful, be blessed. I am. NMLS #310445. An Equal Housing Lender.
What a strange time we live in. How can a bug from a bat in China shut down the world? Everything is going great, then wham, the wheels fall off our cart. It begs a lot of questions like: How in the world did this happen? How long will it last? Will I survive? What will the new normal look like? These are the questions and thoughts on everyone’s minds.
Those of us in the Home Building industry tend to have a take charge, I can fix any problem if you just get out of my way personality. That is a wonderful trait until circumstances arise that are completely out of our control and there is nothing you can to do fix things. That is when we become frustrated, anxious and feel powerless.
One benefit of being a Home Builder a long time is knowing that challenging times are always lurking around the next corner. Some events we can see coming. Others, like Covid-19, completely blindside us. Those of us in the building industry are resilient and we have survived challenges in the past. In my own career I have survived the 80’s credit tightening with 17% mortgage rates, the Oil Bust, the S&L crisis and credit crunch, the .Com bubble bursting, 9-11 and the Great Recession. Those of us in the industry around for those crises, persevered by staying calm and knowing that the bad times will end and good times will return.
You get through the tough economic times with great communications with your customers, your suppliers, subs and most of all your bankers. You have to be flexible, innovative and willing to accept the new norm, whatever that may be. It’s also important to support the Home Builders Association, especially during a crisis. It is the Association on a Local, State and National level that brings the collective strength and influence of all of us to bear on decisions made about our industry.
I saw this first hand during my tenure on the National Association of Home Builders leadership team. During the boom before the financial meltdown, new home production topped 2 million units in 2007. It dropped to 400,000 units in 2009, the year I was Chairman. Even though we saw the problems looming, no one knew the depth of the slide we would endure. Everyone was asking the same questions we are today: How did this happen? Will I survive? How long will it last? What will the new normal be? Through the constant conversations with the new Obama administration, bank regulators, legislative leaders and the Federal Reserve, we were able to put together two stimulus packages in the same year, save the mortgage market and set the stage for a recovery. The Local and State Associations throughout the Federation did their part as well. It was hard. The recovery took longer than anyone wanted. A new norm was established in mortgage lending, construction loans and appraisals. But we not only survived, we flourished in the last few years.
Now we meet our next challenge, Covid-19. This is certainly an event no one saw coming. The frustrating part of this episode is that it not only affects the health of our business but it can literally be lethal to our physical health as well. Again, our Association has been on the forefront in keeping our industry alive. Our leaders here in Tulsa and Oklahoma convinced our Mayors and Governor to designate home building an essential business. NAHB is working tirelessly to keep credit markets liquid and was successful in removing the exemption of home builders from the Payroll Protection Program.
When you are in the middle of a storm, it is hard to remember the sun is still shining. Going into this crisis, business was very good. That momentum should help us bridge the downturn on the short term. Long term, the world has to go back to work. President Trump announced his initial guidelines for restarting the economy. Governor Stitt has put a task force together to reopen the State. The Mayors of the area cities are convening working groups to plan for the rebooting of business. Reports of treatments of the virus are encouraging and it seems the number of cases has hit its peak. There are a few hints of sunshine.
I know we will get through this just like we have done in the past. People will always need homes and I can think of no other profession that brings more joy than providing the American Dream. In the meantime, if you are not too busy, take time to reconnect with family, reflect on priorities, and pray.
With prospective buyer traffic severely diminished in the wake of the coronavirus pandemic, home builders would be wise to scale back on their advertising investments. But cutting across the board is reckless and could lead to long-term challenges.
To help business owners and sales teams determine how and where to adjust their marketing strategies, NAHB will host a webinar in partnership with the online sales and marketing group Do You Convert on Thursday, April 16, from 1-2 p.m. Central Time
“Keep Your Traffic Flowing: A Marketing Playbook for COVID-19” will examine lessons learned during previous shocks to the market and share how those principles — coupled with the latest digital and virtual marketing tools — can be applied to our current market challenges. Webinar participants will also learn a step-by-step playbook for which efforts to turn down, as well as when and how to efficiently realign their advertising strategies once markets stabilize.
This will be the latest in a series of webinars hosted by NAHB focused on answering common questions and concerns from housing industry professionals pertaining to many impacts of the coronavirus. Each webinar provides valuable insights for how to strategically navigate a business through this challenging and uncertain economy.
To attend the webinar “Keep Your Traffic Flowing: A Marketing Playbook for COVID-19,” register here.
You can also view recordings of previous webinars about small business loans, jobsite safety, tax relief provisions and more on nahb.org.
Learn three key tips to help your business pivot to a virtual experience, remain effective, and keep your clients well informed.
Here is Mabél Guzmán, the National Association of Realtor's 2020 VP of Association Affairs, sharing her extensive experience with virtual showings. Home builders are using virtual showings, in addition to other social distancing strategies, during the COVID-19 pandemic. Learn three key tips to help your business pivot to a virtual experience, remain effective, and keep your clients well informed.
The designation will enable many home building firms to keep their businesses open during the COVID-19 pandemic and help to stabilize the housing industry and its supply chain in the near term. More detail about the construction workers who qualify as essential can be found in both the “Public Works and Infrastructure Support Services” and “Residential/Facilities and Services” sections of the guidance.
Keep in mind that there is no mandatory federal order on what is an essential business, and many states have their own rules. This is guidance from DHS that states can follow. Therefore, in states where only essential businesses are allowed to keep operations going during the coronavirus epidemic, residential construction workers should continue to be allowed to stay on the job.
NAHB was at the forefront among all housing groups in calling on DHS to make this designation.
“Americans depend on a functioning residential construction sector to provide safe, affordable housing for our citizens, and this need is especially acute during this pandemic,” said NAHB Chairman Dean Mon. “Moreover, a healthy housing market is critical to maintain a sound economy. I commend DHS for heeding the urgent concerns of the housing community and taking this decisive action to assure the men and women of the industry will be able to stay on the job and serve the needs of the American people at this critical time.”
On March 26, in an effort spearheaded by NAHB, 90 companies and organizations sent a joint letter to Acting Secretary of Homeland Security Jack Wolf urging him to designate the construction of single-family and multifamily housing as an Essential Infrastructure Business.
“As cities and states issue declarations and public health orders as a result of the crisis, it is essential that communities have access to our professionals to build and maintain essential services including: building, plumbing, residential property management, rental housing operators, roofing, electrical, HVAC systems, waste/wastewater treatment plants and power generations,” the letter stated. “Home construction, including those industries listed above, should be designated as ‘essential’ because it is necessary to maintain safety, sanitation, and economic security.”
The safety and health of all those who work in construction remains our top priority. The industry continues to adhere to all public health guidelines set forth by the Occupational Safety and Health Administration (OSHA) and the Centers for Disease Control (CDC). Working on a new unfinished home site occurs primarily outdoors and does not involve going onto a location occupied by residents or a public location, and there is minimal (if any) physical or transactional contact with customers.
In the event of a pandemic, employers have a key role in protecting the safety and health of their employees as well as in limiting the impact on the economy and society. A business may experience employee absences and interrupted supply and delivery schedules. Good planning will allow employers in both the public and private sectors to better address issues that will arise.
While there is a difference between seasonal flu and a pandemic respiratory virus, symptoms and response can be the same or similar. Seasonal flu is an annual occurrence. Many get sick and unfortunately, deaths do occur. Vaccines are available and many have some immunity. A “new” virus such as COVID-19 may have worldwide implications. Initially there is no immunity and there are no vaccines; this may result in higher levels of illness, death, social disruption, and economic loss.
Implications in the workplace and for your business can vary widely depending on the product or service you provide. Many “critical” industries are already mandated to have pandemic plans in place. This list includes: Government Facilities, Dams, Commercial Facilities, Nuclear Power Plants, Critical Infrastructure, Food and Agriculture, Public Health and Healthcare, Banking and Finance, Chemical and Hazardous Materials, Defense Industrial Base, Water, Energy, Emergency Services, Information Technology, Telecommunications, Postal and Shipping, Transportation, and National Monuments and Icons.
How a Pandemic Can Affect the Workplace
While your business may not be considered a “critical industry”, implications for being unprepared may have significant impacts on your business and employees as follows:
Absenteeism - A pandemic could affect a large percent of the workforce. Employees could be absent because they are sick, they must care for family members, they are afraid to come to work, or unbeknown to the employer, the employee may have died.
Change in patterns of commerce – Consumer demand for items related to infection control is likely to increase, while interest in other goods may decline. They may change the ways they shop. They may try to shop at off-peak hours to reduce contact with others, or show increased interest in home delivery services, or drive-through service, to reduce person-to-person contact.
Interrupted supply/delivery - Shipments from geographic areas severely affected may be delayed or canceled. We live in a global economy so this may greatly affect business.
Employee risks of occupational exposure to a virus during a pandemic may vary from very high to high, medium, or lower (caution) risk. The level of risk depends in part on whether or not jobs require close proximity to people potentially infected with the virus, or whether they are required to have either repeated or extended contact with known or suspected sources of pandemic virus such as coworkers, the general public, outpatients, school children or other such individuals or groups.
Pandemic planning resources are based on past pandemic scenarios and would apply to COVID-19 pending further information. It is unlikely that any significant changes will be made to this guidance.
Additional guidance information and documents specifically for pandemic planning and response for business as bulleted below can be found on OSHA's Pandemic Influenza website, and on the CDC website.
Specific checklists for business planning including those with overseas operations can be found on the CDC website.
Maintaining Operations During a Pandemic
As an employer, you have an important role in protecting employee health and safety and limiting the impact of an influenza pandemic. OSHA recommends a systematic approach to planning.
Develop a Disaster Plan That Includes Pandemic Preparedness
Issues to consider and plan for:
Be aware of and review federal, regional, and local health department pandemic plans, and integrate into your plan.
Prepare and plan for operations with a reduced workforce.
Develop a sick leave policy that does not penalize sick employees, thereby encouraging those who are sick to stay home. Recognize that employees with ill family members may need to stay home to care for them.
Identify possible exposure and health risks to your employees.
Minimize exposure to fellow employees or the public.
Identify business-essential positions and people required to sustain business-necessary functions and operations. Prepare to cross-train or develop ways to function in the absence of these positions.
Plan for downsizing services but also anticipate any scenario which may require a surge in your services.
Recognize that, in the course of normal daily life, all employees will have non-occupational risk factors at home and in community settings.
Stockpile items such as soap, tissue, hand sanitizer, cleaning supplies & recommended PPE.
Provide employees and customers with easy access to infection control supplies.
Develop policies and practices that distance employees from each other, customers and the general public.
Identify a team to serve as a communication source so that employees and customers can have accurate information during the crisis.
Work with employees & their union(s) to address leave, pay, transportation, childcare, absence & other human resource issues.
Provide training, education and informational material about business-essential job functions and employee health and safety.
Work with your insurance companies, and state and local health agencies to provide information to employees and customers about medical care in the event of a pandemic.
Assist employees in managing additional stressors related to the pandemic.
Protecting Your Employees
For most employers, protecting their employees will depend on stressing proper hygiene (disinfecting hands and surfaces) and practicing social distancing. Social distancing means reducing the frequency, proximity, and duration of contact between people (both employees and customers) to reduce the chances of spreading the virus and illness from person-to-person.
OSHA, and the safety profession at large, recognizes and encourages the framework called the "hierarchy of controls" to select ways of dealing with workplace hazards. An expanded discussion of these 4 levels of control can be found on the OSHA website referenced above however, in brief, there are 4 levels of control:
Work Practice Controls
Engineering Controls
Administrative Controls
Personal Protective Equipment.
Work Practice and Engineering Controls
Historically, infection control professionals have relied on personal protective equipment (for example, surgical masks and gloves) to serve as a physical barrier in order to prevent the transmission of an infectious disease from one person to another. This reflects the fact that close interactions with infectious patients is an unavoidable part of many healthcare occupations. The principles of industrial hygiene demonstrate that work practice controls and engineering controls can also serve as barriers to transmission and are less reliant on employee behavior to provide protection.
Work practice controls are procedures for safe and proper work that are used to reduce the duration, frequency or intensity of exposure to a hazard. When defining safe work practice controls, it is a good idea to ask your employees for their suggestions, since they have firsthand experience with the tasks. These controls should be understood and followed by managers, supervisors and employees. When work practice controls are insufficient to protect employees, some employers may also need engineering controls.
Engineering controls involve making changes to the work environment to reduce work-related hazards. These types of controls are preferred over all others because they make permanent changes that reduce exposure to hazards and do not rely on employee or customer behavior. By reducing a hazard in the workplace, engineering controls can be the most cost-effective solutions for employers to implement.
Coronavirus disease is NOT known to spread through ventilation systems or through water.
During a pandemic, engineering controls may be effective in reducing exposure to some sources of pandemic influenza and not others. For example, installing sneeze guards between customers and employees would provide a barrier to transmission. The use of barrier protections, such as sneeze guards, is common practice for both infection control and industrial hygiene. However, while the installation of sneeze guards may reduce or prevent transmission between customers and employees, transmission may still occur between coworkers. Therefore, administrative controls and public health measures should be implemented along with engineering controls.
Examples of work practice controls include:
Providing resources and a work environment that promotes personal hygiene. For example, provide tissues, no-touch trash cans, hand soap, hand sanitizer, disinfectants, and disposable towels for employees to clean their work surfaces.
Encouraging employees to obtain a seasonal influenza vaccine (this helps to prevent illness from seasonal influenza strains that may continue to circulate).
Providing employees with up-to-date education and training on influenza risk factors, protective behaviors, and instruction on proper behaviors (for example, cough ettiquette and care of personal protective equipment).
Developing policies to minimize contacts between employees and between employees and clients or customers.
More information about protecting yourself, your coworkers and employees, and your family can be found at www.pandemicflu.gov.
Examples of engineering controls include:
Clean frequently touched surfaces and objects: use soap and water, a bleach and water solution, or approved products to clean items such as handrails and doorknobs (always follow product label directions)
Installing physical barriers, such as clear plastic sneeze guards.
Installing a drive-through window for customer service.
Coronavirus disease is NOT known to spread through ventilation systems or through water.
Administrative Controls
Administrative controls include controlling employees' exposure by scheduling their work tasks in ways that minimize their exposure levels. Examples of administrative controls include:
Developing policies that encourage ill employees to stay at home without fear of any reprisals.
The discontinuation of unessential travel to locations with high illness transmission rates.
Consider practices to minimize face-to-face contact between employees such as e-mail, websites and teleconferences. Where possible, encourage flexible work arrangements such as telecommuting or flexible work hours to reduce the number of your employees who must be at work at one time or in one specific location.
Consider home delivery of goods and services to reduce the number of clients or customers who must visit your workplace.
Developing emergency communications plans. Maintain a forum for answering employees' concerns. Develop internet-based communications if feasible.
Personal Protective Equipment (PPE)
While administrative and engineering controls and proper work practices are considered to be more effective in minimizing exposure to the influenza virus, the use of PPE may also be indicated during certain exposures. If used correctly, PPE can help prevent some exposures; however, they should not take the place of other prevention interventions, such as engineering controls, cough etiquette, and hand hygiene (see www.cdc.gov/flu/protect/stopgerms.htm).
Examples of personal protective equipment are gloves, goggles, face shields, surgical masks, and respirators (for example, N-95). It is important that personal protective equipment be:
Selected based upon the hazard to the employee;
Properly fitted and some must be periodically refitted (e.g., respirators);
Conscientiously and properly worn;
Regularly maintained and replaced, as necessary;
Properly removed and disposed of to avoid contamination of self, others or the environment.
Employers are obligated to provide their employees with protective gear needed to keep them safe while performing their jobs. Check the www.pandemicflu.gov website for the latest guidance.
Steps Every Employer Can Take to Reduce the Risk of Exposure to a Pandemic in Their Workplace
There is currently no vaccine to prevent COVID-19 infection. The best way to prevent infection is to avoid being exposed to this virus. However, as a reminder, CDC always recommends everyday preventive actions to help prevent the spread of respiratory viruses, including:
Encourage sick employees to stay at home.
Encourage your employees to wash their hands frequently with soap and water or with hand sanitizer if there is no soap or water available. Also, encourage your employees to avoid touching their noses, mouths, and eyes.
Encourage your employees to cover their coughs and sneezes with a tissue, or to cough and sneeze into their upper sleeves if tissues are not available. All employees should wash their hands or use a hand sanitizer after they cough, sneeze or blow their noses.
Employees should avoid close contact with their coworkers and customers (maintain a separation of at least 6 feet). They should avoid shaking hands and always wash their hands after contact with others. Even if employees wear gloves, they should wash their hands upon removal of the gloves in case their hand(s) became contaminated during the removal process.
Provide customers and the public with tissues and trash receptacles, and with a place to wash or disinfect their hands.
Keep work surfaces, telephones, computer equipment and other frequently touched surfaces and office equipment clean. Be sure that any cleaner used is safe and will not harm your employees or your office equipment. Use only disinfectants registered by the U.S. Environmental Protection Agency (EPA), and follow all directions and safety precautions indicated on the label.
Discourage your employees from using other employees' phones, desks, offices or other work tools and equipment.
Minimize situations where groups of people are crowded together, such as in a meeting. Use e-mail, phones and text messages to communicate with each other. When meetings are necessary, avoid close contact by keeping a separation of at least 6 feet, where possible, and assure that there is proper ventilation in the meeting room.
Reducing or eliminating unnecessary social interactions can be very effective in controlling the spread of infectious diseases. Reconsider all situations that permit or require employees, customers, and visitors (including family members) to enter the workplace. Workplaces which permit family visitors on site should consider restricting/eliminating that option during an influenza pandemic. Work sites with on-site day care should consider in advance whether these facilities will remain open or will be closed, and the impact of such decisions on employees and the business.
Promote healthy lifestyles, including good nutrition, exercise, and smoking cessation. A person's overall health impacts their body's immune system and can affect their ability to fight off, or recover from, an infectious disease.
These are everyday habits that can help prevent the spread of several viruses. They are the same guidelines that can help prevent the spread of seasonal flu and the common cold.
Workplaces Classified at Lower Exposure Risk (caution) for Pandemic: What to do to protect employees
If your workplace does not require employees to have frequent contact with the general public, basic personal hygiene practices and social distancing can help protect employees at work. Follow general hygiene and social distancing practices recommended for all workplaces. Also, try the following:
Communicate to employees what options may be available to them for working from home.
Communicate the office leave policies, policies for getting paid, transportation issues, and day care concerns.
Make sure that your employees know where supplies for hand hygiene are located.
Monitor public health communications about pandemic flu recommendations and ensure that your employees also have access to that information.
Work with your employees to designate a person(s), website, bulletin board, or other means of communicating important pandemic flu information.
More information about protecting employees and their families can be found at: www.pandemicflu.gov.
Workplaces Classified at Medium Exposure Risk for Pandemic: What to do to protect employees
Medium risk workplaces require frequent close contact between employees or with the general public (such as high-volume retail stores). If this contact cannot be avoided, there are practices to reduce the risk of infection. In addition to the basic work practices that every workplace should adopt, medium risk occupations require employers to address enhanced safety and health precautions. Below are some of the issues that employers should address when developing plans for workplace safety and health during a pandemic.
Work Practice and Engineering Controls
Instruct employees to avoid close contact (within 6 ft/2m) with other employees and the general public. This can be accomplished by simply increasing the distance between the employee and the general public in order to avoid contact with large droplets from people talking, coughing or sneezing.
Some organizations can expand internet, phone-based, drive-through window, or home delivery customer service strategies to minimize face-to-face contact. Work with your employees to identify new ways to do business that can also help to keep employees and customers safe and healthy.
Communicate the availability of medical screening or other employee health resources (e.g., on-site nurse or employee wellness program to check for flu-like symptoms before employees enter the workplace).
Employers also should consider installing physical barriers, such as clear plastic sneeze guards, to protect employees where possible (such as cashier stations).
Administrative Controls
Work with your employees so that they understand the office leave policies, policies for getting paid, transportation issues, and day care concerns.
Make sure that employees know where supplies for hand and surface hygiene are located.
Work with your employees to designate a person(s), website, bulletin board or other means of communicating important pandemic flu information.
Use signs to keep customers informed about symptoms of the flu, and ask sick customers to minimize contact with your employees until they are well.
Your workplace may consider limiting access to customers and the general public, or ensuring that they can only enter certain areas of your workplace.
For More Information
Federal, regional, and local government agencies are the best source of information should a pandemic occur. It is important to stay informed about the latest developments and recommendations since specific guidance may change based upon the characteristics of the eventual pandemic influenza strain, (for example, severity of disease, importance of various modes of transmission).
Below are several recommended websites that you can rely on for the most current and accurate information:
U.S. Department of Health and Human Services; offers one-stop access, including toll-free phone numbers, to U.S. government avian and pandemic flu information.
Following recognized practices to avoid exposures common to any respiratory virus will help to keep the threat posed by Coronavirus Disease (COVID-19) in check.
Proper planning can help protect your employees, customers, and your business.
HUB International is also monitoring developments in order to offer assistance and guidance to our clients as they weigh their potential responses to this developing situation.
Aggregate Producer’s Annual Event Recognized by Oklahoma Asphalt Pavement Association
Dolese Bros. Co. has won the Oklahoma Asphalt Pavement Association’s (OAPA) Community Champion Award for organizing and hosting Rock the Block, a community-focused construction industry Touch-A-Truck event. Dolese received the award at the 2020 OAPA Asphalt Conference on Feb. 24 in Norman.
“We launched Rock the Block in 2017 as a community outreach event with our construction industry partners to give the public an up-close and hands-on opportunity to learn about what our industry does and the equipment we do it with,” Dolese Director of Communications and Community Relations Kermit Frank said. “The event, which benefits Regional Food Bank of Oklahoma and the Leukemia and Lymphoma Society, allows Oklahomans the opportunity to interact with the equipment that helps build Oklahoma’s roads, bridges and buildings.”
Oklahoma’s leading aggregates and concrete producer held its third annual Rock the Block event in Aug. 2019 at its headquarters in Oklahoma City and invited construction industry partners from across the state to participate. Families attending the event explored trucks, equipment and interactive displays, posed for photographs from the driver’s seat of assembled vehicles and enjoyed grilled hot dogs. The event benefited the Leukemia & Lymphoma Society as well as the Regional Food Bank of Oklahoma.
Dolese employees volunteered throughout the event to educate the public about Dolese’s operations and the impact of the construction industry on the city. The employees played a crucial part in executing the event to ensure its success.
The OAPA is a non-profit trade association representing the asphalt producers operating in and for the state of Oklahoma since 1971. OAPA producer members account for approximately 90 percent of all asphalt production within the state. The 2020 OAPA Asphalt Conference was held from Feb. 24-25 at the Embassy Suites in Norman.
State homebuilders are building a new building for themselves, a new headquarters just north of the state Capitol.
The Oklahoma Home Builders Association (OKHBA) is set to begin construction Monday at 3520 N Lincoln Blvd. on land acquired from the Oklahoma Asphalt Pavement Association next door, said Mike Means, executive vice president of the builders trade group.
The builders association approved the new office building last fall on what is generally seen as the entryway to the Capitol complex.
It is meant to be noticed by lawmakers, who are just three weeks into the four-month legislative session less than a mile away.
Visibility and proximity to the government went into the selection of the site, Means said.
“We are the state advocacy branch for this association,” he said. "Our presence at the state Capitol is critical for our members. As we often say here at OKHBA, if you don’t have a seat at the table, you may find yourself on the menu.”
The two-story, residential-style office building will have 6,432 square feet of space including a 2,000-square-foot classroom and education center. It will have an expansive entry to display the Oklahoma Housing Hall of Fame.
It will be nearly three times the size of the builders' present headquarters at 917 NE 63, which was built in 1982.
The builders group couldn't say what it will cost to build because much of the labor and materials will be donated, spokesman Jorie Helms said. The building permit issued by the city estimates the cost at $850,000.
Construction will be led by Dan Reeves with Landmark Fine Homes in Norman, with assistance from Curtis McCarty with C.A. McCarty Construction in Norman, Mike Gilles with Savannah Builders in Edmond and Todd Booze with Ideal Homes of Norman. The architect is Tim Palone with TP Architecture, Bethany.
“We are ready to get this project started,” said Reeves, who is chairman of the building committee. “We’ve had so many donations from members who know this is the next step in helping our association grow.”
The large meeting room will have an attached warming kitchen — where catered food can be finished or kept warm — for training and events, Palone said. The foyer, in addition to housing the Hall of Fame, will be big enough for events, he said.
The building design is "a traditional style with only materials typically used in Oklahoma residential construction," Palone said, with a dark-colored shingle roof, mostly brick and stone exterior, some timber columns and accents at the entry, and large windows facing Lincoln.
Strong Foundation: Legacy of Dolese Bros. Co. set in Oklahoma stone!
By: Steve Metzer The Journal Record February 14, 2020 # 0
OKLAHOMA CITY – Other companies with names like Devon and Chesapeake benefit from being identified with some of the most iconic buildings in Oklahoma.
And that’s OK with Mark Helm. He knows that deep within the bones of those better-known companies – or at least within the bones of their buildings – lies his own Dolese Bros. Co.
Were it not for Dolese Bros., the Devon Energy Center as it now stands as the most recognizable building in Oklahoma City would not be. Were it not for Dolese, the Chesapeake Energy Arena would not stand as it does, as the proud home of the Oklahoma City Thunder.
Other Oklahoma icons, too, like Route 66, owe their existence at least in part to the Dolese Bros. Co., which traces its history to before statehood and was there, literally, at the foundation of communities from Altus to Woodward and from Bartlesville to Idabel. In fact, few companies – if there are any at all – would be able to lay claim to a breadth of history and geography in the Sooner State that might rival that of the Dolese Bros. Co.
Dolese Bros. Co. President Mark Helm stands with a display of photos and artifacts dedicated to the company’s long history in Oklahoma. (Photo by Steve Metzer)
And the company, known for transforming the state’s raw rock into everything from highway overpasses to libraries, didn’t even begin here.
Helm, the company’s president and chief executive officer, said Dolese, which formally incorporated in 1902, actually can trace its roots to 1857 when 20-year-old John Dolese went into the paving business in Chicago. Fate and railroad construction drew his descendants west, and by 1907 Dolese Bros. Co. had a contract to mine ballast for the Rock Island Railroad at a quarry at a place called Richards Spur not far from Lawton. In 1908, the company bought a second quarry in such a remote spot in Murray County that Dolese workers became just about the only occupants of the tiny community of Dougherty.
From that point, the future of Dolese Bros. and Co. in Oklahoma was set in stone.
In 1910, the company bought a site in Oklahoma City between 13th and 14th streets adjoining the Santa Fe Railroad. It also purchased 10 dump wagons and 20 large horses to haul crushed stone and coal hand-shoveled from the rail cars to construction sites throughout the city.
Dolese entered the ready-mixed concrete business in 1927 and over time also furnished large volumes of stone and sand used at road construction and other sites across a broad region.
“We like to say we built communities from the ground up, or at least supplied the products,” Helm said. “If you think about anything that gets built – anything – it’s going to start with crushed stone, sand, concrete or asphalt. We have plenty of competition, but we are one of the major players here in the state.”
In fact, as a supplier of crushed stone products, Dolese ranks in the top 15 in the country. It’s among the top 30
suppliers of ready-mix nationwide. That accounts for “many millions of tons” of stone and sand taken from eight quarries scattered across Oklahoma, including the original and largest one at Richards Spur and also from operations near Ponca City, Hartshorne, Coleman, Davis, Ardmore, Cooperton and Roosevelt. The company also has four stone yards, four sand operations and 45 ready-mix plants in the state, employing more than 1,000 people at about 65 locations.
Helm said that on any given weekday, between 600 and 700 trucks might haul raw rock away from a typical Dolese quarry. The three main types are limestone, dolemite and gabbro.
“We do out of our quarries somewhere around 13.5 million tons a year,” he said. “About 2 million tons of sand comes out of sand operations in a year.”
Everything from riprap seen along banks of the Oklahoma River to fine-ground materials used in the construction of skyscrapers can be traced back to Dolese quarries.
“What’s cool about the Devon tower is that it is concrete all the way to the top,” Helm said, “which a lot of people don’t realize. The skeleton of that building is all concrete, and it all came from the Richards Spur quarry, from 300 feet down all the way to the top of that structure. ... We are not the only producer, but we’ve been lucky enough to be really involved in Oklahoma City, with the Devon tower, the BOK tower, Chesapeake Arena, the new Omni Hotel and other projects.”
The company is deeply invested in Oklahoma in other ways as well. Years ago, before his death, Roger Dolese, who had guided the company for more than 60 years, determined that he wanted Dolese to remain private but to become employee-owned over time. He also had a vision to leverage money made by the company to benefit engineering programs and students at the University of Oklahoma, Oklahoma State University and Kansas State University. So, after he died all of the stock he’d bought from family members and friends was ordered to be held in a foundation and redeemed over time with proceeds to be donated to the three universities. When stock is redeemed from each of the universities, new stock is distributed to a profit sharing plan for employees. Over the past dozen years or so, Dolese has redeemed about $30 million worth from the universities. Employees now own about 15% of the business and the three universities have been able to make significant investments in engineering schools and to double the number of graduates in fields ranging from electrical to aerospace engineering.
“Obviously some of them end up in construction, but it is all engineering fields, and we think that helps our communities as a whole,” Helm said.
The company also has invested in science, technology, engineering and math programs in public schools in Oklahoma and hosts field trips to quarries for elementary and middle school students.
Helm said the company’s efforts have been rewarded by the loyalty of employees. Multiple generations of some families have contributed to Dolese’s long history in Oklahoma. There are many long-tenured employees, including one at Richards Spur who recently marked a half-century on the job.
“They feel like they have some ownership in the business. We think it’s had a major impact on our performance as a business,” Helm said.
While not many companies in Oklahoma can trace their incorporated histories back 118 years, as Dolese can, even fewer might be able to anticipate remaining in business into the next century and beyond, but Dolese can.
“This product does not have a replacement. Even ready-mix concrete does not have a replacement right now,” Helm said, “so the challenge for us is to really be efficient and to be good neighbors so we can continue to be in business another 118 years.”
A small uptick in home prices or mortgage rates can have a big impact on housing affordability.
The latest study from NAHB determined that for every $1,000 increase in the cost of today’s median U.S. home price, 158,857 American households are “priced out” and would no longer be able to afford it. In other words, based on their incomes, 158,857 households would be able to qualify for a mortgage to purchase the home before the price increase, but not afterward.
Those numbers are even more staggering when looking at potential interest rate increases. It takes only a quarter-point rise in the rate for a 30-year fixed-rate mortgage to price approximately 1.3 million households out of that segment of the market and force them to set their sights lower than a median-priced home –- or delay their home purchase altogether.
More details, including priced out estimates for every state and over 300 metropolitan areas, and a description of the underlying methodology, are available in the full study.
Markets in the South and West will experience the highest housing activity in 2020, as more millennials move out of big cities in search of more affordable markets, according to experts who shared some of the latest industry trends during last week’s International Builders’ Show in Las Vegas.
“Millennials will dominate housing in 2020 and account for 50% of mortgage originations,” said George Ratiu, a senior economist at realtor.com. He added that they will be leaving expensive metros for more affordable markets.
“Millennials will be moving to mid-sized cities like Boise, Idaho; Tucson; Chattanooga, Tennessee; and Columbia, South Carolina. These cities offer good weather, suburban downtowns and lifestyle amenities.”
Looking at this key demographic more closely, Ratiu said:
1-in-4 millennials have been looking for a home for more than a year.
16% are searching for homes in urban areas.
34% are looking for homes in the suburbs.
45% are seeking homes in small towns and rural areas.
Summing up his findings, Ratiu said that in 2020:
Millennials will demand an affordable product.
Mortgage rates will remain attractive.
Lesser markets will shine.
Baby boomers are not moving.
Ali Wolf, director of economic research for Meyers Research based in Costa Mesa, California, also noted that boomers are staying put.
“Boomers [say] they are not selling because ‘we don’t need to.’ Only 17% of boomers are dissatisfied with their current home,” said Wolf.
Other factors that are keeping boomers at home are that 23% have no retirement savings and 30% of those in the 62-66 age range have postponed retirement.
As for millennials, they are also facing affordability and supply constraints. “Affordability is the biggest obstacle to buying a home,” said Wolf. “Only 5% of millennials want to rent. They are the largest buyer demographic but faced with a supply shortage.”
Looking at public and private builders, Carl Reichardt, managing director at BTIG headquartered in San Francisco, said that 8-out-10 private builders expect sales will rise in 2020.
“Labor and land costs are their biggest worry,” he said. “Builders still appear cautious on pricing. Very few are raising prices aggressively.”
Meanwhile, Reichardt said that public builders account for 36% of all new homes in the U.S. market. (NAHB data show the top 20 builders accounted for 29% of all single-family starts in 2018.) Among the top 50 markets in the country, Reichardt said a public builder is No. 1 in terms of volume in 36 of these markets.
Reichardt said that public builders are not looking to get into all markets but instead are focusing on local market share in the metros they are currently engaged in.
NAHB Chief Economist Robert Dietz, who moderated the session, said that while the industry continues to face significant labor issues on the supply side, 2020 might be the year that labor shortages stop getting worse.
For more on the economic impacts of housing, visit nahb.org.
Millennials are buying homes. This much is known. But, despite the much-discussed generation making their entrance into the housing market, many still are still very uneasy about the process.
To try to get into the minds of millennials, TD Bank surveyed more than 850 millennials (which it categorizes as age 23-38) who are planning to buy their first home in 2020.
According to TD Bank’s First-Time Homebuyer Pulse, 68% said they think now is the right time to buy a home and 52% are actively searching home listings online.
But, 75% of first-time Millennial homebuyers admit they’re overwhelmed by the process of buying a home.
As for what’s weighing on millennials’ minds, the answers vary.
(Image courtesy of TD Bank. Click to enlarge.)
Just over half of those surveyed said they are worried about their job stability when it comes to looking for somewhere to live.
Meanwhile, 35% said they are thinking about their relationship with their significant other, 57% said they are worried about the state of the economy, and 47% said they are keeping in mind potential policy changes in the 2020 election – all of which play a role in their homebuying anxiety.
Unsurprisingly, student loan debt is playing a role too. Just over 40% of Americans who graduated in the last 20 years said they have delayed purchasing a home because of their student loan debt, the report said.
Even though a big chunk of Millennials say they are planning to purchase a home in the next 12 months, only 52% said they have started saving for a down payment, and 53% have reviewed their credit reports.
Meanwhile, only 42% said they have established a budget for their home purchase and only 30% have spoken with a mortgage lender.
“It continues to amaze me how many buyers begin their home search without first speaking with a mortgage lender,” said Rick Bechtel, head of U.S. residential lending at TD Bank. “A knowledgeable loan officer will work hand-in-hand with a buyer to help them understand mortgage and homeownership costs and establish a realistic budget. To put the cart before the horse is to pursue a significant life decision with possibly incomplete or inaccurate information.”
A decent amount said they feel prepared to buy, but it’s that same amount that said steep home prices are keeping them from purchasing a home in the neighborhood they desire, 22% both cases.
Of those respondents, 36% said they thought homes were overpriced. On the other end, 17% of buyers said they have yet to buy a home because they enjoy renting in their current neighborhood, but can’t afford to buy there.
“The millennial cohort of homebuyers is unlike any other in history,” said Bechtel. “They grew up during the explosion of personal technology, the fall of the housing market and the renaissance of the rental market. And as our survey found, their expectations of homeownership are shaped by all of it.”
Although Millennials were considerably young during the housing crisis in 2008, 67% said they are familiar with the housing crisis, while 55% said their family or a family they knew lost their home.
Those who were influenced by the housing crisis said it made them nervous to buy a home (47%), and a whopping 70% said they view the housing market as fragile.
And in an offshoot of that, 85% of buyers who said their families lost their home during the 2008 housing crisis said they will receive financial help from their parents when they go to buy their first home.
The most common way parents are contributing to the child’s home purchase is in the form of their child’s down payment (33%), followed by closing costs (20%), monthly mortgage payments (17%) or by co-signing the loan (9%).
All in all, mom and dad are still the role models for many of these Millennials. Case in point, 37% say they regularly ask their parents for advice about homebuying.
The top three were the same for all homes priced under $5 million
Point2 Homes, a real estate listing website, analyzed the language in 1.2 million home listings across the U.S. and came up with the most common phrases.
The three most frequently-used feature descriptions for homes priced under $5 million were: “granite countertops,” “hardwood floors,” and “stainless steel appliances.” Next on the list: “open floor plan,” “fenced backyard,” and “covered patio.”
For homes priced under $250,000, other words in the top 10 had to do with minimizing post-purchase costs, to attract first-time buyers who wanted to keep a lid on expenses. So, “new roof” and “move-in ready” were among the most common.
In the $250,000 to $499,000 range, words like “dual sinks,” “natural light,” and “formal dining room” rounded out the top 10. Meanwhile, in the $500,000 to $999,999 range, the most popular feature descriptions after the top three that all listings had in common were: “perfect location,” “gas fireplace,” and “vaulted ceilings.”
Among homes in the $1 million to $5 million range “wet bar,” “French doors,” and “natural light” rounded out the top 10 phrases.
Where it gets interesting is when listings were priced over $5 million. Then, the top three phrases were: chef kitchen, pool and spa, and ocean view. That was followed by “wine cellar,” “gourmet kitchen,” “guest house,” and “hardwood floors.”
Focusing just on adjectives, rather than descriptive phrases, the report said “large,” “new,” and “spacious” were among the most common, regardless of price. For locations, “cul-de-sac,” and “close to restaurants and shopping” were frequently used.
Among the most popular descriptive phrases for the exterior of homes, the list was topped by “fire pit,” “private backyard,” and “mature trees,” the report said. Also in the top 10: “sprinkler system,” “large deck” and “storage shed.”
On Friday, Dec. 13, Dolese Bros. Co. acquired Standard Material Group assets including the land, buildings and batch plants in Piedmont, Del City, Newcastle, Cushing and Chandler.
“We look forward to adding the Standard Material Group employees and their former locations to the Dolese team of people who are building communities from the ground up,” Dolese Bros. Co. President & CEO Mark Helm said.
Dolese is headquartered in Oklahoma City operating more than 65 facilities throughout Oklahoma offering full-service construction supply and material operation.
The NAHB International Builders’ Show® is looking for two video bloggers — or vloggers — to feature their phone-created content on the IBS social channels.
It’s time for young professionals attending the 2020 IBS to show their creative side and share their experiences as an IBS attendee. To be considered, just submit a selfie-style video (around a minute) showcasing your onscreen awesomeness and explain why you should be one of the official 2020 IBS vloggers.
Requirements:
NAHB member in good standing
45 years old or younger
IBS veteran planning to attend the 2020 show
Committed to posting before, during and after the show
You’re home for the holidays. The halls are decked with boughs of holly. Dad’s drinking eggnog, mom’s drinking almond-nog, your sister is drinking vegan oatmilk chai-nog; all is well … and then it happens. You make one comment about how maybe your mom’s gingerbread house could use some tasteful landscaping, and she takes the opportunity to make a jab about how maybe “you could stop paying money to live in a stranger’s basement.”
You brought up the contentious topic of housing, and now the tidings of comfort and joy have left the building.
Or have they?
As a gift to you this holiday season, the elves at the National Housing Center are offering this simple guide to help kids from one to 92 navigate conversations about housing.
When your dad puts his feet on the ottoman, looks you in the eye and lectures you on the immutability of the 30-year fixed-rate mortgage (“If it worked for my generation, then it will work for yours.”)
Let your dad know that we’re going to need sensible housing finance reform if we’re going to keep the 30-year, fixed-rate mortgage as an affordable option. Fannie Mae and Freddie Mac – the government sponsored mortgage guarantors – have been in conservatorship for 11 years. That’s not sustainable, Dad. It’s important that any new structure include an explicit federal backstop for the housing finance system and protect taxpayer liability. And, we need to provide an effective financing system for multifamily housing.
When your daughter’s TikTok goes viral – wherein, to the tune of The Commodores’ 1977 hit “Brick House,” she blames the older generations for ruining the housing market – and you decide to make this a teachable moment.
Make sure she understands that, for most home builders, the cost of complying with building regulations and codes can account for up to 25 percent of the total cost to build the home – and even more for multifamily housing. Explain to her that housing affordability is a supply-side issue. When regulatory compliance creates roadblocks to making housing affordable, it’s no surprise that homeownership and rental opportunities are being pushed further and further out of reach. And, we need permanent trade solutions to fluctuating material prices, like softwood lumber and Chinese steel, to ensure that housing can remain affordable. Also, your daughter is no longer listening. Just a heads up.
When your son asks if his girlfriend can move in with him in your basement because her part-time job and Uber gig don’t bring in enough money to rent an apartment.
Make a point to let him know there are more than 335,000 unfilled jobs in construction. These are good-paying jobs with benefits. Carpenters, electricians and masons make an average national wage over $51,000 a year, more than three times what a minimum wage worker takes home annually. It’s enough that he should be able to finally move out of what he calls his “garden-level apartment” and, as we all know, every time an adult child moves out of their parents’ house, an angel gets its wings.
When your parents keep reminding you that your cousin Amber is already married and has a nice house in the suburbs with granite countertops (and they have a Bernese Mountain Dog, and fresh eggs every day from their six chickens, and her husband makes the most amazing homemade gin).
Remind them that homeownership is a great option for some – and that you understand that for many households it represents a primary source of wealth, financial security and a gateway to the middle class. But the bottom line is that it is all about housing choice. Some people prefer to rent, and others are unwilling or unable to take on the financial responsibility of owning a home. And the gin isn’t all that good, anyway.
When your grandma doesn’t want to put out the Santa and reindeer decorations in her front yard because “this is probably the year y’all put me in the old folks’ home.”
Gently let her know that there are many options for people who want to stay in their homes as they age. In fact, aging-in-place remodeling is the fastest growing sector of the remodeling market. By hiring a Certified Aging in Place Specialist, she can get what she needs most: reassurance that you’ll help her make the choices that will help her stay in her home safely and securely. By modifying her home with additional task lighting, grab bars, lever door handles and other features, you all can make sure that holiday traditions (and grandma) are around for years to come.
The Moore Home Builders Association purchased clothing, hats, socks, jackets, sweat shirts and socks for 133 students at Dimensions Academy in Norman, then delivered those Christmas bags of cheer on Wednesday with the help of the Cleveland County Sheriff’s Office. Pictured from left to right are: Marvin Haworth, Deputy Phillip Garbriel, Deputy Rafael Hernandez, Sheila Haworth, Deputy Chazdon Anderson, Dimensions Principal Linda Mace, Timmy Smith, Karen Ewing, Sheriff Todd Gibson and Capt. Mike Finley.
-An assortment of clothing and hand-sewn blankets filled Christmas bags of cheer that were delivered Wednesday to 133 alternative education students in Norman.
The project was a joint effort of the Moore Home Builders Association, the Cleveland County Sheriff’s Office and The Linus Project, which is a ladies’ quilting group that meets at Moore’s First Christian Church one Saturday each month.
“Every year we try to do something that helps our youth,” said Sheila Haworth, executive officer for the home builders association. “It’s like Sheriff (Todd) Gibson was saying, ‘This is a really important project because if we can’t keep these kids in school they won’t have a future.’”
Students were delighted, excited and almost beyond belief when county deputies delivered the gift bags to Dimensions Academy earlier this week. Dimensions Academy is the alternative education program for Norman Public Schools.
“They (students) looked like they had blank stares on their faces,” Haworth said. “Some of them were like, ‘that’s all for us?’”
The students wrapped the hand-sewn blankets around their bodies and “kept them on the rest of the day,” she said. “It really got their morale up.”
Linus Project spokeswoman Sharene Anderson said her group became involved in the school project because “there was a need.”
“That’s our mission — to provide for children in need and especially the homeless and abused children,” she said. “This is our drive. It’s our life.”
Depending on their schedules, the quilters spend anywhere from “every waking moment to a few hours a month and everywhere in between” on their blankets that are donated to variety of causes.
The quilters gave 140 double-sided, fleece quilts to The Dimensions Academy project, Anderson said. The Linus Project was founded in 1995 and serves Canadian, Cleveland, Grady, Kingfisher, Logan, McClain and Oklahoma counties.
The home builders association, through its $3,500 monetary donation and two other contributions, spent about $4,500 on clothes, hats, socks, jackets, sweatshirts and socks for the 133 students. Haworth and retired teacher Karen Ewing shopped from February until November purchasing the clothing items at any store that offered discounts, including some in Texas.
During one shopping spree, the women loaded a buggy with 120 fleeced jackets at a Norman Old Navy store. The jackets originally sold for $29 each, but the women only paid $8 per jacket.
Prior to that, Haworth and Ewing made a trip to an Allen, Texas, shopping outlet where stores were having going-out-of-business sales. During the trip, they spent about $700 for clothes, including some from name brand store Lou LaRue.
The donations also helped the women purchase enough clothes to establish a clothing pantry at the school for future needs.
Millennials are moving more, spending more and buying more
Continuing a trend that stretches back to one year ago, Millennials are still dominating the homebuying landscape, taking on more mortgages than previous generations.
A report from Realtor.com says that at the end of the third quarter, the Millennial share of mortgage originations increased 3% from last September, coming in at 46%.
(Image courtesy of realtor.com. Click to enlarge.)
Meanwhile, Gen X and Baby Boomer shares continued to fall, to 35% and 17% this year, from 37% and 18% last year, respectively.
As for primary home loan originations, Millennial shares increased also. In September, Millennial share was 44%, up from last year’s 40%.
Gen X shares fell from last year’s 41% to 39%, while Baby Boomer shares fell to 16% from 17% last year.
Millennials were also found to move once every two years, a study from Porch said. Gen Xers moved about every four years and baby boomers stayed in the same place for nearly six years at a time.
According to the report, Millennials are buying more expensive homes, too.
The median price of a primary home purchased by Millennials went up 6%, to $250,000 compared to last year. Generation X and baby boomers only increased their purchase prices by 5% and 2%, respectively.
(Image courtesy of realtor.com. Click to enlarge.)
Millennials are also increasing the size of loans they are taking out to buy a home, as this generation had a median loan amount of $231,590 in September. This is 7.3% higher than last year.
This growth in mortgage debt undertaken by Millennials outpaces that of both Baby Boomers, which grew by 2.6%, and Generation X, which grew by 4.4%.
More than three out of four millennial home buyers (76%) say that their most wanted bathroom feature is both a shower stall and tub in the master bath, according to a recent report published by NAHB, What Home Buyers Really Want (2019 edition).
The survey indicates that millennials want larger bathrooms to accommodate certain amenities. For example, the second most popular bathroom feature among this key demographic is a double vanity (75%), followed by a linen closet in the master bath (73%), a whirlpool tub (70%) and a private toilet compartment in the master bath (68%).
A dressing/make-up area and a white toilet, tub and sink are also important to millennials, with 67% reporting that each of these items are desirable or essential/must have features.
Millennials also expressed interest in having specific shower features: 66% want multiple shower heads in a master bath and 64% desire a body spray panel in a master bath [shower head(s) plus spray massage jets].
A majority of millennials also prefer a granite vanity (64%). See the Figure 1 chart below for more details. Note: move your cursor along the Figure 1 and Figure 2 charts to view more details.
The report also reveals a wide disparity among bathroom wants between millennials and seniors. The Figure 2 chart below shows at least a 20-point difference among these two demographic groups on a variety of bathroom features.
For example, 46% of millennials desire dual toilets in the master bath while just 14% of seniors prefer this feature. Fifty-five percent of millennials want his and hers baths vs.only 25% of seniors and 70% of millennials want a whirlpool tub in a master bath, compared to 44% of seniors.
OKLAHOMA CITY (KFOR) - The Oklahoma Home Builders Association says small towns are cracking down on housing ordinances and it could price people out of living there.
Cities across the state are starting to regulate products that are used to build new homes.
“They’re going after regulating small homes which is what we call affordable homes, or houses that help people that are in the lower socioeconomic brackets being able to purchase their first home,” said Mike Means the Executive Vice President of the Oklahoma Home Builders Association.
Congratulations to Jorie Helms, Director of Communications and Outreach, for being selected as a 2019 NextGen Under 30 winner! Now in its ninth year and expanding its scope and state-wide reach, NextGen Under 30 recognizes and encourages the next generation of innovative, creative, and inspiring individuals who push the boundaries in various categories of endeavor. In addition, award winners are selected based upon their participation in and contribution to their communities. Jorie was selected from over 1,000 nominees by a panel of respected business and civic leaders who served as judges.
Jorie started at the Oklahoma Home Builders Association in 2017 where she focuses on Outreach projects, Member engagement, Social Media marketing, and much more. Jorie is also a proud member of The Association for Women in Communications.
A recent study by NAHB reveals that millennials have a much stronger desire for certain bathroom features relative to older generations.
The report compiled survey data between 2007 and 2018 and found that the share of home buyers who want whirlpool tubs declines as the older generations age, but stays relatively constant for millennials. As of 2018, 70% of millennials expressed a strong preference for whirlpool tubs, compared to 62% for Generation X, 47% for baby boomers and 44% for seniors. See Figure 11.1 below.
Meanwhile, the share who want a dressing area increases for millennials while falling or staying constant for other generations (Figure 11.2).
Those who prefer his and her baths increases dramatically over the years for millennials and shows no real trend among the other generations (Figure 11.3).
Figures 12.1 through 12.4 below center on kitchen features. All four generations show an elevated preference for built-in kitchen seating. Of note is the increasing upward trend for millennials who desire trash compactors and built-in kitchen seating.
Finally, for the specialty rooms in Figures 13.1 through 13.3, millennials show a higher preference for exercise rooms, game rooms and media rooms than the other generations. Moreover, the gap between millennials and the older generations is quite substantial in 2018.
At least four out of five millennial buyers prefer laundry rooms, hardwood front exteriors, patios and garage storage. Conversely, they give a thumbs down to elevators, wine cellars and laminate countertops.
These were among the findings from a new study by the NAHB Economics team that focused on millennial home buying preferences.
The 2018 survey asked recent and prospective buyers to rate 175 different features on the following four-tier scale:
Essential: Unlikely to buy a home without feature
Desirable: Seriously influenced to buy home if included
Indifferent: Would not influence purchase decision
Do Not Want: Not likely to buy a home with feature
No. 1 is a laundry room, which 86% of millennials want. Other features on the top 10 list include a walk-in pantry, exterior lighting, a front porch and table space for eating.
Millennial preferences differed somewhat from baby boomers and seniors. Unlike millennials, boomers did not include a walk-in pantry, front porch, table space for eating and double sink in their list of top 10 amenities. Likewise, seniors omitted a hardwood front exterior, walk-in pantry, front porch and table space for eating from their 10 most wanted features.
Nearly half of millennials (47%) cited elevators as the feature that they are least likely to want, followed by cork flooring in the main living spaces (33%) and wine cellars (32%).
Millennials have also been shifting their preference of master and standard bedrooms over the years. In 2007, 80% preferred one full master bedroom suite plus three standard bedrooms and 20% desired two full master bedroom suites plus one standard bedroom.
By 2018, this 80-20 ratio dropped to 60% and 40%, respectively.
OKLAHOMA CITY (July 31, 2019) — Oklahoma City-based Dolese Bros. Co. was recently recognized by the National Safety Council with an Exemplary distinction award for its efforts to reduce the number of accidents occurring on Oklahoma roads. Dolese was one of two Oklahoma employers to receive the inaugural Our Driving Concern Oklahoma Employer Traffic Safety Awards for the Exemplary distinction.
“We are honored to be recognized as a leader in safety,” Dolese President and CEO Mark Helm said. “This achievement is the direct result of each and every employee’s commitment and focus on making safety a personal value.”
The awards were presented in partnership with the Oklahoma Highway Safety Office and the Oklahoma Safety Council at the Oklahoma Safety and Health Conference in Oklahoma City. The seven recipients emerged from a diverse pool of applicants and were evaluated by employee education, training and other traffic safety initiatives. The categories were Exemplary, Award and Honorable Mention.
According to the Oklahoma Highway Safety Office, nearly 200 crashes occur every day and more than 650 people are killed on Oklahoma roads each year.
In 2014, Dolese implemented in-cab video cameras and sensor system to their fleet which has reduced accidents company-wide, and more importantly in the communities where Dolese operates. The cameras activate when a driver brakes too quickly, turns too sharply, swerves or accelerates too fast. This tool is used as a coaching tool to improve driver safety, not to punish drivers. Employees receive recognition and awards for reaching safe driving goals.
This effort has shown great results. In 2018, the number of coachable events for the company were at an all-time low.
“Our drivers take pride in their work and are keeping safety top of mind,” Dolese Occupational Health and Safety Director David Finley said. “Their proactive safety behavior is resulting in less incidents and fewer days of work missed due to injuries.”
Additionally, Dolese actively works to implement trainings and other programs to enhance their drive toward safety.
“This recognition is a morale boost for our employees who are making a conscious effort to keep themselves, their peers, our customers and the traveling public safe,” Helm said. “This distinction acknowledges that we are making progress toward achieving our goals and offers us a challenge to continue improving.”
More baby boomers continue to work past the age of 65, but many are still looking toward retirement, including downsizing their current home and finding a location that fits their lifestyle. Because they may still be working full or part time, however, they may not have the flexibility — or desire — to move to more destination-oriented locations.
To meet this growing demand, builders are looking toward less traditional locations to create housing for 55+ home buyers. Major developers have started to construct in areas around Boston, Minneapolis and Newark, N.J., for example, to match the needs of this working demographic — a trend likely to continue as the oldest members of Generation X are now starting to reach the age of 55.
“This is a real opportunity for builders to capitalize on the boomer population — a large, affluent demographic with equity to trade into a new home,” observed Deborah Blake, principal at The Ipsum Group. “Builders are able to start with smaller communities — around 300 to 500 units or less — in locations that you wouldn’t necessarily think of for communities in the past.”
One of the biggest hurdles builders may face in local communities is that boomers oftentimes choose to stay in their current homes because they don’t know what other options are available to them. To make the move, buyers need to see the value of a new home or community, and how it’s better suited to their lifestyle. Features such as single-level living, universal design concepts, and a more attractive social network through amenities and other activities can be a major draw.
“I always say it’s ‘plussing your lifestyle without leaving your neighborhood,’” Blake noted. “They get to enjoy their career, with a full-time income, and live in a home that fits their lifestyle — it’s the best of both worlds.”
Builders are also experiencing strong competition in the resale market in popular destinations such as Arizona and Florida, she added. Buyers are able to purchase less-expensive homes in 25- to 30-year-old communities that have been well-maintained and boast vibrant groups of residents.
Before looking into local opportunities, however, it’s critical to understand this niche audience. “Success requires the right pricing and creating the right things to compel a 55+ buyer to say, ‘My current home doesn’t fit my needs or lifestyle,’” Blake stated.
With three decades of real-life experience — 22 years with Del Webb and the last seven-plus years advising clients across the United States at The Ipsum Group — Deborah Blake is uniquely qualified to provide pragmatic advice in the areas of consumer research, community feasibility, visioning, amenity and lifestyle programming, branding, marketing, sales, residential product, and operations of 55+ targeted and age-qualified communities.
Netiquette — etiquette for the digital world — is where common courtesy meets the Internet. Netiquette is necessary since business communications have evolved and become Internet-based. Telephone and snail mail are no longer the primary forms of business communication; texting, instant messaging and social media have taken precedence.
People often wonder how the various generations like to communicate. Knowing each generation’s preferences can make a world of difference in business.
Gen Z
Direct, visual and succinct
Communicate with images and multitask across several screens
Short attention spans, communicate in bite-sized snacks with punchy headlines, emoticons, photos and images
Millennials
Hate talking on the phone
Prefer texting or messaging apps
Like thought-out responses afforded by texts, unlike personal conversations or phone calls
Will use email, although it is seen as less urgent than a text
Gen X
Adapt quickly to new technology
Grew up with the emergence of the PC, lived through the dot-com bust and the introduction of the cell phone
Can be reached with a variety of technologies
The most technologically versatile
Boomers
Prefer face-to-face meetings
Talk on the phone
Use email, video conference, text, etc.; varies by individual, so their tech knowledge shouldn’t be underestimated
Stay accessible and visible
Above all, ask how someone wants to communicate. Once you know that, follow the eight rules of business communication:
Know what you are going to say before you say it
Less is more; keep it simple
Use bullet points
What’s in it for me? (WIIFM)
Don’t get bogged down (tangents, lose focus)
Call to action (again, what’s in it for me?)
Edit, spell check and review once more
Follow up
For more information on Netiquette, read the full article, “Manners for Digital Communication,” in the current issue of Building Women magazine authored by Carol Morgan, MIRM, CAPS, CSP. NAHB Professional Women in Building Council (PWB) is offering a free webcast to PWB Council members on Netiquette featuring Morgan today, June 27, at 2 p.m. ET. For more information about the webcast or PWB, contact Sheronda Carr.
In my work as a marketing strategist for contractors and the trades, I have met with countless business owners struggling to grow sales. Some were larger companies with elaborate websites, and some had simple websites. But regardless of size, they all faced the same problem: Their websites were not generating leads.
In talking to those business owners about their websites, they often had a misunderstanding of what a website entails. Many see websites as a commodity that they must have. They look to buy a website based on price rather than as an investment that will generate year-after-year returns. By basing a decision on price, the website's design will go to the lowest bidder instead of a company that has experience in creating a lead generating system that takes businesses the distance.
Having analyzed hundreds of websites, I’ve seen the same mistakes over and over again. Here are five possible reasons your website is not generating leads.
1. Lack of Visibility
Perhaps the most common reason websites don’t generate leads is a lack of visibility, or lack of traffic. If your website doesn’t rank on page one of the search engines, Google and Bing for example, and you are not doing any kind of advertising to drive potential customers to your website, then your company is invisible. The only way people will find you or your website is if they know your company name or you hand them a business card.
To generate leads from your website, you need to be visible and you need traffic. Just like sales is a numbers game, so is online lead generation. When I trained real estate agents we used to say, it takes 100 suspects, to get 10 prospects to generate one sale. In online marketing, it is the same. A great conversion rate on the web is 5% or higher. The average conversion rate is 1 to 2%. So, if you want to make five sales per month, you need to get at least 500 people to your website each month.
The quickest way to generate traffic to your website is to use pay-per-click marketing. With pay-per-click marketing, ads for your company appear at the top of the search engines when customers enter keywords related to your business. When they click on your ad, you are charged a fee for the click.
Depending on the keyword, the cost per click will vary. For instance, today the cost per click for “home builders in Colorado Springs” is $5.23. The cost for “affordable home builders in Colorado
Springs” is $3.25. The cost per click is dependent upon how many companies are competing for that keyword.
It is important to have a good mix of keywords. It is equally as important to work with someone who really understands the workings of pay-per-click marketing to manage your ad spend and work on adjusting your ads to increase your ROI.
There is a downside to pay-per-click advertising, though, and that is if you stop advertising, you stop getting traffic. The long-term strategy to drive traffic to your website is to hire a company to optimize your website for the search engines. This process, called search engine optimization, is not marketing. It does not generate leads by itself. But, when your website moves to page one, and ideally within one of the top three organic spots for terms people are using to find companies like yours, you will get traffic to your site without having to pay a monthly pay-per-click ad spend.
If you are getting traffic to your website but visitors are not contacting you, then the question is, what are they doing on your website? Google Analytics combined with Google Search Console is a must-have tool to determine what is and isn’t working with your website. Using these tools, you can know how many visitors are coming to your website, how they got to the website, how long they stay on your site, and where they enter and exit your site.
2. Unprofessional or Lacking Portfolio Photos
Your website in many cases is the first impression a customer gets of your business. Yet many companies skimp on photography. I analyzed a website for a tile contractor that came to me recently. Her website was ranking on page one for 24 keywords, but she said her website wasn’t generating any leads.
The first thing I did was look at Google Analytics to see her website’s traffic numbers. She was getting plenty of people to her website, but no one was contacting her. So, I dug deeper and looked to see where people were exiting her website.
What I found was that 25% of the people who visited her website left the site after viewing the project portfolio page. When I viewed the page, I understood why. There were two pictures that were taken by her with her cell phone, but they weren’t staged in any way. While the tile work in the photo was very nice, you had to look over tools and pans sitting on the kitchen counter to see the work.
Your website must showcase your best work. Hire a skilled photographer. You don’t necessarily need a professional photographer, but one that knows about lighting and that will stage the photo for you.
If you are doing renovation work, have before and after photos taken from the same vantage point so the visitor can easily see the differences. A little planning before taking photos will go a long way in making you look great.
3. Missing Call-to-Action
In sales we say "ABC," always be closing. The equivalent to that in websites is always have a call-to-action. I have seen many websites missing the call-to-action. Essentially, the website gives a lot of information on the company’s product or service and then says, “for more information contact us.”
That’s great, but website visitors need direction. Your website needs to very specifically tell them how to reach you and it needs to be easy.
A call-to-action on your website needs to be in two forms. The first is your call-to-action within the text of your site. It should say, for example, “To learn more about our custom home building offerings, fill out our convenient contact form or for immediate assistance call us today at 719-555-1212.”
In this call-to-action, the phone number should be setup as click-to-call so smart phone users can click on the phone number to dial. The whole call-to-action should be in a different font and set apart from the rest of the content on the site so it is easily recognizable.
The second is a form on your website. We recently worked with a client whose site only had the call-to-action in the text of the site. Once we added a “Request a Quote” form in the right column of all the services pages, he started getting leads.
4. Misaligned Content
When visitors come to your website, they are typically looking to answer a question. Many people start researching new homes or home renovation projects months before they are actually ready to buy. So, in preparation they head to the web to see what it will cost, get ideas of what they might buy, and even compare offerings. What I see time and time again is that websites are not designed to answer the questions customers are looking to answer. Instead, they give the information owners and salespeople want them to know.
Take for instance a custom home builder we worked with recently. His website had a lot of information and gorgeous examples of his work, but visitors were not requesting to meet with him. After working with him at a local home show we noticed that people in the booth first looked at the photos of his work and then they asked for floor plans. He didn’t have floor plans on his website because he said he can build whatever the customer wanted. But customers want a place to start. They want something to build on. So, we added a few of a variety of floor plans that he has built to his website.
Understanding how your customers think and what questions they always ask is important when building or redesigning your website.
5. Lack of Attention
The biggest reason business websites don’t generate leads is because business owners don’t understand what is required to create a lead generating machine and they don’t give their website the attention that it needs.
Just like building a home, building a website is part art, part science. Building a website that generates a steady stream of leads takes time, testing, and analysis.
I always tell my customers, you wouldn’t put an ad in the newspaper for 52 weeks and leave it there if it wasn’t generating business, and so you shouldn’t let your website sit if it is not generating business.
Your website can be a powerful player in the success of your company, but as a business owner you need to understand that this is not the Field of Dreams. They will not come just because you build it. A website can be your best salesperson, but it needs to be nurtured and tended to.
Construction for an Aging Population: The Influence of Shifting Demographics
Senior citizens are a fast-growing segment of the population. It is estimated that the number of people age 65 and older will nearly double before 2050. While many senior citizens eventually go on to live in an assisted living facility or nursing home, a growing portion of the senior population is focused on age-in-place strategies to stay in their own homes and remain independent for as long as possible.
Aging in place is possible under the right circumstances. Seniors need special accommodations that younger homeowners and home buyers rarely consider. This may affect many of the homes being built and remodeled today and into the future. Contractors who build or remodel homes can better serve this growing niche by remaining up to date with the latest changes and trends. If you're a contractor with a burgeoning business, here's what you need to know about constructing homes for an aging population.
Single Floor Living or Lift Installation Capabilities
In their golden years, many seniors lose the ability to walk safely up and down stairs. Some seniors will manage this problem by installing a stair lift or elevator. Others may simply seek out homes where they can live all on one floor. Single floor living can be accomplished in many ways. In some cases, homeowners install a master suite on the first floor, where they can sleep and go to the bathroom all without going upstairs. Sometimes this requires the homeowner to make an addition to the home. In other cases, homeowners move to homes without a second floor.
Ranch style homes are very practical for homeowners who are unable to go up and down stairs regularly. In some ranch style homes, facilities (like laundry) are placed in the basement. Builders in an area with high housing demand from seniors may opt to move these facilities to the ground floor. Those constructing homes with multiple floors might consider leaving enough room for a lift or elevator to be installed.
Safe Bathrooms
There are many ways that contractors can build senior-safe bathrooms. Existing bathrooms can also be modified to become senior-safe. Common age in place features found in bathrooms include:
Walk-in showers. These showers reduce the risk of a homeowner falling when stepping into and out of the shower.
Non-slip floors. Slips are a common problem in bathrooms, but non-slip floors can help prevent falls even when the floor is wet.
Grab bars. Grab bars give homeowners something to hold onto in the shower and when standing up or sitting down from the toilet.
Proper lighting. The bathroom is a place where lighting can be poor in areas over the shower; improving lighting can help prevent accidents.
In cases when the homeowner contacts a contractor to ask for an age in place remodel, contractors can help the homeowner identify areas where their existing bathroom can be improved.
Wheelchair/Mobility Accommodations
Many seniors eventually find themselves in a wheelchair or in need of some sort of mobility device. When this happens, navigating a standard home can be a challenge. Narrow doorways and hallways make it difficult or impossible to maneuver around the house independently.Those who wish to stay in their current home may need a contractor with the ability to widen hallways or doorways. Ramp installation/construction is also important for homeowners in wheelchairs.​ Those who choose to downsize/move will need to find or build a home with these accomodations. For this kind of project, it's important to become familiar with the local building codes. Contractors who are familiar with local regulations can help ensure the changes they make are safe.
Optimized Lighting
Good lighting is an important and desirable feature in any home, but it's even more important in a senior's home. Varied lighting and adequate controls can help seniors avoid accidents. When installing lighting, contractors must ensure that switches are available in all room entry ways, and must also ensure that lighting can reach all dark corners. Hallways in particular can be dim, so installing hallway lighting can prevent accidents.
Helping Seniors Achieve Their Goals
Builders and contractors can help home buyers and homeowners achieve a wide variety of goals and this - broadly speaking - is no different. Like many jobs they are faced with, building a home that is suitable for aging-in-place is not always a straightforward task and, as a result, creative problem-solvers will always be in demand. Looking forward to the future, learning how to address aging-in-place concerns in a home can make an individual or company an invaluable resource to a growing population of seniors wishing to maintain their independence.
John Quinn is the broker and owner of The John Quinn Team of RE/MAX Experts. With over 30 years of real estate experience and a commitment to personalized customer service, John helps buyers and sellers in the memphis area.
Recently, many of us from the Oklahoma HBA went to Washington, DC, for the NAHB Spring Leadership meeting. We had members from COHBA, HBA of Greater Tulsa, and Stillwater HBA. One of our members, Mike Fournier, went to Arlington to see the changing of the guard at the Tomb of the Unknown Soldier. If you haven’t witnessed it, it is a moving ceremony. Guarded 24/7, no matter the weather, the guards keep watch over the tomb. It is a fitting tribute to those who are unnamed, but yet gave the ultimate sacrifice for our country.
That background came to my mind as I witnessed another “changing of the guard” at the Oklahoma Uniform Building Code Commission. One of our members, Curtis McCarty from the Builders Association of South Central Oklahoma (BASCO), completed his final term on the OUBCC. Curtis completed his final term on the Commission and was ineligible to serve again at this time. Commission members are term limited and can only serve two consecutive terms.
The Oklahoma HBA would like to commend Curtis for his service to the state. While it wasn’t protecting our shores from foreign enemies, the important role he played in keeping a check on arbitrary and capricious codes protects our industry. The work of the OUBCC is critical to each and every one of us as build homes for our neighbors.
The OUBCC began its work in 2010. Curtis was the first homebuilder to serve. Yesterday, his term ended and Lonnie Shackelford, a builder from the HBA of Greater Tulsa, will be the next homebuilder to serve. We will assist Lonnie in any way we can to insure that our industry’s voice is heard. We wish him the best as he begins his service to the State of Oklahoma and the construction industry.
Finding an affordable home to buy should be easier than discovering buried treasure. But for many homebuyers – especially first-timers – it’s doesn’t feel that way.
The lack of affordable homes has been a persistent problem in the housing market. In the first quarter, inventory rose 2.4% from a year earlier, according to the National Association of Realtors. But it’s still well below normal, and that’s vexing homebuyers.
To unearth low-cost homes, USA TODAY tapped Trulia to look at the largest 50 U.S. metro areas and identify ZIP codes where homes are affordable relative to the median metro income.
Here's the hopeful news for buyers.
Where the least expensive housing exists in every state
In 43 metro areas, at least half the homes in the majority of ZIP codes were considered affordable. There were 604 ZIP codes – or 6.8% of all ZIP codes – where all of the homes were affordable. There were just 288 ZIP codes, or 3.3%, where none of the homes were considered affordable.
“It’s interesting that so many ZIP codes fall into one of those extreme buckets,” said Cheryl Young, senior economist at Trulia.
What makes a ZIP code affordable?
Neither housing stock age nor distance from the city center seemed to be strong drivers of affordability, Young said.
“That’s likely because there may be a premium to live near the center of a metro as well as a premium to live in tony suburbs,” Young said, “and (while) older housing stock may reduce home values, there are also high-value neighborhoods with well-maintained older estates and homes.”
Trulia didn’t dig into other factors that could determine the desirability of a ZIP code and, therefore, the value of the housing inventory, such as performance of nearby schools, proximity to shopping and restaurants, and access to major commuter roads.
What is affordable?
Trulia took the current value of all homes in the largest 50 metro areas and calculated how much the median income could afford by ZIP code. Homes were considered affordable if 30% or less of the metro area’s median monthly income went to the mortgage payment.
To find the share of affordable homes on the market, Trulia calculated the maximum amount that the median income could allocate toward a mortgage payment. Calculations considered a 20% down payment, and the monthly mortgage payment also included property insurance and taxes.
It’s important to note that many homebuyers, notably first-time buyers, contribute less than 20% toward their home purchase. That would increase their monthly mortgage payment on the same home bought with 20% down. Additionally, those buyers would have to pay private mortgage insurance, another monthly cost. The number of ZIP codes with affordable homes would also shrink for those buyers, Young said.
Most and least affordable ZIP codes
USA TODAY ranked a metro area's affordability by the percentage of ZIP codes where at least half of the homes are affordable for that area's median income. Using Trulia's data, USA TODAY also looked at how many ZIP codes were 100% affordable and how many had no affordable homes for the median income.
Oklahoma City
Share of ZIP codes where at least half the homes are affordable: 95.4%
Share of ZIP codes where none of the homes are affordable: 0%
Share of ZIP codes where all the homes are affordable: 6.5%
Indianapolis
Share of ZIP codes where at least half the homes are affordable: 96.7%
Share of ZIP codes where none of the homes are affordable: 0.8%
Share of ZIP codes where all the homes are affordable: 13.8%
Pittsburgh
Share of ZIP codes where at least half the homes are affordable: 95.8%
Share of ZIP codes where none of the homes are affordable: 0.5%
Share of ZIP codes where all the homes are affordable: 22.4%
The Builders Association of South Central Oklahoma has named Stephen Koranda executive officer.
Through his firm, Back To You Marketing, Koranda will manage BASCO, which, since 1949, has been serving and connecting those in the home building industry through education, information, advocacy, and networking events.
Koranda has more than 20 years of experience working with customer service and association clients including local and statewide associations. He has previously managed nonprofits and has served on numerous boards within Norman and Oklahoma. He is presently principal and senior consultant of Back To You Marketing, a full-service marketing association management firm based in Norman.
“Stephen brings his extensive network and experience in management, collaboration and strategic direction to his role as the executive officer,” Danny Gamble, BASCO Board Chair, said in a statement. “We are excited to see where he will lead the association.”
For more information, please call Stephen Koranda, at 405-637-6225, or email SK@BackToYouMarketing.com
FONTANA, Calif. — At a steel factory dwarfed by the adjacent Auto Club Speedway, Fernando Esparza is working toward his next promotion.
Esparza is a 46-year-old mechanic for Evolution Fresh, a subsidiary of Starbucks that makes juices and smoothies. He’s taking a class in industrial computing taught by a community college at a local manufacturing plant in the hope it will bump up his wages.
It’s a pretty safe bet. The skills being taught here are in high demand. That’s in part because so much effort has been put into encouraging high school graduates to go to college for academic degrees rather than for training in industrial and other trades that many fields like his face worker shortages.
Now California is spending $6 million on a campaign to revive the reputation of vocational education, and $200 million to improve the delivery of it.
“It’s a cultural rebuild,” said Randy Emery, a welding instructor at the College of the Sequoias in California’s Central Valley.
Standing in a cavernous teaching lab full of industrial equipment on the college’s Tulare campus, Emery said the decades-long national push for high school graduates to get bachelor’s degrees left vocational programs with an image problem, and the nation’s factories with far fewer skilled workers than needed.
“I’m a survivor of that teardown mode of the ’70s and ’80s, that college-for-all thing,” he said.
This has had the unintended consequence of helping flatten out or steadily erode the share of students taking vocational courses. In California’s community colleges, for instance, it’s dropped to 28 percent from 31 percent since 2000, contributing to a shortage of trained workers with more than a high school diploma but less than a bachelor’s degree.
Research by the state’s 114-campus community college system showed that families and employers alike didn’t know of the existence or value of vocational programs and the certifications they confer, many of which can add tens of thousands of dollars per year to a graduate’s income.
“We needed to do a better job getting the word out,” said Van Ton-Quinlivan, the system’s vice chancellor for workforce and economic development.
High schools and colleges have struggled for decades to attract students to job-oriented classes ranging from welding to nursing. They’ve tried cosmetic changes, such as rebranding “vocational” courses as “career and technical education,” but students and their families have yet to buy in, said Andrew Hanson, a senior research analyst with Georgetown University’s Center on Education and the Workforce.
Federal figures show that only 8 percent of undergraduates are enrolled in certificate programs, which tend to be vocationally oriented.
The United States has 30 million jobs that pay an average of $55,000 per year and don’t require a bachelor’s degree, according to the Georgetown center. People with career and technical educations are actually slightly more likely to be employed than their counterparts with academic credentials, the U.S. Department of Education reports, and significantly more likely to be working in their fields of study.
At California Steel Industries, where Esparza was learning industrial computing, some supervisors without college degrees make as much as $120,000 per year and electricians also can make six figures, company officials said.
Skilled trades show among the highest potential among job categories, the economic-modeling company Emsi calculates. It says tradespeople also are older than workers in other fields — more than half were over 45 in 2012, the last period for which the subject was studied — meaning looming retirements could result in big shortages.
High schools and community colleges are the keys to filling industrial jobs, Hanson said, but something needs to change.
“You haven’t yet been able to attract students from middle-class and more affluent communities” to vocational programs, he said. “Efforts like California’s to broaden the appeal are exactly what we need.”
Aside from marketing the programs differently and making them simpler to find and apply for, California is trying to ease the process through which individual campuses can add new programs that could help local businesses. If a region needs respiratory therapists, for example, community colleges will be able to avoid some of the red tape that previously hampered their flexibility to train new therapists.
“We definitely wanted to get out of the colleges’ way,” Ton-Quinlivan said.
The industrial course in which Esparza is enrolled is run by nearby Chaffey College through the community college’s InTech Center, a partnership with California Steel and other local manufacturers. At its completion, Esparza will have new skills he hopes will translate into a promotion and a raise of $4 or $5 per hour.
Like his classmates, Esparza, who starts work at 6 a.m., is looking at the class as a moneymaker for him.
“It feels very comfortable for me,” he said. And then, like many Californians, he reflects on his commute. “I don’t even have to catch a freeway to get here. How can it get better?”
But it can get better in California, where 30 percent of all job openings by 2025 — more than a million jobs — will require some post-high school education, according to the state’s community college system. Some on the industry side of the equation say that while colleges should have spent the past few decades building tighter bonds with local companies, those companies share the blame for vocational education’s tattered reputation.
Residents who have watched manufacturing companies relocate overseas may have not wanted to encourage their children to learn manufacturing-related skills, said Sam Geil, a Fresno, California, business consultant and adviser to the San Joaquin Valley Manufacturing Alliance.
“It doesn’t help when industry is moving out and laying people off,” Geil said. “It’s the relationship that industry has with the community. Industry could do a better job communicating.”
As with a lot of education challenges, money is also a big problem.
While a humanities class such as English costs a college just $52 per student credit, a respiratory therapy class costs $265, according to a 2013 report by the Institute for Higher Education Leadership & Policy. Equipment and trained instructors in some specialty fields can be prohibitively expensive for a college.
With state budgets in constant flux, colleges and experts say it’s essential that companies help pay for educational programs that directly benefit them. While that kind of cooperation has been rare, Chaffey College’s InTech Center is an example of how it could work.
California Steel chipped in $2 million for the education center, which it leases to Chaffey for $5 per year, said Sandra Sisco, the school’s director of economic development. Other local companies and colleges have invested, too. The center served about 1,300 students in the past year and plans to grow, she said.
The steel company agreed to work with Chaffey mostly because it was having trouble finding enough trained workers, said Rod Hoover, its human resources manager. And if California Steel’s competitors benefit from the classes on the factory campus, many of which provide skills useful in steelmaking, so be it.
“It was the right thing to do for our community,” Hoover said. “The selfish reason was because we needed craft workers and it was inconvenient to send them elsewhere.”
The InTech Center specializes in quick courses that help students like Esparza get ahead in their jobs, Sisco said.
“The reputation of the colleges being archaic and slow is still out there,” she said. As with many perceptions of vocational education, Sisco said, “That’s not necessarily true.”
Although a large percentage of InTech students are older than traditional-aged college students, Chaffey is trying to encourage younger ones to focus early on their career training.
The strategy worked with 17-year-old Derrick Roberson, who graduated in the spring from Montclair High School and is taking an industrial maintenance electrical and instrumentation InTech course as he trains to be an electrician.
Vocational courses in high school were seen as second-class, Roberson said.
“All throughout high school, they made it sound like going to college was our only option,” he said. “After you go to college, where do you go? It can open doors for you, but not as much as they make it seem.”
Career education boosters also say job-focused courses — and accompanying apprenticeships — can provide students with essential “soft skills” such as communication and conflict resolution that foster teamwork and reduce stress. And schools should consider blending traditional college courses with vocational ones, said Sean Gallagher, who recently founded Northeastern University’s Center for the Future of Higher Education and Talent Strategy.
“It’s often either vocational training or liberal arts,” Gallagher said. “But if you look at what employers want, it’s both, and I think that’s often lost in the dialogue today.”
This story was produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up here for our higher-education newsletter.
OKC-area home sales increase in 2018 By: Molly M. Fleming The Journal Record " March 4, 2019
OKLAHOMA CITY – Homes priced at less than $200,000 were in high demand in 2018, and that demand isn’t expected to slow this year.
Closed single-family home sales were up 4.1 percent compared to 2017, according to MLSOK’s year- end report, which was released Feb. 26. The median sales price increased almost 3 percent to $167,500.
MLSOK’s figures include statistics
from Edmond, Altus, El Reno, Midwest City, Moore, Yukon, Piedmont, Elk City, Oklahoma City, Weatherford, Norman, Del City, Shawnee, Mustang
and Nichols Hills.
Keller Williams Elite Broker Jennifer Arsenault said within a 40-mile radius, the metro has about two months of inventory, though there’s even more houses available in the higher price ranges.
“In the housing market, you want to see five to six months of inventory,” she said. “It’s a seller’s market when you have less than five months.”
The area that saw the biggest increase in new listings and pending sales was the 73064 ZIP code, which includes Mustang’s city limits and some of the school district. In that ZIP code, there was a 27.7 percent increase in pending home sales and a 20.6 percent increase in new listings.
Monty Strickland, managing broker of Realty Experts in Moore, said that while he works in the Moore area, he’s also seen a lot of deals in Newcastle and Blanchard.
He said he thinks there’s opportunity now for people in a lower-priced home to move into a higher-end home, which would free up the lower-priced home. Arsenault made a similar observation about the market.
“People that are holding onto their properties – now is a great time to move up,” he said. “They should definitely take advantage of that.”
The price range with the shortest market time was $150,000 and less, while the highest market time is for homes priced $450,001 and higher.
Arsenault said the higher-end price range isn’t stagnant, but moving slowly. Her firm has completed several deals in the luxury market, she said.
“We see a lot of cash deals with property going under contract,” she said. “It’s ones that are in great locations and look good. The money’s out there.”
Overall, she said 2018 stood out to her because typically in an election year, the sales slow down in September into the election, then pick back up in November and December.
That didn’t happen this year, she said. There’s a strong need for homes under $200,000, especially with such a competitive investor market.
Oklahoma State Home Builders Association Executive Vice President Mike Means said he thinks there will be about a 5 percent increase in newly built homes. Even as lumber prices have come down for the ninth month in a row, there’s a need for land.
“One of the biggest issues we have right now is there aren’t available lots,” Means said. “We have developers that are trying to get more land and get them ready to build.”
But it’s hard to find land in a good school district, Means said. There’s also a need for higher-paying jobs.
“Even the economists in Oklahoma will tell you that we’re creating a lot of jobs, but they’re not high-paying jobs,” Means said.
The OSHBA is doing what it can to reduce the costs of new homes. It has requested a bill to stop cities from regulating the aesthetical design standard. He said when a city requires brick when siding could suffice, that makes the home more expensive.
In Oklahoma, a $1,000 increase in a home’s price can keep 1,993 households from being able to afford it. In Oklahoma City, the $1,000 price uptick equates to 504 families getting priced out, according to study by the National Association of Home Builders.
Strickland said he’s optimistic about 2019. He said a lot of people were waiting out 2018 to see what would happen with interest rates, and he thinks they’ll finally make a literal move in 2019. He expects as the baby boomers continue to downsize, their homes will offer great opportunities for buyers.
February is Heart for the Hungry month at the Community Food Bank of Eastern Oklahoma and Dolese Bros. Co. announced the continuation of its partnership with the Food Bank. Dolese will match all donations made to the Food Bank through the nonprofit’s Volunteer Center up to $20,000. Once met, this match will provide the equivalent of 160,000 meals for chronically hungry children, hardworking families, veterans and seniors with inconsistent access to food.
“Dolese and its employees believe in the importance of playing an active role in the communities where we work, live and play,” Dolese Communications and Community Relations Director Kermit Frank said. “Last year, we were excited to support this landmark opportunity to help address Oklahoma’s fight against hunger in our communities. Dolese saw a natural fit with the mission of the Community Food Bank of Eastern Oklahoma and we look forward to continuing this opportunity to multiply our efforts. We challenge others to join us in the fight to end hunger in Oklahoma.”
Oklahoma is one of the hungriest states in the nation. In fact, one in six Oklahomans struggles with hunger. Thanks to volunteers and donors, the Food Bank furnishes enough food to provide the equivalent of 450,000 meals every week to Oklahomans who are hungry.
The Food Bank relies on the business community in order to achieve its goal of making sure food support is available 365 days a year for unforeseen situations, like the recent federal shutdown. In the last fiscal year businesses donated on average $79,000 a month, which can provide the equivalent of 316,000 meals.
“When unusual circumstances manifest for ordinary people, like the recent federal government shutdown, it truly emphasizes the importance of corporate partnerships,” Community Food Bank of Eastern Oklahoma Executive Director Eileen Bradshaw said. “Each and every dollar donated through the Dolese Delivers Match, enables the Food Bank to provide eight meals in creative and flexible ways for people who suddenly find themselves in need of food assistance. I want to thank Dolese and our generous volunteers for supplying a strong foundation in the fight against hunger.”
Volunteers at the Food Bank can make donations in the Volunteer Center with either credit cards or cash to the Dolese Delivers Match. The Food Bank is located at 1304 N. Kenosha Ave. just north of downtown Tulsa.
Last fiscal year, about 10,000 volunteers donated over 68,000 hours of their time at the Community Food Bank of Eastern Oklahoma. Volunteers are needed year-round to help fight hunger. Tasks include bagging and boxing food products, packing Food for Kids bags, working in the Culinary Center, and more. The Food Bank welcomes both individual and group volunteers. Shifts are available Monday through Saturday. To view available opportunities and register to volunteer, visit okfoodbank.org/volunteer.
For more information about the Dolese Delivers Match, contact Regan Leake at rleake@okfoodbank.org or 918-936-4551.
Founded in 1902, Oklahoma-City based construction materials provider Dolese operates more than 60 facilities - including 6 ready-mix concrete plants in the Tulsa vicinity, with over 1,000 employees in two states. They take great pride in supporting and improving communities around them.
Established in 1981, the Community Food Bank of Eastern Oklahoma is a member of the Feeding America network and is the largest private hunger-relief organization in eastern Oklahoma. Last fiscal year, the nonprofit distributed 28.1 million pounds of food and products through a network of more than 720 programs and partner agencies in 24 eastern Oklahoma counties. For more information about the Food Bank visitokfoodbank.org or call 918-585-2800.
Trades training is an attractive alternative to student loans for frugal Gen Zers, who seek financial success and entrepreneurial opportunities at a young age.
On top of the technology disruption and skilled labor shortages already underway, the construction industry is entering a demographic reshuffle as baby boomers continue to retire and a new crowd of young people makes its way to the industry.
Millennials have been, and continue to be, the target of training and recruitment strategies for many construction firms. While the defined age ranges for this generation vary, Pew Research carves out the years 1981 to 1996, putting millennials at ages 23 to 38 this year — well into adulthood and already on a career track, for the most part.
To better attract the next up-and-comers, a number of organizations are turning their focus to a newly defined group of young people: Generation Z. They were born between about 1995 and 2010 (ages 9 to 24), and while the research is early-stage, it looks like the financially prudent, entrepreneurial and hands-on aspects of construction will appeal more to these individuals than their millennial predecessors.
The higher ed skeptics
Student loan debt is second only to mortgage debt in the U.S., with students of the Class of 2017 graduating with an average of $39,400 in loans, according to advisory firm Student Loan Hero. But studies suggest that Gen Zers — who may have watched an older sibling struggle to afford rent or a down payment, for example — will be more hesitant to take on this financial burden and aren’t sure if the value is worth the expense.
Growing up post-9/11 and the Great Recession, this generation is in “survival mode,” according to the book “Gen Z @ Work.”While watching their Gen X parents weather the economic downturn, they’ve learned that there are clear winners and losers, and are fighting to make good financial decisions early on. National studies of 4,000 teenagers conducted for the book found that drowning in college debt is the No. 1 concern for 66% of Gen Zers, Fast Company reported, and that 75% believe there are better ways than college to get a good education.
Enter trades programs and apprenticeships.
Build Your Future, an outreach program under the umbrella of the National Center for Construction Education and Research (NCCER), is appealing to Gen Z’s financial instinct by telling young people about earn-while-you-learn job training and paths to career success — even business ownership — that don’t require a four-year degree.
‘How can I do that myself?’
Rob Kirk, BYF program manager and a former educator, told Construction Dive that Gen Zers “know how to do their research.” He encourages them to look up the demand for career tracks that require four-year degrees compared with demand for skilled tradesmen in their areas, such as through BYF’s interactive map of craft labor demand by state and track. For pragmatic Gen Zers, construction begins to look like the common-sense option, Kirk said.
This is one reason why “the pendulum is swinging back” toward interest in career and tech education (CTE), according to BYF director Jennifer Wilkerson. The middle school and high school students she works with “want to know how it works, what makes it happen and how can I do that myself,” she told Construction Dive.
And school administrators — helped by President Donald Trump’s reauthorization of CTE funding in the Carl D. Perkins Career and Technical Education Act of 2006 — are increasingly able to create programs that will both allow these hands-on experiences and provide students exposure to careers in construction, Wilkerson said.
BYF steps in to support these educators while developing interactive materials that allow students to independently explore careers in construction. The organization’s most popular initiative is its construction craft “trading cards,” which aren’t too different from baseball or even Pokemon cards, in theory, Wilkerson said.
Each card profiles a craft profession with a worker’s photo on the front, and details like the job description, average salary and required training on the back. Young people can flip through the cards, which are available both online and as hand-outs at career fairs and other events, to identify the roles that their interests are best matched to. For example, the electrician card reads: “If you’re into sound systems, robotics or tinkering with wires, you should think about a career as an electrician.”
Why Gen Z looks to experienced mentors
According to a study from research firm Barna Group, 66% of Gen Zers said they want to start a career before age 30 compared with 51% of millennials. In addition, six of the 10 top reasons that Gen Zers said they admire their role model pertain to career or financial success, the study found.
Young people who are exploring construction careers like to hear about the perks of the job and the options in front of them from experienced professionals, said Stephanie Davis, vice president and chief learning officer at the Greater Michigan Construction Academy (GMCA). For this reason, the Associated Builders and Contractors-affiliated program connects students with local contractors and mentors early on so they can understand what companies look for in an employee, what wages they can expect to earn and how they can grow in their career.
“That’s what they need to hear and it’s something that has really worked for them,” she told Construction Dive. “If you don’t share with them all of those possibilities, they’re really going to lose focus and might find it elsewhere.”
GMCA’s youngest enrollees, fresh out of high school, receive coaching during their first semester to choose a career track, hone their resume and practice for interviews. By the second semester, in some cases, they can be working with an ABC-member contractor that will pay for the remaining tuition and ideally keep the student on as an employee when they’re out the door.
The academy aims to help all of its students graduate debt-free. “We’re working with them daily to help them be successful right from the start,” Davis said.
Another way to satisfy Gen Z’s appetite for career success is to demonstrate how they can start out with tools and one day become construction business owners. “We’re trying to teach them that they can sign the front of the checks” if they start out with the right education and hands-on skills, Davis said. The entrepreneurial interest is there, according to research firm Universum, which surveyed 50,000 Gen Zers across 46 countries, finding that 55% are interested in starting their own company.
“We’re trying to teach them that they can sign the front of the checks ... all they need is that education and that hands-on skill to be able to own their own company.”
Stephanie Davis
Vice president and chief learning officer, GMCA
The industry is largely made up of small companies — more than 60% of construction workers in 2016 worked for companies with less than 50 employees, according to the Bureau of Labor Statistics. But students can ride this path to the top of larger companies, as well. For example, at Sundt Construction, which is among the top 100 contractors in the U.S., 40% of management started out with tools in hand, Wilkerson said.
Getting Gen Z in the door, ready to innovate
Members of Gen Z are the true "digital natives." As they’ve grown older, things like smartphones, tablets, social media and even virtual reality (for gaming and other uses) have been the norm. They’re thoroughly comfortable with technology, and if they’ve learned anything from their resourceful Gen X parents, could come up with new ways to use tech to solve common problems faced by the industry.
Some Gen Zers are taking time to teach themselves tools and systems specific to construction, and they’ll be seeking employers who are both using this tech and exploring further ways to innovate with it, said Stacy Scopano, vice president of innovation at Skanska USA, at a conference last fall.
A Gen Z high schooler “can just download a free [CAD] kit, 3D-print it and expect the world to operate differently,” he said. “And we’ve got to fund it.”
But even if the funding is there, companies may have to tweak their marketing to get Gen Z in the door. More than other generations, this group pays close attention to the ways businesses present themselves online and on social media.
“Generation Z seems to really care about engaging with brands that have values that align with their own,” Kyle Andrew, chief marketing brand of American Eagle Outfitters, a retailer that has seen profits rise with Gen Z interest, told Fast Company. “You can’t just make stuff: You have to stand for something.”
Companies that post on their websites and to social media about their philanthropic involvement and commitment to their employees, for example, could do well to draw young people’s attention, according to Brad Benhart, associate professor of practice at Purdue Polytechnic Institute.
“Young people are looking at that and they’re establishing an opinion of the culture of that company just from their social media presence, where older generations would establish their opinion of the culture of a construction company by going into the front door,” Benhart, who works closely with construction management students, told Construction Dive.
“I think that’s something that our industry is going to have to embrace … what kind of message are you sending out to young people?"
Historically, the construction industry has been one of the slowest to adopt new technology, lagging only behind agriculture in digitalization. But that’s changing as software entrepreneurs turn their attention to the needs of the deskless workforce.
The ubiquity of mobile devices, cheap and powerful cloud computing, 5G, and the Internet of Things (IoT) are all making it possible to put robust technology into the hands of deskless staff, including construction workers. The venture capital industry has taken notice—funding for construction technology has seen a steady uptick since 2013.
CFOs should partner with their IT teams to modernize their back-office systems, and prepare to handle a flood of data from the field as paper processes become digital. They should also figure out exactly what field data they want, what tools work best to get it, and how to integrate that data into their financial software. Deployed strategically, new tools can help construction finance teams resolve many challenges, including:
Business continuity planning
Family-owned businesses are common in the construction industry, and many thriving mid-market and even large companies are still majority-owned by founding families. Finance leaders need to create business continuity plans, whether that’s figuring out how to transfer company ownership to the next generation, establishing an ESOP (Employee Stock Option Plan), or selling or merging the company. There’s a lot of work involved in valuating the business, figuring out the best planning scenario, and helping negotiate relevant deals. Industry-specific ERPs (such as Viewpoint’s Vista) and cloud procurement platforms (such as Concur) can give finance professionals a better view into their numbers, help with planning scenarios, and standardize the purchasing process across acquired or merged companies. (Full disclosure: both companies are Nvoicepay partners).
Changing accounting standards
Revenue recognition is always top of mind in the industry. For the past several years, the Construction Financial Management Association (CFMA) has sought to ensure that the new Financial Accounting Standards Board (FASB) rules around revenue recognition are favorable—or at least not punitive—towards the construction industry. As these new rules are implemented, CFOs seek to refine their strategies for how to bill against contracts, and tie revenue to either a percentage of completion or work-in-progress schedules. Mobile technologies that expedite communication between the office and the field can also help speed the flow of information.
Risk management
Construction carries more risk, especially out on the job site, than many other industries—and insurance costs are rising. Some companies are investigating captive insurance programs, in which multiple companies pool their assets and fund their own risk by placing money under management so they don’t have to pay such exorbitant premiums.
Insurance companies have responded with more flexible products to try to help companies control their costs. CFOs need to evaluate their options—and if they want to participate in a captive insurance program, every participant needs to undergo a thorough assessment of their financial stability.
While a modern ERP system can facilitate most of that process, the assessment would also look at safety and security practices. There’s a lot of technology that can help reduce jobsite risk. Drones can monitor job sites for safety and security. Sensor-equipped wearables can alert workers to smoke or toxic chemical exposure, and geo-fencing can provide alerts when they’re entering a hazard zone. Firms can also use autonomous equipment to do work in environments that are too hazardous for human workers.
In the office, payment automation software such as Nvoicepay can mitigate payment fraud as part of an overall risk-management program.
Attracting and retaining talent
Lots of companies face growth opportunities while lacking enough employees to do the work. With unemployment at new lows, it’s been difficult to hire and keep good employees.
CFOs are working with HR—and, occasionally, external strategists—to refine their hiring, retention, and benefit strategies. Mobile training technology can help onboard unskilled workers faster, allowing companies to draw from a larger talent pool. Virtual reality technologies also offer promise for quicker training.
Improving job-cost accounting
Tablets and handheld phones let field staff capture data and send it back to their offices electronically. GPS-enabled time cards can record employee work hours and location on a mobile phone. IoT devices can measure equipment run time.
Cash management strategies
Cash management is probably the biggest challenge at any construction company, and effective work-in-progress (WIP) schedule management is critical. Key to the challenge is coordinating between the subcontractor confirming that a job is complete, project managers verifying that completion, and the accounting department billing the owner and syncing everything with the WIP schedule. This is also an area where drones and mobile apps can increase the speed and accuracy of data delivery to finance.
Finance also needs visibility, flexibility, and precision control over making and timing payments. With cloud-based payment-automation software, a project manager sitting in a truck can review a payment file, prioritize subcontractor payment schedules, and approve payments immediately, without having to return to the office to sign a stack of checks and backup documentation. Subs get paid faster and the job keeps moving.
With all the new purpose-built technology coming down the pipe, we’ll finally start to see some real movement towards digitizing the construction industry. Finance teams should prepare by enabling themselves with modern cloud systems for accounting, spend management, and payments. They need to enable the field with tools that communicate data back to the office in near real-time. Most importantly, they need to work out how to coordinate it all towards productivity gains and growth, and join the ranks of data-driven CFOs who have done the same in other industries.
Jason Krankota is VP of Construction Sales, West Region at Nvoicepay. His expertise in construction business technology spans 20 years, with 10+ years focused on corporate payments, accounts payable, and expense management solutions.
The housing market is projected to heat up in 2019, and new data from Realtor.com indicates this push will predominantly be driven by Millennial women.
According to the company’s latest study, 50% of the top 20, and seven of the top 10, fastest growing buyer first names belong to Millennial women.
“Although older Baby Boomer and Silent Generation women are leading the charge, the increase in deeds with female names is particularly visible when comparing genders within the Millennial generation,” Realtor.com writes.
The report states that when looking solely at names with a peak birth year between 1981 and 1997, Millennial female names outpace their male counterparts in home sales by 1.5%.
"First names associated with women -- especially Millennial women -- saw a significantly faster level of home sales growth in 2018, giving us a sneak peek of homeownership trends in 2019," Realtor.com Director of Economics Research Javier Vivas said.
Interestingly, Realtor.com’s data also points to another trend – a rise in Hispanic homeownership.
According to the company’s data, home sales associated with traditionally Hispanic names and partially Hispanic names increased by 4.1% and 3.7%, respectively, year-over-year.
That’s a significant increase, considering non-Hispanic names remained virtually stagnant at a rate of 0.1% from the previous year.
"Hispanics and Millennials names overall also saw a surge in home purchases last year,” Vivas said. “If these buyers can continue to break through the affordability barrier, they are likely to make up a larger share of owners than ever before and dominate the market for years to come."
NOTE: Realtor.com’s report analyzed residential non-corporate transactions, ranging from January through September 2018. Notably, the company compared name demographic data from the Social Security Administration and deed record buyer information to gauge young buyer influence in the housing market.
NAHB Chairman Randy Noel recently shared the following message with members:
As we say goodbye to 2018, let's celebrate NAHB's many achievements in the past year. We can't list them all, but these are some of the most important.
HBA and member efforts to grow NAHB paid off with the addition of 2,000 new members nationwide, the best net improvement in more than a decade. What a great achievement! Thanks to all for the hard work and good will.
As if home building wasn’t already challenging, builders have been struggling with a labor shortage for several years. A much-appreciated $50 million grant from the Home Depot Foundation to HBI will enable it to train 20,000 new skilled workers over the next 10 years, truly something to celebrate.
Part of building a home is making sure it meets all applicable building codes. NAHB works hard to ensure those codes are reasonable and fair. In 2018, we asked members to explain the builder perspective to their local codes officials in a new campaign called “One and Done.” Those efforts had a big impact.
Portal goes online. Nope, not a gateway to another galaxy. NAHB’s new housing portal is a website that delivers a wide range of housing and polling data specific to congressional districts and major metropolitan areas. Produced in cooperation with Morning Consult, this tool enables builders demonstrate the importance of the housing industry to policy makers.
Yes, we worked closely with the Trump administration to push for much-needed regulatory reforms. We saw tangible progress on many issues, including labor rules, environmental regulations, housing finance requirements and other federal policies that affect home building.
Negotiate Now! was just one of the messages we sent to the administration regarding lumber prices. Even though there have been no negotiations with Canada to date, our multidimensional efforts have been effective. Lumber prices are down more than 40% from the peak in June. Bravo.
Effective (actually superb) advocacy is one of NAHB’s many strengths. Washington’s influential insider magazine, The Hill, acknowledged that prowess by naming CEO Jerry Howard to its annual list of DC’s top lobbyists.
WOTUS: Permanently replacing the Obama administration’s overreaching definition of Waters of the U.S. (WOTUS) is well on its way to becoming a reality thanks to NAHB’s relentless regulatory reform effort. This is a big win for builders.
You’re right, said the U.S. Supreme Court (unanimously!) in response to a member challenge supported by NAHB. There’s no need to set aside habitat for a frog that isn’t there. What will the bureaucrats do next, look for the Yeti?
Eighty-five percent of the 245 House and Senate candidates NAHB endorsed in the midterm election won their races thanks to NAHB’s efforts to ensure that housing’s voice is heard in Congress. Endorsements were based on HBA input. In an unusual election year, this was a big win.
Advantage is the name of the game with NAHB’s Member Advantage affinity programs. We added several in 2018: Nissan/Infiniti, Amazon Business, Capital One card and Kabbage small business loans. Member savings – what a concept.
Reform of the nation’s tax code in 2017 provided real benefits for members. NAHB worked with the IRS in 2018 to ensure that subsequent regulations support builders, consumers and small businesses. Case in point: At NAHB’s request, the IRS looked at HELOCS and determined they are deductible for home improvements.
“The select few on the list have demonstrated their ability to wield influence and deliver results on Capitol Hill and in the administration on behalf of clients and groups seeking a voice in Washington,” The Hill said in a Dec. 13 story citing the top lobbyists of 2018.
The prominent Capitol Hill publication listed NAHB CEO Jerry Howard among this elite group of Washington power players.
Although The Hill highlighted one person from each organization it listed, Howard was quick to point out that his inclusion represents the good work of all involved in the federation.
“While I am flattered to receive this recognition, the fact that NAHB is recognized as one of the most powerful trade groups is a testament to the shared efforts of our members; the NAHB staff, most notably Chief Lobbyist Jim Tobin and his government affairs team; EOs; councils and all those who work on behalf of the association to keep housing at the forefront of the national agenda,” Howard said.
NAHB’s government affairs staff works closely with Capitol Hill staffers to set up meetings between NAHB member volunteers, including the Senior Officers, and their elected representatives in Congress. They also help facilitate thousands of visits to congressional offices to advance NAHB’s position on key legislation.
NAHB leverages the association’s power to shine a light on key issues, get pro-housing bills introduced and passed, challenge regulations that do more harm than good, and level the playing field against powerful interests that could put struggling builders, remodelers and their suppliers out of business.
The most recent example of NAHB’s clout occurred earlier this week when Howard, along with a select few members of Congress, was invited to give remarks at EPA headquarters regarding the new waters of the U.S. proposal announced by Acting EPA Administrator Andrew Wheeler.
“By fighting every day for the housing industry on major issues that affect our members’ bottom line, NAHB is working tirelessly to create a better business environment for all those involved in the residential construction industry,” Howard said.
What You Need to Know Before Signing Up for Medical Coverage
A Publication of Trust Company of Oklahoma
Buckle up! Turning 65 means signing up for Medicare. You are not alone: over 10 thousand Baby Boomers turn 65 each day for the next 20 years, with almost 50 million Americans currently covered by Medicare, according to the Social Security Administration. Even though Medicare touches so many citizens, most are confused about the enrollment process due to a shortage of clear information about this program. As a result, many don’t have the knowledge they need to enroll without incurring penalties or to prepare for the costs Medicare does not cover. To learn more about the ins and outs of Medicare, begin with the road map below.
December is usually the slowest month for the housing market, but this season is not so normal. Some unique dynamics may make this December one of the better times to both buy and sell a home.
First and foremost, mortgage rates are turning what was a red-hot market into a lukewarm market, and that is motivating buyers more than usual. That’s because home prices ran up so far so fast during the recent historic housing shortage, that higher rates are having an outsized impact.
Real estate agent Lynn Fairfield of Re/Max Suburban held an open house Sunday in suburban Chicago, and rates were front and center in the living room conversations.
“I see more people buying right now because they’re afraid rates will be higher in 2019,” said Fairfield.
The average rate on the 30-year fixed spiked this past fall, after flatlining over the summer. Rates are now about a full percentage point higher than they were a year ago, hovering now just below 5 percent. They are expected to move higher in 2019, however.
Combine that with strong home price appreciation over the past two years, and some buyers, especially first-timers, have now hit an affordability wall. That is why sales of both new and existing homes have been weaker for several months, but that also presents an opportunity for buyers. Prices are finally starting to ease — or, at least, the gains are shrinking.
Prices are usually lower in the winter months, in fact 18 percent lower on average than at the peak of the market in June, according to Re/Max. So add higher rates to that, and sellers will have to be more flexible this year. The sky is no longer the limit. Not even close.
“The housing market always lets up a little in the fall, when kids are back in school and the home shopping season wraps up for the holidays,” said Aaron Terrazas, senior economist at Zillow. “But this fall and winter are shaping up to be more favorable for those buyers who have struggled to get into the housing market for several years amid red-hot competition.”
Zillow is seeing a sharp increase in the share of properties with price cuts, even in overheated markets like Seattle, Las Vegas and Boston.
Of course the number of new listings are the lowest in December, as a new home is not traditionally a holiday gift, and anyone with children doesn’t want to move during the school year.
“Though the holiday season is not going to give you plenty of options to choose from, there are reasons why you should NOT put your home search on hold for the holidays,” said Danielle Hale, chief economist at Realtor.com. “Chief among them, December is the best time of year if you want to avoid competitions.”
Views per property are 21 percent lower in December than they are during the rest of the year, according to Realtor.com.
While supply and competition may both be at their low point, motivation is at its high point, for both buyers and sellers.
“That buyer has to move. Either they have a lease expiring Jan. 1, or they have saved enough money for their down payment, so they are motivated to buy,” said Fairfield. “A lot of people are more motivated price-wise from the selling standpoint too, because they too want to get to their next location.”
Homes do stay on the market longer in December, on average five days longer than the rest of the year, so sellers have to be patient. And buyers have to be flexible. If the seller hasn’t already vacated the property, they may not want a lot of buyers traipsing through their holiday decorations or coming around when family and friends are visiting.
According to the survey respondents, the most widespread effects of the labor shortages were:
Causing builders to pay higher wages and/or subcontractor bids (reported by 84% of builders);
Forcing them to raise home prices (83%); and
Making it difficult to complete projects on time (73%).
As NAHB Senior Economist Paul Emrath reported in this Eye on Housing blog post, these have consistently ranked as the most commonly reported effects of the labor and subcontractor shortages since NAHB began asking builders about them in 2015.
However, all three concerns have become even more acute recently.
The steepest upward trend has been in the share of builders saying the labor/subcontractor shortages are causing higher home prices. This figure jumped by 22% between 2015 and 2018, and is nearly tied with higher wages/subcontractor bids as the most widespread effect of the labor shortages.
The survey also revealed that labor and subcontractor costs have risen much higher than the rate of inflation over the past year. From July 2017 to July 2018, for example, overall inflation was up 2.9%, but labor costs increased by 5.2% and subcontractor costs jumped by 7.2% over the same period.
This is particularly significant, given that three-fourths of construction costs typically represent the work performed by subcontractors. It is also consistent with the NAHB survey results showing that the incidence of shortages was higher for subcontractors than for labor directly employed builders in 14 of 15 occupations.
The new trade deal between the U.S., Canada and Mexico that will replace the North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement, or USMCA, has the potential to yield positive developments regarding the ongoing U.S.-Canada lumber trade dispute.
All three nations must still ratify the new agreement.
While the accord does not specifically address the lumber trade conflict, it does leave in place the dispute resolution mechanism from NAFTA’s Chapter 19. Now moved to Chapter 31, it allows a panel with representatives from each country that is party to a dispute to challenge tariffs that may be imposed.
Under NAFTA, the Chapter 19 mechanism has been successfully used by Canada in the past to challenge the U.S. on its softwood lumber trade restrictions.
With the negotiations on the USMCA accord now completed by the three nations, this leaves open the possibility that the U.S. and Canada can now focus on resolving bilateral trade issues regarding softwood lumber.
Jim Campbell, of Jim Campbell Homes, left, and Mike Means, executive vice president of the Oklahoma State Home Builders Association, stand outside a Campbell home at 6501 NW 113 and talk about the association's Certified Professional Builder program, which recently received national industry attention. [PHOTO BY DOUG HOKE, THE OKLAHOMAN]
-The new house still had a way to go: Opening the front door released roiling clouds of wood stain fumes that spilled out to a lawn mired in a mix of mud and mayhem — weeds everywhere.
But a sign staked in front offered assurance to neighbors and passers-by: "Certified Professional Builder-OSHBA," a seal of the Oklahoma State Home Builders Association.
“This house burned down right after Christmas last year, and this guy had to find a builder,” builder Jim Campbell said. "The first thing he started looking for is, ‘How do I know this is someone I can trust?' ”
The seal certifies that Jim Campbell Homes participates in the state builders group's Certified Professional Builder program, which recently attracted national industry attention.
In place since 2003, the voluntary program requires participating builders to go through continuing education, build to code at minimum, work with written contracts, offer a one-year warranty on their work, meet credit standards as set by their local associations, and carry a minimum premium insurance policy of workers' compensation and a minimum $1 million in general liability coverage.
“This is something they (consumers) can go back to, if they have a problem," Campbell said. "What I point out is we don't license (builders) in Oklahoma, so this is as close as you're going to get.”
The Executive Officers Council of the National Association of Home Builders recently recognized the Certified Builder program with an Award of Excellence in Service. The council consists of the staff executives of 700-plus state and local builders groups making up the national association.
“Winning an Association Excellence Award is a great honor," said Eric Person, president of the Executive Officers Council and CEO of the Home Builders and Remodelers Association of Central Connecticut. "Each award recognizes the outstanding effort, commitment and achievement our homebuilding associations and their membership make to further the value and importance of their organization.”
The Certified Professional Builder program does that by highlighting what the state group already offers, said Mike Means, executive vice president of the Oklahoma State Home Builders Association.
"It's a program that recognizes our best of the best builders,” Means said. “What we do, by promoting the Certified Professional Builder program, is helping the builders.”
Campbell said the designation sends a clear message to the market.
“I think with this program, it brings builders out who are already doing the quality work,” he said. “So a lot of it's more about how I'm working with the public.
"What can I offer you to get the quality house built? One that has a warranty that comes with it? A builder that's going to be around in the long run? So if you need to you can call me and I'll take care of it. “
The state association also has an obligation to the builders who pursue certified designation, since it's voluntary, Campbell said.
“Our responsibility is to help promote the certified builders,” he said. “So if you go to the (OSHBA) website, the only builders you're going to see listed there are our Certified Professional Builders."
The association also arranges opportunities for builders to get the required annual continuing education.
One way is by staging events such as the annual Oklahoma Building Summit & Expo held earlier this month at Cox Convention Center, where expects expounded on topics such as cloud technology and advances in home automation.
Thanks to the exposure the Certified Builder program got with the national recognition, Means said Washington state builders are considering a similar program.
"That's what you do. When you put in for a program, you're putting yourself out there, and you know somebody's going to pick up on it.”
For Campbell, the motivation for seeking the certified designation stretches back to May 3, 1999, when a massive, slow-moving tornado churned its way through central Oklahoma, leaving death and destruction in Bridge Creek, Del City, Midwest City, Moore and parts of Oklahoma City.
“What struck me — that was the first time I was involved in a disaster — was the people who came out of the woodwork who were promoting themselves as builders,” Campbell said. “And, especially over in Del City where I was building, there were a lot of people who got halfway through builds, and then those guys would disappear."
Being a Certified Builder, he said, "gives us the background to say 'Hey, I'll be here.' I've been building since 1989. So I kind of push that fact.”
The Oklahoma State Home Builders Association (OSHBA) recently received an Award of Excellence in the following category from the Executive Officers Council (EOC) of the National Association of Home Builders: Best Service Provided by State Association or Local Association. Awards were presented during the annual National Association of Home Builders’ 2018 Association Management Conference held in Long Beach, Calif.
The council's membership consists of the staff executives who manage the more than 700 state and local home builders associations that comprise the National Association of Home Builders.
"Winning an Association Excellence Award is a great honor," said Eric Person, president of the Executive Officers Council and CEO of the Home Builders & Remodelers Association of Central Connecticut. "Each award recognizes the outstanding effort, commitment, and achievement our home building associations and their membership make to further the value and importance of their organization.”
The winning entries will be available in the AEA Awards Directory to help other executives and associations across the country provide better service to members and their community.
The Oklahoma State Home Builders Association represents home builders and associates in the housing industry throughout the state area.
“I am proud to be recognized by the NAHB Executive Officers Council with the Association Excellence Award for Best Service Provided by a State or Local Association.” Said Mike Means, Executive Officer of OSHBA. “They recognized our efforts on behalf of our locals and to be recognized by our peers is an honor.”
left to right - Dan Reeves, Governor Mary Fallin, David Blackburn (President of OSHBA) and Mike Means, EVP.
Members of the OSHBA joined other industry members of the Western Governors Association to have lunch with Mary Fallin, Governor of Oklahoma. Members of OSHBA shared with Governor Fallin the effects of the lumber tariff and urged her to communicate to her colleagues and President Trump to work to resolve the issue.
The Occupational Safety and Health Administration on Monday released a set of 53 frequently asked questions – and their answers – to provide guidance to employers and employees on its respirable crystalline silica standard for construction.
Through the Construction Industry Safety Coalition, NAHB was an important contributor to the formulation of this FAQ. The development stemmed from litigation filed against OSHA by numerous construction industry trade associations challenging the legality of the new silica rule.
NAHB will continue to look for ways to work with OSHA to improve the workability of this significant rule.
The FAQ is extensive and organized by topic. A short introductory paragraph is included for each group of questions; the answers appear in an expanded box when each question is clicked.
Importantly, the FAQ clarifies that many common construction tasks are likely to be outside the scope of the standard. This includes mixing small amounts of mortar; mixing small amounts of concrete; mixing bagged, silica-free drywall compound; mixing bagged exterior insulation finishing system base and finish coat; and removing concrete formwork.
In addition, tasks in which employees are working with silica products that are handled while wet are likely to generate exposures outside of the scope of the standard, including finishing and hand wiping block walls to remove excess wet mortar, pouring concrete, and grouting floor and wall tiles. The FAQ also states that many silica-generating tasks performed for 15 minutes or less a day will fall outside the scope of the standard.
Other clarifications in the FAQ highlighted by NAHB staff include:
Table 1. The requirement that employers “[o]perate and maintain” tools “in accordance with manufacturer’s instructions to minimize dust emissions,” applies only to manufacturer instructions that are related to dust control. Other information in these instructions, including recommended respiratory protection, do not have to be followed for purposes of the standard.
OSHA also has agreed to issue a Request for Information on Table 1 to revise the table to improve its utility.
Written Exposure Control Plan. The standard does not require employers to develop a newwritten plan for each job or worksite. It requires only that employers have a written exposure control plan applicable to each worksite. Employers may develop a single, comprehensive, written exposure-control plan that covers all required aspects of the plan for all work activities at all worksites.
Also, the standard does not preclude employees from entering work areas where silica-generating tasks are occurring when it is necessary for them to do so. Rather, the rule calls only for minimizing the number of employees in the relevant work areas.
As the official NAHB membership sponsor, Signature Kitchen Suite is offering an all-inclusive trip to Napa Valley to each of the top six Builder members who sign up the most new* members during the fall membership drive.
The competition runs from Sept. 1 to Oct. 31, 2018. Builder members will compete against others from HBAs similar in size (see size categories below). The top two members from each category will be invited to attend and bring a guest. HBA categories are:
Small: 0 – 249 members
Medium: 250 – 499 members
Large: 500+ members
The prize includes:
3-day, 3-night trip from Wednesday to Saturday
Airfare, meals, hotel and transportation
Exclusive Signature Kitchen Suite Experience featuring sous vide cooking demos and learning more about the True to Food™ philosophy and Technicurean™ customer
Great food, fine wine and fun activities (wine tour or golf)
Dan Reeves of Landmark Fine Homes in Norman built this “voice-controlled” concept home at 741 Villaverde Drive in Norman. [PHOTO BY STEVE SISNEY, THE OKLAHOMAN]
Park space is shown in the Seiter Farms addition in Moore.
[PHOTO BY JIM BECKEL, THE OKLAHOMAN]
New homes are shown along SE 38 in Seiter Farms addition, west of S Sunnylane Road between SE 34 and Indian Hills Road in Moore. [PHOTO BY JIM BECKEL, THE OKLAHOMAN]
Metro-area homebuilders surpassed last year’s pace at midyear, but fear some speed bumps ahead because of skyrocketing lumber and labor costs.
Builders started 2,473 houses by the end of June, 2.3 percent more than in the first half of 2017, according to The Builder Report by Dharma Inc. in Norman.
Dharma tracks building permits in Oklahoma City, unincorporated Oklahoma County, Bethany, Blanchard, Choctaw, Edmond, Midwest City, Moore, Mustang, Newcastle, Noble, Norman, Shawnee and Yukon.
Lumber and labor
“Builders biggest concern is the out-of-control material costs,” said Tony Foust, owner of Da Vinci Homes in Norman and president of Central Oklahoma Home Builders Association. “We have seen in some cases a 40 percent increase from January to June, and it shows no signs of stopping.
“It has stemmed from the lumber tariffs with Canada and our government not allowing us to harvest our own resources. The other concern is the increased labor cost due to the shortage of labor and skilled labor.
“These are the two items at the top of the residential builders’ concern. These two factors are driving up the cost and extending time of construction.”
Buyer interest has been strong so far this year and could spike further to get ahead of possible steeper increases in house prices, said Ali Farzaneh, co-owner of Home Creations in Moore.
“Business has proved to be great in 2018,” he said. “We did not expect the tariffs to drive the housing prices up so much, but even with the increase in the price of homes and the increase in interest rates, we are 10 percent ahead of where we were last year this time.”
Farzaneh said Home Creations has more than 200 custom homes under contract with deliveries as far out as early 2019. With prices fixed, he said the increase in tariffs and material costs could drive construction costs higher than sales prices, which would have them selling at a loss.
Buyers are paying attention to finance and international trade, he said.
“Buyers are starting to understand the impact tariffs and a rising interest rate have on the price of homes, and as a result, their mortgage payments. Most buyers are trying to purchase their new home before the next wave of price increases,” Farzaneh said.
Rising rates, costs
Oklahoma City’s Homes by Taber is having its best year ever, and is on pace to surpass its 2018 goal of 340 sales, said Lindsay Haltom, director of marketing.
“We are consistently reminding shoppers that interest rates and construction costs are on the rise,” Haltom said. “What does that mean for them? It means that what they are able to afford now, will not be the same home they can afford later. Our construction costs have increased by the thousands and luckily, we have been able to sustain our price points with minimal increases.
“No matter your political stance, the facts are that (President) Trump’s tariffs have increased costs that are being funneled down to consumers. We are doing our absolute best to absorb these increased costs ourselves whenever possible, but that cannot go on forever. If you are in construction, you’re feeling those added costs of lumber and steel.”
Interest rates won’t stay low forever, either, she said.
“If it’s not on their mind already, we want to make sure we are educating them about this key issue. While a small shift in interest rates can seem nominal, when someone is shopping based on monthly payments, this can greatly influence their ability to purchase,” Haltom said.
Ideal Homes of Norman was two months ahead of 2018 projected sales at midyear, and expects buyer enthusiasm to stay strong throughout 2018, said Steve Shoemaker, vice president of sales and marketing.
Buyers are “informed about their buying power,” he said. “There are so many tools online for buyers to learn about how interest rates will impact their mortgage payment.
“Interest rates are still low, but people know they’re likely headed up and buyers are acting accordingly. We spend a lot of time talking to potential buyers about the total cost of ownership — not just their mortgage payment, but heating and cooling costs and other things that impact their monthly budget.”
The headline may seem a bit ironic, if you are thinking about the passage of SQ 788, the medical marijuana bill. But it actually refers to the number of pro-business candidates that we supported who won or are in the primary.
The biggest disappointment was Lt. Governor Todd Lamb not making the runoff for Governor. Our history with Lamb when he was a state senator was our biggest reason for supporting him. His pro-business reputation and his authorship of one of our most important pieces of legislation deserved our support. But our disappointment is balanced by the fact that both Mick Cornett and Kevin Stitt appear to be two pro-business candidates.
I recently read a story in Oklahoma Watch that said, “The biggest prize will be the 23.9 percent of GOP primary voters who cast ballots for Lt. Gov. Todd Lamb, the one-time favorite in the race who was eliminated after he came a few thousand votes shy of cracking the top two. A June 6-7 poll by Right Strategy Group found that more than half of Lamb supporters identified themselves as “very conservative”. This could favor Stitt because about 47 percent of his supporters said they were “very conservative” while just 30 percent of Cornett’s backers identified similarly. August 28 will give us the answer.
We backed Matt Pinnell for Lt. Governor and he advanced to the runoff where he will face Corporation Commissioner Dana Murphy.
We backed Mike Hunter for Attorney General and he advanced to the runoff where he will face Gentner Drummond. This was a very bitter primary and many wonder if it will be just as bitter during the runoff election.
We backed all the incumbents for Congress and they all won their primaries without a hitch. In the open seat for the 1st Congressional District we backed businessman Kevin Hern who advanced to the runoff.
In the vast majority of House and Senate races for the Oklahoma Legislature, we fared very well. We were involved in 5 Senate races and won 4. We were involved in 14 House races in which those we supported won 10, made the runoff in 2 and lost 2.
So once again, thank you to those who helped by voting and especially to those who supported our PAC. And remember, if you donate to Build-PAC by July 15, you are also helping our state PAC in time to make an impact in the general election. Send me an email and I will give you the details on how to help your industry.
Garret Morgan (center) is training as an ironworker near Seattle and already has a job that pays him $50,000 a year.
Sy Bean/The Hechinger Report
Like most other American high school students, Garret Morgan had it drummed into him constantly: Go to college. Get a bachelor's degree.
"All through my life it was, 'if you don't go to college you're going to end up on the streets,' " Morgan said. "Everybody's so gung-ho about going to college."
So he tried it for a while. Then he quit and started training as an ironworker, which is what he is doing on a weekday morning in a nondescript high-ceilinged building with a concrete floor in an industrial park near the Seattle-Tacoma International Airport.
Are you heading to a program to prepare for a job? Are you going for an associates degree in your field? Maybe you're foregoing a degree entirely.
We want to hear about your choice (or your students' choices).
Morgan and several other men and women are dressed in work boots, hard hats and Carhartt's, clipped to safety harnesses with heavy wrenches hanging from their belts. They're being timed as they wrestle 600-pound I-beams into place.
Seattle is a forest of construction cranes, and employers are clamoring for skilled ironworkers. Morgan, who is 20, is already working on a job site when he isn't at the Pacific Northwest Ironworkers shop. He gets benefits, including a pension, from employers at the job sites where he is training. And he is earning $28.36 an hour, or more than $50,000 a year, which is almost certain to steadily increase.
As for his friends from high school, "they're still in college," he said with a wry grin. "Someday maybe they'll make as much as me."
Raising alarms
While a shortage of workers is pushing wages higher in the skilled trades, the financial return from a bachelor's degree is softening, even as the price — and the average debt into which it plunges students — keeps going up.
But high school graduates have been so effectively encouraged to get a bachelor's that high-paid jobs requiring shorter and less expensive training are going unfilled. This affects those students and also poses a real threat to the economy.
"Parents want success for their kids," said Mike Clifton, who teaches machining at the Lake Washington Institute of Technology, about 20 miles from Seattle. "They get stuck on [four-year bachelor's degrees], and they're not seeing the shortage there is in tradespeople until they hire a plumber and have to write a check."
Ironworkers practice tying rebar at the Iron Workers Local Union #86 Administrative Offices in Tukwila, Wash.
Sy Bean/The Hechinger Report
In a new report, the Washington State Auditor found that good jobs in the skilled trades are going begging because students are being almost universally steered to bachelor's degrees.
Among other things, the Washington auditor recommended that career guidance — including choices that require less than four years in college — start as early as the seventh grade.
"There is an emphasis on the four-year university track" in high schools, said Chris Cortines, who co-authored the report. Yet, nationwide, three out of 10 high school grads who go to four-year public universities haven't earned degrees within six years, according to the National Student Clearinghouse. At four-year private colleges, that number is more than 1 in 5.
"Being more aware of other types of options may be exactly what they need," Cortines said. In spite of a perception "that college is the sole path for everybody," he said, "when you look at the types of wages that apprenticeships and other career areas pay and the fact that you do not pay four years of tuition and you're paid while you learn, these other paths really need some additional consideration."
There are already more trade jobs like carpentry, electrical, plumbing, sheet-metal work and pipe-fitting than Washingtonians to fill them, the state auditor reports. Many pay more than the state's average annual wage of $54,000.
Construction, along with health care and personal care, will account for one-third of all new jobs through 2022, according to the Bureau of Labor Statistics. There will also be a need for new plumbers and new electricians. And, as politicians debate a massive overhaul of the nation's roads, bridges and airports, the U.S. Department of Education reports that there will be 68 percent more job openings in infrastructure-related fields in the next five years than there are people training to fill them.
"The economy is definitely pushing this issue to the forefront," said Amy Morrison Goings, president of the Lake Washington Institute of Technology, which educates students in these fields. "There isn't a day that goes by that a business doesn't contact the college and ask the faculty who's ready to go to work."
Yet the march to bachelor's degrees continues. And while people who get them are more likely to be employed and make more money than those who don't, that premium appears to be softening; their median earnings were lower in 2015, when adjusted for inflation, than in 2010.
"There's that perception of the bachelor's degree being the American dream, the best bang for your buck," said Kate Blosveren Kreamer, deputy executive director of Advance CTE, an association of state officials who work in career and technical education. "The challenge is that in many cases it's become the fallback. People are going to college without a plan, without a career in mind, because the mindset in high school is just, 'Go to college.' "
Matthew Dickinson, 21, asks a classmate for help as they rebuild an automatic transmission in an auto repair technician program classes at the Lake Washington Institute of Technology.
Sy Bean/The Hechinger Report
It's not that finding a job in the trades, or even manufacturing, means needing no education after high school. Most regulators and employers require certificates, certifications or associate degrees. But those cost less and take less time than earning a bachelor's degree. Tuition and fees for in-state students to attend a community or technical college in Washington State, for example, come to less than half the cost of a four-year public university, the state auditor points out, and less than a tenth of the price of attending a private four-year college.
People with career and technical educations are also more likely to be employed than their counterparts with academic credentials, the U.S. Department of Education reports, and significantly more likely to be working in their fields of study.
Young people don't seem to be getting that message. The proportion of high school students who earned three or more credits in occupational education — typically an indication that they're interested in careers in the skilled trades — has fallen from 1 in 4 in 1990 to 1 in 5 now, according to the U.S. Department of Education.
Washington is not the only state devoting attention to this. California is spending $200 million to improve the delivery of career and technical education. Iowa community colleges and businesses are collaborating to increase the number of "work-related learning opportunities," including apprenticeships, job shadowing and internships. Tennessee has made its technical colleges free.
At the federal level, there is bipartisan support for making Pell grants available for short-term job-training courses and not just university tuition. The Trump administration supports the idea.
For all the promises to improve vocational education, however, a principal federal source of money for it, called Tech-Prep, hasn't been funded since 2011. A quarter of states last year reduced their own funding for postsecondary career and technical education, according to the National Association of State Directors of Career Technical Education.
The branding issue
Money isn't the only issue, advocates for career and technical education say. An even bigger challenge is convincing parents that it leads to good jobs.
Darren Redford, 20, looks to his instructor after completing a connector mockup drill at the Iron Workers Local Union #86 Administrative Offices in Tukwila, Wash.
Sy Bean/The Hechinger Report
"They remember 'voc-ed' from when they were in high school, which is not necessarily what they aspire to for their own kids," Kreamer said.
The parents "are definitely harder to convince because there is that stigma of the six-pack-totin' ironworker," said Greg Christiansen, who runs the ironworkers training program. Added Kairie Pierce, apprenticeship and college director for the Washington State Labor Council of the AFL-CIO: "It sort of has this connotation of being a dirty job. 'It's hard work — I want something better for my son or daughter.' "
Of the $200 million that California is spending on vocational education, $6 million is going into a campaign to improve the way people regard it. The Lake Washington Institute of Technology changed its name from Lake Washington Technical College, said Goings, its president, to avoid being stereotyped as a vocational school.
These perceptions fuel the worry that, if students are urged as early as the seventh grade to consider the trades, then low-income, first-generation and ethnic and racial minority high school students will be channeled into blue-collar jobs while wealthier and white classmates are pushed by their parents to get bachelor's degrees.
"When CTE was vocational education, part of the reason we had a real disinvestment from the system was because we were tracking low-income and minority kids into these pathways," Kreamer said. "There is this tension between, do you want to focus on the people who would get the most benefit from these programs, and — is that tracking?"
Amy Morrison Goings, president of the Lake Washington Institute of Technology, says, "There isn't a day that goes by that a business doesn't contact the college and ask the faculty who's ready to go to work."
Sy Bean/The Hechinger Report
In a quest for prestige and rankings, and to bolster real-estate values, high schools also like to emphasize the number of their graduates who go on to four-year colleges and universities.
Jessica Bruce followed that path, enrolling in community college after high school for one main reason: because she was recruited to play fast-pitch softball. "I was still trying to figure out what I wanted to do with my life," she said.
Now, she's an apprentice ironworker, making $32.42 an hour, or more than $60,000 a year, while continuing her training. At 5-foot-2, "I can run with the big boys," she said, laughing.
As for whether anyone looks down on her for not having a bachelor's degree, Bruce doesn't particularly care.
"The misconception," she said, "is that we don't make as much money."
And then she laughed again.
Taylor Fawcett, 23, moves a column during a connector mockup drill at the Iron Workers Local Union #86 Administrative Offices in Tukwila, Wash.
Ken Saltink is the NAHB Remodeler of the Month for May.
Long before he chose a career path, Ken Saltink, CGR, CAPS, owner of All American Remodel in Tulsa, Okla, started woodworking as merely a hobby to save some money on furniture. “I saw an entertainment center for sale and I thought to myself, I could build that,” Saltink recalls.
So he purchased an old Craftsman table saw and got to work. He also began building other small items, and before he knew it, he was hooked.
That hobby developed into a true passion for building, which propelled him into what has become a successful remodeling career — for which, Saltink has earned the honor of becoming May’s NAHB Remodeler of the Month.
Saltink says keeping his company small has yielded positive results over the years. It’s given him the ability to keep his expenses low, and it’s allowed him the freedom to choose which jobs he wants to take — ensuring both the project and client are a good fit.
And being on the jobsite as much as possible throughout the project enables him to respond promptly to any questions the home owners might have. That strategy has helped reinforce quality customer service and create a continual stream of word-of-mouth referrals.
He also says being a part of the HBA of Greater Tulsa Remodelers Council has helped his business grow, too. However, he admits that before joining the council more than 30 years ago, he was skeptical about the value of membership.
“I reluctantly joined the HBA after several years of getting hounded by some of my business associates. My excuse was that I did not need any more work,” Saltink said. “[But] after joining, I came to realize … how invaluable it is to network with like-minded remodelers. I no longer look at them as competitors but as comrades thrown into the same boat as myself. When any of us have a problem, we openly share our experiences on how to deal with situations.”
Read the full Q&A in Qualified Remodeler magazine for more details on how Saltink keeps his company size small to pick the jobs he wants.
Know a professional remodeler who takes remodeling to the next level? Nominate him or her for NAHB Remodeler of the Month.
Can two statements that contradict each other both be true?
When it comes to Millennials, evidently paradox may be the rule, not the exception.
For instance, age is just a number.
And, demographics is destiny.
So, if age is just a number, which would help explain how 35 might in fact be the new 25, then how can the other statement--that demographics is destiny--also be valid? Age, after all, is a building block of demographics, the science of people patterns.
Remember, demographics technically refers to people and household patterns, and demographically-defined generational cohorts have to do with birth-rate cycles, which tend to encompass subsets of people who share values, attitudes, preferences, and behaviors we generally refer to as psychographics for segmentation purposes.
At any rate, conventional wisdom has suggested that Millennials--a generational cohort most demographers would agree includes today's 21- to 37-year-old adults--have been one of housing's bigger unfurling mysteries of the past hundred years or so.
That's because a perfect storm of a profound, life-altering Great Recession, heaps of college-related student debt, social norms around family formation, marriage and children, technology, and workplace transformation have been playing out simultaneously as this cohort has exited post-secondary studies, entered the workforce, and begun to behave as functioning adults in society.
Seldom--in the times since "housing cycles" have come to be a thing--have such materially important variables with such significant potential impact on housing type preferences, means, aspirations, and intentions been up for grabs.
What's interesting is that much of the focus on the latency of Millennial adults in lifestages having to do with pairing up, forming households, forming families, and creating two-parent households with children--the principle demographic engine of any economy--has been on the financial after-effects of the last decade's downturn and slow recovery. A post-traumatic, deeply indebted, urban-centric Renter Nation seemed to be on the verge of changing how housing, communities, and neighborhoods would work in America.
Not so much.
Age was just a number. And, demographics was destiny. As Millennials crossed the 35-year-old threshold, they've seemed to double-down on more historically common housing preference choices and preferences.
And the funny thing is, it's not all about finances, career trajectories, and economics in the wake of the Recession's destructive effects. Here's a piece from New York Times contributor Roni Caryn Rabin that explores how many Millennials have chosen to wait to form couples and create families with almost entirely different motivations.
Sociologists, psychologists and other experts who study relationships say that this practical no-nonsense attitude toward marriage has become more the norm as women have piled into the work force in recent decades. During that time, the median age of marriage has risen to 29.5 for men and 27.4 for women in 2017, up from 23 for men and 20.8 for women in 1970.
Both men and women now tend to want to advance their careers before settling down. Many are carrying student debt and worry about the high cost of housing.
They often say they would like to be married before starting a family, but some express ambivalence about having children. Most important, experts say, they want a strong foundation for marriage so they can get it right — and avoid divorce.
“People are not postponing marriage because they care about marriage less, but because they care about marriage more,” said Benjamin Karney, a professor of social psychology at the University of California, Los Angeles.
Now, this central insight on shared values--values about the marriage and family relationship--can be an important engagement point for residential builders and developers who seek attributive moments and points of traction with potential home buying customers.
What's more, the demographics going forward are one exceptionally robust prospect for community and home developers who're able to crack the code of price, product, location, and customer care.
The Zelman & Associates team of analysts' latest The Z Report takes a careful look at the data dashboard on the vanguard group of Millennials, those who've crossed the 35-year-old threshold and are now in the 35-to-44 year-old age segment for housing type. The conclusion the Zelman report reaches--which you can sample for free by clicking on this link--is nothing short of astonishing:
"Over the last five years, 69% [of 35-44 year olds] have chosen single-family living versus just 25% for multi-family. Thus, a 35-44 year old is 2.7 times more likely to skew towards the single-family lifestyle. With outsized growth forecasted for this age cohort at the expense of weakening trends for younger peers, to us, it is clear that demand for single-family housing should outpace multi-family, even after considering any secular trends related to young adults forming families later in life. We do not believe that this is appreciated by the vast majority of housing market analysts and investors."
Are you ready for the wait-and-hurry-up generation?
Statistics show that only 2% of your website visitors complete the online contact form. NAHB Remodelers would like to help you build amazing content to successfully convert visitors to leads.
Identify the latest tools and technologies to help you develop a dynamic website
Review the types of content that make your website more appealing to customers
Describe how to convert website visitors into viable business leads
Participants can earn one hour of continuing education credits for these 12 NAHB designations: CAPS, CGA, CGB, CGP, CGR, CMP, CSP, GMB, GMR, Master CGP, Master CSP and MIRM.
Registration is open until 3 p.m. ET (12 p.m. PT) May 29. For registration questions, contact Sheila Coble at 800-368-5242 x8057.
Home owners spent more than $152 billion in remodeling projects in 2017. And this year is projected to be even busier for the remodeling industry, which typically kicks into high gear each year as the warmer weather of spring sets in.
That’s why May is the best time to celebrate National Home Remodeling Month — an opportunity for remodelers and home builders across the country to promote their businesses and raise consumer awareness of the benefits of hiring a professional remodeler to get the job done.
For members of NAHB Remodelers, building a strategy couldn’t be easier: They have access to a step-by-step guide for National Home Remodeling Month and tips to maximize promotion efforts, as well as an online toolkit filled with free resources, including:
Social media graphics and sample posts
A consumer brochure on finding the right professional remodeler
An infographic highlighting aging-in-place statistics
An article about the benefits of green remodeling
Lists of top remodeling projects
Additionally, NAHB Remodelers is hosting five free professional development webcasts in the month of May exclusively for NAHB Remodeler members. The webcasts will be held May 1, 8, 15, 22 and 30, and each will begin at 1 p.m. ET.
For questions about these members-only resources, contact remodel@nahb.org. You can also join the NAHB Remodelers Facebook and LinkedIn groups for continued discussion and to share ideas. Or to learn about joining NAHB Remodelers, visit nahb.org/whynahbr.
Fort Worth, Texas - Acme Brick Company is celebrating the company’s 127th year in business on April 17th by presenting each employee with two pair of cotton/spandex socks. One pair bears an image of Acme’s Brick Boy mascot who makes appearances at various events.The second pair features the famous Acme red logo.“Sometimes you need to build top of mind awareness for your company from the bottom up”, quipped Acme’s Director of Marketing, Britt Stokes.
Acme was founded on April 17, 1891, just 26 years after the end of the civil war and the same year that James Naismith invented the game of basketball.Also in 1891 Benjamin Harrison was President of the U.S. and Thomas Edison patented the “transmission of signals electrically” otherwise known as radio!
Acme had its humble beginnings on the banks of Rock Creek, near the town of Millsap, about 30 miles west of Fort Worth, Texas.
The company has grown to become the largest U.S. brick company in the world. Acme residential and commercial masonry products are available throughout the U.S., and southern Canada. The company
has produced brick for well over two million homes during its history and many thousands of commercial, civic and educational buildings. Acme Brick Company has consistently ranked at the top in opinion surveys of the nation’s largest homebuilders concerning product quality and product awareness and is the only brick manufacturer that stamps its logo into residential brick products.All
residential brick products are supported by Acme’s Homebuyer’s 100 Year Limited Guarantee.
Acme now offers many other home-related products: Iron Doors, fire pits and fireplaces, quality grills, outdoor kitchens, traditional fireplaces, natural and man-made stone, wood floors and tile.
Acme Brick company is the nation’s largest brickmaker. The company owns 17 brick plants and has 69 company-owned sales offices across 14 states, plus a nationwide network of independent distributors. Acme has been a wholly-owned subsidiary of Berkshire Hathaway, Inc. since 2000.For more information visit www.brick.com.
For more PRESS information contact: Ron Taylor/Ashley & Taylor Public Relations (817) 874-8206 or taylorpr@spindle.net.
For the past several days, there has been a movement at the House of Representatives to try and pass SB 1086, a bill to remove the exemption on Capital Gains.A lot of attention has been given the issue because the consultant hired to evaluate the exemption recommended its demise.The Incentive Evaluation Commission instead voted to retain it.
I would like to submit another reason this exemption should remain in place.It is from my experience as the former Oklahoma County Assessor.
The way ad valorem (property) taxes work is this.A piece of property is assessed according to market value each year.Most of the time, this reassessment causes the property value to rise.This increased assessment results in higher property taxes.
Yet this resultant increase in property taxes is on unrealized gain.The property in question has not necessarily increased your cash flow and in many instances not at all.Nevertheless, a person pays property taxes on that unrealized gain.
As most of us know, the largest portion of property taxes goes to Education.
So I submit, the gain on real property has already been taxed for education.To do so again due to loss of the capital gains exemption will result in double taxation.
SB 1086 is a bad idea.Let’s hope the House of Representatives does not bring it up for a vote.
Provided by: Gene Spencer, Director of Underwriting, CompSource Mutual Insurance Company
Contractors often ask, “How do I
protect myself from being held liable for
a subcontractor’s workers’ compensation claim or getting hit with premium during the premium audit?” The short answer is, understand what constitutes an employer/employee relationship, work with subcontractors you trust and make sure they have workers’ compensation insurance.
You become liable for workers’ compensation premiums and potential claims when the contractor/subcontractor relationship is, in fact, an employer/employee relationship. To determine if this relationship exists, use the IRS guidelines for actions that establish an employer/employee relationship. The IRS recommends evaluating the entire relationship and consider the degree and extent of control and independence the subcontractor has, and document each factor
Editor’s Note: OSHBA has an affinity arrangement with CompSource.
used in making the determination. The premium auditor will look at these and others specific to workers’ compensation to determine if premium should be collected for the assumed risk during the policy period.
Keep in mind, you could still be liable for a workplace accident, even if an employee/employer relationship does not exist. This occurs when a subcontractor does not have a valid workers’ compensation insurance policy, and one of their employees is injured on your job site. If a valid insurance policy is not in place, the liability rolls up to the contractor. Therefore, it is imperative you always get a Certificate of Insurance before work begins and, when possible, work with contractors you know and trust. Working with a trusted subcontractor reduces your likelihood of having to assume a direct supervisory role with the subcontractor or their employees that could cast you in the role of the subcontractor’s employer. Additionally, a reliable partner with an established track record is more likely to maintain appropriate workers’ compensation coverage for their employees.
Sometimes, it is necessary to work with new vendors; contractors can still take measures to protect their business, such as:
• Be familiar with what creates an employer/employee relationship
• Know what an authentic Certificate of Insurance looks like
• Know who qualifies to use a Certificate of Non-Coverage
• Get a Certificate of Insurance or Certificate of Non-Coverage well in advance of work being started and set reminders to request updated certificates before they expire
By using these tips when you hire a subcontractor, you can help protect your business. For more information on this or other workers’ compensation insurance questions, visit our website at www.CompSourceMutual.comor call one our underwriting, claims or loss prevention experts at (405) 232-7663.
The Home Depot Foundation announced yesterday a $50 million commitment to partner with HBI to train 20,000 new skilled workers over the next 10 years.
HBI, the industry’s education arm, trains separating military members, high school students and at-risk youth for careers in the skilled trades. The grant will significantly increase the number of workers trained through HBI curriculum and help address the industry’s labor shortage.
“We want to bring shop class back, from coast-to-coast,” said Shannon Gerber, executive director of The Home Depot Foundation. “We’re thrilled to train 20,000 next-generation plumbers, electricians, carpenters and beyond.”
HBI joined forces with The Home Depot Foundation last year to launch a pilot trades training program for military members at Fort Stewart, Georgia and Fort Bragg in North Carolina. The first set of students will graduate this month.
“Our program prepares men and women for high-growth careers in the industry after leaving military service,” said HBI CEO John Courson. “With 200,000 service members separating from the military every year, our partnership with The Home Depot Foundation enables us to serve more veterans across the country.”
The 12-week pre-apprenticeship certification program, which is provided at no cost to students, uses industry-based curriculum recognized by the Department of Labor that integrates work-based learning with technical and academic skills. The program, which has a job placement rate of more than 90%, will now roll out on additional bases across the United States.
Learn more about HBI’s training programs at hbi.org.
To Offset the Lack of Skilled Workers, Contractors Increase use of Efficient Building Approaches
**Article and research provided by Dodge Data & Analytics**
WASHINGTON, D.C. –The Q1 2018 USG Corporation + U.S. Chamber of Commerce Commercial Construction Index (Index), released today, reveals nearly two-thirds of contractors are highly confident that demand for commercial construction will increase over the next year, however, continued concerns around labor shortages have put even greater pressure on the industry. To increase jobsite efficiency and improve labor productivity, increasingly more builders are turning to alternative construction solutions, like prefabrication and modularization.
The Q1 Index indicates contractors turn to innovations such as prefabricated and modular building materials to create more efficient jobsites (89 percent), increase labor productivity (85 percent), drive cost savings (58 percent), and provide a competitive advantage in the marketplace (51 percent). In fact, 50 percent of contractors report their companies already use prefabricated and modular components and the number was even higher among general contractors (72 percent). Nearly two-thirds (63 percent) of contractors report at least moderate demand for these building materials.
"Access to skilled labor is a continued concern, which has led contractors to increasingly seek solutions that help offset jobsite challenges,” said Jennifer Scanlon, president and chief executive officer of USG Corporation. “There is significant opportunity to introduce innovations that confront jobsite efficiency and strengthen the industry – such as solutions that enable prefabricated and modular building components.”
Contractors in the Northeast (69 percent) reported the most frequent usage of prefabricated and modular components, compared to the South where only 24 percent indicate their companies are using these materials. Firms in the Northeast also expect to hire fewer workers—38 percent of contractors in the region expect to employ more staff in the next six months, compared with 57 percent in the South, 59 percent in the West, and 68 percent in the Midwest. Across all regions, concern over the cost of hiring skilled labor has remained consistent over the past year—nearly two-thirds (64 percent) of contractors expect these costs to increase in the next six months.
Despite labor concerns, contractor sentiment remained steady for the first quarter, as a result of strong revenue expectations and higher profit margins, with a composite score of 74.
“As we work to continually build our neighborhoods, towns, regions, and roads, as well as the workforce that supports our growth, innovation becomes a key component in advancing our country into the 21st century,” said Thomas J. Donohue, president and CEO of the U.S. Chamber. “We must invest in a skilled, competitive, motivated workforce and embrace new innovations to ensure we are able to compete on a global scale.”
The Index looks at the results of three leading indicators to gauge confidence in the commercial construction industry – backlog levels, new business opportunities and revenue forecasts – generating a composite index on a scale of 0 to 100 that serves as an indicator of health for the contractor segment on a quarterly basis. The Q1 2018 composite score was 74, holding steady from Q4 2017.
The Q1 2018 results from the three key drivers were:
Backlog: On average, contractors currently hold 8.9 months of backlog, relatively close to the average ideal amount of 12.2 months, continuing the stability of the market, although there is room for growth. Down two points from Q4 2017, this represents 73 percent of ideal backlog levels.
New Business: Nearly all (98 percent) contractors report high or moderate confidence in the demand for commercial construction. Year-over-year, the number of contractors who have high confidence in demand over the next 12 months jumped 11 percentage points (from 51 percent in Q1 2017 to 62 percent in Q1 2018).
Revenues: Over half (54 percent) of contractors expect to see revenue gains in the next year. This percentage jumped seven points from last quarter (47 percent in Q4 2017).
The research was developed with Dodge Data & Analytics (DD&A), the leading provider of insights and data for the construction industry, by surveying commercial and institutional contractors.
About the Index
The USG Corporation + U.S. Chamber of Commerce Commercial Construction Index is a quarterly economic index designed to gauge the outlook for, and resulting confidence in, the commercial construction industry. USG Corporation and the U.S. Chamber produce this Index, along with Dodge Data & Analytics (DD&A). Each quarter, researchers from DD&A source responses from their Contractor Panel of more than 2,700 commercial construction decision-makers in order to better understand their levels of confidence in the industry and other key trends. This panel allows DD&A to provide findings that are representative of the entire U.S. construction industry by geography, size, and type of company.
Click here to see the full report, methodology, and graphics.
Please note the Commercial Construction Index report is intended for general informational purposes only. It is not intended to support an investment decision with respect to USG Corporation, nor is it intended to be used for marketing purposes to any existing or prospective investor of USG. This report is not a forecast of future results for USG and actual results of USG may differ materially from those of the commercial construction industry.
About the U.S. Chamber of Commerce
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors and regions, as well as state and local chambers and industry associations. For more information, visit www.uschamber.com.
About USG Corporation
USG Corporation is an industry-leading manufacturer of building products and innovative solutions. Headquartered in Chicago, USG serves construction markets around the world through its Gypsum, Performance Materials, Ceilings, and USG Boral divisions. Its wall, ceiling, flooring, sheathing and roofing products provide the solutions that enable customers to build the outstanding spaces where people live, work and play. Its USG Boral Building Products joint venture is a leading plasterboard and ceilings producer across Asia, Australasia and the Middle East. For additional information, visit www.usg.com.
**Article and research provided by Dodge Data & Analytics**
By John Baker, President, OSHBA Remodelers Council
While some homeowners might dream of retiring to a private tropical island, more and more are choosing to “age in place” and live independently, comfortably, and safely in their own home, regardless of age or ability.
As the Baby Boomer generation embraces this stage of life, many are searching for builders and remodelers who can help turn their home into a safer, more convenient place to live as they age.
As part of National Designation Month - a month where Oklahoma State Home Builders Association and the National Association of Home Builders shine a spotlight on industry professionals who go the extra mile to attain advanced training and achieve specialized designations - we recognize the importance of professionals who have received the Certified Aging in Place Specialist (CAPS) designation.
CAPS professionals are helping people throughout Oklahoma find aging-in-place solutions that fit their specific needs and budget. CAPS remodelers and builders are trained to understand the unique needs of aging adults without sacrificing the aesthetic value of the home. Our Association has conducted several courses over the past few years, showing the growing demand for this designation.
While there are countless ways CAPS remodelers can help make your home work for you, some of the most common aging-in-place renovations include:
Widening doorways and hallways
Installing brighter lighting
Adding railings or grab bars to prevent falls
Changing floor coverings to add traction
Installing ease-of-reach systems
A Closer Look at the CAPS Difference
Aging homeowners looking to renovate need to be able to find a remodeler they can trust completely, and the CAPS designation helps give homeowners a guarantee that they’re working with a trustworthy professional who’s an expert in aging-in-place renovation.
Upon graduation from the program, CAPS designees pledge to uphold a strict code of conduct, so you can be sure that they will listen closely to your specific needs and will never push you to add any renovations you don't need.
CAPS professionals also commit to attending continuing education programs, so they are always up to date on the latest aging-in-place technologies and strategies.
If you’re working with a CAPS designated remodeler, you can be confident that you’re getting the best quality service from a professional with integrity and expertise.
More than 3,100 remodelers and builders hold this designation, including many working in Oklahoma. Visit our website – www.okhba.org - to find one that is located near you. There are also many other distinguished designations that our local builders have achieved to serve their clients and community better. A few include:
Certified Green Professional (CGP) — those who incorporate eco-friendly building principles into their work, without driving up the cost of construction
Certified Graduate Builder (CGB) or Remodeler (CGR) — those who have several years of industry experience and possess advanced skills not only as a tenanted home builder or remodeler but also as a trusted business manager.
If you’d like to find a builder or remodeler in your area with a CAPS or other designation, contact www.okhba.org. If you have questions, you can call the Association at (405) 843-5579. You can also search the online directory at nahb.org.
At the start of each year, the Best in American Living Awards (BALA) recognizes dozens of new projects from the past year that featured the most innovative layouts and eye-catching design elements.It is something that I as a homebuilder take time to review.
Whether you’re looking to buy a new home, having a new home constructed on your land, thinking about remodeling your current residence, or you’re just interested in what’s new in home design, here are some the biggest trends that you’ll see dominating the landscape in 2018.
Open but defined floor plans. Instead of one large, undefined space, open floor plans will evolve to include more definition in 2018, whether it’s by shifting materials, adding columns, or changing the ceiling height. This way, you can still get the airiness of an open floor plan while giving each section its own definition and style.
Restored and repurposed. Historic preservation and restoration, as well as adaptive reuse projects, are becoming increasingly popular with multifamily designers and developers. Adaptive reuse projects are particularly sought-after by millennials who love the story behind a repurposed building and want to live somewhere stylish, unique and chic.
Right-sized kitchens. Leave massive kitchen islands in 2017. You’ll be seeing far fewer double islands appearing in 2018, and even single islands are being designed to be smaller and more proportionally sized with the kitchen and adjoining rooms.This is a cost saving idea when looking a remodel project since moving walls can be tricky.
Spa-like baths. Who doesn’t want to feel like they’re stepping into a spa every day? Bath design is trending toward refinement and sophistication, with home baths becoming more and more reminiscent of upscale hotels and spas. Tasteful and luxurious are the two words that will define baths in 2018. Floating vanities and stand-alone tubs will also be more popular this year.
Clean details. You’ll notice clean, simple lines and detailing in homes everywhere. Forget about overly-ornate decor and shift toward thinking more minimally. It will make your home feel fresh, new, and uncluttered for the year ahead.
Metal and wood exterior details. You’ll be seeing this trend a lot this year, particularly on single-family homes. There will be an increased use of metal and wood in exterior details, with the two materials often combined to create interesting, two-tone facades for both traditional and contemporary-style homes. It gives the impression of bringing the past and future together into one cohesive idea, making homes seem modern and sleek without sacrificing a warm, natural feel.
Whites, grays and charcoal paints. Gray is still a strong trend with home buyers, and it looks like white is here to stay. You’ll see more monochromatic designs that add variety by incorporating multiple textures instead of pops of color. For example, think about a white kitchen with quartzite countertops, a white shiplap ceiling, white cabinets, and airy white window coverings. This creates a clean and multi-layer look that is guaranteed to compliment itself and please a wide variety of buyers.Plus it is a design feature that has a long life.
For more information about the latest designs that could be incorporated in your home, or to find a builder in your area that can create the new home of your dreams, contact Oklahoma State Home Builders Association (www.okhba.org) for a list of our Certified Professional Builders or an association near you.
Homebuilders and designers are now faced with the reality that boomers want homes that they can age in place without ever having to move to an assisted living facility or nursing home. Builders all over the world are offering unprecedented opportunities for single and multi-generational families who can now provide their clients the peace of mind and flexibility to live in a new environment that supports and enables them to thrive as they age.
The interior environment of a modern ‘forever home’ allows clients to live their best without compromising on great design.Senior living is in a state of transformation as technology and design are integrated to give decades of flexibility and freedom.
Senior living is on the verge of a renaissance fueled by technology and design. We are living in the best possible time to age on our own terms and experiencing the tipping point, on the edge of a paradigm shift today that will affect every aspect of how we live and age tomorrow.
Products in the home will encompass everything from robotics, sensors and gadgets to 3-D printers and augmented reality - all of which eventually will be controlled by artificial intelligence.
For instance, it’s currently possible without personal staff invading your private space, for curtains to automatically open, coffee to start brewing, the bathroom floor to begin heating, all at a set time, before your feet hit the ground in the morning.
And, the capabilities are endless – extending beyond comfort to necessity. Your walls can become computer screens, artwork, TVs and communication devices, your closet virtually trialing outfits on your hologram allows you to view them from bed, your bathroom faucet automatically dispenses into your glass of water, the proper vitamins you need for the day.It’s not so far off that your doctor receives a text because the health monitor in your clothing notifies her that your blood pressure has been up for two days and you’ve had trouble sleeping, and the nurse calls to check in on you.
There are currently products available in flooring that can sense if someone has fallen or is just sitting on the floor.Other technology can notify you if someone hasn’t opened the fridge to eat in the last 48 hours or if a door opened at an unusual time.Between Lyft and Uber and the forthcoming autonomous vehicles, seniors can stay connected and active all the while keeping others on the road safe.
These technological advancements transform life for two generations - caregivers and caretakers.
If Mom and Dad want to stay at home, but by all definitions it’s unsafe in their current environment, it’s now possible for them to retain their freedom and for you transform their existing or brand-new home with the addition of new tech advances.
This is all taking place NOW.
The key is for the builder and designer is to make the space flexible for future needs while creating an environment that is world class.The style, comfort of the ride, integrated technology and brand are all components in making a car desirable.The home environment is no different – it should automatically adjust to your client’s particular size, style, preferences and needs.This methodology is truly transformational– yourhome now supports and even anticipates your needs, connecting you to resources and people as you age.
Designing from the inside out is key to allowing the space to flow. A space should embrace your client and their specific needs both for today and tomorrow.
Great interior design has always had an intimate relationship with the products that we use daily to make our lives easier.
My own family consists of four generations who all live under one roof in Columbus, Ohio, and we’ve figured out to make it work: dividing responsibilities and chores, re-designing physical spaces for privacy, and reconfiguring others into common areas for all to gather and enjoy living together.
I call it our “multi-generational social experiment,” which encompasses kids in their teens, parents in their forties, grandparents in their seventies, and a ninety-plus year-old great-grandmother.
My book, HIVE describes in detail how we navigate the joys and challenges that come with aging, and answers the questions, "How does family help you thrive at home when you're old?" An Alzheimer's/dementia diagnosis added a layer of complexity, yet we resolve to keep our eldest at home for as long as she's happy, safe and engaged in life. The younger generation learns much from their elders, and the elders from their children. While mastering the use of technology and new family systems, we’re also mastering the use of humor, tolerance, and patience. Ultimately, that's what makes this four-generation experiment a success. Hive provides practical design and strategies mixed with personal tips and observations, making it easy to see how you can transform a home in into a multi-generational living space.
Just don’t forget to budget and design with all the NEW echnology available to enabling boomers to age in place.
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ABOUT THE AUTHOR
Lisa M. Cini, Transformational Living designer integrates the latest technologies and tools to enable seniors to age at home while enjoying a great quality of life.
Lisa Cini, ASID, IIDA is an award-winning, internationally-recognized designer with more than 25 years’ experience developing interiors that improve quality of life for seniors.
Her company, Mosaic Design Studio, is the nation’s leading provider of design services for senior living, long term care, hospitality and health care institutions. Mosaic is also active in global commercial design, project management and procurement. Mosaic has worked with clients including the National Hockey League, the U.S. Military, Coopers Hawk Winery Restaurants, PGA Tour Country Clubs and various hotels.
Lisa is the Founder of www.BestLivingTech.com: think Sharper Image meets AARP! She searches the world for the best products to Embrace Living as we age and brings them all together in one online store.
Her latest mission is to help baby boomers age at home, rather than in a home. Author of:
BOOM: The Baby Boomers Guide to Leveraging Technology, so that you can Preserve Your Independent Lifestyle & Thrive,
The Future is Here: Senior Living Reimagined,
Hive: The Simple Guide to Multigenerational Living is based on her social experiment of living in a 4-generation household and the positive impact design can have in a home for seniors with dementia.
This is a loose translation from Bob Dylan’s song, but it seemed appropriate. Our industry is in the midst of changes from economic to social to political spheres
of influence. We see the reports, releases and yes, tweets, and know that change is coming.
Will we see tax reform on the national level? If we do, will the mortgage interest deduction be a thing of the past?
On the state level, will the budget compromise actually help the industry or just maintain a status quo? Will it include some services that are no longer sales tax exempt? Will we see a teacher pay raise? October was workforce development month and there was much talk about the need for more emphasis on construction trades. Will we see that change in our schools or technology centers?
Socially, we hear about millennials finally entering the housing market. One report says that once they become
homeowners they begin to act like the generations before them. Turns out they like homes in suburbs with good schools. So what does that mean for our industry?
As one writer put it, “the only thing constant in this world is change.” If change affects our industry, you know it will affect our association.
Membership models are being examined and test cases are taking place. Governance is also being examined as to what works the best. Dues and how they are paid and collected are also being examined. This last area is one we are particularly excited about.
If you haven’t already, you will soon hear about Dues Hub powered by Billhighway. This promises to be a new tool that will help with dues payments, recruitment and retention. It is a tool that will provide for online applications, payment flexibility, automated funds routing plus useful and practical data integration.
Yes, changes are coming. But this is one we can be excited about.
A team of University of Oklahoma Construction Science students traveled to Houston in September to aid in the relief effort in the wake of Hurricane Harvey. Twenty-two students and Ben F. Bigelow, Ph. D., Associate Professor and Director of OU’s Construction Science Division, made the trip to assist families impacted by devastating flooding.
While in Houston, the OU students assisted 10 different families with tasks from removing drywall all the way to demolishing a collapsed sunroom. The people they met and helped in Houston were ones who simply couldn’t help
Jadyn Watson-Fisher she’s thankful for the opportunity to do something meaningful for others..
“For me, it (was) about going and serving wherever needed,” Carter said. “It wasn’t the most glamorous job. It wasn’t super exciting, but it was so necessary and practical to hands-on help these people start over.”
Bigelow reached out to the Oklahoma State Home Builders Association to assist in the relief efforts.
“This was a perfect opportunity for our association to help our Texas neighbors,” said Dan Reeves, OSHBA president. “So many give to worthwhile charities like the Salvation Army themselves, Bigelow said. One was a woman bound to a wheelchair and another with severe cerebral palsy.
“While the students got a good experience using tools and seeing a bit of how a house goes together, perhaps the greatest education came from them seeing the need and poverty of so many,” Dr. Bigelow said. “For most of them, they have never been outside of the relatively prosperous suburbs they grew up in, and we worked primarily in some very poor neighborhoods.”
Architecture freshman Chanae Carter told OU journalist
and the Red Cross, but a challenge for an association is how to help in a way the touches our industry. Helping our student chapter provide relief in a learning environment was a great fit.”
Donors who made the trips possible were: Oklahoma State Home Builders Association, The Builders Association of South Central Oklahoma, Central Oklahoma Home Builders Association, Windstone Construction, Accent Glass, McClain Bank, Haworth Homes, CA McCarty Construction, Da Vinci Homes, Custom Builders of Oklahoma, Trinity Hearth & Homes, Patrick O’Dooley and Westpoint Homes.
It’s all about location, location, location – with a dash or two of compromise – as millennials, the nation’s largest demographic group at 90 million strong, is poised to dominate the home buying market.
Two market researchers – who happen to be millennials themselves – offered insight into their generation in Two Millennials Tell All, an education session offered Jan. 10 during the NAHB International Builders’ Show in Orlando.
While generalities about this group may ring true: This generation prefers experiences over things and likes to “collect moments” rather than sets of good china place settings, there’s actually much more diversity than many people realize, said Ali Wolf, manager of housing economics for California-based Meyers Research LLC.
For one thing, 43% of millennials aren’t white, don’t solidly identify as either “traditionals” or “trailblazers” and, because they now range in age from 17 to 37, have incomes across the economic spectrum.
And as NAHB Economics own research has indicated, a surprising majority of millennials aren’t necessarily interested in urban spaces, but still want a single-family home with a yard. The challenge for home builders is to create a product that this generation wants but that can still afford as first-time buyers, the presenters said. In fact, 21 percent of millennials surveyed said they haven’t bought a home yet because they can’t afford one, period.
One solution: Understand that millennials are willing to compromise. They’ll sacrifice some space in exchange for more luxurious finishes, like quartz countertops. Good design is important to this generation.
Flexible spaces are important as well. Make sure that the dining area is large enough for a large gathering of friends and family for Thanksgiving and other special dinners, but easily converted into a workspace or studio for the rest of the year.
Three/two still rules. A home with three bedrooms and two bathrooms is the most preferred, and 1,000 square feet is the minimum. That third bedroom can be a loft area or study nook if space is at a premium, however.
The construction industry is changing, and a lot of the changes construction workers and their employers are seeing today are based around advances in technology. There are a number of technological advances, with one of the biggest being the use and incorporation of drones into various aspects of the business. Since there are so many ways to use drones in construction, it's not surprising that they are starting to be used more frequently. While not all companies see the value in drone technology, more and more construction companies are bringing them on board to get more done faster and easier than ever before.
Drones Have a Number of Significant Benefits
For construction companies and their workers, there are many benefits to using drones. These small, flying, and highly maneuverable little machines can move quickly, hover in place, and get into spaces where people may not fit. They can also go into places where people may not be allowed to go, or where it may not be safe for workers to venture. Drones are not terribly expensive, and they can do some jobs that people simply cannot complete. They are also lightweight and easy to move around, so they can travel fast and help workers get more accomplished throughout their workday.
With Drones, Construction Companies Can See the Big Picture
One of the largest impacts that drones have on the construction industry is that they help companies and workers see the bigger picture. Drones can be flown right up close to a construction project, but they can also be flown high above the job site to see a larger view of what needs to be done and the issues that might arise. Watching video from a drone gives construction companies a lot of information. It's also possible to offer plenty of still pictures that the company can study in order to make a plan of action for the future of any construction project.
Cost Effectiveness Matters With Drone Technology
Drones are inexpensive for personal use, but they can be more costly when larger ones for commercial uses are bought. Still, they are often cost effective because their upfront price can be justified with how they pay for themselves over time—it's an investment like any new piece of equipment. Since they can go where people cannot, and they can also explore from high above and bring back pictures and information, they are very valuable when it comes to how they can be used by construction workers and their employers. Consider the increased safety in a workplace in which drones can scout areas before
someone needs to physically be there.
What Construction Companies Should Know About Drones
Construction companies that are considering buying and using drones should know enough about them to feel comfortable with their choices. Price is one important consideration, but it's not the only thing people in the construction industry need to know. Of course it matters, but the cost of the drones should be examined in light of what they can offer, so the actual value can be better understood. It's more than just price, when considering how much construction companies get back from the money they spend. Other things to consider with drones in the construction industry are how many drones are needed for any company, where they should be used, and how best to use them wisely. Companies also need to focus on where the drones come from, how they will be maintained, and what happens if one or more of them become damaged. Taking care of the drones and keeping them moving matters, just as much as getting and using them in the first place. Construction companies that are prepared for changes in their industry, technological advances, and the value drones can bring to their work can use these drones to their fullest advantage.
Dylan Snyder is a team leader and real estate consultant at The Snyder Group - Keller Williams Realty Luxury Homes. His business is augmented by his high-caliber team of seasoned buyer specialists and a dedicated marketing department.
OSHBA Note: NAHB Chairman Randy Noel will be a special guest at the 2018 Installation Banquet
Randy Noel
NAHB members elected four senior officers to the Federation’s top leadership positions during the International Builders’ Show in Orlando, Fla.
With more than 700 affiliated state and local home builders associations and more than 140,000 members across the country, NAHB represents the interests of the nation’s housing professionals through advocacy, education and research.
Taking the helm as NAHB Chair is Randy Noel, a Louisiana-based custom home builder with more than 30 years of experience in the industry. Noel is president of Reve Inc., a custom home building firm that has developed more than 1,000 custom homes in the greater New Orleans area.
“We will work this year to keep the housing recovery on track and to reduce burdensome regulations that harm housing affordability and inhibit job creation,” said Noel. “We will also urge Congress and the White House to ensure that housing remains a national priority and to promote policies that will provide affordable rental housing and homeownership opportunities for hard-working American families.”
Also moving up on the association’s leadership ladder was Greg Ugalde, a Connecticut builder and developer with more than 25 years of experience in the home building industry. He was elected First Vice Chairman of the Board. Ugalde is president and chief legal officer of Torrington-based T&M Building Co., Inc., one of the largest home builders in the state. Since its founding in 1962, T&M has built more than 3,500 new homes in over 40 Connecticut communities.
Dean Mon, a New Jersey-based builder and developer with more than 30 years of experience in the industry, was elected as Second Vice Chairman of the Board. He is president of the D.R. Mon Group Inc., which specializes in the development and construction of classic urban living projects throughout New Jersey. Since 1985, the company has created communities throughout Morris, Hunterdon, Union, Hudson and Monmouth counties.
John “Chuck” Fowke joined the NAHB leadership ladder with his election as Third Vice Chairman of the Board. A Tampa, Fla.-based custom home builder with 40 years of experience, Fowke is owner and president of Homes by John C. Fowke Inc. His company has created hundreds of homes in many neighborhoods in and around the Tampa Bay area.
2017 NAHB Chairman Granger MacDonald, from Kerrville, Texas, remains on the leadership ladder as Immediate Past Chairman. MacDonald is chairman and CEO of the MacDonald Companies, a diverse development, construction, and property management enterprise with nearly 50 neighborhoods completed and managed throughout Texas.
Rounding out the association’s leadership is NAHB CEO Jerry Howard, from Washington, D.C. Howard heads up a professional staff of more than 240 working out of the National Housing Center in Washington. He has served as the association’s CEO/EVP since February 2001. Previously, Howard was NAHB’s chief tax counsel.
Builder confidence in the market for newly built single-family homes increased five points to 74 in December on the NAHB/Wells Fargo Housing Market Index (HMI) after a downwardly revised November reading. This was the highest report since July 1999, over 18 years ago.
“Housing market conditions are improving partially because of new policies aimed at providing regulatory relief to the business community,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.
“The HMI measure of home buyer traffic rose eight points, showing that demand for housing is on the rise,” said NAHB Chief Economist Robert Dietz. “With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.”
The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three HMI components registered gains in December. The component measuring buyer traffic jumped eight points to 58, the index gauging current sales conditions rose four points to 81 and the index charting sales expectations in the next six months increased three points to 79.
Looking at the three-month moving averages for regional HMI scores, the Midwest climbed six points to 69, the South rose three points to 72, the West increased two points to 79 and Northeast inched up a single point to 54.
Companies based outside of the United States, as well as American companies doing business internationally — or beginning to think about it — can speak to seasoned professionals with valuable advice at the NAHB International Builders’ Show this January.
The International Central at the 2018 IBS will be buzzing with trends encompassing the varied and diverse global home building industry.
During the show, Central attendees can learn about the latest modular and panelized building systems opportunities, attend sessions taught by officials from the Department of Commerce as well as international representatives on home building opportunities in South Africa and Cote d’Ivoire.
They’ll also explore top global technology trends and global design dos and don’ts for 2018: Each day will provide different networking and educational opportunities.
Attendees do not need to be NAHB Global members, though the Central provides the perfect opportunity to learn more about how becoming a member can be very beneficial to their businesses.
Whether it’s addressing your HBA at events or meetings or answering reporters’ questions, as an NAHB member, you’ve probably had to speak on occasion before your peers, media or the public.
And you might have hated every minute of it.
We hear you. Become a better public speaker, give solid media interviews and craft strong overall messaging for your local with NAHB Education’s IBS pre-show courses at the Hyatt Regency Orlando:
In today’s business world, meetings and news interviews can develop quickly and be posted instantaneously. Spokesperson Training Part I will help you master strategies for developing key messages and delivering them effectively for various platforms, from print to social media to business meetings. The training includes instruction, skill-building exercises and on-camera practice interviews.
Spokesperson Training Part II focuses on presentation skills, providing approaches to organizing and delivering a successful speech or presentation to various audiences. Understand how to analyze your audience, use visual aids, explore body language and more. The training includes instruction, skill-building exercises and on-camera practice interviews.
You can take one or both of these courses — there is no prerequisite. Register today.
Even the massive Orange County Convention Center in Orlando isn’t quite big enough to house all of the exhibits of the NAHB International Builders’ Show.
That’s why each year during IBS, a large portion of the convention center’s parking lot is consumed by Professional Builder’s Show Village — a small community of life-size homes, each displaying many of the latest building products and techniques.
Professional Builder partners with several home builders, designers and product manufacturers to create the neighborhood, which is erected almost literally overnight using modular construction. Professional Builder’s Show Village will feature three homes, all uniquely designed to deliver efficient use of space and energy, maximizing the indoor and outdoor living areas:
Rendering of the LaBelle.
The LaBelle (built by Palm Harbor Homes of Plant City, Fla.) is a transitional 2,655-square-foot home with three bedrooms and two baths. It will feature a pass-through window from the kitchen to the family room, and a multi-slide door that integrates the screened-in porch, fireplace and outdoor kitchen.
Rendering of the Atrium.
The Atrium (also by Palm Harbor Homes) is a small-footprint home — at 1,233 square feet — that is big on amenities. Its urban elements will give it a loft-like feel, incorporating multi-slide doors on the front and back of the home to expand entertaining areas. Its master bedroom suite incorporates a whirlpool and freestanding tub.
Rendering of the Modern.
The Modern (by Nationwide Custom Homes) is a 1,803-square-foot home with one wing devoted to the master bedroom suite with a wardrobe gallery and floating wall. The other wing will feature two bedrooms with a shared bath. The multi-slide door off the great room leads to a massive deck that spans the entire width of the home.
Attendees will have the opportunity to tour the homes and evaluate for themselves all of the innovative products featured within. There will also be nightly block parties for networking and relaxing. For more information, visit buildersshow.com.
Sales of newly built, single-family homes in October rose 6.2% to a seasonally adjusted annual rate of 685,000 units from a downwardly revised September reading, according to newly released data from HUD Census Bureau. This is the highest sales pace since October 2007. Year-to-date, new home sales are 8.9% above their level over the same period last year.
“The October report shows strong sales growth at entry-level price points,” said NAHB chairman Granger MacDonald. “In markets where builders are able to provide homes for families with different household budgets, they can fulfill a growing demand for housing.”
“There is solid growth in the number of sales contracts signed before construction has begun, a strong indicator that new single-family home production should continue to grow as we look ahead to 2018,” said NAHB Chief Economist Robert Dietz.
The inventory of new homes for sale was 282,000 in October, which is a 4.9-month supply at the current sales pace.
New home sales increased in all four regions. Sales rose 30.2% in the Northeast, 17.9% in the Midwest, 6.4% in the West and 1.3% in the South.
Builder confidence in the market for newly-built single-family homes rose two points to a level of 70 in November on the NAHB/Wells Fargo Housing Market Index (HMI). This was the highest report since March, and the second highest on record since July 2005.
“November’s builder confidence reading is close to a post-recession high — a strong indicator that the housing market continues to grow steadily,” said NAHB Chairman Granger MacDonald. “However, our members still face supply-side constraints, such as lot and labor shortages and ongoing building material price increases.”
“Demand for housing is increasing at a consistent pace, driven by job and economic growth, rising homeownership rates and limited housing inventory,” said NAHB Chief Economist Robert Dietz. “With these economic fundamentals in place, we should see continued upward movement of the single-family housing market as we close out 2017.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.”
Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Two out of the three HMI components registered gains in November. The component gauging current sales conditions rose two points to 77 and the index measuring buyer traffic increased two points to 50. Meanwhile, the index charting sales expectations in the next six months dropped a single point to 77.
Looking at the three-month moving averages for regional HMI scores, the Northeast jumped five points to 54 and the South rose one point to 69. Both the West and Midwest remained unchanged at 77 and 63, respectively.
The majority of NAHB members are small businesses and NAHB is proud to support Small Business Saturday® on Nov 25. This annual event provides an opportunity to recognize the importance of small businesses and their vital contributions to local communities.
The housing industry in particular helps build a strong economy and vibrant communities, contributing 15% to the GDP. Constructing 100 new single-family homes creates 297 full-time jobs, $28 million in wage and business income and $11.1 million in federal, state and local tax revenue.
Small Business Saturday was founded by American Express in 2010 to help strengthen local economies. Today, it’s a holiday shopping tradition celebrating a greater nationwide movement dedicated to uniting communities and supporting all kinds of small businesses.
NAHB is encouraging its members to also join this nationwide initiative that encourages the public to shop at small businesses, particularly on Saturday Nov. 25, and throughout the holiday shopping season.
Go to ShopSmall.com/YourDay to access free marketing materials to promote your small business.
The Today’s Homeowner cast and crew is partnering with the Oklahoma volunteers to create an inviting outdoor living area at Manna House, a residence that assists young women transitioning from foster care to adulthood.
The work is attracting the attention of local media, as Good Day Tulsa filmed the work for one segment and Tulsa World featured a story as well.
All of the projects, how-to steps, spirit of service and the big reveal will be documented and captured for the Today’s Homeowner special episode.
In late October, the volunteers met at the Manna House to begin work on new outdoor living amenities for the home.
Crew members and the cast of the show filmed the community service project, funded by the HBA’s Charitable Foundation, as part of the Today’s Homeowner 20th season tour.
Looking for a low-cost, high impact way to celebrate your HBA’s role in your community during the year-long commemoration of NAHB’s 75th anniversary?
Think about compiling a history of your HBA or partnering with a business or local history group to develop a detailed timeline of growth and development in your community.
Written by HBA EO Dan Dressman, the book documents the HBA’s history from its inception in 1934 to the present and details its important role in helping to shape the Greater Cincinnati region.
“I wanted to write this book primarily because no one had ever captured the interesting history of our association,” Dressman said.
The HBA of Greater Cincinnati was founded in the aftermath of the Great Depression. It also helped combat the local housing shortage after World War II.
“We have had a lot of brushes with history over the years,” he said.
Dressman said that having meeting minutes from as far back as 1934 helped him a lot in his research. But don’t despair if you can’t locate your HBA’s earliest records. There are plenty of alternatives.
Members are the best place to start when compiling a history, especially those who have been a part of the HBA for many years. Getting a small group of long-time members together to reminisce is sure to provide a good launching point.
You should also consider enlisting the assistance of members who are avid amateur historians or who pursue their family history. Detectives at heart, they will thrill to the hunt. And they already know the best places to dig for details.
Lacking expert involvement, where’s the best place to start? You guessed it. Not just a repository for countless cat videos and accounts of alien abductions, the Internet has a vast store of free or low-cost resources.
Begin with a simple search for your HBA. You may be surprised at what you find.
Archive.org is a great free resource providing digital access to millions of texts and hundreds of thousands of video and audio files.
Video report about the NAHB 1963 Experimental House.
And check your own files: A few years ago, NAHB’s digital archive turned up information about the London House, which was constructed at the 1960 Ideal Home Exhibition in London by NAHB to showcase U.S. home design and technology.
Old newspaper issues are increasingly available online. Here’s a tip: Many public libraries provide free access to subscription services like newspapers.com and/or local newspapers’ digital archives. You may even be able to access them remotely using your library card/account.
Many states and cities as well as local and state historic associations maintain online archives.
Don’t focus exclusively on digital and online resources; only a small fraction of all potentially relevant resources have been digitized.
Expect the unexpected. A good history tells the whys and wherefores, zooms in on the details that provide texture, context and relevance, and may even unearth some figurative skeletons along the way.
Be sure to share your project with NAHB. Contact Camilo Cuba to learn more.
Pneumatic nailers, more commonly referred to as nail guns, have certainly made work more efficient, but their speed and power has led to serious injuries on the job.
Nail guns are a leading cause of injury for carpenters and responsible for an estimated 25,000 work-related emergency room visits each year.
This video describes some critical dos and don’ts of nail gun use and is available in English and Spanish. You can share it and the accompanying handout at your next worksite safety meeting.
Nail Guns: How Do Injuries Happen?
Unintended nail discharge from double fire
Unintended nail discharge from knocking the safety contact with the trigger squeezed
Nail penetration through lumber work piece
Nail ricochet after striking a hard surface, metal feature or wood knot
Bypassing safety mechanisms
To view other Video Toolbox Talks and download the printable handouts, visit nahb.org/toolboxtalks. All are available in English and Spanish. Be on the lookout for more safety videos coming soon.
Thanks to changes that NAHB championed in the 2018 International Residential and Energy Efficiency Code, many home builders are now able bury their ductwork within the attic insulation — a potential savings of as much as $4,000 per home when compared to the cost of conditioning the entire attic.
What’s the best way to do this, and how can builders take advantage of this practice and produce an energy-efficient home at a lower cost? The Department of Energy is offering a free webinar Nov. 9 at 1 p.m. ET that explains the process.
Craig Drumheller, NAHB’s director of codes and standards, will be the speaker. Drumheller worked with NAHB codes staff and committee volunteers to introduce the buried duct proposal during the 2018 codes approval process.
Register today, and you may be able to save money on your next project.
Instructor helps a student participating in a woodworking manufacturing training program in Chicago, Illinois, U.S. Photographer: Tim Boyle/Bloomberg Charlie Negron
Throughout most of U.S. history, American high school students were routinely taught vocational and job-ready skills along with the three Rs: reading, writing and arithmetic. Indeed readers of a certain age are likely to have fond memories of huddling over wooden workbenches learning a craft such as woodwork or maybe metal work, or any one of the hands-on projects that characterized the once-ubiquitous shop class.
But in the 1950s, a different philosophy emerged: the theory that students should follow separate educational tracks according to ability. The idea was that the college-bound would take traditional academic courses (Latin, creative writing, science, math) and received no vocational training. Those students not headed for college would take basic academic courses, along with vocational training, or “shop.”
Ability tracking did not sit well with educators or parents, who believed students were assigned to tracks not by aptitude, but by socio-economic status and race. The result being that by the end of the 1950s, what was once a perfectly respectable, even mainstream educational path came to be viewed as a remedial track that restricted minority and working-class students.
The backlash against tracking, however, did not bring vocational education back to the academic core. Instead, the focus shifted to preparing all students for college, and college prep is still the center of the U.S. high school curriculum.
So what’s the harm in prepping kids for college? Won’t all students benefit from a high-level, four-year academic degree program? As it turns out, not really. For one thing, people have a huge and diverse range of different skills and learning styles. Not everyone is good at math, biology, history and other traditional subjects that characterize college-level work. Not everyone is fascinated by Greek mythology, or enamored with Victorian literature, or enraptured by classical music. Some students are mechanical; others are artistic. Some focus best in a lecture hall or classroom; still others learn best by doing, and would thrive in the studio, workshop or shop floor.
And not everyone goes to college. The latest figures from the U.S. Bureau of Labor Statistics (BLS) show that about 68% of high school students attend college. That means over 30% graduate with neither academic nor job skills.
But even the 68% aren’t doing so well. Almost 40% of students who begin four-year college programs don’t complete them, which translates into a whole lot of wasted time, wasted money, and burdensome student loan debt. Of those who do finish college, one-third or more will end up in jobs they could have had without a four-year degree. The BLS found that 37% of currently employed college grads are doing work for which only a high school degree is required.
It is true that earnings studies show college graduates earn more over a lifetime than high school graduates. However, these studies have some weaknesses. For example, over 53% of recent college graduates are unemployed or under-employed. And income for college graduates varies widely by major – philosophy graduates don’t nearly earn what business studies graduates do. Finally, earnings studies compare college graduates to all high school graduates. But the subset of high school students who graduate with vocational training – those who go into well-paying, skilled jobs – the picture for non-college graduates looks much rosier.
Yet despite the growing evidence that four-year college programs serve fewer and fewer of our students, states continue to cut vocational programs. In 2013, for example, the Los Angeles Unified School District, with more than 600,000 students, made plans to cut almost all of its CTE programs by the end of the year. The justification, of course, is budgetary; these programs (which include auto body technology, aviation maintenance, audio production, real estate and photography) are expensive to operate. But in a situation where 70% of high school students do not go to college, nearly half of those who do go fail to graduate, and over half of the graduates are unemployed or underemployed, is vocational education really expendable? Or is it the smartest investment we could make in our children, our businesses, and our country’s economic future?
The U.S. economy has changed. The manufacturing sector is growing and modernizing, creating a wealth of challenging, well-paying, highly skilled jobs for those with the skills to do them. The demise of vocational education at the high school level has bred a skills shortage in manufacturing today, and with it a wealth of career opportunities for both under-employed college grads and high school students looking for direct pathways to interesting, lucrative careers. Many of the jobs in manufacturing are attainable through apprenticeships, on-the-job training, and vocational programs offered at community colleges. They don’t require expensive, four-year degrees for which many students are not suited.
And contrary to what many parents believe, students who get job specific skills in high school and choose vocational careers often go on to get additional education. The modern workplace favors those with solid, transferable skills who are open to continued learning. Most young people today will have many jobs over the course of their lifetime, and a good number will have multiple careers that require new and more sophisticated skills.
Just a few decades ago, our public education system provided ample opportunities for young people to learn about careers in manufacturing and other vocational trades. Yet, today, high-schoolers hear barely a whisper about the many doors that the vocational education path can open. The “college-for-everyone” mentality has pushed awareness of other possible career paths to the margins. The cost to the individuals and the economy as a whole is high. If we want everyone’s kid to succeed, we need to bring vocational education back to the core of high school learning.
The nature of work and the relationship between employees and their jobs have changed. It’s not just millennials: Multiple studies have shown that workers of all ages care deeply about meaningful work, with most citing purpose as more important than income to their work and career satisfaction.
The construction industry is uniquely poised to allow workers to engage with critical issues such as environmental protection, affordable housing and poverty alleviation, and home builders, remodelers and the trades are able to make a significant impact on the causes they care most about.
As you recruit new team members, let them know how home building makes a difference.
Create Affordable Housing
High demand and limited supply have contributed to a lack of affordable housing, but there is good news: With improvements in technology, companies are working to drastically cut costs for building processes and materials, which translate to lower selling costs, making home ownership a real possibility for millions more Americans. For workers with an interest in technology, innovation and addressing the nationwide affordable housing crisis, construction careers could be a perfect fit.
Aid in Disaster Recovery
Recent hurricanes, wildfires and other natural disasters have devastated areas like Houston, Puerto Rico, Northern California, and Florida, destroying thousands of homes. These areas need workers who can help rebuild communities from the ground up, with a focus on strong, safe structures that help prevent such devastation in the future. Construction careers in disaster recovery are focused on serving desperate populations and providing tangible assistance to get people back into their homes, jobs, and schools quickly and safely. Now more than ever, the construction industry needs skilled workers to fill pressing needs.
Improve Low-Income Communities
In low-income areas, residents are plagued with a multitude of issues that often leave them stuck in a cycle of poverty. Houses and businesses suffer from outdated energy systems that are expensive to maintain, and safety hazards like asbestos and mold are rampant. The home building industry serves these communities by renovating buildings to improve safety conditions and implement cost-efficient energy upgrades, and building more affordable homes as they can also create jobs and provide training for workers within these communities.
Protect the Environment
Green design and construction is dedicated to using sustainable materials and practices, and recent technological advances have made renewable energy more affordable and accessible, reducing long-term costs and conserving precious natural resources. For workers with a passion for environmental preservation, construction careers provide an opportunity to work on sustainable projects that improve communities while protecting the environment for this and future generations.
Support Local and Global Initiatives
While finding purpose in work is undoubtedly a crucial component of being an engaged, satisfied employee, construction careers have the added bonus of providing healthy paychecks and plenty of room for career advancement.
NAHB’s Careers in the Construction Trades page shows that workers can earn average annual salaries well into the upper $40k and 50k mark with strong room for industry growth into the coming decade. Even for employees who are focused primarily on purpose, these paychecks matter: They can provide workers with the financial freedom to pursue their passions, whether that means donating to local or global charities, traveling the world to broaden their horizons or do mission work, or investing in research and development of technologies to improve the world.
Recruit Skilled, Passionate Workers
In collaboration with ConstructionJobs.com, NAHB offers this recruitment tool to all NAHB members in their search for new employees. NAHB members enjoy a 20% discount off standard rates for job posting. Find all of NAHB’s Member Advantage program discounts at nahb.org/ma.
Mike Rowe, skilled trades advocate and former host of the television show Dirty Jobs, speaks about the importance of skilled trades in Iowa in Des Moines Sept. 28.
An Evening to Bring the Significance Back to the Trades highlighted the growing demand for skilled workers in Iowa, such as electricians, linemen and carpenters. Held at the Iowa Events Center, the event attracted more than 1,600 attendees and was organized by the HBA of Iowa, local HBAs and supporting organizations.
The event aligned perfectly with October’s Careers in Construction Month and the pressing need in Iowa and nationally for skilled labor in the home building trades, including inspiring a pathway for students and beyond to see the value of residential construction careers.
Speakers included television’s Mike Rowe and Iowa Gov. Kim Reynolds (R).
NAHB has been tracking the skilled labor shortage and promoting the importance, value and rewards of working in the skilled trades, particularly this month in articles and outreach to HBAs with resources including this resource on nahb.org detailing the median salaries of each trade and job openings nationally.
Mike Rowe (center, top row) poses with Iowa members during the state’s skilled trades event.
Public Appeal, Educator Focus
The well-attended event represented a concerted effort of industry leaders to connect with teachers and counselors, who in turn can encourage students to explore the trades as a career path. More than 400 educators and students were in attendance. The first 200 to register attended for free.
“Our goal was to have an event where educators and students were immersed in the opportunities our industry can provide for them either as an alternative to or in addition to college or trade schools,” said HBA of Des Moines EO Dan Knoup.
“We were able to create an environment that focused on what’s in the best interest of the industry and of the students. We are working to change a generations’ old narrative about who we are and what we do, and this night was huge step in that direction.”
“This is not a union or non-union issue,” Knoup told the Des Moines Register. “It’s not a bridge-builder or home-builder or commercial-contractor issue. We all need people to roll-up their sleeves and learn a trade.”
Tickets were $150 per seat or $1,200 for 10 seats at a 12-person table, and two seats at each table were donated to educators or students. Proceeds from the event supported both the Mike Rowe WORKS Foundation and the Iowa Skilled Trades Academy, which provides pre-apprenticeship skills and training in fields specific to home building.
Getting the Word Out
The HBA of Des Moines, the HBA of Iowa and several partnering organizations did an excellent job reaching out to area newspapers and industry media to raise the prominence of the need for skilled trades and how they are both important and rewarding jobs.
NAHB has been a long-time proponent of association health plans, which would empower small businesses to pool together to purchase health insurance plans for their employees.
Now that President Trump has signed an executive order that would ease restrictions on association health plans, what’s the next step to make this a reality for local HBAs across the land?
While we are very excited by Trump’s actions in signing the executive order on association health plans, there are still a lot of unanswered questions moving forward. Though the general intent is clear, the executive order itself does not change existing law. Rather, it directs federal agencies to determine the extent of the regulatory actions they can pursue to meet the President’s health care directives.
Those actions are likely limited compared to legislative steps like NAHB-supported bills passed by the House and pending in the Senate that could make more substantive and permanent changes to the law to expand the ability of businesses to form association health plans.
The executive order directs the Department of Labor to consider proposing regulations or guidance on association health plans within 60 days. As a result, it will be weeks if not months before we see a proposal take shape. NAHB will have a better idea of how plans would need to be structured and how state insurance regulators will respond once that becomes available.
Additionally, it is likely that there will be legal challenges mounted that could further slow the process as implementation starts to take shape.
NAHB remains engaged with Congress and the White House on this matter and will continue to monitor the executive order’s implementation and quickly determine what our best opportunities – and those of our affiliated HBAs – may be.
NAHB Senior Officers have already begun discussions to make sure the association stays on top of the issue and is positioned in the best possible way moving forward.
For more information, contact Alexis Moch at 800-368-5242 x8407.
President Trump shakes hands with NAHB First Vice Chair Randy Noel after signing the executive order.
President Trump today signed an executive order that would ease restrictions on association health plans and health reimbursement accounts to create more options for small businesses to provide health benefits to their employees.
NAHB has long led the fight in support of association health plans, which would grant small businesses access to better and more affordable health care plans, allow them to negotiate lower costs for coverage, and level the playing field for smaller firms that want to help their workers and their families with their health care needs.
Attending the White House signing ceremony, NAHB First Vice Chairman Randy Noel said the president’s executive order “would empower home building firms such as my own and countless other small businesses to pool together through association health plans to purchase health insurance. This would put small businesses on an equal footing with large employers and unions when it comes to negotiating lower insurance rates.”
Moreover, the executive order would expand the use of health reimbursement arrangements, which allow small businesses to offer pre-tax dollars to insured employees to help pay premiums and/or other out-of-pocket costs associated with medical care and services.
The IRS issued guidance in 2013 prohibiting the use of health reimbursement arrangements and NAHB led the charge to pass legislation in 2016 that would not only reinstate their use, but also abolish punitive IRS penalties associated with them.
While the president’s executive order is an important step forward to address the issue of health care affordability for America’s employers, much more needs to be done to make the expansion of association health plans a reality.
It is still unclear what actions federal agencies will take to implement the changes outlined in the executive order and how states will respond to the presidential directive.
With small employers struggling to find affordable health care in the marketplace, NAHB will continue to work with the White House, Congress, and state and federal regulators to ensure the president’s executive order can be enacted across the nation.
For more information, contact Alexis Moch at 800-368-5242 x8407.
HBA members raised more than $77,000 for this Tulsa nonprofit.
The HBA of Greater Tulsa, Okla., Remodelers Council and the HBA Charitable Foundation has presented Family & Children’s Services, a leading provider of behavior health care and family services for that city, a check for $77,853.
The money was raised at the annual Evening of Giving Gala held by the HBA Charitable Foundation and was the second year of a pledge to help replace the roof on the Family & Children’s Services Sarah and John Graves Building. It will be matched with a $45,000 grant from Morningcrest Healthcare Foundation to complete the roof project.
The Evening of Giving Gala doubled its fundraising goal in 2017, raising over $170,000 for both Family & Children’s Services and the HBA Charitable Foundation. The event was the most successful in HBA history, raising over $100,000 more than the previous year.
“We were so honored to partner with Family & Children’s Services to help provide support and financial resources to such a worthy organization,” said gala chairs Jerry and Tana VanCleave.
The Sarah and John Graves Mental Health Center sees over 600 people per day. Staff members work with hurting and abused children, strengthen families, and help provide hope and a path to recovery for those battling mental illness and addiction. It offers 50 programs in mental health, substance abuse, and child and family services serving people of all ages providing care regardless of ability to pay.
What are your business’ unique qualities? How do you make your business stand out from the competition? What steps can you take to get your audience’s attention and boost sales?
Speaker Brian Flook, MIRM, of Power Marketing, LLC, and Coldwell Banker Innovations will explore why just being better than the next guy isn’t a powerful way to differentiate your homes or your business.
Participants in this webinar will also:
Explore how to powerfully articulate your uniqueness to get your message across
Recognize how you can polarize your audience by being different in the way they want you to be
Identify your audience’s rebel tendencies to ensure that a sales proposition sticks
For questions about registration, please email Sheila Coble or call 800-368-5242 x8057.
This webinar is worth 1.0 hour of continuing education credits for the following 12 designations: CAPS, CGA, CGB, CGP, CGR, CMP, CSP, GMB, GMR, Master CGP, Master CSP, MIRM.
The latest issue of NAHB’s Sales + Marketing Ideas magazine is now available. Here are some of the highlights:
Carol Morgan, MIRM, founder and president of Denim Marketing, discusses how to create content that prospective customers, partners, influencers and “raving fans” want to share in “Creating Sharable Content.”
In “Place is What We Make it Mean,” Steven Donaldson, a brand strategist for RadiantBrands in Berkeley, Calif., shares three examples of places that were created from opportunity or marketing magic (or a little bit of both).
In “Inside Out,” Mollie Elkman of Group Two, and Kerry A. Mulcrone, MIRM, of Kerry & Co., present four elements that will help your sales and marketing team communicate your company’s messaging in a genuine way.
Power Marketing’s Brian Flook contributes a great Tech Zone (powered by Samsung U.S.) about the metrics builders need to know, and Robert August answers a reader question in “Ask a MIRM.”
These topics and much more can all be found in the Sales + Marketing Ideas magazine app. If you don’t have the app yet, download it for free from the iTunes app store (Apple) or the Google Play store (Android).
The 55+ housing industry is quickly evolving. Buyers have unlimited resources for research, competition is exploding and the traditional model of massive active adult communities is giving way to those who want to do more — with less.
The webinar 18 Trends for 55+ Housing in 2018 will explore ways to make your properties stand out and increase sales momentum. Join NAHB on Wednesday, Oct. 4, from 2-3 p.m. ET as we discuss topics such as:
Major trends for the 55+ housing market
Desired floorplans and amenities that best fit the needs of 55+ buyers
Strategies for boosting your 2018 sales
Don’t miss this chance to better understand trends that can grow your business — register today.
This webinar will be presented by Deryl Patterson of Housing Design Matters and John Rymer of Rymer Strategies.
Entries are now open for NAHB Student Chapter members for the annual Student Competition, which takes place at the International Builders’ Show (IBS) in Orlando this January.
For over two decades, this national program — formerly known as the Residential Construction Management Competition — has given thousands of high school and college students the opportunity to apply skills learned in the classroom to a real construction management project or proposal.
The panel of judges who will review the proposals consists of construction company executives. During the 2018 IBS, students will defend their proposals to the judges in front of an audience.
The National Housing Endowment can provide money for NAHB Student Chapter members to help offset travel expenses. Chapters must apply by Oct. 31 to be considered.
Webinars to help explain the competition process will be held this fall for students and — new this year — for their coaches, as well. For additional information about the webinars, contact Mary Byrnes.
NAHB’s Professional Women in Building Week, Sept. 18-22, is an opportunity for members across the Federation to bring awareness to the vital contributions of talented women in the residential construction industry.
Make plans now to celebrate this week in your community. Here a a few simple ways that members and HBAs can honor these trailblazers in our industry:
Highlight the important and growing role of women within the industry at a membership meeting or community event. Share their contributions in a newsletter or website.
Plan a local eventthat honors women whose achievements benefit the home building industry and their community.
Change your profile picture on Facebook, Twitter or other social media platforms for the week. Download the PWB Week graphic at nahb.org/pwbweek and use it to spread the word.
Write an articlefor your local paper or a blog post for your website that shares resources to encourage women to pursue careers in engineering, skilled trades and other professions that support the home building industry.
On Wednesday, Sept. 6, NAHB members struggling to find workers locally during their busy season can learn how to access temporary foreign labor through the H-2B visa program.
While the long-term solution to the labor short issue requires the development and retention of more skilled workers domestically, supplementing a regular workforce with temporary labor can help provide short-term relief for some builders and specialized trades.
The H-2B non-agricultural guest worker program can be used by businesses to fill short-term or seasonal positions. Each year, 66,000 visas for lesser-skilled foreign workers are made available to employers who can make the case that their labor need is temporary and they cannot find workers locally to take open jobs. In past years, roughly half of the visas have gone to landscaping businesses.
This free webinar will help NAHB members learn whether they could qualify to apply for H-2B workers and the steps they must take to become certified employers under the program. The next round of H-2B visas become available Oct. 1, so interested employers will need to begin preparing now.
A Developer’s Guide to Post-Construction Stormwater Regulation provides state-by-state breakdowns of different regulatory approaches.
It’s no secret that stormwater regulations are getting more complex. Are you prepared to advocate for smart, flexible and affordable requirements the next time your state permit comes up for renewal?
The online toolkit helps builders and their HBAs make the case for programs that provide a clear path to compliance, reduce redundancy, and help meet water quality goals.
Contents include
“Stormwater 101” – an introduction to the topic
A look at EPA’s small lot template, a streamlined approach for smaller projects
State-by-state breakdowns of national permitting trends
Tips for how to make green infrastructure, also known as low-impact development, work in your community
There’s plenty more, including planning checklists and links to resources from other organizations to help you better manage your stormwater issues.
As part of the toolkit launch, NAHB this week released A Developer’s Guide toPost-Construction StormwaterRegulation. This report breaks down state-by-state data on five top post-construction permitting issues affecting members in the field:
Maintenance responsibility
Flood control
Green infrastructure and LID requirements
Off-site compliance and fee-in-lieu options
Market-based mechanisms and incentives
“This research will allow professionals in the construction and development industry to learn what’s being adopted across the country and how their state fits in,” said Daniel Lloyd, chair of NAHB’s Environmental Issues Committee.
“Since there is no one-size-fits all approach when it comes to stormwater, we wanted to provide simple checklists that compare pros and cons of different regulatory approaches based on climate, geography, and local land use patterns. Our hope is this data will be a powerful tool for our members to use when sitting down with state regulators to find a recipe that works.”
A new law in Colorado aims to address one of the greatest challenges to recruiting skilled labor: dispelling the myth that all successful career paths require a college education.
The Denver Post reported this week on the implementation of House Bill 1041, which requires public schools to inform high school students about opportunities in trade schools and military service, and what they need to do follow these equally rewarding career paths.
“The law will help reintroduce skilled trades to high school students, who can earn early apprenticeships and exposure to good-paying jobs right after graduation,” the article stated.
“We believe that every little bit helps change the myth that everyone should rack up massive college debt instead of entering the world of construction trades and generating positive income and a rewarding career,” said Scott Smith, CEO of CAHB.
Skip Howes, president of Scott Homes Ltd. in Woodland, Colo., and chair of NAHB’s Public Affairs Committee, believes the law is an important step to help students understand the range of exciting opportunities in the housing industry.
“This new law will open doors for students who are not college-bound and who don’t want to become burdened with overwhelming student loan debt for a degree that is not providing them with viable, productive jobs,” Howes said. “When skilled training is tied to community college courses in business management and accounting, students can learn a trade and even become entrepreneurs in their own businesses.”
NAHB’s Skilled Workforce Development Resources provide members and HBAs with valuable tools to reach out to educators, parents and students, and begin the conversation about the in-demand career opportunities in the construction trades. For example, the sample lesson plans, internship guide, and state-specific salary data help building professionals engage with students as early as the middle school level.
Members can also share public resources with educators and industry partners at nahb.org/workforce.
Craig Drumheller wanted to know why the ductwork for his home air conditioning system ran through the highest and hottest portion of his attic, making the system work extra hard to keep the conditioned air cool. Why was the practice of burying the ductwork in the attic insulation prohibited in his jurisdiction?
As the director of codes and standards at NAHB, Drumheller knew that burying ductwork in the attic insulation was not explicitly prohibited by the building code. He also understood that code officials were concerned about condensation on the ducts, causing moisture problems, displaced attic insulation and possibly reduced energy efficiency.
Drumheller talks about the problem – and what NAHB did to solve the issue for the 2018 edition of the International Energy Conservation Code to be published this fall – in the latest issue of the Journal of Light Construction.
After research, Drumheller found that burying ductwork in attic insulation actually saves energy, and the concern about condensation was only regional when employing higher efficiency levels of the new energy codes: The condensation issue could be addressed with higher levels of duct insulation.
When he heard that some NAHB builder members were also wondering why they were prohibited from burying ducts in the attic insulation, Drumheller worked with the Construction, Codes and Standards committee members and the industry experts at Home Innovation Research Labs to amend the code and clarify that “burying” attic ducts to insulate them from heat and cold is an appropriate option throughout many parts of the country.
However, there may be different requirements depending on an area’s typical temperature and humidity factors.
Read how they did it, and why and when home builders might consider this option in their next construction project.
Bonus for NAHB members: Home innovation Research Labs has also written a TecSpec that details the code requirements, techniques and benefits of burying ducts in attic insulation.
After working in home building for more than 40 years and serving in a variety of prominent advocacy and leadership roles, Bob Hanbury last month entered the next phase of his career: retirement.
Bob Hanbury as he presents awards to the winners of the HBRA of Central Connecticut’s Student Design Competition in 2014 in Hartford, Conn. Photo courtesy of Matthew J. Wagner Photography.
But for Hanbury — who founded House of Hanbury Builders in Newington, Conn. with his brother in 1976 — retirement won’t mean leaving behind the industry about which he is so passionate. He’s a lifer.
“Even after you retire from the business, you don’t give up on the industry,” Hanbury said. “You make your living doing this, which is why I want to stay involved to help make sure the industry keeps improving.”
An NAHB member for nearly four decades and a former NAHB Remodelers chair, Hanbury recently moved to Florida where he intends to join the local HBA and continue serving in whatever capacity he can. “My membership is like family — I can’t give it up,” he said.
Hanbury might best be known as an authority on lead paint and a fervent advocate for practical regulations.
“Bob’s knowledge of the industry has allowed him to bring extensive on-the-ground experience and expertise to bear when testifying on behalf of NAHB before EPA,” said Susan Asmus, NAHB’s senior VP of regulatory affairs. “In recent years, he has testified multiple times on the regulatory burden of implementing federal lead paint regulations that have failed to meet expectations set by the agency.”
His commitment to helping the industry progress stems from a lifetime surrounded by home builders. His grandfather was a home builder and a charter member of the HBRA of Central Connecticut. Hanbury’s dad would later become president of that HBRA, and eventually, Hanbury himself served in that role.
Following decades of dedicated service, Hanbury says he knew “it was time to go to greener pastures and enjoy life.” He had started planning for retirement about six years ago, but looking back, he wished he started much earlier.
“I don’t think a lot of builders spend enough time and energy on [planning for retirement]. You might think you can just do it overnight, but it doesn’t happen like that,” Hanbury said. “Liquidating assets at the right time and at a value you can feel good about is a very hard thing to do.
“Even if you think you’re prepared, often times you aren’t,” he said.
Now into his first full month of retirement, Hanbury took a moment to reflect on his career and the ever-evolving remodeling industry. Here’s a portion of what he had to say:
How has remodeling changed in recent years?
“There has been a dramatic shift in how we do business, largely because there’s so much misleading information out there. It’s created a perception that remodeling is cheap, extremely fast, and easy enough that [a consumer] can figure anything out online overnight, and then tell the contractor how to do the job. It’s reshaped the remodeler-customer dynamic, which now hinges more on education and building trust.”
What do you see as the biggest challenge(s) facing the industry?
“Workforce development is certainly a growing concern. A large number of industry pros who have essential remodeling experience are nearing the end of their careers, and with fewer youth pursuing the trades, it will be increasingly difficult to pass along all of that knowledge and expertise to the next generation. Eventually, I’d like to see groups of retired contractors engaged in recruiting and training more youth to help ensure the industry continues to grow.”
What advice would you give to other remodelers and home builders planning for retirement?
“Timing is everything. My advice would be to create a plan that gives you a window of at least 2-3 years in which you can adjust your retirement date, depending upon economic circumstances. And don’t buy equipment when you’re nearing retirement. Instead, rent or borrow what you need, and only hire employees who are fully equipped. Because when it comes time to sell, you’ll be lucky if you get 10 cents on the dollar.”
The term universal design has been traced back to the late 1970s, when, according to a timeline from Professional Builder magazine, architect Ron Mace coined the term. This 70’s invention turned into an NAHB educational designation focusing on retrofitting existing homes.
It’s not exactly a “secret” weapon if more than 3,000 builders and remodelers across the country are using it to attract new business. But for the last 18 years, the Certified Aging-in-Place Specialist (CAPS) designation has given these industry pros a competitive edge.
Many Americans have no intention of moving out of their homes as they age. Investing in home modifications seems like a much more appealing option. Even small improvements can make an enormous difference in the safety and comfort of their home, especially if they begin to experience mobility issues.
Tom Ashley and Curt Kiriu are CAPS building professionals and NAHB members who find CAPS-focused work to be both professionally profitable and personally rewarding.
“Hawaii is a small market, but I have been nonstop busy since mid-2009, and the demand for my services continues to grow each year,” said Kiriu. “It is difficult to keep up, but I wouldn’t want to do anything else.”
While CAPS modifications can encompass countless projects, here are five particularly crucial areas to think about when trying to make a home safer and more comfortable while maintaining its orginal beauty and character.
Bathrooms. Here’s where falls happen. But turning the tub into a zero degree entrance shower can reduce the risk.
“People don’t realize that a two- or three-inch step up can basically be like climbing a mountain,” said Ashley. “Most of our clients use zero-degree entrance showers, which is a shower that has no step up. It’s clean. It’s crisp. It’s user friendly. It’s wheelchair accessible. And it even looks better.”
If you want a bench seat, make it either completely removable, or have it be able to fold into the wall in case wheelchair access is needed. Additionally, raising the toilet and adding a grab bar can make it easy and safe to use.
Kitchens. Storage, especially in older homes, can be a maze of cupboards and cabinets that are extremely deep and close to the ground.
Including full extension doors, pull-down shelves and swing-away corner shelves helps avoid constantly bending down and reaching far back to feel around for a can of beans.
You can also make your faucets touchless or replace knobs with levers to make turning water on and off easy for people with arthritis or trouble with fine motor skills.
Lighting. Make sure all hallways and entrances have accessible and adequate lighting so you don’t have to feel your way in the dark. Install a light above the shower for easy bathing. However, keep in mind that not just any kind of lighting will do.
“Vanity light fixtures that illuminate the ceiling and walls are best, rather than ones that shine directly in your eyes,” said Kiriu.
Entryways. Adequate security is especially important for aging people, and adding motion-activated lighting to entrances can make also looking for your keys a much safer process.
Ramps, rather than stairs, allow for easy wheelchair access and avoid tripping when walking up to the door.
However, if you’d like to keep your stairs in place, widening the depth and width of each stair and widening the landing can make it much easier to navigate.
Stable railings and no step up entrances are an obvious must for entrance ways as well.
Grab Bars. This is one a no-brainer. Adding grab bars in the bathroom, hallways, entrances and any other vulnerable places gives home owners peace of mind. And you don’t even have to sacrifice aesthetics for security.
“When we first started out everything was stainless steel,” said Ashley. “Now, they have slim designs with different finishes and they really look nice and ornamental.”
For builders and remodelers, a CAPS designation can expand your market, and offers an extremely rewarding experience with your client. It requires empathy, critical thinking and creative problem solving, but the reward is unlike any other.
“The type of work that many CAPS professionals do has the opportunity to make a direct and immediate positive change in their client’s lives,” said Kiriu. “They are not many businesses, jobs, careers, that can make that statement.”
For more on how to earn a CAPS designation, go to nahb.org.
Sustainable building has never been more popular, and the 2018 International Builders’ Show has many great activities for people who want to learn more about this in-demand type of home construction.
IBS attendees should visit the High Performance Building Zone (HPBZ) to watch hands-on demonstrations, including daily 30-minute presentations on building sustainably in different parts of a home.
Sustainability experts will demonstrate the latest in high performance building techniques at the 2018 International Builders’ Show.
The HPBZ’s new Building Performance Lab will display high-performance techniques “in action” in a finished model home. Through cutaways and see-through sections, attendees can see how high-performance wall systems, floors, HVAC, insulation and other features are constructed and finished.
There also are valuable education sessions for sustainable builders, including the master session How Do I Avoid This? Conquering Home Performance Errors Before and After Construction. This session will examine some common design and construction errors, and look at ways to fix them early to mitigate long-term (and expensive) damage control.
To register and learn more about the International Builders’ Show, visit BuildersShow.com. For more information about NAHB’s sustainable building programs, contact Jaclyn Toole.
Members of the NAHB Building Systems Councils are celebrating Building Systems Week Aug. 7-11. This week-long event aims to educate NAHB members and consumers on the advantages of systems-built homes over traditional stick building.
Prefabricated in an efficient, controlled setting, systems-built homes, which include modular, panelized, concrete, log and timber-framed homes, provide home owners a building alternative that often saves time and money.
For home builders, adopting building systems can alleviate many of the concerns facing today’s housing industry, most notably the cost and availability of labor. With the majority of construction taking place at the factory, systems-built homes require fewer man hours to build once they arrive on site.
Systems built homes also score high on the green-building scale as material waste is significantly reduced in the factory and jobsite. Assembly in an enclosed environment allows systems-built homes to fulfill key components of green building certifications, including the ICC/ASHRAE 700 National Green Building Standard.
“One huge advantage is that instead of using multiple subcontractors and trades people, a builder or developer partners with a manufacturer to outsource much of a home’s construction, significantly reducing on-site build time,” said BSC Chairman Norm Hall, territory manager and factory-built structures industry manager for Simpson Strong-Tie. “BSC members have been at the forefront of new construction techniques and building technologies, which ultimately benefits the consumer.”
In conjunction with Building Systems Week, the BSC is hosting a free webcast on Aug. 10 from 2-3 p.m. ET titled “Builders and Manufacturers — The Money is Over Here.”
Led by Valerie Jurik-Henry, a 30-year veteran of the housing and healthcare industry, the event will cover adaptive housing, which has become an increasingly important topic in the home building community. As America’s baby boomers eclipse retirement, the demand for aging-in-place housing will continue to grow.
Consumers will also have an opportunity to learn and ask questions about how building systems products can help meet their adaptive housing needs. To register, contact Devin Perry.
To find out more about the Building Systems Councils and its members, contact John Lingerfeltat 800-368-5424 x8357 or visit nahb.org/whybsc.
The 2018 NAHB International Builders’ Show® returns to the Orange County Convention Center in Orlando Jan. 9-11, and will again co-locate with the National Kitchen & Bath Association’s Kitchen & Bath Industry Show for the fifth annual Design & Construction Week.
During August, IBS registrants can take advantage of several registration discounts. For a full list of offerings, visit BuildersShow.com/august.
The two shows are expected to host more than 2,000 exhibiting brands spanning more than one million square feet of exhibit space — the largest annual gathering of the residential design and construction industry.
“Housing industry professionals from all over the world flock to this show because of its incredible display of products, top-notch education sessions and unbeatable networking opportunities,” said NAHB Chairman Granger MacDonald. “Each year’s show features more than the last. There is truly nowhere else that you can find all of these offerings in one place.”
In addition to the expansive show floor, attendees can choose from more than 140 education sessions led by renowned experts on a wide range of industry topics, while the IBS Centrals offer more targeted networking and education programs in remodeling, design, 55+ housing and more.
IBS attendees will again enjoy featured product demos, the High Performance Building Zone featuring a series of interactive sessions on sustainable technologies, and IBS Live! sessions showcasing lively demos and presentations focused on what’s next in home building.
And for the second year in a row, the IBS show floor will feature the CEDIA Pavilion, a space showcasing exhibitors who specialize in technology solutions for the home.
The 2018 show will give attendees their pick of numerous special events. The show kicks off on the morning of Jan. 9 with an exciting opening ceremonies event featuring four-time Super Bowl champion quarterback Terry Bradshaw and caps off with the Official IBS House Party that evening.
Other events throughout the week include the Young Pro Party and the IBS Spike Closing Concert, where attendees will enjoy a performance of greatest hits from the legendary Rock & Roll Hall of Fame band Chicago.
Attendees will also have the opportunity to tour NAHB’s official IBS show homes, The New American Home® and The New American Remodel™. The homes are designed to showcase innovative building technologies, emerging design trends and the latest building products. Illustrating two different building designs, The New American Home is a stunning display of building innovation that blends traditional and modern architecture to create a transitional design, while The New American Remodel demonstrates the countless possibilities for a complete transformation of a 1930s home using today’s products and building techniques.
The showcase products in the homes are provided by members of the NAHB Leading Suppliers Council, and Professional Builder and Professional Remodeler magazines will once again serve as the media sponsors of the 2018 show homes.
The Summer House at Auberge in San Diego, developed by CalAtlantic Homes, was a winner this year of the NAHB Best of 55+ Housing Awards.
Builder confidence in the single-family 55+ housing market strengthened in the second quarter of 2017 with a reading of 66, up 11 points from the previous quarter, according to the NAHB 55+ Housing Market Index (HMI) released today. This is the 13th consecutive quarter with a reading above 50, which means that more builders view conditions as good than poor.
“Demand for 55+ housing continues to grow, and this quarter’s index is a reflection of that,” said Dennis Cunningham, chairman of NAHB’s 55+ Housing Industry Council and president of ActiveWest Builders in Coeur d’Alene, Idaho.
“Consumers in this market want a home that addresses their specific needs, and 55+ builders and developers are able to create homes and communities that cater to these needs.”
There are separate 55+ HMIs for two segments of the market: single-family homes and multifamily condominiums. Each 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic).
All three components posted increases from the previous quarter: Expected sales for the next six months increased 12 points to 80, an index high, while present sales rose eight points to 70 and traffic of prospective buyers jumped 19 points to 53, also an index high.
The 55+ multifamily condo HMI rose seven points to 53, with all three components posting gains in the second quarter: Present sales increased six points to 56, an index high, while expected sales for the next six months and traffic of prospective buyers both rose eight points to 55 and 45, respectively.
All four indices tracking production and demand of 55+ multifamily rentals posted gains in the second quarter: Present production rose three points to 53, expected future production climbed eight points to 52, current demand for existing units increased two points to 66 and expected future demand rose five points to 67.
“We are seeing strong demand due to favorable market conditions, such as record highs in the stock market and rising home prices,” said NAHB Chief Economist Robert Dietz. “This quarter’s reading is in line with our forecast, as we expect to see continued gradual gains in 2017.”
The Southshore community in Aurora, Colo. won the 2017 Gold Award for Best Graphic Continuity for their “Life at the Lake” marketing campaign.
Now in its 37th year, NAHB’s National Sales and Marketing Awards program, The Nationals℠, is open for entries.
Honoring the best in new home sales, marketing and design, The Nationals competition pays tribute to superior new home sales and marketing achievements by individual sales and marketing professionals, home builders and associates, and local sales and marketing councils. The deadline to enter is Oct. 18.
Recognizing builders and consultants for outstanding product design, interior merchandising, sales office design and landscaping, the competition will also continue to honor the most inspired new home marketing and merchandising efforts, including logo design, graphics, brochures, signage, advertisements, overall advertising campaigns, special promotions and website design.
Silver Award winners (finalists) in each category will be announced online Nov. 14. Gold Award winners will be announced during the NAHB International Builders’ Show® at the Nationals Gala Tuesday, Jan. 9, 2018, at the Hyatt Regency Orlando.
Bay to Beach Builders completes about 50 homes a year in southern Delaware and Maryland’s Eastern Shore. Photo: Jeff Murphy
Deric Parker’s home building business was just getting its feet wet when it was slammed with a tidal wave.
Launched in 2003, Parker’s Bay to Beach Builders in Greenwood, Del. was scrambling to keep itself together as the Great Recession hit. He was a good builder, he said, “but we realized that there was a lot we didn’t know about our business.”
While he was a member of the HBA of Delaware, Parker said he hadn’t really availed himself of any member benefits and services. “We started looking for resources,” Parker said. “Most guys like me start out working for someone else, and when you start your own business, it doesn’t come with an owner’s guide or a manual.”
Through his HBA, Parker learned about NAHB and the annual International Builders’ Show® (IBS). He scanned through the IBS education offerings. Maybe going to a few sessions could help?
Parker took the plunge. “My wife and I and two of our team members went,” he remembered. They enjoyed the exhibits and seeing the new products on display, but their focus, he said, was on education.
“We knew how to build homes, but there were a lot of aspects of the business we didn’t really do the way we needed to,” he said.
He needed a better hold of process. Taking IBS business management sessions and having the opportunity to talk later with the instructors was eye-opening, Parker said.
Before, “We’d get a contract and as quickly as we could we’d get a permit and we tried to get construction started,” Parker said. Through one IBS class, “One of the simplest things we learned how to do was to slot all our starts on a calendar and have the sales team fill each slot. We aren’t going to build more homes than we can efficiently handle. It’s very much controlled and our trade partners love it. Instead of operating out of chaos it’s a much, much more orderly process. We aren’t scrambling like we had been.”
He brought his sales team to the marketing classes. He joined roundtables facilitated by IBS instructors to trade ideas and learn new skills. Now, focusing on IBS education is part of the Bay to Beach Builders business plan.
“We take different team members each year — someone from sales, a project manager — four or five of us go,” Parker said. “We go through the education schedule pretty thoroughly so we can get a lot of coverage, and we take a lot of notes.” And even though Bay to Beach has been attending classes for 10 years now, “There’s always a couple little things that you can come up with,” Parker said. “We’re fine tuning — and we can make small gains here and there.”
From a company that grossed $2-3 million a year 10 years ago, Parker’s business now has 18 employees, does about 50 starts a year, and brings in $16-17 million annually. He credits hard work, faith and the International Builders’ Show.
Registration opens today for the 2018 Show. The best registration discounts are in August, but Parker said there are bigger reasons to sign up.
“IBS introduced us to people who could dig deep into our situation and help us a lot. I encourage anybody to go and learn something. It really did transform our company,” Parker said. “It’s part of the reason why we are still here, and our competitors are not.”
Former HBA of South Carolina President Steven Mungo represented the HBA at a “waters of the U.S.” roundtable discussion July 24 with Environmental Protection Agency Administrator Scott Pruitt – the fourth stop on a State Action Tour the agency is conducting to gauge the pulse of industries most affected by federal regulations.
Pruitt gave attendees a status update on the 2015 WOTUS rule and explained what a new rule would look like. He then listened to the home building industry’s perspective on EPA regulations.
The event, held in Cameron, S.C., was hosted by state Agriculture Commissioner Hugh Weathers. Joining Weathers was state Attorney General Alan Wilson, Sen. Lindsey Graham (R), Rep. Joe Wilson (R) and state Senator Danny Verdin.
Also attending the roundtable were HBA of South Carolina Executive Director Mark Nix and BIA of Central South Carolina Executive Director Earl McLeod.
Pruitt and top EPA officials held previous events in Salt Lake City, Minneapolis and Little Rock, Ark. For additional information, contact Owen McDonough at 202-266-8662.
The most successful companies are typically known for innovative strategies, delivering superior products and consistently providing high-quality service.
Michael Menn (center) poses at the awards ceremony where he was honored as Remodeler of the Year.
But rather than simply saying your work is exemplary, validate it.
NAHB Remodelers’ annual awards program is the perfect platform for remodelers to showcase how their work measures up against their peers. And those who have been honored previously for their outstanding work will attest to the benefits of being recognized.
“Winning the Remodeler of the Year award was one of the highlights of my career, especially because my fellow remodelers were the ones who did the judging,” said Michael Menn, principal of Michael Menn Ltd., who received the award in 2016.
“The positive response from my clients and peers was mind blowing. And the added recognition it brought to my company has been a tremendous benefit.”
Those interested in applying for an award or nominating a peer can do so in any of several categories:
Council Awards for Demonstrating Remodeling Excellence (CADREs) are the highest national awards for work by local remodelers councils and individuals, recognizing professional excellence in leadership, community service, government affairs, membership, education and public relations.
Homes for Life awards recognize active Certified Aging-in-Place Specialist (CAPS) designees for excellence in design and/or home modifications in a remodeled home.
NAHB Remodeler of the Year award recognizes exemplary NAHB involvement, superior business management and outstanding contributions to the remodeling industry.
National Remodeling Hall of Fame honors individuals who have made a significant, lasting impact on the remodeling industry.
NAHB Remodelers One to Watch — new for 2017 — honors an NAHB Remodelers member under the age of 40 for outstanding career, community and remodeling industry accomplishments.
The schedule is being finalized for the the 2017 LANDS Housing Law CLE & Roundtable, NAHB’s annual cutting-edge continuing legal education program designed for attorneys, professionals within the home building industry, and academics involved in land-use planning, zoning, permitting, property development, environmental protection and related litigation.
The conference takes place Oct. 19-20 at the National Housing Center, NAHB’s Washington, D.C. headquarters.
Presentations by preeminent practitioners, academics and government officials include:
Lucas After 25 Years: Has the Sky Fallen? This landmark “takings” case resulted in a Supreme Court decision requiring just compensation under the 14th and 5th Amendments. What has changed?
The Supreme Court and Murr v. State of Wisconsin. Presenters will talk about the ramifications of this June 2017 decision on commonly owned and contiguous land.
A look at California case law, how New York City zoning decisions adopt to stay current with land use trends, and more.
Discounts are available for first-time attendees as well as HBA staff. For more information and to register for this year’s event, go to nahb.org/lands.
Do you have a great idea for a book? Do you have home building industry experience you want to share? Is there a topic you are interested in, but can’t find any resources on it?
BuilderBooks, the publishing arm of NAHB, is always on the lookout for new authors and new topics. NAHB members are our best resource for industry experience and current trends.
Among countless factors consumers must consider when shopping for a new home, one is chief among them: affordability.
If the price is out of reach, compromises will need to be made or the purchase will need to be postponed.
NAHB wants to help keep that dream of homeownership alive for as many consumers as possible. That’s why last year it led a coalition of housing industry groups that pushed for higher limits on both single-family loans insured by the Federal Housing Administration, as well as those purchased by Fannie Mae and Freddie Mac.
Increasing the limits has resulted in lower borrowing costs for home buyers, making the purchase of a new home more feasible and more appealing to more consumers.
“With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand,” said NAHB Chief Economist Robert Dietz.
But consumers aren’t the only ones who benefit from higher loan limits. Builders do, too.
By totaling the portion of increased sales of new homes, the average value to builders is estimated to be an additional $1,000 per housing start in 2017.
For more details on the value of this legislative victory and other member benefits, visit nahb.org/value2017.
The online application for the 2018 NAHB committee and council board of trustees appointments are now being accepted. We strongly encourage all those who may be interested to submit an application. Applications must be submitted before Sept. 22, so don’t delay.
Current committee and council members are reminded that you need to re-submit an application this year if you want to continue serving; there are no automatic multi-year appointments. It is important that you read all of the criteria on the application before submitting your request. Please direct any questions about the committee appointment process to Cyndi McKinley (800-368-5242 x8346).
NAHB Remodelers member Nick Scheel, CGR, of Arrow Kitchen and Bath in Spokane, Washington, created a walk-in bath that combines safety and high style.
The NAHB Remodeling Market Index (RMI) posted a reading of 55 in the second quarter of 2017, down three points from the first quarter.
For 17 consecutive quarters, the RMI has been at or above 50, which indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.
“While remodelers continue to see robust demand across the country, the lack of skilled labor continues to be a serious issue,” said NAHB RemodelersChairman Dan Bawden, CAPS, GMB, CGR, CGP, a remodeler from Houston. “Remodelers are finding they have to decline projects because they can’t hire enough skilled staff to keep up with the demand.”
An overwhelming majority of respondents — 84% — stated that the cost/availability of labor is the most significant challenge residential remodelers are currently facing.
At 55, current market conditions declined three points from the first quarter of 2017. Among its three major components, major additions and alterations waned three points to 54, minor additions and alterations decreased six points to 53, and the home maintenance and repair component fell three points to 57.
The future market indicators index stood at 55, also slipping three points from the previous quarter. Calls for bids fell three points to 56, amount of work decreased five points to 53, and the backlog of remodeling jobs dropped four points to 58. Meanwhile, appointments for proposals rose one point to 55.
“The RMI has remained above 50 for the past four years, indicating strong demand for remodeling work,” said NAHB Chief Economist Robert Dietz. “However, the challenges posed by rising labor and material costs will constrain remodelers’ ability to increase production at a faster pace.”
For the full RMI tables, please visit nahb.org/rmi. Learn more about joining NAHB Remodelers on this page.
But that’s not all that happened here in Washington in June. NAHB committees, councils and trustees for various boards met to discuss issues of importance to their members. Here’s what they talked about.
And in addition to the Hall of Fame induction, the NAHB board also talked about recruitment and retention efforts, proposals to restructure the association’s governance, and heard from two candidates for NAHB third vice chair. Watch the board videos.
The videos and the bullet points are tools for our state representatives and other members of the NAHB Board of Directors to share the business of the association with the builders, remodelers and suppliers unable to attend these national meetings.
We want to make sure that every member of our great Federation has a better understanding of the depth and breadth of this association. The more we know, the more likely we are to lend a hand to the great work we all do.
The plan for Cortesa at Esencia in Mission Viejo, Calif., by Shea Homes won a gold BALA award for design.
Nationwide housing starts rose 8.3% in June to a seasonally adjusted annual rate of 1.22 million units, according to data released this morning from HUD and the Commerce Department.
Single-family production increased 6.3% to a seasonally adjusted annual rate of 849,000 units from a below-trend May reading of 799,000, while multifamily starts rose 13.3% to 366,000. Single-family production was at its second-highest rate this year.
“We are encouraged by the June production report, but our builders continue to express concerns about lot and labor shortages and building materials price increases,” said NAHB chair Granger MacDonald.
“We are seeing housing production return to trend after a softer reading last month,” said NAHB Chief Economist Robert Dietz. “The gradual growth in single-family starts in 2017 is in line with our forecast, and we should see this sector continue to strengthen throughout the year as consumers show interest in the housing market.”
Regionally in June, combined single- and multifamily housing production rose 83.7% in the Northeast, 22% in the Midwest, and 1.6% in the West. Starts fell 3.8% in the South.
Overall permit issuance in June was up 7.4% to a seasonally adjusted annual rate of 1.25 million units. Single-family permits increased 4.1% to 811,000 units while multifamily permits jumped 13.9% to 443,000.
Regionally, overall permits rose 19.7% in the Midwest, 9.9% in the West, and 6.9% in the South. Permits fell 13.9% in the Northeast.
Builder confidence in the market for newly built single-family homes slipped two points in July to 64 from a downwardly revised June reading on the NAHB/Wells Fargo Housing Market Index (HMI). It is the lowest reading since November 2016.
“Our members are telling us they are growing increasingly concerned over rising material prices, particularly lumber,” said NAHB Chairman Granger MacDonald. “This is hurting housing affordability even as consumer interest in the new home market remains strong.”
“The HMI measure of current sales conditions has been at 70 or higher for eight straight months, indicating strong demand for new homes,” said NAHB Chief Economist Robert Dietz. “However, builders will need to manage some increasing supply-side costs to keep home prices competitive.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.”
Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three HMI components registered losses in July but are still in solid territory. The components gauging current sales conditions fell two points to 70 while the index charting sales expectations in the next six months dropped two points to 73. Meanwhile, the component measuring buyer traffic slipped one point to 48.
Looking at regional three-month moving averages, the Northeast rose one point to 47. The West and Midwest each edged one point lower to 75 and 66, respectively. The South dropped three points to 67.
That’s what ActiveWest Builders in Coeur d’Alene, Idaho does. A few years back, marketing director Sharon Cunningham and her husband, company president Dennis Cunningham, began entering their best work into regional and national awards competitions.
Every time they won an award — Gold Nuggets at PCBC, Gold and Silver winners from NAHB’s Best of 55+ Housing Awards, an Idaho Grow Smart award — Sharon would write a press release that went to local media and past clients. Then she posted it to the company’s social media pages and to the EnergyStar and U.S. Green Building Council LEED for Homes websites, because the winners were certified to those programs.
“Anyone can say they’re doing a good job,” she said, “but if an independent third party says so, that lets people know that others see the quality of your work as well.”
They also publicize their awards on a large poster at their booth at the twice-a-year local home shows. They include mention of their awards in their newspaper ads, and the actual awards are displayed in the award-winning communities’ model homes.
It’s a lot of work, but it’s worth it — it turns the awards into an auxiliary sales force. The result is clear when Sharon answers the phone and hears the caller ask, “Are you that award-winning builder?”
When Dennis became chairman of the 55+ Housing Industry Council this year, Sharon announced it to her press release list, even though it wasn’t an award. But Dennis started hearing comments from clients, who said, “I see you won another award!”
Building award-winning projects is a great accomplishment, but using them to build a reputation is priceless.
The Best of 55+ Housing Awards is open until Aug. 15. Apply today. For information, contact Lynn Basso at 800-368-5242 x8130.
Home builders and developers design homes, but they also design communities. If 4,000 acres of land nestled into four adjoining areas in rural/suburban Northern Virginia were your canvas, what would you paint?
You might look at the people who would be buying your homes, and what they like. High-end, organic produce grocers are thriving in the Washington, D.C. metro area. Farm-to-table restaurants are popular. And people are happily paying for farm produce from farm shares and gourmet-style meal-prep kits.
So people today like farm fresh produce. A lot. And they also want to be healthy, have places to walk, to run, to exercise. And everyone wants to offer their kids safe and ideally wide-open spaces to stretch their legs and their minds. Read: People don’t want to be boxed in. “Give us nature.” And of course, nice open floor-plan homes and luxurious amenities whenever possible.
Photo by Molly M. Peterson
Enter the agrihood.
Agrihoods have been popping up across the country — dubbed by some as an alternative to the golf course planned community — wherein a functioning farm or food growing is the shared amenity of a new residential development.
With the 4,000-acre blank canvas of mostly farmland and forests in Northern Virginia they’d purchased, developers of the Willowsford community created four “villages” surrounding a true family farm, as well as expansive outdoor space including 45 miles of trails, playgrounds and activity areas, two main community buildings with pools and other recreational and outdoor gathering areas.
Did we mention that this community includes its own farm? Chickens, goats, pigs, vegetables and farmers to work the land and tend the herds. The food they produce is sold onsite at a farm stand and market style and via CSA food share. And there are cooking demos for children and adults in the community’s large kitchens and meal prep spaces.
Photo by Maxine Schnitzer Photography
Is it a gleaming, high-end development? Yes. Is it also a return to the healthy eating and outdoor space focus we had before the microwave meal generation? Yes. It’s both. It’s an agrihood.
Willowsford Agrihood: By the Numbers
Opened: 2011
Land: 4,000 non-contiguous acres in total
Non-residential use: 2,000 acres are held in conservancy for outdoor recreation, farming and sustainable use separate from the HOA. 300 acres of this conservancy-managed land is used for the farm itself
Expenses: Residents pay around $190/month to the HOA and $100/year to the land conservancy
Varieties of vegetables grown onsite: Over 100
Ratio of first-time home buyers: A little over a quarter of buyers are first-time buyers. 72% are “move up” buyers purchasing their second home or beyond
Lots sold: 1,200 to date
Expected capacity: 2,100 homes
Lot size: Ranging from 1/4 acre to 1.5 acres
Average home selling price: $840,000
Willowsford has received several local and national awards, including Community of the Year from NAHB’s Nationals awards program in 2013. Willowsford Lodge, a visitor’s center for the community, was a 2013 NAHB Best in American Living (BALA) Gold Award recipient. And Willowsford has won several awards through Northern Virginia Building Industry Association’s Great American Living Awards (GALA) program, including Community of the Year in 2014.
Let’s admit it: Even those of us who loathe technology have a Facebook page. The social platform has become the go-to for everything from chatting with friends to voicing opinions to announcing new babies.
But Facebook can also be a critical tool for your business. Learn how in the Best of IBS webinar Stop Being Social and Start Selling!Wednesday, July 19, 2-3 p.m. ET.
In it, 2017 International Builders’ Show® (IBS) speaker, marketing expert and author Kevin Oakley will help you go beyond being social with your social networks. Learn how to drive real, measurable results on Facebook: increased walk-in and online traffic, appointments and sales.
Participants in this webinar will:
Examine how to develop a simple yet thorough paid Facebook strategy that drives quality traffic
Explore the different ad types Facebook offers, and which work best in different situations
Gain an understanding of what your ads must include to be effective
Learn how to integrate your paid and organic social efforts to complement each other
This webinar is part of NAHB’s Best of IBS series, which features new topics from some of the most popular speakers at IBS.
Space is limited to the first 100 participants. Register before 3 p.m. (12 p.m. PT) on Tuesday, July 18.
Earn 1.0 hours of continuing education credits for the following 12 designations: CAPS, CGA, CGB, CGP, CGR, CMP, CSP, GMB, GMR, Master CGP, Master CSP, MIRM.
For questions about registration, please email Sheila Coble or call 800-368-5242 x8057
July Presidents Report with President Dan Reeves talking about the OK Building Summit and Expo and Landmark Fine Homes and OSHBA staff having too much fun with Snapchat
The NAHB State and Local Government Affairs Committee heard presentations from four HBAs in June asking for the Federation’s help in overcoming significant local roadblocks.
Committee members recommended — and the NAHB executive board approved — grants from the State and Local Issues Fund, which provides financial assistance to HBAs as they advocate on issues affecting the affordability of homeownership.
Philadelphia’s outdated plumbing codes require steel and cast iron pipes in multifamily and single-family construction over four stories, increasing installation costs by nearly 35% and adding to the likelihood of injury on the job. The BIA of Philadelphia requested funding to help pass local legislation allowing PEX and PVC pipes in addition to steel and iron, making the codes product neutral. The committee recommended a grant of up to $5,000. Staff will also gather information for the BIA from other states that have dealt with this issue.
Construction defect litigation is on the rise in Florida, particularly involving the application of stucco to building exteriors. The state’s Unfair and Deceptive Trade Practices Act has an uncertain trigger that can begin once final payment is received. This often doesn’t allow time for the builder to fix the problem before being sued. The Florida HBA requested funding to help draft, file and pass a “Right to Cure” bill to allow time to fix human error and offer coverage for many builders. The committee recommended a grant of up to $10,000.
Fort Collins, Colo., has increased impact fees at a rate that outpaces the market need, resulting in only those citizens with above-average means to afford living in the city. The HBA of Northern Colorado requested funding to hire a consulting firm to do an additional impact fee study. They believe that keeping fees at current levels until incomes have risen proportionally to home values will not harm the city and will facilitate attainable housing for the community. The committee recommended a grant of up to $10,000.
In the last two years, the HBA of Greater New Orleans has conducted a lobbying and public relations campaign to combat mandatory inclusionary zoning ordinances, which worsen the housing affordability gap and strike at the heart of free market housing development and construction. This HBA will join forces with the Louisiana HBA as well as local Realtor and apartment associations to ensure passage of a state bill to address this issue through a robust public relations and lobbying effort. The committee recommended a grant of up to $20,000.
The committee will next meet in January before the NAHB International Builders’ Show in Orlando.
Team members (from left): Megan Enouen, Sarah Morrison, Elizabeth Dowland and Katie Anderson.
In a predominantly male industry, four young women blazed their own trail as the first all-female team to participate in the annual NAHB Student Competition during this year’s International Builders’ Show in Orlando.
The competition, formerly called the Residential Construction Management Competition, is always a highlight of IBS as it gives students across the country the opportunity to put their home building skills to the test.
Students, who are all members of NAHB Student Chapters, are given a problem that the teams must respond to by creating a proposal for a construction management project. Teams then present their proposals to a group of residential building professionals who judge the projects in front of an audience at IBS.
This year’s all-female team, from Shadow Ridge High School in Surprise, Ariz., included Elizabeth Dowland, Katie Anderson, Megan Enouen and Sarah Morrison. The team was led by Scott Thomas, a veteran coach of the competition.
“The [team’s] focus, dedication to detail, and the completion of the competition problem statement ahead of schedule was extraordinary and set this particular team ahead of any team I have had in my 35 years of teaching high school and college-level students,” Thomas said.
NAHB is dedicated to fostering the next generation of female building professionals through its Professional Women in Building Council (PWB). The council supports women in the industry through education, professional development and mentorships. PWB also is dedicated to recruiting and retaining young professionals.
“These young women are the future of the residential construction industry and PWB celebrates them. The council prides itself on partnering with NAHB Student Chapters to provide scholarship opportunities through the council’s Building Hope Scholarship Fund,” said PWB executive director Sheronda Carr.
Student Elizabeth Dowland, who has participated in a number of comeptitive events, said the NAHB Student Competition pushed her and her team to a new level. “This was the most advanced and intricate project my team and I have ever worked on…I’m proud of the outcome because it was a new experience for me.”
NAHB’s Student Chapters program offers students first-hand exposure to the real world of the building industry through NAHB membership, educational programming, and networking opportunities. Through the combined efforts of PWB and the Student Chapters program, the Student Competition should expect to see more all-female teams following in the path of the pioneering group from Shadow Ridge.
Registration for the 2018 NAHB Student Competition will open in September. For more information about Student Chapters or the Student Competition, contact Greg Zick.
For more information about PWB, contact Sheronda Carr.
This post was researched and written by Isabel Grabowski, a summer intern for the NAHB Professional Women in Building Council.
Planning and overseeing your projects has never been easier thanks to a variety of apps available on mobile devices. These apps can help you more efficiently communicate with superintendents and workers, draw up designs for projects and keep track of dates and deadlines.
Here is a quick look at five mobile apps – some are relatively new, others more established – that home builders are using. These apps focus on project, not business, administration.
Magicplan, an app geared toward interior design, allows builders to virtually – and accurately – place design elements and appliances in their floorplans. The app uses images and videos from their smartphones to construct the floorplan of the selected space. Magicplan is a solid choice for home builders, designers and others looking for an easier way to create floorplans and imagine design elements and appliances within them.
Fieldwire enables construction managers to share floorplans more easily with the rest of their teams, including subcontractors. Fieldwire helps construction managers share assignments and track hours and material costs. It’s a solid project management app for bridging the gap between office staff and workers in the field.
LumberCalc focuses specifically on materials cost evaluation. It enables home builders to scan boards and quickly convert their dimensions into board feet. The app also allows users to calculate order totals after plugging in the MBF price, and enables them to estimate dimensions for specific paneling profiles.
Where Magicplan focuses on interior design, Eagleviewis geared specifically toward roofline planning. Using GPS technology, Eagleview allows home builders to calculate the proportions of any roofline, an important assist for builders planning to add extensions to standing structures or renovating rooflines on existing homes.
Evernote is a cross-platform app that helps home builders keep track of their schedules through note-taking and archiving software. Builders who find it a challenge to keep track of different aspects of their projects – budgetary expenses, timetables, individual worker assignments, and punch lists – can use Evernote to easily record it all. Users can tag, annotate, edit and share their notes with attached photos and files. Evernote has over 200 million users worldwide, making it one of the most popular mobile apps.
The apps listed above are just a handful of the countless mobile tools that can make it easier for home builders to manage their projects more efficiently.
Click here to find more information on many other builder apps reviewed on NAHBNow.
This post was researched and written by Luke Goodwin, a summer intern for NAHB Communications.
A new consumer spending analysis from NAHB highlights another reason why home building helps drive a healthy economy: In their first year of ownership, new home buyers spend about $10,601 on appliances, furnishings and home improvement projects — 2.6 times as much as other home owners in a typical year.
NAHB economist Natalia Siniavskaia studied the U.S. Bureau of Labor Statistics Consumer Expenditure Survey to help quantify the wave of activity — and cash — spent to install new refrigerators, buy couches and make other improvements as new owners personalize their homes.
“While construction jobs are the most obvious impact of new homes on the economy, it’s important to realize that it doesn’t stop there,” said NAHB Chairman Granger MacDonald, a home builder and developer in Kerrville, Texas.
“It’s the architects, the heating technicians, the lumber dealers. And it’s the mom-and-pop owners at the local furniture or appliance store who are helping these buyers make their house a home,” he said.
During the first two years after closing on the house, a typical buyer of a newly built single-family home tends to spend on average $4,500 more than a similar non-moving home owner.
A previous NAHB study based on 2004-2007 data collected during the housing boom showed somewhat higher spending by home owners overall. But the tendency of buyers to outspend non-moving owners on appliances, furnishings and home improvements was similar.
In the aggregate, most of the demand for appliances, furnishings and remodeling projects in a given year is generated by non-moving home owners, because they outnumber home buyers by such a wide margin.
But new owners’ impact is noticeable — and vital, MacDonald said. “The health of housing — and new home buying — is key to the overall state of our economy.”
Members of the BIA of Central South Carolina, led by Dunbar Builders and Mungo Homes, surprised Sgt. Keith Turnbow, USMC Ret., with the news that he and his family will soon move into a custom-built, mortgage-free home through the Operation FINALLY HOME program. Turnbow, his wife Maggy and their four children helped break ground on the new home in a moving ceremony June 21, an event that was filmed by a local news crew. A few weeks into his service in Iraq, Turnbow’s vehicle was hit directly by an IED. He was the only one to take the blast directly and he suffered a traumatic brain injury.
Builders have a choice between two different paths to satisfy the 2015 International Energy Conservation Code (IECC).
The prescriptive path lays out specifications for both the materials and installation, like a recipe. But the performance path can reduce construction cost by allowing builders to cost-optimize a solution that is best for them in order to meet the energy code requirements.
The webinar Using the Performance Path for Compliance in the IRC and Energy Code, Thursday, July 13, 2-3 p.m. ET, will explore how the performance path provides builders more choices when deciding how to comply with the new energy code requirements. Learn about these options and how to use them to build a code-compliant, energy-efficient home at a lower cost.
Participants in this webinar will:
Recognize the flexibility built into the energy code and when to apply the various paths of compliance
Become familiar with the performance path and new Energy Rating Index path in the IECC
Walk through the way energy modeling compliance works in this path
Review the “Mandatory” requirements specified in the energy code
See the potential benefit of using the performance path to save on energy code compliance
Although this is a free webinar, you’ll still need to register to attend. Registration is open until 3 p.m. ET on Wednesday, July 12.
This webinar provides 1.0 hours of continuing education credits for the following 12 designations: CAPS, CGA, CGB, CGP, CGR, CMP, CSP, GMB, GMR, Master CGP, Master CSP, MIRM.
This webinar is the third in a series of three webinars available free of charge thanks to the generous support of the International Code Council (ICC). For access to the latest tools for code compliance, standards, education, and ICC’s Family of Companies, visit www.iccsafe.org or call 888-422-7233.
Now you can learn from the best minds in new home sales and marketing right on your smartphone or tablet with Sales + Marketing Ideas magazine’s new mobile device-friendly app.
Dive into sales methodology, read Tech Zone columns about the latest advances in marketing automation and explore a wealth of knowledge, anywhere you go.
Downloading the App
The app is available on the Apple App Store and Google Play Store for Android. Search the keyword “NAHB,” then select “GET” and enable notifications. You will only receive notifications when new content is available, or when there is an occasional important announcement.
Sales + Marketing Ideas magazine is published by NAHB and is the premier magazine for sales and marketing ideas for the housing industry. Each issue has valuable ideas and insights on sales and marketing trends, market research, advertising, marketing plans, model merchandising, sales management and more. Articles are written by the top experts in new home sales and marketing.
Have a question or want more information about the Sales + Marketing Ideas app? Contact Anne Ladewig.
NAHB’s 75th anniversary is a significant accomplishment — so much so, it has warranted recognition from some very prominent public figures.
To honor this diamond anniversary, dozens of VIPs recorded congratulatory remarks that were shared at the 75th Anniversary Gala held earlier this month during the Midyear Board Meeting in Washington, D.C.
Among those who praised this milestone were successful businessmen, celebrities, and current and former Congressional heavyweights — including House Majority Whip Steve Scalise (R-La.) victim of the recent attack in Alexandria, Va. (Scalise had recorded his remarks before the incident.)
The Consumer Confidence Index, released by the Conference Board, rose in June. Consumers were quite optimistic about current conditions, but less optimistic about the near term outlook than in May.
The Consumer Confidence Index increased to 118.9 in June, from 117.6 in May. The present situation index rose from 140.6 to 146.3 while the expectations index decreased from 102.3 to 100.6.
Consumers’ assessments of current business conditions strengthened. The share of respondents reporting business conditions “bad” decreased by 1.2 percentage points from 13.9% to 12.7%, mostly offset by the net increase in the share of respondents reporting business conditions “good” (1.0 percentage point).
Consumers were also optimistic about current employment conditions. The share of respondents reporting that jobs were “plentiful” increased from 30% to 32.8%, while assessments of “jobs not so plentiful” decreased by 2.5 percentage points and “jobs hard to get” declined by 0.3 percentage point.
Expectations of business conditions over the next six months were mixed. The share of respondents expecting future business conditions to be the same increased by 1.5 percentage points from 68.2% to 69.7%, with the net gain coming from the net declines in the shares of respondents expecting business conditions to be better (1.1 percentage points) and worsen (0.4 percentage point).
Similar to expectations of business conditions, expectations of employment conditions over the next six months were also mixed. The share of respondents expecting “same jobs” in the coming six months dropped by 3.2 percentage points from 69.3% to 66.1%, while expectations of “fewer jobs” and “more jobs” increased by 2.5 percentage points and 0.7 percentage point, respectively.
The Conference Board also reported the share of respondents planning to buy a home within six months. There were 5.9% of respondents planning to buy a home in June, compared with 6.1% in May. Despite the monthly volatility, the trend in the share of respondents planning to buy a home within six months has been climbing.
No matter what type of business you run, working with the right people is key to boosting revenue and sustaining long-term growth.
That’s how David Jackson, CAPS, principal of Jackson Design Build in Centennial, Colo., says he’s kept his home building and remodeling business steadily growing since 1978.
When looking for leads, Jackson’s focus has continually been quality over quantity, which was also a big factor in helping him earn the NAHB Remodeler of the Month honor for June.
“Sometimes it is more important to know which jobs or customers to avoid,”Jackson said. “If you [see] red flags, pay attention to them. Don’t be afraid to pass on a customer even if you need the revenue.”
Like many other professional remodelers, Jackson says consumers often have unrealistic expectations for the cost and completion time of high-quality remodeling projects. By taking the time to evaluate prospective clients and decipher which ones are truly looking for the highest quality — rather than the cheapest deal — he has brought in more revenue over time.
Jackson has also been very involved with his local association, the HBA of Metro Denver. In addition to professional training, the HBA continually provides opportunities to get involved with community service through its non-profit, the Home Builders Foundation.
“NAHB and local HBA remodeler and builder programs allow us to make the choice to be leaders in our industry,” Jackson said. “[They provide] education, networking opportunities and a wealth of resources for us.”
Read the full Q&A in Qualified Remodeler magazine for more details about Jackson’s business growth strategy.
Know a professional remodeler who takes remodeling to the next level? Nominate him or her for NAHB Remodeler of the Month.
In a move that will raise housing costs and price countless American households out of the housing market, the Commerce Department on June 26 imposed a preliminary 6.87% anti-dumping duty on Canadian lumber imports on top of the 19.88% countervailing duties announced in April.
In an official statement, NAHB Chairman Granger MacDonald said that the combined duties are “basically another tax on American home builders and home buyers that will jeopardize affordable housing in America.”
The 19.88% countervailing duty is intended to compensate for government subsidies that Canadian firms allegedly receive, while the 6.87% anti-dumping duty is intended to bridge a supposed gap between the price that Canadian lumber producers are selling lumber in the U.S. and the “fair market price” determined by the Department of Commerce. Combined, the two duties impose a 26.75% total tariff on Canadian lumber imported into the U.S.
In an Eye on Housing blog post, NAHB senior economist Paul Emrath discusses the impact the duties will have on the housing market and the economy. The analysis shows that the tariffs would boost lumber costs by 8.8% for U.S. consumers and add $1,700 to the cost of a typical single-family home.
Further, the annual effects of this tariff in 2017 include a loss of:
11,336 full-time U.S. jobs
$685.5 million in wages and salaries for U.S. workers
$481.8 million in taxes and other revenue for governments in the U.S.
These losses of wages, jobs and taxes are net losses that take into account the increases in wages, jobs and taxes in the domestic sawmill industry. The reduction in jobs is not limited to the construction industry: Jobs are also lost in businesses that sell and transport building materials, provide architecture and engineering services, etc.
NAHB celebrated its 75th anniversary with a gala and directors’ reception during its recent Midyear Meeting in Washington, D.C.
“These events are important to celebrating our seven-and-a-half decades of building communities, and they help us remember how important home building is to the nation’s well-being,” NAHB Chairman Granger MacDonald said during the June 17 Board of Directors meeting.
The gala, supported by key industry sponsors, took place on the evening of June 15 at the Washington Hilton. It began with a program highlighting the significant accomplishments of our industry, the meaning of home and the emotional impact of the American Dream.
The gala also showcased video of congratulatory remarks from celebrities and current and former Congressional heavyweights, including House Majority Whip Steve Scalise (R-La.) victim of the recent attack in Alexandria, Va. Scalise had recorded his remarks before the incident.
Chris Wallace, host of Fox News Channel‘s Fox News Sunday, was the featured speaker. Wallace wove together a humorous narrative about his career observing the Washington policy arena with heart-felt stories about the importance of his home as a core part of his family’s life.
The directors’ reception took place June 16, the evening before the Board of Directors meeting, at the National Housing Center – NAHB’s headquarters.
“For three-quarters of a century, your national organization has fought for home builders, home owners and communities nationwide,” MacDonald said during the reception. “In a world of change, NAHB has been a constant fixture, always working to create a business and political environment in which builders can succeed.”
MacDonald noted that just as NAHB is celebrating its 75th anniversary, HBI – NAHB’s workforce training arm – is celebrating its 50th anniversary. He also pointed to the important role that associate members play in the life of the NAHB Federation.
Invited to the podium by MacDonald, 2017 Associates Committee Chair Monica Sommerfeldt Lewis commended these innovators and problem solvers for the time and expertise they provide in support of NAHB and its state and local partners.
MacDonald recognized former NAHB Chairman Kevin Kelly, who is chairing the 75th anniversary task force.
MacDonald also thanked the generous sponsors, of the gala and of the year-long 75th anniversary celebration, including a special recognition of Herb Kohler Jr., chairman of the Kohler Company.
Three experts offer their insights on the direction the housing industry will take through the end of the year — and a look at what to expect in 2018 and 2019 — in the exclusive NAHB Construction Forecast Webinar, now available for viewing on nahb.org.
The forecast also includes a discussion of current economic matters, the state of housing demand and an update on supply-side constraints as home builders begin to feel the effects of soaring lumber prices.
Sales of newly built, single-family homes in May rose 2.9% to a seasonally adjusted annual rate of 610,000 units after an upwardly revised April reading, according to newly released data from HUD and the Census Bureau.
“We are seeing solid overall growth in new home sales this year,” said NAHB chair Granger MacDonald. “Sales are up more than 12% from this time last year, and we expect continued gains throughout 2017.”
“This month’s report is in line with our forecast, and consistent with solid builder confidence readings,” said NAHB Chief Economist Robert Dietz. “With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand.”
The inventory of new home sales for sale was 268,000 in May, which is a 5.3-month supply at the current sales pace.
Regionally, new home sales increased 13.1% in the West and 6.2% in the South. Sales fell 10.8% in the Northeast and 25.7% in the Midwest.
Learn more in this article in NAHB’s Eye On Housing blog.
NAHB continues to update its members-only Skilled Workforce Development Resources to help you recruit skilled labor and spread the word about the valuable careers available in residential construction. NAHB economists recently analyzed the latest salary data from the U.S. Bureau of Labor Statistics to provide HBAs and members with updated information about their local residential construction labor market.
The new salary data are promoted in the following resources:
State Wage and Workforce Demand Data: State-specific data, including the annual average wages in construction and the projected workforce demand by state and for the top 100 metro areas.
Careers in Construction Posters: This series of posters will help you promote residential construction careers at schools, career fairs, career exploration days, educational conferences and local community events.
Plus, you can share our public Building a Skilled Labor Workforce page with educators, policymakers and industry partners to provide them with resources to help promote these career opportunities in their communities. Resources include the Careers in Construction posters, brochures, lesson plans, a presentation template and more.
For more information about skilled labor resources or NAHB’s Student Chapters, contact Greg Zick.
Set to debut during the NAHB International Builders’ Show, The New American Remodel 2018 is undergoing a comprehensive remodel that includes all-new products, technology and additions.
The home was built in 1937 with a simple floorplan and Italian-luminesce design. Over the years, several additions were made, but those portions of the property were among the first things to go during the renovation.
“We want to capitalize on the good [design elements of the home] and take away the bad,” said Caron Farina, head of advertising for the project’s builder, Farina & Sons.
Their goal, she said, is to create a home for a “real-life family,” as well as provide other remodelers and builders with ideas to incorporate into their own projects.
It will also illustrate just how much more efficient a home can be by using today’s building products and techniques.
Drew Smith of Two Trails Inc., the project’s green building consultant, said the original home scored a whopping 125 on the Home Energy Rating System (HERS) Index.
“It was one of the least efficient homes we’ve ever measured,” Smith said.
That will certainly change when the project wraps up. Smith estimates the final HERS Index score of the home will be well under 60 — meaning it will be more energy efficient that roughly half of all standard new homes.
Every year, NAHB honors the work of home builders, developers, remodelers, sales professionals — just about everyone in the home building industry who is doing stellar projects.
The awards are listed on the NAHB website, along with links to all the applications and additional information about the entry process.
On the awards page is a flyer that you can pin to the wall above your desk or pass out to your staff and colleagues. It includes the names of all the awards programs as well as opening dates and entry deadlines.
We hope you’ll take advantage of this opportunity to achieve national recognition for your contributions to this great industry. For more information, visit the awards page.
A far cry from the cliché of graduating college only to return to their parents’ basements, millennials are getting older and becoming viable and attractive consumers in the housing market.
In the webinar Challenging Conventional Wisdom About Millennials from 2-3 p.m. ET on Wednesday, June 28, Ali Wolf, an NAHB International Builders’ Show® speaker, manager of housing economics for Meyers Research LLC, and a millennial herself, will challenge some common assumptions about millennials relating to debt, mortgages, location and lifestyle.
Participants in this webinar will:
Establish an understanding of the impact of student loans on the housing market
Recognize common mistakes millennials make when buying a home and how you can help
Identify the best strategies for reaching millennials
This session is part of a special “Best of IBS” webinar series, featuring some of the most popular speakers and topics from the 2017 Builders’ Show.
Space is limited to the first 100 participants.Register today.
The market’s potential for existing home sales increased in May, even as the number of sales continued to underperform, according to the Potential Home Sales model for First American Financial Corp., a provider of title insurance, settlement services and risk solutions for real estate transactions.
Potential existing home sales increased to a seasonally adjusted annualized rate of 5.72 million, an increase of 1.8% from the previous month. This represents a 90.3% increase from the market potential low point in December 2008.
“As more and more Millennials marry and have children, among the strongest determinants for the desire to be a homeowner, demand for housing will remain robust,” First American Chief Economist Mark Fleming said. “However, the housing market faces a dilemma that is restricting the inventory of homes for sale.”
“As rates rise and the cost to finance a mortgage increases, existing homeowners are prisoners in their own homes,” Fleming said. “In addition, the fear of being unable to find a home to purchase hinders homeowners’ decision to sell.”
The market potential for existing-home sales fell by 1.1% from last year, a drop of 62,000 sales. The current potential for existing-home sales sits at 644,000 sales, 11.5% below the pre-recession peak of market potential July 2005.
Despite the drop in potential sales, they are still underperforming the market potential by 3.8% or an estimated 218,000 sales.
“The low inventory of homes for sale is preventing the housing market from reaching its potential and pressuring prices higher,” Fleming said. “Increasing shortages of homes for sale is a growing problem for potential homebuyers, especially potential first-time homebuyers today, as it causes affordability to decline.”
The National Housing Hall of Fame recognizes people whose spirit, ingenuity and determination have changed the nation’s housing for the better, making America one of the best housed nations in the world.
This year’s Hall of Fame inductees have been instrumental in advancing housing opportunity for all Americans as our nation strives to achieve the goal set forth in the landmark Housing Act of 1949 of “a decent home in a suitable living environment for every American family.”
All have had a positive impact on the nation’s housing, and they have been instrumental in the long-term effort to ensure a positive and prosperous future for the housing industry. Our industry bestows no higher honor than induction into the National Housing Hall of Fame.
Carl A. S. Coan Jr.
Washington, D.C.
Carl A. S. Coan Jr. was a tireless advocate for the development and provision of housing for all Americans, especially low- and moderate-income families. Through his years of government service, his tenure at NAHB as a lobbyist, and his many years in private legal practice, Coan was a forceful champion for housing. He left his imprint on key affordable housing legislation enacted over the last five decades, most notably the Housing and Urban Development Act of 1968. He also contributed his considerable knowledge and skill to the drafting of the Fair Housing Act.
Coan believed strongly in the cause of housing and the importance of providing decent, safe, sanitary and affordable housing to all people. Having devoted his life to furthering the cause of housing, he joins his father, Carl A. S. Coan Sr., in the National Housing Hall of Fame.
Robert R. Jones
Bloomfield Hills, Michigan
As NAHB chairman in 2010, custom home builder Robert R. Jones led the home building industry in its struggle to survive the worst housing market in more than seven decades.
A long-time industry leader, Jones also played a key role in establishing U.S. legal precedent in 1988 for damage awards to home builders in copyright infringement litigation. Jones is known for working tirelessly for housing, for his belief in continuing education, for his dedication to philanthropy, and for serving as a mentor to many others in the home building industry.
During his long career in the home building industry, Jones chaired and participated in many association committees and task forces and held leadership roles at all levels of NAHB. This provided him with opportunities to be involved and give back to the industry — and members — because they have done so much for him.
Robert Nielsen
Reno, Nevada
A long-time advocate for affordable housing, Bob Nielsen was instrumental in the creation of the Nevada Low Income Housing Trust Fund. His Reno-based home building firm, Shelter Properties, concentrates on building affordable housing for families and senior citizens as well as conventional multifamily communities.
As NAHB’s 2011 Chairman, Nielsen helped guide the association through the prolonged effects of the housing market crisis. Nielsen has been appointed twice to serve on the board of directors of the San Francisco Federal Home Loan Bank and also served on the Fannie Mae National Advisory Council. He was one of the founders of the Affordable Housing Resource Council, which offers technical assistance to anyone with an interest in producing affordable housing. Long active in NAHB, Nielsen has held leadership positions at all levels of the association.
Arthur Rutenberg
Clearwater, Florida
Active in the home building industry for more than 60 years, Arthur Rutenberg played a key role in creating the U.S. Home Corporation, which was one of the nation’s largest home builders at the time.
Rutenberg was known for his innovative approach to home design and the use of technology to streamline both the home building and the home buying process. He is also credited with introducing the split-bedroom floor plan, which is now a staple of home design, particularly in Florida. The split design positions the kitchen at the center of the house with bedroom wings on the sides. It emphasizes long sight lines through the house to the outdoors.
An astute businessman, Rutenberg also pioneered franchising in the home building industry. At the time of his passing in 2017, there were 43 Rutenberg franchisees operating in eight states.
The National Housing Hall of Fame inductees were honored June 17 during the NAHB 2017 Midyear Board of Directors meeting. Learn more about the National Housing Center Awards.
NAHB Chair Granger MacDonald testifies at the hearing.
A draft legislative proposal by Rep. Bruce Westerman (R-Ark.) would encourage better management of the nation’s federal forest natural resources while also ensuring the continued recovery of the housing industry, NAHB told Congress Thursday.
“The nation’s home builders believe that increasing domestic lumber production from federal lands, both as a means to improve housing affordability and address the resiliency of our national forests, must be a top priority of Congress and the Trump administration,” said NAHB Chairman Granger MacDonald.
Testifying before the House Natural Resources Committee’s Subcommittee on Federal Lands, MacDonald added that Westerman’s legislative draft, the Resilient Federal Forests Act of 2017, would “significantly reduce red tape that prevents the U.S. Forest Service from better managing its timber lands and increase the delivery of domestic timber products into the market.”
America cannot meet the nation’s demand for lumber, which accounts for the largest share of the cost of a home among all other building materials and about $18,000 of the cost of constructing a single-family home. Lumber price hikes can have a detrimental effect on our nation’s housing market.
For decades, timber harvests from the National Forest System averaged between 10 and 12 billion board feet per year. That number plummeted to an average of between 1.5 and 3.3 billion board feet in the mid-1990s and has remained artificially low ever since.
Poor land management marked by bureaucratic mismanagement and litigation during the past 30 years has led to declining health of our national forests. The result of this decline is fewer jobs and productivity in the forestry sector, fewer board feet of domestically produced lumber entering the market, and a marked increase in acreage ravaged by insects, disease and fire.
Westerman’s legislative proposal would strike a balanced approach in how the nation manages its national forests system by making more federal forest lands available for logging in an environmentally sustainable way.
“This will not only restore the health of one our great natural resources, our forests, but also offer the potential to reinvigorate the forestry industry while improving housing affordability. That’s the definition of a win-win-win,” said MacDonald.
For addiitonal information, contact Alex Strong at 800-368-5242 x8279.
NAHB Senior Officers surround HUD Secretary Ben Carson (center) at their meeting Wednesday.
In a broad agenda focusing on regulatory reform and housing affordability, NAHB senior officers today held productive talks with HUD Secretary Ben Carson. Topics covered included:
The Federal Flood Risk Management Standard. NAHB believes that HUD’s proposed rule to expand its floodplain management oversight should be withdrawn because it fundamentally threatens access to FHA mortgage insurance programs for single-family home buyers and multifamily builders.
Small Area Fair Market Rents. HUD has instituted a rule to make Small Area Fair Market Rents based on ZIP codes rather than an entire metropolitan area. Among other things, NAHB urged HUD to rescind most of the rule and reinstate the Fair Market Rent regulations in effect prior to the new rule.
Affirmatively Furthering Fair Housing. This HUD rule requires, states, local governments and public housing agencies to conduct a formal fair housing planning process as a condition of receiving certain HUD funds. NAHB urged HUD to revise the rule to address concerns about its potential for inappropriate federal encroachment on local land use decisions and legitimate business practices, such as a landlord’s refusal to accept rental subsidies.
HUD Section 3 program. Under Section 3, builders who receive federal HUD funds must offer job training and opportunities to low-income residents in their neighborhoods. Although well-intended, Section 8 has had unintended consequences for some builders, including increased costs, administrative burdens and project delays. We offered to facilitate discussions with builders with Section 3 experience and suggested that HUD partner with HBI, NAHB’s workforce development arm, in developing job training resources.
Davis-Bacon. Home builders are subject to costly and administratively complex Davis-Bacon wage requirements when they use HUD funding or FHA multifamily mortgage insurance to construct affordable rental housing. NAHB urged HUD to reaffirm existing guidance which calls for application of a single “residential” Davis-Bacon wage determination for low-rise multifamily properties. We also asked Secretary Carson to help us weigh in with the Department of Labor to advocate further Davis-Bacon reforms.
Mortgage insurance premiums. Shortly after the inauguration, President Trump reversed an action by the Obama administration to lower the fee for FHA mortgage insurance by one-quarter of one percent. NAHB believes the FHA insurance fund can readily sustain the modest 25 basis point mortgage insurance premium reduction and urged HUD to reinstate the rate cut to help more qualified first-time home buyers to afford home loans.
Those attending the meeting with the HUD secretary included NAHB Chairman Granger MacDonald, First Vice Chairman Randy Noel, Second Vice Chairman Greg Ugalde, Third Vice Chairman Dean Mon, Immediate Past Chairman Ed Brady, Government Affairs Committee Chairman Justin MacDonald and Housing Finance Committee Chairman Greg Peek.
For more information, contact Chellie Hamecs at 800-368-5242 x8425.
Builder confidence in the market for newly built single-family homes weakened slightly in June, down two points to 67 from a downwardly revised May reading of 69 on the NAHB/Wells Fargo Housing Market Index (HMI).
“Builder confidence levels have remained consistently sound this year, reflecting the ongoing gradual recovery of the housing market,” said NAHB Chairman Granger MacDonald.
“As the housing market strengthens and more buyers enter the market, builders continue to express their frustration over an ongoing shortage of skilled labor and buildable lots that is impeding stronger growth in the single-family sector,” said NAHB Chief Economist Robert Dietz.
Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as good, fair or poor. The survey also asks builders to rate traffic of prospective buyers as high to very high, average or low to very low.
Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three HMI components posted losses in June but remain at healthy levels. The components gauging current sales conditions fell two points to 73 while sales expectations in the next six months dropped two points to 76. Meanwhile, the component measuring buyer traffic also moved down two points to 49.
Looking at the three-month moving averages for regional HMI scores, the Midwest and South each edged one point lower to 67 and 70, respectively. The Northeast and West both dropped two points to 46 and 76, respectively.
More than 800 builders, remodelers and their trade partners from across the nation are heading to Capitol Hill this morning for the annual NAHB Legislative Conference.
In a day full of meetings with elected officials and their staff, our members will call on Congress to make housing and homeownership a national priority and to support policies that will keep the housing recovery moving forward.
“Today, builders from coast-to-coast are sending a loud and clear message to members of Congress that a strong housing market is critical to spur job growth and create a vibrant, dynamic economy,” said NAHB Chairman Granger MacDonald.
In more than 250 individual meetings with their representatives and senators, our members are asking for progress on several key housing issues, including:
Regulatory reform. “We need a common-sense approach to regulations that kill small businesses. We need to be at the table. We need to keep pressing,” said Tom Ashley, co-owner of the remodeling company Expand Inc. in Baton Rouge, La.
“We’re very excited to go up on the Hill today and speak with Sen. (Marco) Rubio. Addressing the labor shortage is definitely our No. 1 priority. But we also need to get a handle on regulations. Many of my clients are getting killed by excessive regulations and it’s getting harder and harder for them to turn a profit. Our hope is that [Congress will] apply more common sense to the regulations that impact home building,” said Kimberly Mackey, president and founder of New Home Solutions in Tampa, Fla.
A predictable, affordable national flood insurance program. “Losing the national flood insurance program would make it hard to even build — let alone sell,” said Darrick Guthmiller, chief business officer of Kochmann Brothers Homes Inc. in Fargo, North Dakota.
Housing finance reform. “We need to talk about the future of housing finance. That is the key, critical issue here in Tulsa,” said HBA of Greater Tulsa director of association issues Stacey Bayles.
Members also planned to discuss tax reform, including protecting incentives for homeownership, cost-effective energy codes, securing a supply of softwood lumber, and the future of the Low Income Housing Tax credit, key to meeting the nation’s acute need for affordable rentals.
Rep. Peter Roskam (R-Ill.), who sits on the House Ways and Means Committee, spoke to builders before they met with their lawmakers and said that this year there is “a real opportunity to do something about tax reform.”
House Republicans are working on a tax reform blueprint that would generate economic growth, simplify the tax code, stop erosion of the U.S. tax base so that it is no longer more attractive for U.S. corporations to go overseas, and provide permanency to the tax code to deliver certainty to the business community, Roskam said.
It’s the first year since 2013 that NAHB has held its annual Legislative Conference in Washington, D.C. During the past three years, as part of a nationwide effort to “bring housing home,” builders across the country met with their federal lawmakers in their home districts.
The conference is held in conjunction with the NAHB Midyear Meeting. “The big benefit of the board meeting for me is coming and meeting with other builders,” said Brian Esposito, owner of Esposito Construction Inc., in Hilton Head Island, S.C. “The learning and education I get from them is a big reason why I come.”
For most home shoppers, owning a smart home is no longer a dream — it’s an expectation.
Particularly among younger generations who have lived most of their lives in the digital era, staying “connected” is a way of life. So it’s no surprise they want their homes to be connected, too.
“Home automation has become significantly more pervasive in recent years,” says Grayling Love, product line manager at Eaton, a member of NAHB’s Leading Suppliers Council. “We’ve reached a point where the majority of consumers aren’t only willing to invest in it, but they’re expecting their next home to be connected.”
Later this week during NAHB’s Midyear Board Meeting, Love will lead an in-depth discussion on the emerging trends in connected-home technology. In addition to covering current trends and consumer expectations, his Thursday morning session will review integration solutions for a wide variety of products in the market.
Increased competition among product manufacturers is resulting in lower prices, making it more feasible for consumers to afford those smart-home products — and more of them. Rather than just buying one or two smart products, they’re buying several and connecting them all through one device.
That “middle ground,” as Love calls it, is where the majority of the smart-home market is trending: The segment between having one standalone solution like automated lights, and owning a high-end home with every automated feature imaginable — living in a home with multiple connected devices is where most of today’s buyers (realistically) want to be.
“More people are seeing the long-term ROI of these products and are willing to pay a premium for them,” says Love, who has been working in the technology and connected-product industries for that past 10 years. “Plus, new cases are continually emerging for smart technology in the home, particularly among older consumers for whom the convenience factor is huge.”
A former offensive lineman for the Arizona State Sun Devils and Pittsburgh Steelers, Grayling Love now specializes in smart-home technology.
Love notes that while younger consumers have been quick to embrace the connected home concept, seniors and baby boomers aren’t far behind.
“When product manufacturers effectively address concerns about convenience, security and safety, consumers really latch on to that notion of added value and see the connected home as a smart investment,” he says.
Love’s presentation, “The Connected Home: Trends and Technologies Shaping the Way We Live,” will take place from 10:30 a.m.-1 p.m. in room Washington 4, exhibition level of the Marriott Wardman Park hotel. All builder members are welcome to attend.
The House yesterday passed legislation that would address challenging credit conditions that home builders and home buyers continue to experience as a result of strict regulatory restraints imposed following the 2008 financial crisis.
H.R. 10, the Financial CHOICE Act of 2017, addresses regulatory concerns for community banks, which are the most common source of lending for home construction and key providers of home mortgage loans for first-time buyers and consumers in rural communities.
NAHB supports many of the reforms contained in this legislation, including:
Prudent modifications to the qualified mortgage rule that will improve credit availability for home buyers and support the business model of community bankers;
Congressional approval for major financial regulations before they are implemented;
Mandating that all financial regulators conduct a meaningful cost-benefit analysis before issuing rules; and
Ending judicial deference to regulatory agency interpretations.
The bill will now go to the Senate and faces an uncertain future. NAHB will continue to actively push for these and other strong regulatory relief measures at the congressional and federal agency level.
For more information, contact Scott Meyer at 800-368-5242 x8144.
Vice President Mike Pence will be the keynote speaker at the NAHB Legislative Conference briefing on Wednesday, June 14 during the NAHB Midyear Board of Directors meeting. The briefing will provide an insider’s view of how the Trump administration is shaking up the status quo in Washington.
The fact that President Trump and Vice President Pence have taken time out of their busy schedules to address our leadership speaks volumes about the importance of the residential construction industry: As housing goes, so goes the economy.
NAHB has allied with the White House as the administration advances its pro-growth economic agenda to create more jobs, lower taxes and reduce burdensome regulations that harm small business.
While we don’t yet have all the details about Vice President Pence’s visit, we do know that those planning to attend the Legislative Conference in our nation’s capital should plan to arrive when registration opens at 6:30 a.m. at the Marriott Wardman Park. Vice President Pence is scheduled to begin his remarks at 9 a.m.
Following his address, builders will depart to Capitol Hill to meet with their federal lawmakers to discuss important housing issues, including protecting middle-class tax breaks that promote homeownership, improving the Low Income Housing Tax Credit, creating a national flood insurance program that is predictable and affordable, reforming the nation’s housing finance system, and more.
For further information on the Legislative Conference, including registration, schedule and issue materials, be sure to visit NAHB.org/LegCon or contact Michael Blake Bezruki at 800-368-5242 x8542.
In the 1990s and 2000s, a non-supervisory or production worker who owned a home paid 42 cents of every dollar he or she earned in monthly payments for principal, interest, and mortgage insurance for the opportunity for homeownership.
Today, using identical assumptions for an entry-level home--prevailing interest rates, FHA financing, and current pricing--that same non-supervisory or production worker in a single-income household would pay 36 cents of every income dollar on the $1,145 he or she would be paying each month for principal, interest, and mortgage insurance. Zillow data--across all buyer groups--shows essentially the same trend:
In the fourth quarter, homeowners spent 15.8 percent of their incomes on a mortgage, which is below the 21 percent that homeowners spent, on average, from 1985 to 2000.
This, the analysts at Zelman & Associates who produce The Z Report say, creates a "substantial buffer" for house price and interest rate drift upward from their prevailing levels today. The report notes:
"Relative to the current 36% ratio, holding all else constant, it would take an approximate 25% increase in home price or a 30-year mortgage rate of 6.25% to return to the historical average. Overall, we worry more about the perception of affordability constraints and the lack of entry-level inventory than the level of home prices today."
Evidence on the lack of inventory, Zelman analysts observe, is in the fact that for-sale existing and unsold newly constructed homes today add up to just 1.5% of all U.S. households, a historic low. Average available for-sale housing inventory ran at a level 35% to 40% higher in the 1990s and 2000s than today.
Again, Zillow data-sets corroborate Zelman's findings, directionally, although the baselines and assumptions differ. The conclusions are the same.
Inventory, which drives home values and, indirectly, rents, continued to worsen in April: There were 7.7 percent fewer homes on the market in April than a year earlier, with Minneapolis, Columbus, Ohio, and Seattle each posting inventory drops of more than 20 percent. The markets with the greatest inventory growth were Las Vegas (24.9 percent) and Austin, Texas (20.5 percent).
The takeaway, ultimately, in Zelman's June 2, 2017 The Z Report, is that when job growth among those non-supervisory and production worker headcount positions is strong and consumer confidence is solid, the demand pool is growing, as is price elasticity. People will pay more of their incomes than they currently need to, so there's headroom in the market, even though prices are rising.
At the same time, a more recent phenomenon--a shift in the for-sale supply mix--will cause a raft of new stories about how houses are getting smaller, regulations are less of a burden, and price appreciation is flattening, and labor costs are being brought into control, despite labor capacity bottlenecks and unevenness.
All of these "new" trends are a direct result of the long-awaited activation of first-time buyers of entry-level homes--from a level well below historic norms to one that has begun to move in the direction of longstanding averages.
Here's a story from Wall Street Journal staffer Jeffrey Sparshott (paywall) citing recently released housing characteristics data from the Census Bureau that indicates that after quantum leaps upward in square footage since the recession began, home sizes actually shrunk a bit--2%--in 2016.
Why?
Not because home builders are suddenly listening to progressive architects who believe our houses far exceed what we need in terms of livable space.
The reason home sizes are now "smaller" is that smaller houses are selling more. In other words, more people who can finally buy a home at all are buying homes they can afford, which are, by and large, less square footage than the homes more well-heeled buyers were purchasing.
Zelman clocks in on this trend as well. Here's a glimpse at how they look at the house size trends in the trenches:
For a "sample of builders in Atlanta, Austin, Charlotte, Dallas, Houston, Jacksonville, Orlando, Phoenix, San Antonio and Tampa, the share of available inventory sized under 1,800 square feet increased a similar 80 basis points on average in 2016 from 2015. Importantly, in 1Q17, the share was 100 basis points higher than in 1Q16, a clear sign to us that outsized growth of entry-level new construction in 2016 was the start of a trend that we believe could last numerous years."
If you're interested in becoming a subscriber to The Z Report, which is a twice-monthly package of original, exclusive data and analysis from the team at Zelman & Associates, you can try it for free by linking here.
What it comes down to may be summed up in Fannie Mae's most recent Home Purchase Sentiment Index, which shows solid indications that it's a seller's market. Which only goes to show that a lot of people also think it's time to buy.
The count of unfilled jobs in the construction sector climbed in April, rising to the highest level since September of last year.
According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs (on a seasonally adjusted basis) stood at 203,000 in April. The cycle high was 238,000, set in July of last year.
The open position rate (job openings as a percent of total employment) for April came in at 2.9%. On a smoothed twelve-month moving average basis, the open position rate for the construction sector held steady at 2.66%, near the cycle high.
The overall trend for open construction jobs has been increasing since the end of the Great Recession. This is consistent with survey data indicating that access to labor remains a top business challenge for builders.
The construction sector hiring rate, as measured on a twelve-month moving average basis, held at 5.1% in April. The twelve-month moving average for layoffs was steady (2.6%), remaining in a range set in 2014.
Quits have been rising recently, holding at an elevated 2.4% in April. This measure is consistent with other data illustrating a tight and competitive labor market for construction workers.
Monthly employment data for May 2017 (the employment count data from the BLS establishment survey are published one month ahead of the JOLTS data) indicate that home builder and remodeler employment increased by 7,100. The 6-month moving average of job gains for residential construction now stands at somewhat above 8,000 a month.
Residential construction employment is now 2.697 million, broken down as 767,000 builders and 1.93 million residential specialty trade contractors.
Over the last 12 months home builders and remodelers have added 120,000 jobs on a net basis. Since the low point of industry employment following the Great Recession, residential construction has gained 714,600 positions.
In May, the unemployment rate for construction workers stood at 5.9% on a seasonally adjusted basis. The unemployment rate for the construction occupation had been on a general decline since reaching a peak rate of 22% in February 2010, although it has leveled off in the 6% to 7% range since the middle of 2016.
Builder and success coach Burk Moreland, GMB, CGB believes that hiring the right people isn’t just about finding workers with the right skills. It’s also about finding people with the right attitude and other important indicators that actually make the best players for your team.
This session is part of a special Best of IBS webinar series, featuring some of the most popular speakers and topics from the 2017 NAHB International Builders’ Show®.
Burk was certainly a favorite attraction in Orlando for his insights into the hiring process. After over two decades in the home building industry as both an executive manager and entrepreneur, Burk says he earned the nickname “Rainmaker Builder” because of his knack for finding talent in unexpected places.
Now find him June 21 when he will offer practical techniques that will help you build a winning team that will last. Space is limited to the first 100 participants, and registration is open until 3 p.m. ET (12 p.m. PT) Tuesday, June 20.
As NAHB and its members celebrate National Homeownership Month in June, more than two-thirds of Americans believe that owning a home is an essential part of the American Dream.
“Americans continue to place a high priority on homeownership and work hard to achieve this goal for their families,” said NAHB Chairman Granger MacDonald. “Our members are committed to providing high-quality homes that meet the diverse needs of Americans across the country.”
NAHB commissioned a nationwide survey by the polling firm Morning Consult of more than 11,300 registered voters earlier this year that found more than 70 percent of these respondents place a high value on homeownership.
Home builders and affiliated HBAs have a great opportunity to promote the benefits of homeownership during National Homeownership Month. To assist in your efforts, NAHB provides an online toolkit of resources that can be customized for your local markets. Some highlights of the toolkit include:
Nine new print ads promoting the benefits of homeownership
A brief video on the value of homeownership that you can embed on your website
Sample social media posts to use in June
Talking points and radio spot scripts
Articles on topics of interest to current and potential home owners
When Josh Berghuis started his company, he had one mission: Be the go-to modern contemporary builder in his area. “There are a lot of great builders and a lot of competition where we are,” says Berghuis, owner of Berghuis Construction in Walker, Michigan. “We had to find a way to distinguish ourselves with our branding in order to show that we were unique and a little bit edgy.”
Berghuis, a member of the HBA of Michigan, has since built a name for himself and his company in his area as a custom home builder whose specialty is unique, modern projects. “When people see contemporary houses in our area they ask if we’ve done them,” he says. “It starts with branding. We always go back to our goal of being the go-to modern contemporary builder for our area and we make sure all of our branding represents that well. We always keep that mission in mind and that makes our branding consistent.”
Here are four areas to stay consistent in your branding:
Photography
The images you showcase in your projects are the best representation of the work you can do. Consistency in your photos can help home owners associate certain styles or looks with your company.
“Photographs are the most important thing for our branding because that’s what people see first, even before they read any text,” says Cass McNinch of Aberdeen Building Group and a member of the Greater Houston Builders Association in Texas. “I have one photographer and I use her every time so the images we get are consistent.”
Once you receive the images from the shoot, choose the ones that are the most representative of your brand.
“Once I get the photographs, I won’t put every one online, just the ones that I think showcase our work the best,” McNinch says. “It’s not necessarily always about having the same style of work because the work we do for our clients is fairly broad, but I want all of the photographs we post to have a consistent style in terms of good composition and lighting.”
Storytelling
How you describe yourself and your company on your website and Houzz profile is a great opportunity to define your brand for potential clients. The words you use and the story you tell contribute to a home owner’s overall perception of your business.
Berghuis’ mission to stand out as a unique, modern builder lead him to create a website that deviated from the websites of other traditional builders. “We don’t have the typical ‘About Us’ page with the typical fonts and wording,” says Berghuis, whose website is a stark modern gray with block lettering and alternating bright yellow fonts. “Everything is done with purpose. We want to think outside the box and do something different so people view us differently.”
Reviews
Reviews are the No.1 thing home owners look at when deciding whether to hire a professional. The more reviews you have, the more potential customers can read and learn about the way you work with clients and complete projects. They’re an essential part of your brand.
“Reviews are incredibly important to our business since more people are finding us online and clients seem to be relying on those reviews more than word of mouth these days,” says Colin Flavin of Flavin Architects in Boston, a member of the Home Builders and Remodelers Association of Northern Vermont. “We always ask for a review as the project is approaching completion and we ask if they could talk specifically about our design work and what it was like to work with our team. Those are two of our strengths and we want our reviews to reflect our brand.”
Houzz allows you to respond to your reviews with a short thank you message and ‘Like’.
Community
The way you work with home owners online is indicative of the way you interact with potential clients offline. Spending time answering questions and sharing your expertise on forums and discussions shows homeowners you’re a business that likes to help, both online and in person.
“We’ve found that answering a few quick questions shows that we’re generous with our knowledge and willing to help people in general,” says Jenny Sneller of Sneller Custom Homes in Spring, Texas, who is also a member of the Houston HBA. “It’s not always easy to see the immediate business benefit when we’re helping people out of our area, but we really are just in it to help people. That’s part of our brand and now people know us as a business that genuinely wants to help.”
In addition, any comments you leave on discussions or photos on Houzz appear on your Houzz profile, so prospective clients visiting your profile get a sense for what it’s like to work with you.
For builders, remodelers and other home pros, Houzz is where people around the world get smart about home building and renovation. More than 40 million people visit Houzz each month to manage every aspect of their projects, including researching, connecting and collaborating with professionals. NAHB members on Houzz have access to exclusive benefits through the Houzz NAHB Strategic Alliance program and leading industry research.
Builder Ken LaRoe was honored last year with a Platinum award for “Carolina,” a one-of-a-kind home in Robbinsville, N.C.
Among the accolades residential designers and developers strive for, one distinguishes them as industry leaders better than all the rest: a Best in American Living™ Award (BALA).
Today is the first day applicants can submit their entries for the building industry’s premier residential design awards program. BALA spotlights the most creative and talented professionals who have redefined design excellence for homes and communities nationally and internationally.
There are more than 50 categories ranging from custom homes to student housing to historic preservation, and there’s a place for your project in one of eight main groups:
Single-Family Production
Single-Family Custom
Multifamily
Affordable Housing
Remodeling
Community
Interior Design
Specialty
What’s New:
55+ Housing categories now appear in single-family production, multifamily and community in an effort to better recognize this market.
Interior Design categories have been expanded. Although interior design is a component of the judging process for most entries, having designated interior design categories gives designers an opportunity to showcase specific rooms and details within the home.
International projects can be entered into the new Category 51: International Housing.
The Game Changer category description has been updated to provide better clarity to applicants: Submissions should showcase innovation and have the ability to significantly influence the residential design and housing industry over the next five years. Both individual projects and products are eligible to receive this award, including but not limited to new home design concepts, new types of site development, and innovations in products and interior design. Submissions must enhance the experience of residents. As an example, the 2016 Game Changer is Centriq.
BALA winners receive year-long exposure through multiple outlets. Winners are also honored at a prestigious ceremony during the 2018 NAHB International Builders’ Show in Orlando.
Merideth is the co-founder of True U Girls, and has brought yoga + mindfulness to underserved populations through the United Nations, National Girl Summits, and Girls Inc. She is owner of 405 YOGA, a power flow yoga studio located in the Midwest, with the flagship location in Washington DC. Merideth has served as part-time faculty at the George Washington University Milken Institute School of Public Health and consults with national government agencies as well as nano business models in the nation’s Capitol. Merideth holds a Masters of Science degree in human development from Oklahoma State University and a Bachelors of Science in human environmental science, focused on resiliency, growth, and people centric leadership models. Merideth is a trained power flow and Rocket yoga instructor and is the national Brand Ambassador for Athleta Washington DC.
Content for class:
Learn easy, free, and effective tools, tips, and tricks for building and selling to today's home buyer. Join us as we go to market with the different generations, taking a look at who today’s home-buyers are, what they're looking for in homes and the home buying process, where they're finding information, and how they're accessing it. Together we'll study and workshop how your business can build and sell to Baby Boomers, Generation X, and Millennial home buyers using targeted marketing and strategies.
Builders looking to send a message to Congress that it needs to take action to keep housing and the economy on the right track should mark their calendar now for the most important grassroots event of the year — the 2017 NAHB Legislative Conference. The conference is on Wednesday, June 14, and is a day-long event that coincides with the NAHB Midyear Board of Directors Meeting in Washington, D.C.
The home building industry still faces major challenges as the housing market continues to regain its footing. Without a healthy housing market, the economy can’t flourish. The issues that are important to home builders, remodelers and others in our industry are the same issues that are key to a thriving economy.
Builders are encouraged to travel to the nation’s capital to urge their representatives and senators to make progress on several key issues, including:
Reducing regulations that harm small business;
Protecting middle-class tax breaks that promote homeownership;
Reforming the nation’s housing finance system;
Creating a national flood insurance program that is predictable and affordable;
Enabling a supply of softwood lumber sufficient to meet demand;
Providing better insurance options for small businesses, including association health plans; and
Promoting sensible energy codes.
Attending this year’s Legislative Conference will give NAHB members an unparalleled opportunity to lobby members of Congress to protect their business and industry, establish lasting relationships with their elected federal officials, do their part to ensure that NAHB’s issues are heard by Washington policymakers and galvanize a united front on Capitol Hill.
A strong builder turnout on June 14 will send a powerful message to members of Congress that housing must remain a top national priority.
HomeAid Atlanta has made sure that some deserving Georgia moms and babies had an even happier Mother’s Day this year with $24,000 in donated diapers, wipes and baby food.
HomeAid Atlanta, the designated charity of the Greater Atlanta Home Builders Association, serves the homeless through housing and community outreach and holds a yearly community drive in time for Mother’s Day to collect essential baby care products.
In its 16th annual drive, the organization this year collected more than 134,000 items, valued at over $24,000. Area businesses and individuals hosted collections and made donations, and Atlanta-based UPS assisted with the delivery of items.
HomeAid Atlanta works in partnership with the building industry, as well as community building organizations, to assist people experiencing homelessness. Since its founding in 2001, HomeAid Atlanta has completed 76 housing, remodel and care day projects at locations that serve victims of domestic violence, teen mothers, veterans and more.
Non-profit organizations interested in working with state and local HBAs in charitable efforts are encouraged to fill out this form to make sure all members of the Federation know about partnership opportunities. To learn more, contact Lauren Wallace.
The NAHB Associate Members Committee has opened the application process for three prestigious awards given annually to both Builder and Associate members for their service to the industry and support of their peers.
The NAHB Associate of the Yearand Society of Honored Associates Awards recognize Associate members who have distinguished themselves by their outstanding contributions to the home building industry on the local, state and national levels.
The NAHB BEAM (Builders Engaging Associate Members) Award is bestowed the builder that best exemplifies the motto, “It’s good business to do business with a member.” This award serves to encourage Builder members to use the goods and services offered by member companies and to recognize the builder or local entity that exemplifies this vitally important teamwork.
The Bill Polley BUILD-PAC Award honors the most outstanding Associate member advocate. Award recipients are selected based on leadership roles in BUILD-PAC fundraising at the local, state and national level; efforts to increase Associate members’ understanding of the importance of BUILD-PAC and to encourage grassroots participation and growth; and overall enthusiasm and service.
The award entry deadline is Sept. 27. Awards will be presented at the NAHB International Builders’ Show in January 2018. For additional information, contact Topher McLarty at 800-368-5242 x8246.
Mike Fournier, owner of The Sonrise Companies, oversaw this remodel project, dubbed “Little House on the Prairie,” that more than doubled the size of the home.
No matter what his job was at the time — paperboy, restaurant manager, financial adviser — Mike Fournier, CAPS, CPB, always had the motivation to succeed.
That drive was critical for him when in 2000 he founded his remodeling business, The Sonrise Companies in Broken Arrow, Okla. Over time, he developed a winning recipe to consistently deliver high-quality products and services, achievements for which he is being honored as May’s NAHB Remodeler of the Month.
“Profits will continue to tighten as costs inevitably rise, but with continued networking, repeat customers and referrals, we expect to continue seeing a steady rise in our revenue,” Fournier said in a Q&A for Qualified Remodeler. “Every year, more customers come to us [as a result of] our social media presence, and coupled with our networking markets, we anticipate that trend to continue.”
Fournier estimates as least 80% of his leads come from the company’s online presence, which is managed by a website administrator and a social media manager who ensure the content stays fresh and coordinated.
Not only do they maintain LinkedIn, Twitter and Facebook pages, but they also cultivate a large portion of business through Google+, Angie’s List, HomeAdvisor, Houzz, Pinterest, Tumblr, Manta, Merchant Circle, and nearly 200 videos on YouTube.
Beyond marketing, Fournier has relied heavily on networking with his NAHB Remodelers colleagues to help his company grow and to find business solutions.
Fournier is May’s NAHB Remodeler of the Month.
“These [members of NAHB Remodelers] are the best of the best,” Fournier said. “After meeting and getting to know several of my competitors at CADRE, IBS, and at the local and state levels, I would consider many of them to be tip-of-the-spear great. It is an honor to have my achievements considered among theirs at the same level.”
If you know a professional remodeler who takes remodeling to the next level, nominate him or her for NAHB Remodeler of the Month.
Earlier this year, the Occupational Safety and Health Administration (OSHA) implemented its rule regarding the electronic submission of workplace injury and illness records that many employers are required to keep. But that rule appears to be in limbo.
The original mandate would have given builders, contractors and other companies until July 1 to electronically submit their lists of 2016 workplace injuries. However, OSHA recently proposed the July 1 deadline be suspended until further notice.
OSHA’s website explains it is “not accepting electronic submissions of injury and illness logs at this time,” but does not yet provide information about when it intends to revisit the subject.
In a recent email to industry stakeholders, OSHA stated that it “intends to extend the initial date by which certain employers are required to electronically submit their injury and illness logs” and that the “proposal will extend this to a later date. Currently, [OSHA does] not have any additional information about the timeline for this. [OSHA] will let [stakeholders] know as additional information, including a proposed extension date, is available.”
In January, NAHB, along with the U.S. Chamber of Commerce, the Oklahoma State Home Builders Association, the State Chamber of Oklahoma and three poultry associations filed a lawsuit challenging the legal authority of OSHA to issue the electronic reporting rule.
In addition to the lawsuit, on May 5, NAHB and other construction industry associations asked the Department of Labor to put the implementation and enforcement of the rule on hold and to reopen the rulemaking record to reexamine the legal authority for the rule and its impact on workplace safety and health.
For more information about the rule and other jobsite safety concerns, contact NAHB’s Rob Matuga at 800-368-5242 x8507.
In his remarks in the latest issue of Eye on the Economy, NAHB Chief Economist Robert Dietz provided the following overview of the housing market:
Modera Mosaic in Fairfax, Va., was a Gold winner in the 2016 Best in American Living Awards Multifamily category.
After a strong beginning to the year, total housing starts fell 3% in April. While single-family starts were effectively flat, multifamily development dropped 9% from the previous month, marking the fifth consecutive month of declines. Single-family permits also fell 4.5% in April, though on a year-to-date basis, single-family construction is up 7%.
Home builder confidence rose to a promising level of 70 earlier this month, according to the NAHB/Wells Fargo Housing Market Index. The combination of strong builder optimism with a healthy labor market and tight existing home inventory points to continued gains in single-family construction this year.
NAHB will welcome Environmental Protection Agency Administrator Scott Pruitt to the Midyear Meetings in Washington, D.C. on June 15 to update board and committee members on progress the Trump administration has made toward cutting red tape from the regulatory process and transferring more authority from the federal government to the states.
“Regulatory reform is top of mind for our members,” said NAHB chairman Granger MacDonald. “We are spending too much time and money attempting to follow a tangle of rules and regulations that make housing less affordable without making our communities safer or cleaner.”
NAHB Senior Officers paid a call on Pruitt two months ago to discuss three particularly thorny issues: the confusion and overreach of the Waters of the United States (WOTUS) definitions and stormwater regulations in the Clean Water Act and regulations regarding working in homes that may contain lead paint.
“We have a very consistent message: A healthy home building industry doesn’t just provide shelter for Americans, it is central to our economy. I invite all our members to listen to Administrator Pruitt’s presentation on June 15 – and take part in the other activities surrounding our Midyear Meeting, including the Legislative Conference and our committee and subcommittee meetings. This is our business, and our industry’s future,” MacDonald said.
Savings: It’s one of the five pillars of NAHB membership.
Thanks to his NAHB membership, Dave Rauch just saved $1,000 on another new truck.
But that makes it just another day at the office for Rauch, who estimates that he has saved about $12,000 a year for the past four years – and totally worth paying his dues to the BIA of Southern California.
The founder and president of ProTec, which provides construction, repair, plumbing, maintenance programs and inspection services for home owners associations (HOAs) in Southern California and Nevada, Rauch had been mulling whether his BIA membership was a good fit for the company.
ProTec focuses mainly on HOAs, but is also involved in the building industry as the largest provider of HOA maintenance manuals to builders in the United States.
“The GM discount and customer service available through my NAHB membership was enough to decide that my BIA dues are worth it,” he said.
His company has a fleet of 80 vehicles and 20 trailers, and needs to buy an average of one new vehicle a month – making the NAHB Member Advantage discount a money-saver all year, Rauch said.
“I used to be a Ford guy, but now I am only buying GM vehicles,” Rauch said. “I renewed my membership specifically for this GM discount.”
It’s one of many savings NAHB members can take advantage of – and a great perk when added to the advocacy, education and networking programs your HBA, state and national associations provide.
Following up on President Trump’s recent directives designed to ease the burden of onerous and conflicting federal regulations, HUD today announced it is forming a task force to identify agency regulations that should repealed, replaced or modified – and get a better handle on the price tags, including record-keeping costs, associated with each one.
HUD is taking this action in accordance with Executive Orders 13771, “Reducing Regulation and Controlling Regulatory Costs,” and 13777, “Enforcing the Regulatory Reform Agenda.”
Of particular interest to the agency are rules that:
Eliminate jobs or inhibit job creation
Are outdated, unnecessary or ineffective
Impose costs that exceed benefits;
Creates serious inconsistencies or otherwise interfere with regulatory reform initiatives and policies
Are the result of other directives that have been rescinded or substantially modified
Can be modified, streamlined or eliminated with technology
Duplicate or conflict with requirements of another federal agency
NAHB will submit comments by June 14. Members wishing to offer feedback as part of NAHB’s overall comments should contact Michelle Kitchen at 202-266-8352.
In a further sign that the housing market continues to strengthen, builder confidence in the market for newly-built single-family homes rose two points in May to 70 on the NAHB/Wells Fargo Housing Market Index (HMI). This is the second-highest HMI reading since the downturn.
“This report shows that builders’ optimism in the housing market is solidifying, even as they deal with higher building material costs and shortages of lots and labor,” said NAHB Chairman Granger MacDonald.
“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market,” said NAHB Chief Economist Robert Dietz. “Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the NHMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as good, fair or poor. The survey also asks builders to rate traffic of prospective buyers as high to very high, average or low to very low.
Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Two of the three HMI components registered gains in May. The index charting sales expectations in the next six months jumped four points to 79 while the index gauging current sales conditions increased two points to 76. Meanwhile, the component measuring buyer traffic edged one point down to 51.
The three-month moving averages for HMI scores posted gains in three out of the four regions. The Northeast and South each registered three-point gains to 49 and 71, respectively, while the West rose one point to 78. The Midwest was unchanged at 68.
NAHB welcomed 22 scholarship recipients to IBS 2017. After the Show, they talked to NAHB about the most valuable takeaways.
Products and More Products
With over 569,000 square feet and more than 1,500 exhibitors, IBS is often where manufacturers unveil new products. It is also the place to find out what’s hot and what’s not in fixtures, finishes and building applications.
“It was absurd — in a positive way,” said Laila Reilly, a client relations manager at MaGrann Associates in Mount Laurel, N.J. “It was bigger than any other conference I’ve attended, and I’ve never seen such sophisticated demonstrations before.”
“I learned about the new products that are coming out and got new ideas—both of which are critical in my profession, the high-end custom home building market,” said Nicole Chappie of Magleby Construction, LLC in Lindon, Utah.
Additionally, with more than 75 exhibitors and over 20,000 square feet of display space, the giant nextBUILD area at IBS was where attendees explored state-of-the-art business software solutions, design and personal technology tools.
“I signed up with a project management software vendor that was there,” said Nathan Cooper, owner and president of River Valley Builders, Inc. in Little Rock, Ark. Because technology companies were conveniently grouped together on the show floor, “I was able to get all of my questions answered and make a decision right there.”
Educational Offerings
IBS 2017 featured more than 160 education sessions on 55+ housing, building performance, design, sales, remodeling, high-performance building, business management and multifamily.
“Education was my primary reason for going. I learned a lot of great tips, techniques and trade secrets—things that I’ve been able to apply to my business already,” said Dan Souther, owner of Round Here Renovations LLC in Atlanta.
A full registration is the way to go, said Chris Corder, owner of Coastal Restoration in Gearhart, Oregon. “Rather than fussing around with education throughout the year, why not go to something like IBS where you get it all in one spot?”
Networking with Pros
Building industry professionals of all ages attend the Builders’ Show to network with folks from all across the country. Whether it’s walking the show, listening to a seminar or attending an event, there are always opportunities to make connections.
“We all come from such varied backgrounds, so it was interesting getting to learn their history, where they are from and what they do,” said Jordan Okimura, a financial analyst for Brookfield Residential Hawaii.
“I enjoyed the whole aspect of the IBS scholarship program,” said Jonathan Janacek, of Janacek Remodeling in Northwest Arkansas. “I made some good connections with many in the [scholarship] group. I enjoyed finding out what some of their struggles are and learning how we are similar in some respects and different in others.”
Applications to the 2018 program must be received by June 21. Get the details now.
Rising wages and moderating home prices offset a rise in mortgage interest rates to give housing affordability a slight boost in the first quarter of 2017, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released today.
“Builders are reporting confidence and solid traffic in many markets across the nation even as they continue to grapple with nagging headwinds,” said NAHB Chairman Granger MacDonald. “Regulatory constraints, trade barriers on Canadian softwood lumber, and persistent shortages of lots and labor are slowing the pace of the housing recovery.”
“Ongoing job growth continues to fuel demand for housing, while wage growth is helping to offset the effects of rising mortgage rates and keep home prices affordable,” said NAHB Chief Economist Robert Dietz. “NAHB anticipates that housing will continue on a gradual upward path throughout the year.”
In all, 60.3% of new and existing homes sold between the beginning of January and end of March were affordable to families earning the median income of $68,000. This is up from the 59.9% of homes sold that were affordable to median-income earners in the fourth quarter of 2016.
The national median home price fell to $245,000 in the first quarter from $250,000 in the final quarter of 2016. Meanwhile, average mortgage rates rose nearly half a point from 3.84% in the fourth quarter to 4.33% in the first quarter.
For the second straight quarter, Youngstown-Warren-Boardman, Ohio-Pa., was rated the nation’s most affordable major housing market. There, 92.7% of all new and existing homes sold in the first quarter were affordable to families earning the area’s median income of $54,600.
Meanwhile, Kokomo, Ind., was rated the nation’s most affordable smaller market, with 96.3% of homes sold in the first quarter being affordable to families earning the median income of $62,500.
For the 18th consecutive quarter, San Francisco-Redwood City-South San Francisco, Calif., was the nation’s least affordable major housing market. There, just 11.8% of homes sold in the first quarter were affordable to families earning the area’s median income of $108,400.
At the very bottom of the small-market affordability chart was Salinas, Calif., where 13.8% of all new and existing homes sold were affordable to families earning the area’s median income of $63,100.
Please visit nahb.org/hoi for tables, historic data and details.
Four home builders who typically compete for a share of the same market are united this summer as they help serve their communities. They are joining forces to renovate a building in Alexandria, Va., that serves as transitional housing for homeless families.
The building is owned by Community Lodgings, a nonprofit that helps homeless and low-income families with affordable and transitional housing options. HomeAid Northern Virginia, launched 16 years ago by the Northern Virginia BIA, will coordinate the project.
The building will be reconfigured to accommodate seven apartments, enabling more families to call the property home.
The renovated building will provide housing stability for families who are transitioning out of homelessness and working toward self-sufficiency through Community Lodging’s comprehensive programs of transitional housing, affordable housing and education.
At an estimated $650,000 in construction costs, this will be one of the HomeAid chapter’s larger undertakings. HomeAid, the consortium of four builder captains and their network of trade partners, will cover a significant portion of the costs via donated labor and materials. The City of Alexandria and other groups are also providing funding.
While HomeAid has led more than 114 construction and renovation projects for shelters and supportive housing units across Northern Virginia since its founding in 2001, the large scope and cost of the renovation means that for the first time, it has organized a formal consortium of multiple builders to co-lead as project “builder captains.”
“Housing provided by organizations like Community Lodgings makes a direct impact in the prevention and elimination of homelessness and housing instability across Northern Virginia,” said Kristyn Burr, executive director of HomeAid Northern Virginia.
“Pulling together a consortium of multiple builders and organizations to lead this project represents a strong commitment to take on a large, complex project. It’s a great example of the spirit of cooperation: Local home builders putting aside natural business competitiveness to work together, and with HANV, Community Lodgings and with the City of Alexandria to have impact on the local community.”
As we count down to the release of BUILDER’s lists of the top 200 builders in the country, the BUILDER 100 and the Next 100, we’re examining all facets of the home building industry—how they’ve changed over the past year and how building professionals can expect their business to develop in the future.
This year, we asked builders to pinpoint what they believed were the most important “areas of innovation in home building”. Big data and analytics, or the process of leveraging consumer data to determine patterns, trends, and preferences to make more informed business decisions, was the number one response from builders, with 39.5% touting it as the most innovative area.
“Today’s technologies provide homebuyers with more opportunities than ever to connect with us,” said a representative from David Weekley Homes. “Using big data to analyze and understand their journeys will allow us to make informed decisions on how to create and deliver the best homebuying experience.”
Builders cited robotics and automation next (19.76%), followed by super materials (17.96%), and artificial intelligence and virtual reality applications (10.78%). Approximately 12% of respondents in the survey wrote in their own answers, highlighting other aspects such as smart home technology, value engineering, and energy efficiency as key points.
Hiring talented and crucial team members also proved to be something that builders were focusing heavily on. When we asked participants about their most important hires in 2017, an overwhelming 47% pointed to their sales team, and 26% felt land acquisition specialists added significant value to their operations.
"Our land entitlement planner is involved from the onset when we are determining lot sizes and site configurations as it relates to sewer, water and storm drain—which are each significant costs. The cities, counties and state department are getting more difficult to process plans through which is requiring a more dynamic individual in order to navigate the system", said Rich Munkvold, CFO at Frontier Enterprises.
"The ability of the individual to be able to understand the cost/benefit relationship of each of these items and navigate through all of the departments as quickly as possible is paramount to the success of the company. Speed is a very critical component as the cost of land is a burden until it is able to be monetized," he continued.
Data engineers (4%), and building technology specialists (11%) were also popular fields that builders invested in, 9% of respondents wrote-in that they focused on growing other departments of their staff such as company culture and customer service.
NAHB conducted a national poll of young adults ages 18 to 25 to find out how this age group feels about a career in the construction trades. The majority of young adults (74%) say they know the field in which they want to have a career. Of these, only 3% are interested in the construction trades.
Most of the young people interested in the trades say the two most important benefits of this career choice are good pay (80%) and the attainment of useful skills (74%). Less than half cite as benefits that the work is seasonal (15%) or that it does not require a college degree (37%).
The 26% of respondents who do not yet know the career path they want to take got a follow-up question about the chance they might consider a number of fields (construction trades being one of them) using a scale from 1 to 5, where 1 meant ‘no chance no matter the pay’ and 5 meant ‘very good chance if the pay is high.’ Construction trades got an average rating of 2.1, with 63% of undecided young adults rating it 1 or 2 (no or little chance regardless of pay) and 18% a 4 or 5 (good to very good chance if pay is high).
The 63% of undecided young adults who indicated there was no or little chance they would consider a career in the trades no matter the pay were prodded about the reasons for their resoluteness. The two most common reasons are wanting a less physically-demanding job (48%) and the belief that construction work is difficult (32%). They were then asked if there was any compensation level that might entice them to reconsider a career in the trades. For slightly more than 20%, that number is either $75,000 or $100,000, but for the plurality (43%), there is no amount of money that could make them give the trades a second thought.
A complete research paper on this topic can be found here, including an analysis of government data on actual wages for construction occupations relevant to the home building industry.
What’s the best way for the Trump administration to fix the federal regulations that end up impacting small businesses more than large ones?
NAHB invited leaders from a number of trade and professional associations to the National Housing Center May 4 to toss around their ideas during the Regulatory ReFORUM: Meaningful Relief for Small Business.
Each presidential administration is elected on a platform that includes cutting red tape and creating new jobs.
One of Trump’s first executive orders was one requiring that for every new regulation issued, two earlier ones be identified for revision or elimination. Similar policies have been tried in countries including the United Kingdom and Canada.
Panelists in three sessions discussed how the order could be implemented for labor, environmental and green building, or resiliency regulations and debated whether it was more important to cut the overall number of existing regulations or focus on the most expensive ones.
It’s difficult, said one panelist, to discuss the pros and cons of regulatory relief in today’s polarized political environment, in which advocates on both sides of the fence are less inclined to listen to opposing viewpoints.
OMB official Dominic Mancini (right) talks to NAHB ‘s Paul Lopez about White House initiatives.
Others, seeking to manage expectations, also reminded the audience that it often takes just as much time amending or removing problematic regulations as it does creating new ones.
But the president is determined to lessen the burden on small businesses, even as he attempts to shrink the government agencies that can help him accomplish this task.
“We know regulation is expensive and we need to reform it,” said keynote speaker Dominic J. Mancini of the White House Office of Management and Budget. “If we have to do more with less, we will.”
In his remarks in the latest issue of Eye on the Economy, NAHB Chief Economist Robert Dietz provided the following overview of the housing market:
A strong month for home sales in March reinforced the trend of positive housing demand. Sales of new single-family homes grew 15.6% from a year prior, and 5.8% above the previous month’s mark—a noteworthy gain, considering February’s sales benefited from the unseasonably warm weather.
March was also an encouraging month for the existing homes market, which saw sales rise 4.4% to its highest pace in 10 years. Inventory of existing homes for sale remains very tight, standing at only a 3.8 months’ supply. This is a primary reason why the increases of home prices continue to outpace growth in household incomes.
PWB member Xiaobei Sullivan (right) poses with New Hampshire Gov. Maggie Hassan.
Everyone knows how scary it can be to jump into something new. As an immigrant, a non-native English speaker, and a woman in a traditionally male-dominated industry, Xiaobei Sullivan has faced her fears head on to become a leader in the building industry.
Fifteen years ago, at the age of 26, Xiaobei moved to the United States from China to attend school in Boston. Her sister was already living there and worked for a well-respected building and remodeling company, The Sullivan Company, headed by Paul Sullivan.
Today, Xiaobei and Paul are married, and she is vice president.
“I never said anything, because I thought, ‘I can’t speak English, and I don’t want people to not understand me,’” said Xiaobei. “For American people, you don’t even think about it. But for me, it was another hurdle to overcome.”
Xiaobei started to make friends during these NAHB events and meetings and was encouraged to join Professional Women in Building (PWB), but she hesitated due to her continued fears of not being understood.
“One of the women from PWB said to me, ‘Xiaobei, don’t worry about it. We understand if you don’t speak perfect English. Nobody will laugh at you. Nobody will look down at you because of that.’ It seems like a small thing, but for me, and I think for a lot of foreign people, it was actually a really big deal.”
Since becoming involved with PWB, Xiaobei has taken on many leadership roles, including serving as chair of PWB’s Legislative Committee and board trustee for areas 1 and 2.
“That one quick conversation was actually a really big release for me, and I always remember that story,” said Xiaobei. “I think if I had never overcome that, I would have never run a meeting or hosted a conference call. I would be too scared.”
Now, Xiaobei is thriving as a PWB leader, and she plans to make her first visit to Capitol Hill during the NAHB Legislative Conference June 14 as chair of the Legislative Committee.
“I’m very interested in American politics, and since I’m foreign, it’s all new for me,” said Xiaobei. “I want to do more and more.”
To add to her list of accomplishments, Xiaobei recently earned her Certified Aging-in-Place Specialist (CAPS) designation and is working on completing additional designations.
Xiaobei will continue to use her position in PWB to celebrate and promote women’s important role in the building industry. As the trustee for the New England area, she is also working on starting a new PWB chapter in Boston.
“Even though the industry can appear to be male dominated, I feel it’s very important to show women’s power in the industry,” said Xiaobei.
Xiaobei encourages everyone, but especially women, not to shy away from getting involved with professional organizations like NAHB and PWB, a council that prides itself for developing leadership paths for women in the residential construction industry and serving as a conduit to engage and promote women in these roles.
“I think for women who aren’t yet involved, just start by listening,” said Xiaobei. “Just go to the meeting or an event and just listen. If I can do it, everybody can do it. I feel very proud to belong to something. I tell all my friends that I’m a member of the National Association of Home Builders. I feel very proud.”
To learn more about PWB opportunities or to find out how to launch a local council, contact executive director Sheronda Carr.
National Small Business Week, April 30- May 6, recognizes the critical contributions of America’s entrepreneurs and small business owners. To help celebrate, the U.S. Small Business Administration (SBA) is sponsoring several free webinars, including:
NAHB joins the SBA in honoring all of our small business members, who comprise a majority of our membership. Small businesses truly are the drivers of our nation’s economy, creating nearly two out of every three new jobs in the United States each year.
April is Distracted Driving Awareness Month, but the topic might as well be a year-round initiative.
The National Safety Council estimates that in 2016, roughly 40,000 people died in motor vehicle crashes — the highest total in nine years and an alarming 14% increase from just two years ago.
“From an insurance industry perspective, [distracted driving] is the No. 1 issue for automobile safety, as the vast majority of people admit they frequently drive while talking on the phone, texting, eating, or doing any number of other activities,” says Bill Schaffner, director of risk management for Builders Mutual Insurance Company.
Schaffner oversees many of the safety and loss prevention initiatives for Builder Mutual’s contractor clients. He says that while auto coverage makes up a very small portion of his business, the numbers don’t lie. Many more employers should be mindful of how often their workers are potentially distracted while operating company vehicles.
“The biggest concern that we have is that this is not a big concern for many of our contractor policy holders,” Schaffner said. “There are many other day-to-day concerns [employers] have that might seem like higher priorities, but taking the time to properly and thoroughly train [their employees who operate company vehicles] about safe driving — both on and off the project site — should be among their top priorities.”
Schaffner says that some contractors are taking additional measures to improve safety, like installing video cameras in the cabins of work vehicles. But such methods are infrequently used and often seen as too costly.
However, creating and maintaining a comprehensive training program for employees that includes a safe-driving component is still one of the most valuable and worthwhile strategies.
To inform builders and contractors about their liability and identify ways they can better educate their employees, NAHB compiled a report that lists several guidelines to consider when drafting a distracted driving policy.
In celebration of 75 years of building communities, NAHB will host a 75th Anniversary Gala. In just a matter of weeks, the event will take place amidst a swirl of black and silver décor at the Washington Hilton Hotel on Thursday, June 15, in downtown Washington, D.C.
Invited guests include key legislators, agency officials and other housing stakeholders. Other invitees include past and present NAHB leaders, and other friends of the home building industry.
“Home building has changed dramatically throughout the last 75 years in so many ways as we’ve made advances in building science, technology and manufacturing,” said NAHB Chairman Granger MacDonald. “But one thing that’s never changed – and never will – is our members’ commitment to building families homes of their own. It’s why I am so proud to be part of this industry, and this association.”
Supporters of BUILD-PAC, NAHB’s federal political action committee, and high-donor club members (Capitol, Platinum, and Gold Key) and their guests will also be invited to celebrate this historic milestone. Individual tickets are not for sale at this time. However, some of the few remaining tables (with seating for 10) are available for purchase, as well as various sponsorship packages that include entry to the Gala.
Managing your building or remodeling business’ finances is much more than financial tracking. You must answer questions like:
Are you collecting enough of the right data to drive increased profits?
Have you optimized what this information means?
Do you have a path to company improvement?
The “Live Online” course Business Accounting and Job Costing: A Road Map to Profitability can help you find the answers.
Held over three consecutive Tuesdays, May 9, 16 and 23 from 1-3 p.m. ET, this course is full of the latest strategies for today’s housing market. It includes topics such as financial planning, budgeting, construction business accounting, job cost systems and financing options.
“The content has been revamped to include fresh graphics and a full change in ‘presentation thinking’ from simple information transfer to usable behavior-changing insights,” said Bill Asdal, CGP, CGR, GMB, who earned the 2013 NAHB Instructor of the Year award. “Join us and ride the wave of new thinking about how you can work your company to greater profitability.”
The tax reform conversation kicked off with a bang this morning as President Trump prepares to unveil proposals that could have a significant effect on the way that American families and businesses file their taxes.
At issue: a big hike for the standard deduction. What does that do to the mortgage interest deduction – and more importantly, would it take away an important incentive to home ownership?
On The Today Show this morning, anchor Savannah Guthrie posed that question to Jim Cramer. “Would that fly?” she asked the host of the popular “Mad Money” host.
He shook his head. “The home builders are not gonna let that happen. They are a very powerful lobby,” Cramer said.
Indeed, NAHB is ramping up its discussions with federal policymakers and elected officials to protect this important tool. Read more about the importance of the mortgage interest deduction, and stay tuned as the debate continues.
Our Remodelers meeting is April 27th at the OSHBA office. Don't miss out! Our speaker will be Tulsa HBA President Peter Grant
Peter Grant, CGR, CAPS
2017 Tulsa HBA President, Peter Grant, is a life-long Tulsan with a family history in the city’s real estate community. A childhood penchant of disassembling and reassembling anything he could get his hands on evolved into his career in the residential construction industry, specializing in restoration and renovation projects.
Founded in 1989, Grant Homes Remodel & Restoration, LLC is regarded as one of the city’s premier remodeling companies, offering turn-key services and specializing in the renovation of homes in Tulsa’s historic districts. Recognized for his historic preservation expertise and achievements, Peter serves as a mayoral appointee to the Tulsa Preservation Commission.
As 2013 HBA Remodelers Council President, Peter raised the professional standards of the Council by promoting educational programming and encouraging the exchange of industry trends among members. As HBA President, Peter champions the Ambassador Program developed to cultivate member retention, and he promotes the value of professional educational at every level. A leader by example, Peter has earned NAHB’s Certified Graduate Remodeler (CGR) and Certified Aging-in-Place Specialist (CAPS) designations, and he is a NAHB designation instructor. He is also an OSHBA Certified Professional Builder and a licensed City of Tulsa Professional Residential Builder contractor.
Recently named to the NAHB Remodelers Council Board of Trustees, Peter strives to find new ways to elevate HBA members and the profession. He regards his association/federation membership as one of the smartest decisions he ever made, resulting in an enhanced professional stature and increased business opportunities. Most importantly, his HBA membership provides him with the unique opportunity to associate with the best builders, associates, and affiliates in the business.
Acme Brick Company is celebrating the company’s 126th year in business. Acme was founded on April 17, 1891, just 26 years after the end of the civil war and the same year that James Naismith invented the game of basketball. In 1891 Benjamin Harrison was President of the U.S. and Thomas Edison patented the “transmission of signals electrically” otherwise known as radio!
Acme had its humble beginnings on the banks of Rock Creek, near the town of Millsap, about 30 miles west of Fort Worth, Texas.
The company has grown to become the largest U.S. brick company in the world. Acme residential and commercial masonry products are available throughout the U.S., and southern Canada. Acme’s core market is Texas and the surrounding states of Oklahoma, Arkansas, Louisiana, Alabama, Kansas, Missouri, Tennessee, and portions of Georgia, South Carolina, Florida, Colorado and Mississippi. The company has produced brick for well over two million homes during its history and many thousands of commercial, civic and educational buildings.
Acme currently has nearly 2,400 employees and owns brick plants in seven south-central states. Acme has 69 sales offices in 14 states and a nationwide network of independent distributors.
Acme has consistently ranked at the top in opinion surveys of the nation’s largest homebuilders concerning product quality and product awareness and is the only brick manufacturer that stamps its logo into residential brick products. All residential brick products are supported by Acme’s Homebuyer’s 100 Year Limited Guarantee.
Each Acme plant and sales office will celebrate the company birthday on Monday, April 17th with a large birthday cake, and commemorative gifts for employees.
Commenting on the 126th birthday, Acme President and CEO Dennis Knautz said, “Once again we are happy to be celebrating another milestone in the amazing 126 year history of Acme Brick Company. We owe our continued success to the many millions of Acme customers whose confidence in us and in our products built and sustains Acme Brick Company.”
Acme Brick Company, founded in 1891, is the nation’s largest brickmaker. Acme owns 25 brick plants and has 69 company-owned sales offices across 14 states, plus a nationwide network of independent distributors. Other Acme operations include American Tile & Stone; Featherlite Building Products; Innovative Building Products; and Texas Quarries. Acme Brick Company has been a wholly-owned subsidiary of Berkshire Hathaway, Inc. since 2000. For more information visit www.brick.com.
The HBA of Greater Springfield (Missouri) went with the hands-on approach to spark the interests of area high schoolers and inspire them to explore career opportunities in construction.
By partnering with more than two dozen construction industry and workforce development organizations, the local HBA helped plan “Build My Future.” The interactive, a one-day event was held earlier this week and drew the attendance of more than 900 high school students from throughout southern Missouri.
The students didn’t just listen to and watch demonstrations from residential and commercial contractors. They also got to roll up their sleeves and lay brick, trowel concrete, build bridges, operate heavy equipment, and take part in more than 40 other interactive exhibits set up inside and outside the expansive Ozark Empire Fairgrounds E*Plex.
According to Charlyce Ruth, the HBA’s EO, having displays that featured interactive elements was the key to the event’s success. Bridge building, brick laying, marshmallow gun making (using PEX tubing), simulated truck driving, virtual welding and backhoe operating were all among the most popular exhibits, she said.
To publicize the event, the HBA and its event partners worked directly with the leaders of schools throughout the region. Ruth said that the initial outreach efforts to school counselors were somewhat ineffective. But when they began contacting the schools’ principals and superintendents to promote registration, they started to see the results they were after.
The HBA put together this short video of the event highlights.
Steve Taylor is the 2017 Southwest Oklahoma Home Builder’s Association President. He was also 2016 OSHBA Associate of the year. Taylor is a Sr. Marketing Consultant for Centerpoint Energy and has been with Centerpoint Energy for 18 years and in the business development and sales department for 5 years.
Taylor is married to Liz Taylor (yes, that is correct) who is the County Extension Director and 4H Director with Oklahoma state University Extension in Grady County. Steve has three children. Steve’s Oldest Daughter Cathleen is a state assistant specialist with Oklahoma State University and the 4H program. Matthew is the Youth Minister at McAlester 1st United Methodist church and his wife Shelby is a teacher at Haileyville Schools. His youngest daughter, Emily is a senior at Marlow High School and will be graduating in May and attending East Central University in the Fall.
As Diane Rovere perused the NAHB BuilderBooks Bookstore at the International Builders’ Show in January, the UPS kiosk in the store caught her eye.
In fact, Diane thought, the UPS Savings Program offered to NAHB members through Meridian One looked like it could be the answer to a problem she was in the middle of trying to solve: getting a collection of books that her late father had owned shipped to a church in Michigan.
“I had no idea what it would cost to ship, so I talked to the man at the booth, and he couldn’t have been more helpful,” said Diane, a licensed real estate agent who with her husband Mark owns Action Builders in Huntsville, Alabama.
“He gave me his business card, and in a few days, UPS contacted me and said, ‘When you are ready, we are here to be help you.’ And they did. I wouldn’t hesitate to recommend them.”
Mark and Diane are long-time NAHB members and leaders at the Huntsville Madison County Builders Association, and they are also sold on the NAHB Member Advantage program, which offers exclusive discounts on products and services from vehicles and building supplies to insurance, rental cars – and shipping services.
Take advantage of this great example of the value of NAHB. For more information, contact Christy Ronaldson.
We want to extend a big congratulations to Central Oklahoma Home Builders Association member Todd Stone for his victory last night for the Oklahoma City Council! When he announced he was running back in November he told NewsOk “My efforts have been on building Oklahoma City from the ground up, which has allowed me to become exceedingly familiar with the city's planning and development process". Best of luck on the Oklahoma City Council Todd!
Seamless Alignment of Pre-Employment Screening Technologies and Workforce Management Services Provides Cost-Effective Solutions to OSHBA Membership Community
OKLAHOMA CITY, Okla. – April 5, 2017 – Shield Screening, an industry leader in pre-employment screening solutions and Workforce Management solutions innovator neon Workforce Technologies, Inc., or “neon” announce a new alliance with the Oklahoma State Home Builders Association (OSHBA). The alliance will enable Shield Screening and neon customers to leverage the combined technologies of customized screening solutions with neon’s revolutionary tax credit processing services and full suite of HR related, workforce management services through one seamless and efficient client experience. “The partnership OSHBA has formed with neon and Shield Screening provide an excellent opportunity for us to create added value for our members through superior technology and special pricing available exclusively to our membership community. The OSHBA is committed to bringing services, which help our members to decrease expenses, increase operational efficiencies and mitigate their business risks. The services offered through neon and Shield Screening enable our members to achieve these critical business outcomes.” said Mike Means – Executive Vice President of the OSHBA.
ABOUT SHIELD SCREENING
Shield Screening is a full-service pre-employment screening company founded by account managers, sales reps and technology specialists who recognized a need for higher quality, dynamic pre-employment screenings in today’s complex employment marketplace. Shield prides itself on extraordinary customer service and relationships. With each client they take a hands-on, creative approach in crafting customized solutions that provide clients with the information they need. Shield is uniquely positioned to aid clients in implementing and maintaining a fully compliant pre-employment screening program by combining accurate, up-to-date information with cutting edge technology.
neon has over 20 years of experience and 75,000 client locations, offering clients unparalleled expertise in tax credit discovery. Their exclusive relationships and integration with government agencies, and achievement of the highest industry compliance rating stand as a testament to their knowledge. neon is the largest privately held, employment based tax credit recovery provider that will solely focus on your tax credit eligibility.
neon is headquartered in Gadsden, AL. Learn more at www.neonworks.com.
NAHB Senior Officers held a productive meeting with Environmental Protection Agency Administrator Scott Pruitt today to seek ways to make regulations more cost-effective without undermining their intent.
Discussions focused on several key issues for the home building community, including the waters of the U.S. (WOTUS) rule, lead paint and stormwater regulation.
Nearly 25% of the cost of a new single-family home is attributable to regulation. It’s important, said NAHB Chairman Granger MacDonald, that EPA consider the impact of federal regulations on existing state and local government requirements, as well as on small businesses.
As EPA carries out President Trump’s regulatory streamlining directives, NAHB urged the agency to focus not only on new rules but also on opportunities to revoke or revise existing ones.
A Positive First Step
NAHB said the president’s executive order on WOTUS is a positive first step toward a more sensible rule. NAHB offered to work with EPA and the U.S. Army Corps of Engineers to craft a clear, defensible rule that is fair, balanced and meets the needs of our members.
NAHB agrees with Pruitt that any future rule must limit federal jurisdiction based on congressional intent and Supreme Court rulings. We added that regulation is best handled at the state and local level, and encouraged EPA to explore ways to remove hurdles that have prevented many states from running their own wetland permitting programs.
Conduct a revised cost-benefit analysis that acknowledges that no lead testing kit has come to market.
Respond to the congressional call for EPA to address the lack of a qualifying test kit, including an explanation of how the agency will resolve the issue.
Limit the scope of RRP coverage by reducing the housing stock covered to homes built before 1960, which have a greatest likelihood of containing lead-based paint.
Revise EPA’s regulation amending the RRP renovator refresher training requirements: It penalizes those who choose online training and has created confusion in the industry.
EPA is reviewing the RRP rule through the Regulatory Flexibility Act and NAHB is urging the agency to include these actions in the final report due out shortly.
Federal vs. State Roles
NAHB said it is vital to reverse federal overreach in the National Pollutant Discharge Elimination System stormwater management program. NAHB requested a follow-up meeting with Pruitt’s staff to clarify federal vs. state roles. Specifically, we would like EPA to:
Turn its recent template for single-family homes in large subdivisions into a streamlined small lot permit. This would further simplify the program and dramatically reduce compliance costs for these low-risk sites.
Make it clear that the Permit Quality Review “report cards” that states receive from EPA offices are not legally binding. These reviews are suggestions, not requirements, and should not be seen as federal mandates to adopt stricter stormwater limits.
Also attending the EPA meeting were Second Vice Chairman Greg Ugalde, Third Vice Chairman Dean Mon, Immediate Past Chairman Ed Brady, CEO Jerry Howard and other senior NAHB staff. First Vice Chairman Randy Noel was on Capitol Hill testifying on regulatory reform.
“It went very well,” said a pleased Ugalde after the meeting ended. “I think we are going to be able to build upon the positive relationships our staff has created with the EPA and take it to the next level. EPA Administrator Pruitt listened very carefully to all our points and has instructed his staff to work closely with us going forward.”
NAHB today called on Congress to work with federal regulators to fix the regulatory rulemaking process by ensuring that effects on small businesses are a primary focus for existing and future regulations.
“On average, regulations imposed by government at all levels account for nearly 25% of the final price of a new single-family home,” said Noel.
This is not just a problem for the small businesses that build them. NAHB research shows that approximately 14 million American households are priced out of the market for a new home by government regulations.
“It is therefore imperative that new and existing regulation must address policy objectives while acknowledging the burdens of compliance, particularly for small businesses,” said Noel.
A Flawed Silica Rule
Compliance with the Regulatory Flexibility Act, which requires federal agencies to review regulations for their impact on small businesses and consider less burdensome alternatives, continues to fall far short of the act’s objective, Noel told lawmakers.
As an example, he cited a rule issued by the Occupational Safety and Health Administration (OSHA) to regulate worker exposure to crystalline silica that OSHA said carried a cost estimate to the construction industry of approximately $511 million per year.
An independent study found that the true cost would be nearly $5 billion per year. The study found that the OSHA cost analysis had omitted some 1.5 million workers in the construction industry who routinely perform dusty tasks on silica-containing materials and it failed to account for a variety of indirect costs associated with set-up, clean-up, materials, and productivity penalties.
“Complying with the resulting rule is both technologically and economically infeasible for businesses and more importantly, the rule will do little to improve the health and safety of my workers,” said Noel.
“Congress must provide some direction to address the problem of poor or non-existent economic impact analyses,” he added. “NAHB believes it is critical to include indirect costs as part of any economic impact analysis. Additionally, economic analysis should be reviewed by a non-partisan, third party. Implementing these changes will undoubtedly improve the analysis and provide a more accurate accounting of the burdens small businesses face in complying with regulations.”
Peter Grant is our 2017 President of the Tulsa Home Builders Association. Let's meet him!
Peter has always enjoyed taking things apart and rebuilding them. At age 8 it was bicycles, lawn mowers by age 10, cars in his teens- it seems homes were the next logical step. He had an overwhelming creative urge and his work provided a wonderful outlet for that.
He joined the HBA to elevate the prestige of his business and associate my company with the best builders in the greater Tulsa area. Peter thinks joining the HBA was the smartest business decision he made for his career. It has made him both a better builder and business man.
Connie has been a multi-million dollar sales producer since entering Stillwater’s real estate market in 2003. She brings a wide range of experience, education and passion to every endeavor in which she is involved. Connie has her Broker’s license, is a graduate of the Realtor Institute, is a Certified Residential Specialist, and has her teacher’s certification. Her knowledge of the Stillwater market and community, her ability to communicate with and educate her clients make her one of Stillwater’s most successful Realtors. Connie is active with the Stillwater Chamber of Commerce as a Board member, and is the current President of the Stillwater Homebuilders Association as well as serving on the Board of the Oklahoma and National Homebuilders Associations. Connie also is serving on the Board of Directors for Stillwater Public Housing Authority. Her newest appointment is to the Executive Committee and Leadership Council for Stillwater’s Smart Community Source initiated by Central Electric Cooperative. Connie’s husband, Brett, is a teacher and coach in the Stillwater school system. They have five AMAZING children!
The House today approved the Small Business Health Fairness Act (H.R. 1101), association health plan legislation that would put small businesses on an equal footing with large employers and unions when it comes to negotiating lower insurance costs.
NAHB has been a long-time proponent of association health plans and continues to work with Congress to ensure that this market-based health care option remains a viable alternative for small businesses and their employees.
Of note to the home building community, the bill includes an amendment which clarifies that small businesses that have already established and administer association health plans, including some HBAs, can continue to operate under existing state and federal law.
Prior to the House vote, NAHB sent a letter to lawmakers designating passage of this bill as a “key vote” due to its importance to the housing industry.
The letter stated that association health plans would grant small businesses access to better and more affordable health care plans. By providing the ability to create pooling arrangements across state lines, the bill would ensure a level playing field for smaller firms that want to help their workers and their families with their health care needs.
With passage of the Small Business Health Fairness Act, the House could vote as early as tomorrow on the American Health Care Act, a comprehensive bill that would repeal and replace much of the Affordable Care Act, also commonly referred to as Obamacare.
For more information, contact Alexis Moch at 800-368-5242 x8407.
Our 2017 President of the Builders Association of South Central Oklahoma (BASCO) is Rhonda Trower.
Rhonda has been a member of the Certified Builder program since 2009. She has multiple awards including the W.T. “Jamie” Jameson Membership Award, BASCO President Award, and top recruiting awards at BASCO and OSHBA.
She's very active in the Norman Chamber of Commerce and the Women’s Resource Board.
The solar panel industry and efficiency advocates have not backed off their efforts to require all new homes to be “solar-ready.” These efforts are showing up throughout the country at both the state and local levels.
The solar panel industry submitted an amendment to the 2015 International Energy Conservation Code (IECC) that would have required all homes to be built in such a way that solar panels could be accommodated on the roof: typically including a conduit from the attic to the electric panel, space in the panel to accommodate the solar circuit and documentation that the roof is strong enough to hold a system as well as 300 square feet of clear (not north-facing) roof area.
The amendment to mandate solar-ready homes was defeated ─ but it was included in the appendix of the 2015 IECC, allowing a state or local jurisdiction the ability to require homes to be solar-ready if it wants to.
It’s true that having the infrastructure in place for the installation of photovoltaic panels can be can be desirable to consumers in some markets – which is why NAHB is a strong supporter of voluntary programs and tax credits that encourage their use.
But solar-ready homes aren’t for everyone and every region, so NAHB has resources for home builders and HBAs to refute arguments that they should be installed in all homes.
It’s easy to see that a mandate isn’t the way to go.
It’s not just the cost – estimated to be between $300-$500 per home – but also design issues: Plumbing and mechanical vents might need to be relocated to find the 300 square feet of space the panels require, and architectural features such as gables and dormers might not be possible on a home’s south side: a problem if that’s the side that faces the street.
Some fire departments have expressed concerns about their ability to vent the roof in the event of a fire.
Not every house is a good candidate for solar panels either because of size or space constrictions or because of location – it makes no sense for a house that is often shadowed by tall trees or surrounding buildings, for example.
An alternate to a mandate for solar-ready homes would be, if the builder requests it, that private solar panel installers “certify” a new home as solar-ready if the home’s design allows for easy placement of panels at a future date. The certification sticker could be placed on or near the home’s electrical panel and include the company telephone number so the owner can call when ready – and the solar company can make a sale.
For resources and fact sheets on these code proposals, contact NAHB’s Don Surrena. http://nahbnow.com/2017/03/solar-not-for-everyone/
Sales of newly built, single-family homes continued to expand, rising 6.1% in February to a seasonally adjusted annual rate of 592,000 units, according to newly released data from HUD and the Census Bureau.
“February’s increase in new home sales is consistent with builders’ growing confidence in the housing market,” said NAHB Chair Granger MacDonald. “Builders are encouraged by heightened consumer activity and by the expectation that regulatory costs will decline in the year ahead.”
“The uptick in mortgage interest rates is having a minimal effect on new home sales thus far,” said NAHB Chief Economist Robert Dietz. “Ongoing job creation, rising household formations and affordable home prices should keep the market on an upward trajectory in 2017.”
The inventory of new home sales for sale was 266,000 in February, which is a 5.4-month supply at the current sales pace. The median sales price of new houses sold was $296,200.
Regionally, new home sales increased 30.9% in the Midwest, 7.5% in the West and 3.6% in the South. Sales fell 21.4% in the Northeast.
Andy Hammons started Rowdy Boys Plumbing in 2010 specializing in residential new construction.
Andy graduated from Oklahoma State University in 2009.
Being a member of the Shawnee Homebuilders Association for the past 7 years has allowed him to network and make great connections with local builders.He is excited about his year as president of the SHBA and believes that every aspect of our industry is better when we work together as a community.
This year, the NAHB Federation is focusing on net growth during the 2017 Membership Drive. Local associations can earn $35 per net new member, up to a total of $1,500.
That means that any and every local association has the chance to win.
As an added incentive, members can earn triple Spike Credits. During the months your association holds recruitment drives, recruiters earn triple credits.
And another bonus: Drive recruiters are automatically entered to win a trip to the 2018 NAHB International Builders’ Show (IBS) in Orlando. You’ll get one entry for each additional member you recruit — after you recruit the first one. The trip package includes a four-night hotel stay, economy airfare (up to $600) and an IBS 2018 full registration, which includes all the education sessions. The winner will be required to provide tax ID information to receive the prize.
Recruit: HBAs must participate in a local recruitment drive during both the spring and the fall to be eligible for prizes. Spikes earn triple credits during recruitment months.
Retain: Net growth will be determined based on the association’s total membership as of Dec. 31, 2016 compared to its total on Dec. 31, 2017.
To help Spikes recruit, make sure your association orders new Prospect Rolodexes for you and your fellow recruiters! Use it to create a customized “prospect rolodex” of 101 potential new member recruits. Or download an electronic version at nahb.org/Rolodex.
The Boy Scouts of America — Last Frontier Council's Exploring Program has expanded into new career fields.
With an abundance of employment opportunities in skilled trades, Exploring now will have a larger span of options to help the youths in the Oklahoma City area, according to a news release.
Nationally popular career fields include skin care specialist, automotive service and body repair technician, carpenter, chef and landscape architect.
The Skilled Trades Exploring Post will offer real-world experience with professionals, contractors and electricians, all while promoting character development and leadership skills. The program also gives youths the ability to participate in social and professional networking and civic and community service, and build relationships with their peers interested in similar careers.
Jack Werner, of A to Z Inspections, has signed on as the skilled trades exploring chairman, along with Todd Feehan, of Dad's Plumbing, who has accepted the position of assistant skilled trades exploring chairman.
Werner and Feehan own their own companies and are deeply involved in teaching and inspiring youths through civic organizations, including the South Oklahoma City Rotary Club.
The Exploring Program is offered to young men and women between 14 and 21 and offers hands-on experience and mentorships to youths along several career paths.
Skilled Trades Exploring Posts soon will begin to form partnerships with high schools, with the support of Aurora Lora, superintendent of Oklahoma City Public Schools.
For more information, contact Kassie Wrobel at 918-313-5410, Kassie.Wrobel@scouting.org, or go to the council office at 3031 NW 64.
If you wish to participate in this program as a skilled tradesman, please contact Jack Werner at 405-412-7861 or atozinspections@yahoo.com.
Our 2017 Rogers County HBA President is Michael Green. Let's meet him!
Michael began working at Green Companies Development Group, Inc. in 2004
He has a Bachelor's Degree from the University of Oklahoma in Business Management and graduated in 2004
He is also a Real Estate Agent in Rogers County.
His Father and Grandfather were both past presidents and involved with the Rogers County Builder's Association. And he enjoys the Home Builders Association for the networking possibilities involved with being a member.
The 2015 International Energy Conservation Code includes more stringent requirements regarding how tight a house needs to be.The Insulation Institute explains what these new air leakage standards mean and offers steps to help comply in this blog post.“Best practices reveal that sealing leaks during the framing stage is cost effective when labor is effectively utilized,” the post says. “In this era of skilled labor shortages, preventive methods must not only be effective and inexpensive but must also be easy to install.”One key takeaway: If you drill it, fill it. Thinking ahead as you build will make you more aware of areas of potential air leakage.
We know that our HBAs around the country work hard to serve their members with innovative programs that help grow your bottom line. And now it’s time for us to recognize their achievements.NAHB is accepting nominations for the Association Excellence Awards, an annual program that recognizes the outstanding accomplishments of state and local HBAs (HBA Awards) and executive officers (Individual Awards) in the field of association management.The HBA Awards feature categories like Best Community Service Project, Best Education Program and Best Membership Event. The award categories are judged by association size, so all associations have an opportunity to be recognized for their achievements.If you’ve participated in a local HBA program that you think deserves recognition, we encourage you to let your HBA know the impact of that program on you and why you think it’s deserving of an award. Applications must be submitted by Executive Officers (or their designees); however, feedback from members can encourage them to apply and could strengthen their application.Plus, it’s always great for HBAs to hear how their services are helping their members.
The deadline for AEA-HBA Award nominations is March 31. Winners of the 2016 AEA Awards will be announced in August. For more information about the awards, visit nahb.org/aea.
Don't miss your chance to attend the Association Management Conference (AMC), Aug. 16-19, in Denver. The AMC is designed to deliver cutting-edge training in association management, membership, government affairs and leadership development. The conference is intended to benefit the operations of attendees' affiliated HBAs as well as provide professional development for HBA staff. Registration is open now!
More than 90 percent of survey respondents oppose a sales tax on services related to the purchase of a new home.
OKLAHOMA – Oklahoma Association of REALTORS® (OAR) and Oklahoma State Home Builders Association recently announced opposition to Gov. Mary Fallin’s proposed sales tax plan to address the state’s nearly $900 million budget deficit, including proposed sales tax on services related to home ownership.
A recent SoonerPoll Quarterly Poll of the state’s likely voters revealed that an overwhelming 93 percent oppose a sales tax on services related to the purchase of a new home, while 78 percent oppose a sales tax on home remodel-related services and industries such as plumbing and heating and air conditioning.
“While we are sensitive to the state’s budget crisis and need for funding, we are also concerned that taxes related to the real estate industry would have an extremely negative effect on home ownership, Oklahoma’s real estate industry and the state’s overall economy,” said Pete Galbraith, OAR president. “Almost half of the $930 million revenue generated from the proposed plan would come from the real estate industry. The cost of everyday necessities such as utilities, water, sewer and electricity would increase by nearly 5 percent, killing the dream of home ownership for many.”
Gov. Fallin’s plan proposes roughly $1 billion in new sales taxes on 164 services to address the state’s budget shortfall without cutting state spending further. The governor contends the state’s economy has become more service-oriented and that state revenues cannot solely survive on taxing products only. The proposed taxes both directly and indirectly touch Oklahoma’s real estate industry, including financial institutions and fees associated with closing costs, title insurance services, professional real estate services, lawn care and services related to new home construction.
“This proposal would have an incredible chilling effect on the homebuilding industry,” said Dan Reeves, president of the Oklahoma State Home Builders Association. “From our analysis, this would be an almost 10 percent cost increase to the building of homes. This increase is not readily absorbed by the market and decreases the affordability of homes. Previous studies have shown that for every $1,000 increase in cost, 660 families are priced out of the market.”
According to SoonerPoll, even when voters were told increased revenues would better fund government services and eliminate the sales tax on groceries, voters still overwhelmingly opposed real estate-related sales taxes by nearly 75 percent. Not a single demographical subset found the proposed new sales taxes on home remodel or ownership remotely attractive.
“Our industry was hit hard by the housing financial recession, hit again by the downturn in the oil and gas industry, and I am afraid this proposal would be such a crippling blow to the industry that many builders would be driven from the business,” Reeves said.
About the Oklahoma Association of REALTORS®
The Oklahoma Association of REALTORS® is the voice and first source for information, expertise and advocacy related to the practice of real estate in Oklahoma. Established in 1921, it is one of Oklahoma’s largest trade associations with more than 9,5000 members involved in all aspects of the real estate industry. For more information, visit www.okrealtors.com.
We are excited to welcome Jorie Helms to the Oklahoma State Home Builders Association. She will be our Director of Communications and Outreach.
Before starting with us, Jorie was with the Oklahoma City affiliate of Telemundo and Univision working in the production department, after which she did Social Media Marketing for small local businesses
Jorie’s education started at the University of Central Oklahoma where soon after she was accepted to the Disney College Program and moved to Florida to work at Disney World. When she returned to Oklahoma she attended Moore Norman Technology Center where she studied Digital Video Production and Editing.
Please take the time to extend a welcome to her at Jorieh@oshba.org
Builder confidence in the market for newly-built single-family homes jumped six points to 71 on the NAHB/Wells Fargo Housing Market Index (HMI). This is the highest reading since June 2005.
“Builders are buoyed by President Trump’s actions on regulatory reform, particularly his recent executive order to rescind or revise the waters of the U.S. rule that affects permitting,” said NAHB Chairman Granger MacDonald.
“While builders are clearly confident, we expect some moderation in the index moving forward,” said NAHB Chief Economist Robert Dietz. “Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three HMI components posted robust gains in March. The component gauging current sales conditions increased seven points to 78 while the index charting sales expectations in the next six months rose five points to 78. Meanwhile, the component measuring buyer traffic jumped eight points to 54.
Looking at the three-month moving averages for regional HMI scores, the Midwest increased three points to 68 and the South rose one point to 68. The West dipped three points to 76 and the Northeast edged one point lower to 48.
Read Dietz’s analysis in this Eye on Housing blog post, get details and tables at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.
The latest Producer Price Index release by the Bureau of Labor Statistics shows that prices of softwood lumber, gypsum, ready-mix concrete and OSB all rose in February. The increases were led by gypsum products, with softwood lumber a close second.
After falling in four of the past five months, the price of softwood lumber jumped 4.8% in February. This was the biggest increase in four years and largely due to the ongoing softwood lumber trade dispute between the U.S. and Canada. Some softwood products rose as much as 30% during the three-week period from Jan. 27 through Feb. 17. However, Random Lengths weekly price data shows that framing lumber prices have either held steady or slightly declined since Feb. 24.
Meanwhile, gypsum prices posted a 5.3% jump in February, the largest monthly increase since January 2015. Prices rose by a total of 6.2% in the first two months of this year. NAHB will pay close attention to whether this rise is an isolated phenomenon or the start of an upward trend.
OSB and ready-mix concrete prices climbed by 3% and 0.5%, respectively, in February.
NAHB economist David Logan provides more pricing analysis in this Eye on Housing blog post.
Our 2017 Bartlesville HBA President is Tom Myers. Let's meet him!
Tom has worked in construction or engineering since 1990 and started building in 2005
He has a Bachelor's Degree in Architectural Engineering and a Master's Degree in Entrepreneurship & Venture Management. He also served in the U.S. Navy.
He stays involved in local organizations and is a member of not only the Bartlesville Home Builders Association, but also East Cross United Methodist Church and Bartlesville Renters Association.
He uses the Bartlesville HBA to stay current on trends and make valuable business connections.
You can hype a new home’s hardwood floors and extra storage until you’re blue in the face. But you won’t get nearly the kind of foot traffic as those who tout a home’s green features.
Home builders are becoming increasingly aware of that fact, which is evident in the results from an NAHB survey conducted last month when builders were asked which green products and practices they use.
At the top, low-e windows are commonly used by 95% of the builders. Others in the top 5 green products include high-efficiency HVAC systems (92%), programmable thermostats (88%), Energy Star-rated appliances (80%), and energy-efficient duct systems (78%).
Mark Konter, vice president of Konter Quality Homes in Savannah, Ga., participated in the builder survey and said he wasn’t surprised at all by the results.
“We’re seeing that in our market of move-up buyers, there is strong demand for certain green products and practices, but only to a degree,” Konter said. “Things like solar panels and on-demand water heaters are products we use on occasion, but generally only by request.
“The top half of this list of [green] products and practices have been pretty much the standard for us for several years. However, we haven’t seen a big increase in consumer awareness of or demand for most of the practices in the bottom half of the list.”
It’s no coincidence that the results from January’s builder survey closely mirror the results of a 2016 NAHB study on home buyer preferences: Three of the top five features buyers want are related to energy efficiency.
Between 87% and 90% of all buyers in the survey ranked having Energy Star-rated windows and appliances, and an Energy Star rating for the whole house as either highly desirable or essential elements for their next home.
To see a full list of most and least commonly used green products and practices, go to economist Paul Emrath’s post in EyeOnHousing.
OSHBA President Dan Reeves shares a recent positive forecast he heard about Oklahoma's economy, as well as updates on the upcoming OSHBA Day at the Capitol and this year's Oklahoma Building Summit & Expo.
The draft technical guidelines for the Water Efficiency Rating Index (WER Index) is now open for public comment. Comments will be accepted until May 1.
A free webinar at 1 p.m. on Wednesday, March 15 will explain the draft guidelines. Pre-registration is required for the webinar, which will be hosted by The Residential Energy Services Network (RESNET).
RESNET and the International Code Council have partnered to develop the WER Index. It will rate a home’s efficiency in water use in the same way that the HERS index measures a property’s energy performance.
As water is becoming increasingly expensive in many parts of the country, RESNET believes a water efficiency rating index can be a useful tool for home builders and home buyers alike.
For additional information about NAHB green and sustainable building initiatives, contact Jaclyn Toole at 800-368-5242 x8225.
The winners of Professional Builder magazine’s 40 Under 40 award show that NAHB membership provides valuable business and leadership opportunities to help you stand out from your peers. This year, NAHB members comprised nearly half of the distinguished list of young professionals.
Rich Robinson, a 2017 honoree and founding member of the Young Professional committees at the New Jersey Builders Association and the Shore Builders Association of Central New Jersey, credits his NAHB membership for helping him advance professionally.
“When I attended my first general membership meeting in 2002, I was overwhelmed by the amount of contacts and resources available to better our business. Getting much more involved at all levels of the Federation was vital to both my personal and business growth,” he said.
And now, as vice chair of NAHB’s Young Professionals Committee, Robinson has made it part of his mission to help other young industry professionals understand the value of membership.
“Whether it is advocacy, networking, education, job opportunities, or member benefits, both you and your company will be at a far greater advantage as an NAHB member.”
Just ask these members who have been recognized for this year’s prestigious national award.
Jason Adams, president & CEO, Arbor Builders, 38
Stephen Adams, owner & manager, Adams Craig Acquisitions, 40
Ryan Anderson, owner, RKA Construction, 32
Aren Bazzocco, division president, Taylor Morrison, 39
Recent news stories have focused on the massive tax increase proposed by Gov. Fallin. As president of the Oklahoma State Home Builders Association, which represents the professional builders in Oklahoma, we join in the chorus stating our opposition to such a devastating proposal.
A cursory review of each category of services that would be subject to sales tax reveals an alarming statistic. Almost half of the services directly affect the homebuilding industry. And as previous news articles have said, these services would also be subject to local sales taxes, not just state sales tax, effectively doubling the proposal. Another thing to keep in mind: These taxes will also be imposed on remodeling, not just new construction.
Here is just a sampling of those affected; masonry, windows, flooring, carpentry, electrical, plumbing, HVAC, drywall, painting, roofing, siding, termite services, landscaping, architectural, and the list goes on. Each one of these industries is obviously involved in the homebuilding industry. All of us pay sales taxes on the materials and equipment used, so it is not like we are getting a free ride.
We recently commissioned Sooner Poll and found that 78 percent of Oklahomans are opposed to increasing the prices of homes by implementation of such sales taxes. Previous polls show that Oklahomans are even more opposed to increased property taxes. It’s not a stretch to say that an increase in sales taxes to build a home is just an increase in property taxes.
The homebuilding industry took a hard hit during the recession. In Oklahoma, we’re still feeling the effects from the downturn in the oil and gas industry. The last thing we need is for our state government to put the hammer to us by increasing the cost of our mission — to build safe and affordable housing in Oklahoma.
Reeves, of Norman, is president of Landmark Fine Homes.
Home builders know that shoppers almost always start the home buying process online, not only by scoping out the floorplans on your website, but also getting a feel for your company culture and customer service ratings at third-party sites like Yelp and Houzz.
So you’ve been nagged and warned about keeping your web presence up to date. But what about video?
The January-February issue of NAHB’s Sales and Marketing Ideas asks that question and then tells you why you’d better get hopping: millennials.
“Millennials spend more time watching video on their mobile devices and laptops rather than watching traditional broadcast TV,” says Barbara Anderson, MIRM, in the article “Leveraging the Power of Video.”
It’s important for social media, as well. “On Twitter, you can respond to a customer inquiry with 140 characters of text or you can take a few minutes and record a 30-second video message for greater engagement,” she says.
Read Anderson’s story and other stories and features in the latest issue of Sales and Marketing Ideas. For information, contact Anne Ladewig.
And if you need professional help, NAHB Media, NAHB’s video production department, serves NAHB members and HBAs at discounted rates. Let them help you ramp up sales with the power of video: Contact Darren DiPatri at 202-266-8090 to learn more.
NAHB sent a letter to HUD Secretary Ben Carson on March 9 urging the secretary to reinstate previously announced premium reductions on FHA-insured mortgages that were due to go into effect on Jan. 27 but suspended by the Trump administration.
A mortgagee letter was issued on Jan. 9 that would have reduced the annual mortgage insurance premium (MIP) by 25 basis points to 60 basis points for FHA-insured mortgages with less than a 5% down payment and to 55 basis points for mortgages with a down payment of 5% or more. The changes would have been effective for FHA-endorsed mortgages with a closing date on or after Jan. 27.
NAHB strongly supported this action by the outgoing Obama administration, noting that lower premiums would make home loans more affordable, help to ease tight credit conditions and represent sound policy given recent actuarial reports which show that FHA continues to strengthen its financial reserves.
However, one of the first actions by the Trump administration was to indefinitely suspend the FHA MIP cuts so that the new administration could do its own analysis on the strength of the Mutual Mortgage Insurance Fund.
In the letter to the HUD secretary, NAHB said that “we believe the results of such an analysis will find that the lower MIP rate will expand homeownership opportunities for FHA-eligible borrowers without negatively impacting the Mutual Mortgage Insurance. Fund. Thus, we strongly urge you to promptly reinstate the previously announced MIP reduction.”
For more information, contact Curtis Milton at 800-368-5242 x8597.
If you’ve ever seen an episode of Mad Men, then you know that drinking policies, smoking habits and gender roles in the office place have evolved significantly throughout the last 50-60 years.
You might also realize that some things haven’t changed much at all, or they’ve made a huge comeback—namely, mid-century modern design.
Mid-century design elements abound in a multifamily project designed by Beasley & Henley in Atlanta.
The resurgence of mid-century modern has been so popular for so long—the better part of two decades—it’s not much of a resurgence anymore, according to Stephanie Henley, principal of Beasley & Henley Interior Design.
“Most people don’t even recognize it anymore as mid-century modern. To them, it’s best described as simply ‘modern’ or ‘contemporary’ style,” said Henley, who also serves on NAHB’s Design Committee.
“Especially in the multifamily market and among millennials, there’s big demand for design that’s simple, unpretentious and, above all, functional.”
Some consumers even shy away from using the term “mid-century modern” altogether. One of Henley’s recent clients told her in an initial meeting that he hated mid-century modern, but went on to tell to her what he did like—essentially, he was describing several primary characteristics of 1950s and 60s design.
“When we finished the job, which featured a lot of visible wood grains with unembellished and authentic designs, he loved it,” Henley said. “We just knew not to call it mid-century modern.”
Smaller, ranch-style homes that became a staple for 1950s America are no longer in huge demand. However, several key elements of that era live on.
“As popular as it’s become, you won’t often see a new home done entirely with a mid-century design. But you can’t miss the large sliding glass doors, floor-to-ceiling windows, bright accent colors and rustic wood finishes that hearken back to the 1950s,” said Susan Bady, another member of NAHB’s Design Committee, and senior editor of Professional Builder.
“The designs from that period can be used in a variety of ways, and over the years, the best of those elements have endured.”
Much like these remarkable designs that have stood the test of time for several decades, NAHB is proudly celebrating its 75th anniversary. Since 1942, NAHB has continually played a critical role in serving its members to advance the home building industry.
Visit nahb.org/75years and take a look back at many other significant housing trends and milestones in American history.
Editor’s note: This column will be published in the upcoming edition of Oklahoma Builder magazine
By Chris Evans
State Associates Chair
Hello, OSHBA members and Associates.
Chris Evans
My name is Chris Evans, and I am serving this year as the chair of the State Associates Council. I am an outside sales representative at Probuild in Oklahoma City, and have been in the industry in Oklahoma for more than 12 years. I have spent several years working with the very capable people in not only the state council but in my local councils, as well, to try better the important relationship between our builder and associate members. I have served as the secretary/treasurer, the vice chair and ultimately the chair for both COHBA and now for OSHBA. I spent one year as the chair of the Edmond council and another as the chair of the Cornerstone 100 group. All of these roles had one main objective, which was to come up with new ways to bring people together, thereby increasing the value of membership for all parties.
With that being said, another year is officially in the books. 2016 has come and gone, and with it many good things have come to fruition. We have seen a country come together to elect a president that undoubtedly will cause some commotion amongst many groups but who also brings a spirit of positive change and renewed optimism amongst builders and associates alike. In the upcoming months I hope to see that positive energy turned into results in not only our organization but also in our entire industry. I know that my colleagues and I, along with the various local home building organizations throughout the state, will spend our time focusing on the needs of our communities thereby strengthening them and the relationships between the members of these organizations as well.
If you have any ideas you want us to consider, would you please contact me? If you would like me to come to your meeting, let me know that as well. Working together for our association and industry, we will build the industry.
If you’re a chair or vice chair of a local remodelers council and you’d like to get involved at the national level, the NAHB Remodelers Leadership Scholarship program might be just the ticket to get you started.
Leaders of local NAHB-affiliated remodelers councils are invited to apply for the $1,500 grant, which can be used to offset expenses related to attending NAHB Remodelers meetings and events at the 2017 Midyear Board meeting.
It’s there that the local remodelers council leaders can learn firsthand about NAHB Remodelers and the remodeling industry from a national perspective, as well as discover best practices for running a successful local council.
Previous scholarship recipients are quick to describe their participation as a highly rewarding experience, and several have gone on to become leaders at the national level.
“It’s like getting a backstage pass to NAHB Remodelers,” said 2016 recipient Elliott Pike, CGR, CAPS, who is chair of the remodelers council of the Greater Birmingham AHB in Alabama. and serves on the NAHB Remodelers Board of Trustees. “The senior leadership and committee members of NAHB Remodelers were very accessible and went out of their way to ensure that I was very involved in the meetings and that I learned as much as possible about the remodeling industry.”
A few other past recipients who went on to serve at the national level include:
John Guillory, CAPS, CGA, a former member of the CAPS Board of Governors Subcommittee and part of the national group developing the new CAPS III course
Marie Herrick Procyk, 2016 NAHB Remodelers Trustee
Rolf Parelius, CAPS, CGP, CGR, vice chair of the HBA of Greater New Orleans remodelers council
“Winning a Leadership Scholarship seriously jump-started my involvement in NAHB,” said Parelius, who owns Viking Construction Services in New Orleans. “Through the scholarship, I was able to learn about Remodelers Council resources that immediately benefited my local council.”
The scholarship is only valid for the NAHB Midyear Board meeting June 14-16 in Washington, D.C., where recipients will participate in learning activities and attend the NAHB Remodelers meetings and a leadership orientation.
The application period for the scholarship is open until March 27. You can learn more about eligibility requirements, and how to apply or submit a nomination online at nahb.org/nahbrscholarship.
Now that President Trump has ordered an extensive review of the “waters of the United States (WOTUS)” definitions in the Clean Water Act, many NAHB members have questions about how this executive order changes the stormwater and wetlands permitting processes they have been following all along – and what the next steps are.
Let’s go to our resident WOTUS specialist: NAHB Environmental Policy Program Manager Owen McDonough, PhD.
Owen, what are the rules now – what has changed? For builders, not much. First, the new WOTUS rule never really had an opportunity to actually take hold. It was suspended by a federal court ruling just weeks after being finalized in 2015. What this new executive order means is that EPA and the Corps must take a giant step back and thoroughly review the flawed rule.
The current rule is not very clear, doesn’t take into account the need for economic growth and oversteps the rights of states to make decisions within their own borders. It fundamentally attempts to expand Clean Water Act requirements beyond what Congress originally intended while at the same time ignoring Supreme Court decisions.
Is WOTUS going away? No, the President does not have that authority to erase the WOTUS rule. He’s telling the agencies he wants a comprehensive review and a revised rule that makes sense for everyone. And he wants it quickly. He doesn’t want to leave the regulated community – especially home builders – in limbo. Our industry is arguably the most heavily regulated under the Clean Water Act, and we ... read the article at the NAHB website
Editor’s note: This column will be published in the upcoming edition of Oklahoma Builder magazine
By Dan Reeves
OSHBA President
The International Builder’s Show in Orlando, this year had an overall increased attendance of 80,000. This is a great sign for the housing industry. NAHB Economist Robert Dietz, Ph.D., says GDP growth is expected to be 2.4 percent in 2017, up from 1.6 percent in 2016. Mortgage rates are projected to be on a gradual increase from 3.7 percent in 2016 to 4.5 percent in 2017 to 5.3 percent in 2018. Nationally, housing starts are projected for single family to continue to rise from 780,000 to 855,000 in 2017, and 961,000 in 2018.
I had the honor of attending the NAHB Board Meeting as one of our state’s Board Members. The NAHB membership has not been recovering in the number of new members like the national home building Industry has seen in housing starts recovery. The total NAHB membership has been relatively flat at around 140,000 members in more than 700 state and local associations. They are working on increasing members like all of our associations.
The NAHB Executive team met with President Donald Trump before the election and had been meeting with the transition team discussing challenges our industry has been facing and the burdensome red tape and bureaucracy that hurts our members. The NAHB Executive team feels that we will win some and lose some, but they are excited the President is a builder-developer and may understand our issues better. Nationally, we have several issues to watch. If Scott Pruitt is confirmed as Director of the EPA, we hope to get some relief from the burdensome EPA regulations. Tax reform has our mortgage interest deduction on the chopping block. How does immigration reform play out? Health care reform? Other issues? The NAHB Executive team wants us to know they are advocates for our industry.
Economic Growth Predictions
Locally, the prediction is for Oklahoma to slowly grow the economy. I have listened to several economists about the 2017 Oklahoma economy. My understanding from their educated guess is the Oklahoma state economy will grow around 4 percent, with Oklahoma City and Tulsa leading the way. Oklahoma City is predicted at 1 percent, and Tulsa to fall between the state’s and OKC’s growth rates. Oklahoma City is predicted to be flat for two years, which makes this the best downturn for Oklahoma ever after an oil collapse. High-end homes will suffer the most until oil can recover to more than $65 per barrel. The OKC Metro has averaged 5,000 building permits per year for the past 11 years with a high of 6,065 and a low of 3,882. In 2016, permits were 4,383, one of the lowest totals in years. Housing starts should be up from 2016 numbers.
Legislative Session Opens
Oklahoma legislators have filed more than 2,000 bills. We have a $900 million deficit at the Capitol, and I think so far the only agreement they have to fill the huge hole is to tax tattoos. Mike Means, our Executive team and our Legislative Committee are already at work meeting with our State Legislators discussing the bills and advocating for our industry. We need your help by signing up for Voter Voice, which is an email system that makes it easy for you to email your Representatives to tell them your stance on the issues. To sign up for this service, go to the member log-in on the OSHBA website. If you have any issue, please contact the OSHBA’s office and they can assist you. We normally will have spoken to the bill’s author, committee members, etc., about the bill, and ask our members to back us by sending these emails, which only take about one minute for you to fill out and hit send. We appreciate those who help. It really does make a difference. We also need your help to come to the State Capitol for our Day at the Capitol on March 29. We would like to have a large group as we go to the House and Senate chambers and walk the halls talking to our representatives about the issues our industry is facing.
Good time at Installation Banquet
The annual Installation Banquet was a great time. NAHB 1st Vice Chairman, Randy Noel, came in to install our officers. It was an honor to have him attend. Our Hall of Fame continues to grow with some outstanding role models. This year’s inductees were Charles Gilmore, Ken Klein, Bill Rhees, Bob Thompson and Reese Wilmoth. Congratulations to them and their families. We appreciate all you have done for our industry.
I love OSHBA. It is my pleasure to serve as your President this year. If I can help, please go to our OSHBA website and email me. I hope to see you at OSHBA Day at the Capitol on March 29.
As members already know, NAHB’s efforts last fall to get out the vote paid off with a slew of wins among pro-small business candidates: A stunning 94 percent of the candidates that NAHB endorsed won their elections.
Last week, NAHB got the icing on the cake when the Reed Conference & Grassroots Seminar presented its prestigious annual awards for governmental advocacy efforts. The 2016 “Get Out The Vote” (GOTV) program was honored with the Campaigns & Elections Reed Award in the Grassroots category for Best Email Action Alert.
“When it comes to elections, the most powerful tool we have is our members,” said NAHB Director of Grassroots Programs Michael Blake Bezruki, who represented the association at the seminar and awards event, held in Las Vegas Feb. 16-17.
In addition to NAHB’s successful GOTV campaign, which included a series of customized emails to members in each Congressional district where the association had endorsed a candidate ... read the post at the NAHB website
NAHB Chair Granger MacDonald issued the following statement regarding the joint resolution of disapproval that was introduced in the House today to overturn the Occupational Safety and Health Administration’s (OSHA) recordkeeping rule known as the Volks rule:
“NAHB commends the U.S. House of Representatives for using the Congressional Review Act in an effort to overturn OSHA’s Volks rule. We have vigorously opposed this rule from the start, and have led the charge alongside dozens of other industry groups who stand ready to fight this unlawful example of regulatory overreach.
“In 2012, the U.S. Court of Appeals for the District of Columbia Circuit held that OSHA could not issue citations for failing to record an injury or illness beyond the six-month statute of limitations set forth in the Occupational Safety and Health Act. In a clear attempt to circumvent congressional authority and in spite of the court’s decision, OSHA went on to introduce this new recordkeeping rule, which went into effect last month. The Volks rule will subject millions of small businesses to citations for paperwork violations, while doing nothing to improve worker health and safety.
“The rule directly contradicts clear statutory language and the decision of the U.S. Court of Appeals. This abuse of authority cannot stand. We urge Congress to move swiftly in passing a joint resolution of disapproval for this burdensome, unlawful rule.”
Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas, issued the following statement regarding the Senate confirmation of Oklahoma Attorney General Scott Pruitt to lead the Environmental Protection Agency (EPA):
“NAHB congratulates Scott Pruitt on being confirmed as the nation’s next EPA Administrator. Pruitt understands the need for a commonsense regulatory process that is based on sound science, and does not trample states’ rights or ignore the economic impact on small businesses. NAHB looks forward to working with Administrator Pruitt and his team to help move towards this more reasonable approach.” Read the article at the NAHB website
Homebuilder Denise Patterson show some of the features in one of her custom homes at 15317 Salem Creek Place, northwest of NW 150 and Santa Fe Avenue. [PHOTO BY CHRIS LANDSBERGER, THE OKLAHOMAN]
Spring may have sprung early for Oklahoma City-area homebuilding.
After three years of construction declines — including a steep 15.8-percent drop in 2016, comparable to 15.6 percent in 2009, the second year of the Great Recession and national housing crash — 2017 started with a turnaround.
Housing starts in January shot up 24.3 percent compared with January 2016, according to The Builder Report by Dharma Inc. in Norman.
Builders took out permits to build 368 houses last month, compared with 296 in January a year ago, in Oklahoma City, unincorporated Oklahoma County, Choctaw, Edmond, Midwest City, Moore, Mustang, Newcastle, Norman, Shawnee and Yukon, according to The Builder Report.
January was not so sunny for real estate agents, according to the Oklahoma City Metro Association of Realtors, which reported ... Read the article at newsok.com
OSHBA President Dan Reeves shares about Capitol Day and the legislative process, OK Building Summit and our upcoming Sporting Clay Tournament. Watch below:
Builder confidence in the market for newly built single-family homes declined two points in February to 65 on the NAHB/Wells Fargo Housing Market Index (HMI).
“While builders remain optimistic, we are seeing the numbers settling back into a normal range,” said NAHB Chairman Granger MacDonald. “Regulatory burdens remain a major challenge to our industry, and NAHB looks forward to working with the new Congress and administration to help alleviate some of the pressures that are holding small businesses back and making homes less affordable.”
“With much of the decline this month resulting from a decrease in buyer traffic, builders continue to struggle to minimize costs while dealing with supply side challenges such as a lack of developed lots and labor shortages,” said NAHB Chief Economist Robert Dietz. “Despite these constraints, the overall housing market fundamentals remain strong and we expect to see continued growth this year as some of these concerns are addressed.”
Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders... read the article at the NAHB website
Be sure to mark your calendars or tell Siri to book a reminder for September 27 & 28. Those dates are for the next OK Building Summit & Expo, the premier event from the Oklahoma State Home Builders Association. Once again the event will be presented by HUB International, Mid-Continent Casualty and CompSource.
“We are excited once again to bring builders in Oklahoma the very best in construction education,” said David Blackburn, chairman for this year’s event. “The Summit has been the ‘go-to’ place to stay up-to-date on the latest construction techniques as well as staying current on what the building codes require.”
The OK Building Summit & Expo is for building contractors, their superintendents, as well as subcontractors. They do not have to be a member of the Association to register and attend.
“Besides the latest and greatest in education, the Expo component has continued to grow each year,” Blackburn added. “Suppliers and vendors are excited about the opportunity to spend some quality time with the contractors to share valuable information. Many vendors also offer deeply discounted ‘show only’ discounts that really makes attendance valuable.”
Again, the dates of this year’s OK Building Summit & Expo is September 27-28 and will be held at the Cox Convention Center. You can register online at www.okbuildingsummit.com.
NORMAN — Homebuilder Tony Foust's genius may not be immediately apparent to the naked eye — it lingers behind walls, disguises itself in wide hallways and hides in plain sight in tile underfoot.
“It's stuff nobody cares about until they get their electric bill. They see the efficiencies, and the air is cleaner,” Foust said. “That's where these things come in. It's the little things.”
Faust, 49, has spent his two decades in homebuilding concentrating on the little things. Along the way, he put in the time and study to stretch his abilities and offer even more to his customers.
He's earned the National Association of Home Builders' certifications in green building and aging-in-place and qualified to be a Certified Graduate Builder. He now teaches those classes himself nationally.
“It's like anything else,” he said. “If it's worth doing, it's worth doing well.”
Colleagues recently honored his dedication to craft and detail recently during the annual International Builders' Show in Orlando, Florida, naming Foust a Graduate Master Builder, one of its ... read the article at newsok.com
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that 70.8 percent of new home sales in 2016 were financed with conventional products — up from the most recent trough of 58.5 percent in 2010.
Conversely, over the same period, the share of new home sales financed with FHA mortgages has fallen from 25.1 percent to 15.7 percent. FHA loan market share tends to decrease as economic conditions improve and lending conditions ease, as a larger share of buyers qualify for conventional loans.
Census data and NAHB calculations show that new home sales backed by FHA products fell to 18,000 (-2,000) in the fourth quarter of 2016, though market share held steady at 14 percent. Market share fell to 15 percent in the second quarter of 2013 after reaching a high of 28 percent in the first quarter of 2010, and has averaged 14 percent ever since.
VA-backed loans were responsible for 8.7 percent of new home sales during the fourth quarter of 2016; this share was up from 8.3 percent (revised) in the third quarter but ... read the article at the NAHB website
Welcome to our final video saluting the Oklahoma Housing Hall of Fame Class of 2017. Today's video honors Reese Wilmoth, the first OSHBA Associate member to be inducted.
All hail the happy home owner: the No. 1 referral source for home builders and remodelers. Companies that forget to keep that top of mind are companies that are in for a bumpy ride, presenter Ed Earl of Priority One Projects told attendees at an educational session during the 2017 NAHB International Builders’ Show.
“Quality construction does not guarantee a happy home owner, because your home owner is going to focus on the construction process rather than the final product,” Earl said. “The home owner is part of the project, and [he or she] is the best source of your new business.”
That’s why we’d do well to understand the home owner’s perspective, take steps to communicate effectively and make sure to manage expectations, Eral said.
Continually managing customers’ expectations and ensuring they understand the meaning and impact of change orders will save them a lot of heartache and bad ... read the article at the NAHB website
Green home builders, remodelers and designers and others sustainability enthusiasts are encouraged to apply to the committee that will develop the 2018 version of the ICC/ASHRAE 700-2015 National Green Building Standard.
NAHB and its partners in the standard, ASHRAE and the International Code Council, update the content every three years. This window enables them to learn from certification case studies and advances in green building practices to develop the most timely and relevant product.
The Home Innovation Research Labs, which has certified nearly 100,000 projects to the standard since the first edition was introduced in 2009, will again serve as secretariat of the standard development process.
Applications must be received by Feb. 6 for a committee slot, although task group applications will be open longer.
To learn about green and sustainable building and remodeling programs at NAHB, contact Jaclyn Toole at 800-368-5242 x8225. Read the article at the NAHB website
This is the first in a series of OSHBA videos that honor the 2017 class of the Oklahoma Housing Hall of Fame that was inducted on Jan. 21. This first one is on Charlie Gilmore, who is a member of the HBA of Greater Tulsa.
Five legends of the building industry were inducted into the Oklahoma Housing Hall of Fame at the recent OSHBA Installation Banquet and Housing Hall of Fame Induction cerremony. From left are Phil Rhees, whose late father Bill Rhees of Tulsa, was inducted, along with Charlie Gilmore, Reese Wilmoth, Bob Thompson and Ken Klein. This was the second class to be inducted into the Housing Hall.
Despite a Jan. 20 White House Memorandum from Chief of Staff Reince Priebus directing federal agencies to withdraw or postpone recently finalized regulations, the Environmental Protection Agency (EPA) has not withdrawn the Jan. 19 Construction General Permit (CGP) for review.
That’s unfortunate – and troubling – to NAHB builders and developers worried about the permit’s controversial new language that considers all builders on a shared site “jointly and severely liable” for compliance with permit terms, including violations of “shared” treatment ponds and other features.
On Friday, NAHB sent a letter to EPA and the White House Office of Management and Budget (OMB) arguing that the 2017 permit–though much improved – is just the type of regulation that should be reviewed by the incoming administration. However, it needs a quick fix, as the permit is set to go into effect Feb. 16, less than one month ... read the article at the NAHB website
OSHBA members from the Oklahoma contingent of more than 250 explore the IBS show in Orlando, Fla., in early January. From top are Dan Reeves (left) and Steve Sullivan look at new technology, while COHBA member Dusty Hutchinson tours kitchens and baths (middle photos); in bottom photo, immediate past president Kurt Dinnes examines a display at IBS.
At an International Builders’ Show seminar in Orlando earlier this month, Brian Hall, vice president of construction at Charlotte, N.C.-based Classica Homes, outlined four steps his firm has taken to ensure it is the “builder of choice” in its local market.
Hire the best of the best. Hall says there are only two National Housing Quality (NHQ) certified trade contractors in Charlotte, and his firm does business with each of them.
Provide an open-door communication policy. Classica Homes holds quarterly and semiannual meetings with its trade suppliers to review its sales, starts and closings; current and upcoming land positions; and model and design studio needs.
Create a simple system. Classica Homes has established a weekly schedule with its trade partners for each project and instituted a six-week look ahead.
Develop long-term partners. “We treat our trades with respect and as true partners,” said Hall. “I have never discussed a meeting with a trade partner where an issue was 100% their fault. We try to see things from their perspective.” Classica Homes also works with ... Read the article at the NAHB website
New OSHBA President Dan Reeves introduces himself in this video, talking about his background in home building, the recent Oklahoma experience at the International Builders Show and his plans to serve the statewide membership during 2017. Watch below:
To provide the best possible building experience for your customers, open communication and planning are the best strategies to reduce conflict, manage expectations, eliminate costly errors and gain trust.
This was the message delivered to builders who attended an International Builders’ Show seminar earlier this month that focused on managing customer expectations.
Ed Earl, the principal of Priority 1 Projects in San Diego, said that he uses a collaborative approach, in which the entire building team is chosen at the onset of the project. The team consists of the architect, the builder, the decorator, the construction project manager and the client.
In this approach, the client states up front how much they want to spend on the project, enabling their budget to drive the design process. The construction project manager is the team leader who manages project costs and with input from the builder, ensures that the architect does not design something that the client can’t afford. The design is completed with real pricing for all materials, labor, supervision profit and overhead.
“In other words, the project is completed before it started,” Earl said. “Projects following this process ... “ Read the article at the NAHB website
BREAKING NEWS -- Jeff Click, (right) owner of Jeff Click Homes of Oklahoma City, was named Oklahoma State Home Builders Builder of the Year at tonight's annual Installation Banquet and Hall of Fame Induction. Click is a former President of the OSHBA. Steve Taylor, (below, left) immediate past Chair of the State Associates Council, was named State Associate of the Year, while Phil Rhees, (below, right) 2015 OSHBA President, was presented the President's Award by outgoing President Kurt Dinnes.
According to the latest data from the 2015 American Community Survey (ACS), the median age of owner-occupied homes is 37 years. The age of housing stock is not evenly distributed across the United States. Among the states, New York has the oldest homes with a median age of 57 years old, followed by Massachusetts at 53 years. The median age of homes in the District of Columbia, which is entirely urban, is 75 years. The newest homes are in the West. The median age of homes in Nevada is only 20 years, followed by Arizona where half of all owner-occupied homes were built in the last 24 years ago.
The geographic distribution of the age of the owner-occupied housing stock is strongly correlated with population changes from 2000 to 2015. The population changes, including both natural growth and net migration, signal the rising ... Read the article at the NAHB website
According to a recent NAHB article, open floor plans are popular among home buyers, and the design of new single-family homes tends to be, if anything, even more open. For example, in a 2015 NAHB survey, 70 percent of recent and prospective homebuyers said they preferred a home with either a completely or partially open kitchen-family room arrangement with 32 percent preferring the arrangement completely open.
When a similar question was asked in the September 2016 survey for the NAHB/Wells Fargo Housing Market Index, an even higher 84 percent of builders said that, in the typical single-family homes they build, the kitchen-family room arrangement is completely or partially open. Over half (54 percent) said it is completely open. Both surveys defined completely open as essentially combining two areas into the same room, and partially open as areas separated by a partial wall, counter, arch, or something else less than a full wall.
Of the remaining possibilities, 16 percent of buyers want the kitchen and family rooms in separate areas of the house, and 6 percent of builders ... Read the article at the NAHB website
The NAHB Board of Directors elected four senior officers to top leadership positions within the federation during the association’s International Builders’ Show in Orlando, Fla.
Taking the helm as NAHB’s Chairman of the Board of Directors this year is Granger MacDonald, a Kerrville, Texas-based builder and developer with 40 years of experience in the home building industry. MacDonald is chairman and CEO of the MacDonald Companies, a diverse development, construction, and property management enterprise with nearly 50 neighborhoods completed and managed throughout Texas.
“We will work this year to prevent expensive, pointless regulations from impeding home building and housing affordability and partner with the Trump administration and new Congress to promote policies that encourage homeownership and affordable rental opportunities for all Americans,” said MacDonald.
Also moving up on the association’s leadership ladder during NAHB’s Orlando board meeting was Randy Noel, a Louisiana-based custom home builder with more than 30 years of experience in the home building industry. He was elected as First Vice Chairman of the Board.
Greg Ugalde, a Connecticut builder and developer with more than 25 years of experience in the home building industry, was elected as Second Vice Chairman of the Board.
Dean Mon joined the NAHB leadership ladder with his election as Third Vice Chairman of the Board. 2016 NAHB Chairman Ed Brady, from Bloomington, Ill., remains on the leadership ladder as Immediate Past Chairman.
While we were in Oklahoma sweating out fickle, hit-and-mist winter weather this week, a bunch of homebuilders from here were in sunny Orlando, Fla., for the International Builders' Show.
We'll hear from some of them, what they heard about the industry and saw new in the marketplace, next Saturday in The Oklahoman's real estate section and newsok.com/business/real-estate.
In the meantime, here are some highlights from the show, which drew about 80,000 builders, remodelers, developers, designers and their trade partners to seminars, presentations and 13 acres of exhibits from 1,500-plus exhibitors at Orlando's Orange County Convention Center.
Economic conditions continue to mirror market reactions to the post-election environment. For example, the 10-year Treasury rate has risen from 1.8% in early November to approximately 2.4% this week. Rates escalated on the prospects of increased growth in a tight labor market. This higher cost of capital has pushed up mortgage rates (30-year fixed-rate mortgages jumped from 3.5% to 4.2% in recent months). And rising rates have already had an affect on pending homes sales which decreased 2.5% in November, 0.4% lower than a year ago.
However, it is important to keep in mind that rising rates are the result of improving economic growth prospects. Similar to the NAHB/Wells Fargo Housing Market Index, many market measures are showing post-election strength. For example, consumer confidence increased in December to the highest level since 2001. These trends reflect the broader economic challenge for 2017: a delicate balance of improved growth prospects and rising interest rates.
Now is the time to register for this year's annual Installation & Hall of Fame banquet. We are just two weeks away from when we will install Dan Reeves as our 2017 State President and induct 5 new members into the OK Housing Hall of Fame. Also the Builder of the Year, Associate of the Year, Big Spike and Little Spike will be revealed. We are excited that NAHB 1st Vice Chair Randy Noel will be in town to install the officers.
Now there are many who are most excited about the drawings for our recent Membership Drive. We decided to go ahead and announce the 1st and 2nd place winners for each category because they for sure will want to attend and pick up some cold hard cash. But there are many who competed who will also be in the drawings for even more cash. Who doesn't need some spending money following the holidays and IBS?
In the large HBA category - 1st place goes to Mike Fournier from Tulsa. We have a tie for 2nd so there will be a drawing between Ryan Farabough and Reese Wilmoth! In the medium HBA category - 1st place goes to Rhonda Trower from BASCO and 2nd goes to Connie Stokes from Stillwater. In the small HBA category - 1st place goes to Greg Brown from Shawnee. There was not a 2nd place winner. But besides the winners, these folks will be in the drawing for the extra cash- Kurt Barron, David Blackburn, Don Conwell, Amanda Medlin, Pablo Perez, Briana Ross, Jerry VanCleave, Mike Gilles, Shelly Reynolds, Steve Sullivan, and Brandon Waller. (Remember, must be present to win on the drawings!)
The National Association of Home Builders sued the U.S. Department of Labor over a new workplace rule in federal court in Oklahoma City because it's a friendly venue, a state co-plaintiff said.
"It was filed here, quite frankly, due to the conservative nature of our district courts and the particular circuit we are in," said Mike Means, executive vice president of the Oklahoma State Home Builders Association.
The national and state builder groups, the U.S. and state chambers of commerce, the National Chicken Council, National Turkey Federation and U.S. Poultry & Egg Association filed the lawsuit Wednesday in the U.S. District Court for the Western District of Oklahoma.
The lawsuit claims the OSHA had no authority to issue the rule, called “Improve Tracking of Workplace Injuries and Illnesses.” The rule violates the defendants' rights under the ... read the article at newsok.com
Editor’s note: John G. Madden IV, owner of Quad Construction Group in Tulsa, is one of 15 finalists from around the nation for the NAHB Young Professionals Award. Here is the NAHB release about the finalists:
Fifteen finalists have made the slate for the NAHB Young Professionals Award, designed to acknowledge each winner’s hard work and successes, performance and dedication, and outstanding potential as they begin to serve as leaders in the home building industry.
The five winners will be revealed on Monday, Jan. 9, 2017, during the Young Professionals committee meeting the night before the International Builders’ Show kicks off.
NAHB members are invited to meet the nominees and congratulate the winners when they are announced from 6:30-7 p.m. in room W311G at the Orange County Convention Center in Orlando.
Here are the finalists:
Region A
Robert Fallone
Somerville, N.J.
President, Fallone Group LLC
Metropolitan Builders & Contractors Association of New Jersey
Christopher Amato
Avon by the Sea, N.J.
CEO, CMM Construction Inc
Shore Builders Association of Central New Jersey
Johnny Carrier
Plainville, Conn.
Vice President, By Carrier Homes
Home Builders & Remodelers Association of Central Connecticut
Region B
Ricardo Alvarez-Díaz
San Juan, Puerto Rico
President/CEO, Alvarez-Díaz & Villalon Architecture & Interior Design
HBA of Puerto Rico
Brandon Bryant
Asheville, N.C.
President and owner, Red Tree Builders Inc.
Asheville HBA
Sean Sullivan
Black Mountain, N.C.
President, Living Stone Construction Inc.
Asheville HBA
Region C
David Belman
Waukesha, Wisc.
President, Belman Homes
Metro Builders Association of Greater Milwaukee
Jeffrey Wieland
Fairfield, Ohio
President and co-owner, Weiland Builders LLC
Greater Cincinnati HBA
Heath VanNatter
Kokomo, Ind.
Owner, VanNatter Construction LLC
HBA of Howard County
Region D
Kevin Frankel
Houston
Co-President/Principal, Frankel Building Group
Greater Houston Builders Association
John D. Williams
Houston
Vice President of Construction Services, K. Hovnanian Homes
Greater Houston Builders Association
John G. Madden IV Tulsa, Okla. Owner, Quad Construction Group HBA of Greater Tulsa
Region E
Joseph Irons
Shoreline, Wash.
President/owner, Irons Brothers Construction Inc.
Master Builders Association of King & Snohomish Counties
Melissa Helvey
Spokane, Wash.
Owner and principal designer, Crafted Kitchen Design
Spokane HBA
Eugene Graf
Bozeman, Mont.
Owner, E.G. Construction
Southwest Montana BIA
For additional information about the NAHB Young Professionals Committee and awards programs, contact Sahrah Zarei at 800-368-5242 x8431.
The Case-Shiller (CS) National Home Price Index, released by S&P Dow Jones Indices, continued to rise in October.
The CS Home Price Index rose at a seasonally adjusted annual growth rate of 10.7%, up from 10.1% last month. Due to tight inventory and high demand, house prices have accelerated since May and reached the pre-recession peak of 2006.
Along with the increases in national home prices, local home prices also increased in varying degrees in October.
All of the 20 metro areas had positive home price appreciation, ranging from 3.5% to 18.3%. Atlanta had the highest home price appreciation at 18.3%, while ... read the article at the NAHB website
Editor’s note: With the end of 2016 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In March, Na Zhao examined the location and concentration of the nation’s second homes.
According to NAHB estimates, the total count of the second home stock reached 7.5 million in 2014, an increase of 0.6 million over 2009 when NAHB Economics last produced these estimates. The share of second homes among the total housing stock also increased from 5.4% to 5.6%.
It is worthwhile to understand the patterns of second homes because they could have a significant economic impact on local housing markets and thus have important policy implications.
The county with the largest share of second homes is Hamilton County, NY with 79.3%, followed by Forest County (74%), PA, and Rich County (72.7%), UT. As one might expect, the top 10 counties with the largest share of second homes are mostly ... read the article at the NAHB website
NAHB analysis of the most recent Census estimates concerning sources of financing for new home sales reveals that the share of mortgages financed through conventional products in the third quarter of 2016 rose to 74.1% – the highest level seen since 2008. In contrast, cash sales accounted for the smallest portion they have since the second quarter of 2010. The portions financed with FHA and VA loans also declined while the number of new homes sold fell 6%.
According to data from the Census Bureau’s Quarterly Sales by Price and Financing and NAHB calculations, new home sales due to FHA-backed loans fell to a quarterly count of 21,000 as market share declined from 17% to 14% for the third quarter of 2016. The FHA share rose sharply at the start of 2015 due to a change in FHA mortgage rules, jumping from 10% to 17% between the last quarter of 2014 and the ... Read the post at the NAHB website
According to the Federal Reserve Board’s third quarter of 2016 release of its Financial Accounts of the United States report, household holdings of real estate, measured on a not seasonally adjusted basis, totaled $22.725 trillion in the third quarter of 2016, $1.520 trillion higher than its level in the third quarter of 2015, $21.204 trillion.
At the same time, home mortgage debt outstanding, $9.708 trillion in the third quarter of 2016, rose by $185 billion over the same four-quarter period. Since the total value of household-held real estate rose faster than the aggregate amount of mortgage debt outstanding, then home equity held by households grew.
Over the year, total home equity held by households grew by $1.336 trillion, 11.4 percent, to $13.018 trillion. Household’s home equity is now 57.3 percent of ... Read the article at the NAHB website
In a major victory for home building firms and other small businesses across the land, the Senate passed the 21st Century Cures Act, a comprehensive health care package which includes a provision to allow employers to provide Health Reimbursement Arrangements (HRAs) to help their employees pay for health insurance.
“NAHB has been spearheading efforts to reinstate the use of HRAs since the IRS issued guidance prohibiting their use,” said NAHB Chairman Ed Brady. “This bipartisan legislation is an important step forward to allow small business owners to help their workers with rising health care costs and to ensure more Americans receive affordable health coverage. At the same time, it will protect employers against outrageous fines for providing this cost-sharing option to their workers.” Read the article at the NAHB website
By Steve Taylor Chairman, OSHBA Associates Council
Editor's note: This column was published in December's edition of Oklahoma Builder magazine
The business climate is changing before our eyes. Technology continues to evolve and make its way into the housing industry as well. We have gone from the advent of smoke alarms to now a fully connected home. With technology, we can control our thermostats, lights, appliances, and anything connected to an app on our phone. We are able now, with technology, to see our energy usage, and be able to adjust our habits to save money on our utilities. With technology, we are able to do a lot in the world.
However, with all of this technology, we are losing something, the personal touch – face-to-face communication communication that shows our customers that we do care. When was the last time you got really good service? What kind of an impact did that make on you? Was it pleasant? Was it meaningful? I work for a utility company that has given in to the technology curve and has automated a lot of our processes (Not always a bad thing). Here are a couple of things I would challenge you to do if you are in a service company like me.
Reach out to your customers. When you are heavy on the technology end, the customer can feel like a number. I try to reach out to all of my builders on a regular basis to let them know I am still around to assist them and remove obstacles they could be facing.
Ask questions. Many people have something to say. Whether it be about an issue or something that they have noticed. In this day and age, we tend to lean toward texting, instant messaging and email. I always ask my customers if there is anything I can do to help them. Sometimes if you don’t ask they will not tell. Be sure to listen to what they have to say!
This list is not exhaustive by any means, but it is a starting point. I feel customer service has fallen by the wayside in a lot of areas of business. I encourage you to look at your business, your clients and the customers you serve directly and indirectly and let them know you care.
As we are coming into the holiday season, I would like to say happy holidays to everyone! Your support of the Oklahoma State Home Builders Association and the Associates Council is appreciated!
Steve Taylor is chairman of the OSHBA Associates Council. He can be contacted at steven.taylor@centerpointenergy.com or at (580) 250-5417.
NAHB Economics recently released its 2016 “Priced Out” Estimates showing that, nationally, a $1,000 increase in the median new home price (triggered, for example, by additional regulation) will leave 152,903 households priced out of the market. This means that 152,903 U.S. households could qualify for a mortgage on the median-priced new home before, but not after, the price increases.
The number of priced-out households varies across both state and metropolitan area. The differences are largely driven by the size of the population and the affordability of new homes. Among all the states, California registers the largest priced out effect where a $1,000 new home price increase pushes 15,328 households out of the market, followed by Texas (13,674), and Pennsylvania (9,374).
The initial affordability of new homes is an important element in determining the size of the priced out effect. On a percentage basis, priced out effects are higher in areas where new homes are more affordable. For example, in Chicago-Naperville-Elgin ... read the article at the NAHB website
Editor's note: This column was published in the December edition of Oklahoma Builder magazine
By Kurt Dinnes
Oklahoma State Representative
We reap many benefits from our NAHB membership. Certainly, the ongoing advocacy efforts are one of the most valuable and often the most overlooked because they may seem slow and intangible. The NAHB advocacy efforts are very broad and diverse, from environmental regulation, regulatory overreach, to labor policy and reforms that include taxation, finance and immigration. Unless you make it your full-time job, most of us simply do not have the time to keep up with all the governmental issues that affect our industry. That's why your NAHB membership is so important.
There are simply too many key initiatives and updates to issues important to our industry to effectively address them here due to limited space. An updated and very comprehensive outline of the NAHB priorities is available on the NAHB web site. Here is the link;
https://www.nahb.org/en/research/nahb-priorities.aspx. I encourage you to open this link and see first-hand the issues that affect our industry and the efforts the NAHB takes on our behalf.
Overtime Rule delayed
The Overtime Ruling is just one example of the NAHB's commitment to never give up even after a ruling is passed. The House of Representatives voted to delay the Department of Labor's (DOL) controversial overtime rule by six months. The Regulatory Relief for Small Business, Schools and Nonprofits Act (H.R. 6094) would push the effective date of the overtime rule from Dec. 1 to June 1. The DOL had issued a final rule that will double the current overtime limit from $23,660 to $47,476. The rule further stipulates that the salary threshold will be pegged to inflation and automatically adjusted every three years.
Although the six-month delay would be helpful as employers attempt to comply with the new regulations and absorb its impact, the NAHB firmly believes stronger legislative action is needed to reduce the harmful effects of this rule on the nation's small business community. The NAHB is working to find a path forward for the Overtime Reform and Enhancement Act (H.R. 5813), legislation that will provide permanent reform to the Department of Labor's onerous rule by allowing small businesses operating on tight budgets sufficient time to adjust.
H.R. 5813 would provide a four-year phase-in of the $47,476 salary threshold and eliminate a provision in the rule that requires automatic increases to the overtime salary threshold moving forward. So, if you're like me and you employ a number of salaried individuals, this overtime rule is definitely a piece of legislation we want to watch closely.
NAHB dues increase delayed
Earlier this year, the NAHB Board of Directors approved a corporate resolution proposing several increases in dues paid to NAHB by affiliated local associations for their members and members-at-large. In addition to the dues increase that took effect in 2014 and 2015, the resolution approved a tentative dues increase that would take effect Jan. 1 if, by Dec. 31, (a) 2016 IBS space sales failed to reach 525,000 square feet, and (b) the average number of Builder and Associate members failed to reach 156, 000. Because it appears that these performance standards will not be met, the Senior Officers recognize that, without further action, a $16 dues increase will take effect on Jan. 1, 2017.
However, at the mid-year meeting of the Board of Directors, there was considerable discussion about proceeding with the anticipated 2017 dues increase given the financial hardship it would cause to a significant segment of Affiliated Local Associations. As a result, the Senior Officers announced that at the January 2017 meeting of the Board of Directors they would bring forth a motion to amend the Board's prior action with respect to the 2017 dues increase. Accordingly, the motion would defer the $16 dues increase for one year to take effect on Jan. 1, 2018.
The NAHB has announced the winners of its inaugural Defender of Housing awards. The awards recognize federal legislators who have demonstrated strong support for housing and NAHB positions on key issues facing our industry. To view a list of the award recipients go to; www.nahb.org/en/find/award-programs/defender-of-housing.aspx
IBS
The upcoming NAHB 2017 International Builders Show (IBS) will be held in Orlando Jan. 10-12. This design and construction week which includes IBS and the Kitchen & Bath Industry Show will also feature the new CEDIA Smart Home Pavilion designated specifically for exhibitors who specialize in technology solutions for the home. IBS promises to be better than ever, with more than 100 educational classes and 800-plus trade show partners. A few other IBS highlights include Payton Manning as the opening speaker, an IBS house party at Mangos Tropical Cafe, a Spike Party featuring the Little Big Town Band and the new NAHB Member Summit. The new-member Summit is a great opportunity to learn how NAHB grassroots efforts guide the association's direction and activities.
Up the national ladder
Lastly, I have considered it a great honor to serve you, the Oklahoma State Home Builders Association as the NAHB State Representative for Oklahoma over the last few years.
At the NAHB Summer Board and associated meetings, I was nominated and elected by Area 11 of the NAHB to serve as the Nation Association Chairman for Area 11 or NAC for short. In this position, I will represent Area 11, which includes Oklahoma, Kansas, Missouri and Nebraska.
I am very proud to announce that Tony Foust will serve the remaining year of my term as the Oklahoma State Representative, since I cannot serve as both the state rep and as the NAC. At our fall OSHBA Board meeting, Tony accepted the position and was officially voted in by the Board.
Tony is a leader and a long-time participating member. Tony is a past president of BASCO, past CPB Chairman and is currently on the ladder at COHBA as its Second vice president. Tony is also very active with the NAHB, where he was past chairman of the Residential Construction Performance Guidelines Single Family Committee, Certified Graduate Builder Board of Governors, and the Certified Graduate Associate Ambassador program. Tony also serves as our State BuildPAC Chairman and Trustee.
Speaking of NAHB BuildPAC, we are going out with a bang with respect to our 2015–2016 contribution cycle. We are currently at more than 200 percent of our NAHB BuildPAC goal for our state. We have eight Capitol Club members, three Platinum Club members and 25 Gold Key members and many Fair Share donations from all across our state. A big thanks all those who invested in BuildPAC for your generous contributions. Remember those contributions help elect lawmakers all across our country who advance key policies that support our industry.
Tony, congratulations on your new position and special thanks for your work as our Oklahoma BuildPAC Chairman.
I would like to personally thank you. By reading this very article, you are wisely taking advantage of the work done on behalf of you and our industry. This is made possible because of your valued membership in OSHBA and NAHB. Once again, if I can be of any help as your NAHB State Representative, please contact me. I would enjoy hearing from you.
Kurt Dinnes is president of OSHBA and state rep to NAHB. He can be contacted at kurtd@suncustomhomesok.com or at (405) 641-2154.
Metro-area homebuilders are heading out of 2016 the way they headed in, as if in the wake of the Great Recession rather than seven years removed from it.
But they have reasons to be optimistic, "since the president has been elected, and oil is starting to do a little better and the economy is doing better," said Kenyon Woods, president of the Central Oklahoma Home Builders Association.
Authentic Custom Homes, owned by Kenyon and his wife, Brandi, has been busy this year in additions in the Edmond and Deer Creek areas, even as construction slowed in general across the Oklahoma City area.
Activity was similar to 2011, when the recession and housing crash were just two years in the past. Through November, builders started 4,019 houses, according to The Builder Report published by Dharma Inc. in Norman.
The year "has been interesting," said Steve Shoemaker, vice president of sales and marketing for Ideal Homes of Norman. "All the market indicators that we watch are strong, but metrowide it is down from the previous few years and is a lot like 2009-2011."
Whether you want to ensure your current business practices stand up to today's fast pace, or you want to master something entirely new, the 2017 NAHB International Builders' Show® Pre-Show Courses have something for you—and all before the show begins!
Business Operations Courses: Protect, Track and Grow Your Business
Business Management for Building Professionals
Financial Management
Diversification: Capitalizing on New Business Opportunities
Risk Management and Insurance for Building Professionals
Construction Contracts and Law
Business Accounting and Job Costing: A Road Map to Profitability
Project Skills: Do What You Do, Even Better
Project Management
Universal Design/Build
Estimating and Scheduling for Profitable Business Operations
Plus, registrants receive a free expo pass to the show!
Editor's note: This column was published in the November edition of Oklahoma Builder magazine
By Mike Means OSHBA Executive Officer
It has well been said that those who fail to plan, plan to fail.
So with that thought in mind, the leadership of the Oklahoma State Home Builders Association met in late August with a facilitator from NAHB and updated our strategic plan. This plan was then submitted to the OSHBA Board of Directors and was approved. What follows below are the main goals that OSHBA will be pursuing over the next few years. I have edited it to include just the highlights. Contact us if you would like a copy.
Oklahoma State Home Builders Association
Strategic Plan (2016-2018)
MISSION:
The Oklahoma State Home Builders Association is organized to promote our members and the professionalism of our industry and dedicated to providing safe, quality and affordable housing for the citizens of Oklahoma.
AUDACIOUS GOAL:
The premier and professional housing industry resource for: members, local HBAs, government entities, media and consumers.
MEMBERSHIP VALUE Goal: Increase awareness of the value that is offered by OSHBA membership.
Strategies:
Encourage more members to do business with members.
Have more Builder Members engaged at events.
Do a better job of “bragging” about the wins that the state association achieves.
Better communicate the value of membership through new communications tools.
Partner with chamber, Realtors and other likeminded organizations to host a joint event that cross promotes members.
GOVERNMENT AFFAIRS Goal: Strengthen the overall Government Affairs program and drive more participation in Government Affairs activities from the general membership.
Strategies:
Influence key legislators on laws requiring licensing/registration of builders and contractors.
Generate a higher number of participants in VoterVOICE “clicks”.
More participation from the general membership as PAC contributors.
Identify more political connections among the general membership.
Promote economic development via the housing industry through efforts with local and state Chambers of Commerce and identifying other pro-growth groups.
Promote economic development via the housing industry through relationship-building with statewide officials and ensuring the HBA is involved in discussions that impact the economy.
COMMUNICATIONS Goal: Explore the creation of a new Communications and Outreach Specialist position at OSHBA to assist locals with communicating the value of membership and assisting with events/operations.
Strategies/Responsibilities for new position:
Better engage with members and potential members via social media outreach.
Communicate the value of membership on a regular basis with clear, consistent messaging.
Increased communication from the state association. Regular communications to locals will strengthen the bond and can lead to better coordination of meetings and events.
Assist smaller HBAs in implementing a communications plan.
BUILDING SUMMIT Goal: Continue to grow the Oklahoma Building Summit in terms of revenue and participation, with an eye towards creating a regional, multi-state event. The Summit should also see an annual increase in registrations of approximately 10 percent.
Strategies:
Create new networking opportunities and events that will appeal to attendees, vendors and sponsors.
Continue to broaden educational offerings and look to include NAHB certification courses.
Bring in relevant speakers who will appeal to the intended audience.
Create additional discounts (early bird) for registrants and vendors.
Seek new technology that maximizes the experience for the vendors (i.e. badge scanning).
The leadership of OSHBA is excited about the plan and hopes it will engage everyone in realizing the importance of and strengthening their involvement in their association. More to come, I’m sure. Until next time,
Means is executive vice president of OSHBA. He can be reached at mikem@oshba.org
Sales of newly built, single-family homes fell 1.9% in October from a downwardly revised September reading to a seasonally adjusted annual rate of 563,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
“Though slightly down from last month, new home sales have been on an upward trend since last year,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill.
The inventory of new home sales for sale was 246,000 in October, which is a 5.2-month supply at the current sales pace. The median sales price of new houses sold was ... Read the article at the NAHB website
Editor's note: This column was published in the current edition of Oklahoma Builder magazine
By Kurt Dinnes OSHBA President
I hope this article finds you busy within our industry. Fall is always a much anticipated time of year as we finally start getting some relief from the heat of the summer. If you are like most builders, you too are working diligently to get homes started and dried-in before the winter weather has a chance to delay our building. Soon, we may be wishing we had some of that warmer and drier weather we enjoyed this fall. Either way, the upcoming holiday season brings out the best in us all, reminding us all how truly blessed we are to have great friends, family and to serve in an industry that brings us all together in a place called HOME.
Since our OSHBA membership includes members from all over our great state and many of you do not always have the time or opportunity to attend events or state meetings, I hope this message helps serve as your insight as to what your OSHBA is doing on behalf of our industry and you as a member. Your Oklahoma State Home Builders Leadership has been very busy over the last few months working hard on behalf of our membership.
First and foremost, I would like to thank all of our sponsors, suppliers, manufacturers and attendees of this year’s Oklahoma Building Summit and Expo. This was our second year combining the extensive education venues with an industry trade show. With the trade show sold out and attendance up considerably, this year’s summit was better than ever, providing diverse educational speakers, product and supplier information and great networking opportunities for all.
A very special thanks to our summit committee and its Chairman Dan Reeves. Thanks again to all who participated and attended this year. Please make plans to attend next year’s event Sept. 27-28th!
Uniform Building Code info, a service to you
Over the last year or so, the Oklahoma Uniform Building Codes Commission under the leadership of our member Curtis McCarty has been hard at work sorting out what will become our new State Building Code as of the Nov. 1 this year. As we transition from the 2009 IRC to the 2015 IRC, the OSHBA education provided, not only at the summit but at your Local HBAs concerning these code changes, will be another very important benefit of your membership.
Charity golf tourney
The OSHBA golf tournament was held in October at Rose Creek Golf Club. We had a great turnout with the proceeds going to Rebuilding Together OKC. The annual OSHBA golf tournament put on by our Associates Council is a great way to network, have a blast and give back to our community. I personally am not a big golfer, but I think I had more fun as a volunteer than even the serious golfers. So whether you are a golfer or not, I would encourage you to come out next year and participate.
New strategic plan
At the end of August, approximately 20 members, made up of your executive board and selected volunteer members from around the state gathered in Carlton Landing on beautiful Lake Eufaula to develop a new three-year Strategic Plan for OSHBA. With the help of a NAHB moderator, trained to assist with strategic planning, we put together our new OSHBA three-year Strategic Plan. This was our second three-year strategic planning session utilizing the help provided by the NAHB.
Strategic planning has become a vital part of our OSHBA future. You may or may not remember, but three years ago at our last strategic planning session, one of the key takeaways was the elimination of the state convention in favor of expanding and renaming the Building Summit. As a result of that strategic planning, the new Oklahoma Building Summit & Expo was formed.
Although in our new Strategic Plan the Mission Statement and Big Audacious Goal remain the same, there are some new key directions that will be explored.
Unified voice
OSHBA's statewide advocacy efforts are never ending and, with the November elections, we were busier than ever. Each year when the Oklahoma legislative session opens, we have a statewide Capitol day. We, as OSHBA members, gathered together to represent our industry and collectively we meet with our local legislators concerning issues and legislation that affects our industry. Also, throughout the session, we encourage each member to actively participate in the Voters Voice Program. This program is a very simple way to get our unified message across to your local legislators as to how a proposed bill will affect our industry and it comes directly from your email to them. Each year we encourage all members to consider a PAC donation to the NAHB BuildPAC or directly to our StatePAC. Each two-year election cycle, the NAHB sets a BuildPAC fundraising goal for each state. Once our state’s goal is met, 50 percent of the contributions go back to our StatePAC fund to be used for local candidates who support our industry.
Did you know that currently our state is over 200 percent of our 2015-2016 election cycle goals? That's right, we have eight Capitol Club members, three Platinum Club members and 25 Gold Key members, and many Fair Share donators across the state. This year, your StatePAC has supported and been involved in 79 political races statewide in the primary. Out of those 79, many moved on to the general election with the candidate we are supporting favored. We lost nine of the races in which we contributed. Proving "The best man (or woman)" doesn’t always win. But so far, we are on an 87 percent winning streak.
Just a quick reminder: Our next StatePAC fundraiser will be our Sporting Clays event scheduled for March 31. I hope to see you there!
New to the board in 2017…
Our State Fall Board of Directors meeting was at the Tulsa HBA's newly renovated headquarters. Along with the normal business of the Association conducted, we projected finishing the year in the black and passed our 2017 annual budget. Our new three-year Strategic Plan and our By-Law amendments, primarily complying with the new NAHB requirements concerning Local Associations and Charters, were approved and passed. We also approved our new 2017 Executive Officers starting with our newest officer Steve Allen as VP and Secretary, David Blackburn as VP and Treasurer, Dan Reeves as our incoming President and me as your Past President. Chris Evens is our incoming Associates Council President. Congratulations to all our 2017 Executive Officers. Be sure and mark your calendars for the 2017 Installation and Hall of Fame Induction Banquet on Jan. 21 at the Renaissance Hotel in downtown OKC.
Want to save just over $3,000?
Lastly, I would like to talk "Dollars and Cents" with you concerning the added value of OSHBA Membership. Now I do not mean to sound like a broken record, but at the risk of doing so, this just makes "Cents". Do you realize that if you take advantage of the state-endorsed insurance programs and the State Rebate Program, an average member can save approximately $3,029.21? That's right, let me break it down:
-- The Workers-Comp. program through CompSource saves on average about $400;
-- The General Liability program from Mid-Continent through HUB saves on average about $1,200;
-- If you are a Certified Professional Builder (CPB) that's an additional average savings of $250;
-- The State Rebate Program can EARN the average builder member about $1,179.29.
Also, if you take advantage of the customizable State Contract and the State Warranty documents, your annual legal expenses might be less.
So let's recap:
Your State Membership is more than just advocacy, education and networking. Your membership, if you participate, doesn’t just SAVE you money but can MAKE you money! That just makes good "Cents". So let's spread the word to others as we recruit new members. Let them know “participating membership has its rewards.”
I must say it is truly been an honor and a privilege to serve this year as your OSHBA President. So let's continue to all do what we do best build quality, safe and affordable homes in Oklahoma. May you and yours’ be blessed.
Kurt Dinnes is president of OSHBA and state rep to NAHB. He can be contacted at kurtd@suncustomhomesok.com or at (405) 641-2154. His column in its entirety may be read at www.okhba.org under ‘What’s new’.
In a victory for NAHB, a federal judge in Texas on Nov. 22 granted a preliminary injunction to delay implementation of the Department of Labor’s new overtime rule. The rule, which was scheduled to take effect Dec. 1, would double the minimum salary limit from $23,660 to $47,476.
NAHB joined other business groups in filing a legal challenge to the overtime rule on Sept. 20. The lawsuit was filed in the U.S. District Court for the Eastern District of Texas. In addition, 21 states have also filed suit challenging the rule and the two lawsuits have been consolidated. The parties have filed motions for a summary judgment.
While the injunction is only temporary, the ruling by Judge Amos Mazzant sent a strong signal that he could likely side with ... Read the article at the NAHB website
This year, workforce development was a top priority for HBA of Greater Tulsa President Brandon Jackson as the shortage of skilled workers across the entire spectrum of the home building industry is a major problem for builders and consumers. Efforts led by John Madden and Ken Klein have established professional and organizational connections with our local school districts, HBI Job Corps, Tulsa Technology Center, OSUIT in Okmulgee, and OSU Construction Management Technology in Stillwater.
Their efforts along with other others have resulted in building relationships with educators who want to direct their students toward meaningful careers in the home building industry.
Next month, several HBI Carpentry students will be graduating from the Tulsa Job Corps program and ready to hit the job market. If you or your company are interested in reviewing their resumes or scheduling an interview, please contact Stacey Bayles at sbayles@tulsahba.com or phone (918) 663-5820.
Editor's note: This article appears in the next edition of Oklahoma Builder magazine, which will be published by the end of November.
Tony Foust is the newly elected Oklahoma state representative to NAHB, having served as a BuildPAC trustee at the NAHB level for several years.
Foust has served in numerous leadership roles at NAHB and is a Certified Professional Builder (an OSHBA designation), Certified Aging in Place Specialist, Certified Green Professional and master CGP, Graduate Master Builder and Certified Graduate Builder (all are NAHB designations). Also, he is a certified national instructor for NAHB.
Foust is chief executive at Oklahoma City’s DaVinci Homes. He serves on the NAHB Board of Directors and on four influential committees within that organization.
Among his previous NAHB leadership positions, Foust is past chairman of the Residential Construction Performance Guidelines Committee, Single Family Committee, Certified Graduate Builder Board of Governors, and the Certified Graduate Associate Ambassador program. Tony also serves as our state’s BuildPAC chairman and trustee. He is currently a member of the NAHB Resolutions and Public Affairs committees.
Foust’s honors include former Builders Association of South Central Oklahoma “Builder of the Year,” past president of BASCO and builder of its festival “show house” in 2015. He is on the leadership ladder for the Central Oklahoma Home Builders Association. He has served on the board of OSHBA and as past chairman of the OSHBA CPB Committee.
“Tony has always been ahead of the curve on new endeavors at the state level, such as establishment of the Certified Professional Builder designation recognition program,” said Mike Means, OSHBA executive vice president. "He is always learning about new trends in the industry as a consummate attendee of the International Builders Show.”
A persistent shortage of construction workers across the U.S. is prompting some of the nation’s largest home builders to experiment with a model they once derided: factory production.
In July the U.S. Census Bureau announced that the homeownership rate in this country had hit its lowest level since the government began measuring the stat in 1965. Then candidate Donald Trump jumped on the news with a tweet suggesting the figure proved his most consistent message: the economy is failing you.
In a nation in which homeownership is largely seen as synonymous with the American dream, it’s easy to see why a change candidate would highlight the record low rate. But at the time economists urged Americans – and candidates – to look beyond the eye-popping headline number. It turned out the decline in the rate had not been due to fewer people owning homes, but to more people forming households in rental properties. In other words, the dip may ... Read the article at Forbes.com
With the election of Donald Trump to become the next president, Merrick Garland, President Obama’s nominee to the Supreme Court, is unlikely to be confirmed. President-elect Trump has already announced the names of 21 people he would “most likely” consider to fill the Supreme Court vacancy left by the death of Justice Antonin Scalia.
Trump also said these 21 are the “type of people” he would nominate and that he sought the advice of the Federalist Society and Heritage Foundation in pulling this list together. Many listed are conservative state judges and Bush-appointed federal judges. A number of these judges clerked for Justice Scalia or Justice Clarence Thomas.
There has been no word from the Trump team on whether any of these names rise to the top of the list. However, there has been some interesting commentary on the subject.
For example, Sen. Mike Lee (R-Utah) (who is incidentally on the list, along with his brother Thomas Rex Lee, and both are the sons of a former Solicitor General in the Reagan administration) refused to endorse Trump and is very close to Sen. Ted Cruz (R-Texas), so his addition ... read the article at the NAHB website
NAHB Chairman Ed Brady congratulated Donald Trump on his victory earlier this week.
“When President-elect Trump takes the oath of office in January and the 115th Congress convenes, NAHB looks forward to working in a bipartisan manner with the incoming administration and Republican and Democratic congressional leaders to tackle critical issues facing the housing industry,” Brady said in a press statement.
Banquets. Festivals. Parades of homes. At the OSHBA Fall Board meeting, builders’ groups from around the state reported on their busy agendas over the news few months. Here are some bite-sized reports:
BASCO
The 2017 Festival of Homes will be June 2-4 and June 9-11. Evan Nixon of Riverstone Homes is the Festival Builder. The Festival home is under construction in Brookhaven. The Festival is being co-sponsored by the Moore Home Builders. Other important dates for next year include Associates Showcase, March 2; BASCO night at the OKC Dodgers, April 21; and golf tournament, Oct. 2.
Moore
The 2016 Moore Home Builders Association Christmas Party will be co-sponsored with the Builders Association of South Central Oklahoma. Brandon Waller of Affinity Homes built the Moore association’s 2016 Project House in the Siena Ridge Addition... Networking events were heavily attended, including 71 who attended a night at Remington Park and 42 who attended an Oklahoma River Cruise.
Tulsa HBA
The Tulsa HBA will host its second Military Appreciation Night on Nov. 15 with special guest, Michael C. Thompson, Oklahoma Secretary of Safety and Security/Commissioner of the Oklahoma Department of Public Safety. The event honors members and their family members who have served our nation in the armed forces. Peter Grant will be installed as the 2017 HBA President on Dec. 2 at the Philbrook Museum of Art.
Rogers County Builders Association
The association will hold its annual Christmas Party Dec. 9 at the Hard Rock Casino in Catoosa. The group also is making plans for its 2017 Home & Garden Show.
Bartlesville
The Bartlesville Builders Association will nominate and elect 2017 association officers at its November meeting, and inaugurate them at its December banquet. The association is continuing to identify and target prospective new members.
Enid
Installation banquet for officers in the Enid area home builder association will be Dec. 6.
Southwest Oklahoma
Plans are under way for the Southwest Oklahoma Builders Association’s annual end-of-the-year banquet and installation of new officers. The group also has begun preliminary planning of its spring home and garden show, which occurs in March. A sellout of booth space and record attendance is anticipated for the 2017 show. The Lawton installation banquet is Dec. 13.
With vacations over and the holidays coming fast, home buying is beginning to slow down. So, given all of the predictions for 2016 (including mine), let’s review the better part of the 2016 home-buying season and see what we’ve learned, with an eye toward 2017.
1. Refis have finally dried up
The death of refis has been greatly exaggerated for a long time now, but given recent data and analysis, it may finally be here. Simply put, rates can’t get any lower, and those who qualified for refis have already done them.
2. Buyers want ‘new’ homes
The good news is that buyers want to own a home and that sales of newly constructed homes is healthy compared to recent years. However, existing home sales are down, partly because homeowners ... Read the article at the HousingWire website
At our Fall Board meeting in October, reports from our affiliates from around state provided a glimpse of the economic health of each area. Here are some of the reports:
BASCO
Membership is up to 230 with retention rate of 89 percent of total member, 93.8 percent retention of builder members, 85.2 percent of Associate members and 95.7 percent of Affiliates.
COHBA
The COHBA just wrapped up its Fall Membership drive, where it was able to bring in more than 30 new members. The association is experiencing a slight contraction in overall membership, which is not surprising in the current economy.
TULSA
Housing starts reported for the Tulsa metro area – including Claremore and Rogers county -- through August totaled 1,873.... Membership goal for Tulsa HBA was 1,000 this year, and the association is on target to achieve that milestone. Current membership is 983.
Enid
Enid area home sales have slowed, which is typical for this time of year. However, the number of permits year to date total 75, which is the highest in 15 years. And the 28 new homes on the market are the most in two decades. Outside builders have been buying up entire subdivisions of late. Most lots have been purchased in the Chisholm School District. There is a heavy inventory of new homes, and comps are good.
Southwest Oklahoma
The slow market continues to affect most of Southwest Oklahoma.
· Lawton area continues to see only a handful of permits every month.
· Elgin area northeast of Lawton continues to see about 6 to 8 new starts per month. Three to four builders are continuing to build a number of spec homes in that market.
· Altus is continuing to see some steady growth in the area with several new subdivisions and several more being planned in the coming months. This increase is due to the new Air Force wing coming to Altus area anticipated in 2017.
President Kurt Dinnes is on the road again this month for his monthly message -- this month talks about the OSHBA Strategic Plan and introduces the 2017 Officers. Watch it below:
A majority of new homes that completed construction in 2015 included two-car garages, according to NAHB analysis of Census Bureau Survey of Construction data.
For new single-family completions in 2015, 61% of homes offered a two-car garage. Another 24% of homes possessed a garage large enough to hold three or more cars. Just 6% of newly-built homes had a one-car garage, and only 1% possessed a carport. Another 9% of new homes had no garage or carport.
Over the last two decades, there has been a shift in parking options. As home size has grown, the share of homes with a three or more car garage has grown as well. In 1992, 11% of homes had a garage for three or more cars. That share rose to a peak of ... Read the article at the NAHB website
OSHBA chapters and Associates groups around the state are making a difference through fundraising and donations to benefit their communities. Highlighting the recent OSHBA Fall Board meeting were reports from across the state of fundraising activities. Here’s what they report:
Tulsa HBA
The Tulsa HBA partnered with Tulsa Habitat for Humanity for a Blitz Build in Tulsa’s Kendal Whittier neighborhood. The home appraised for $140,000, the highest appraisal ever for a Habitat home in Tulsa. The Home Remodeling Showcase (formerly Remodeled Tulsa Tour) featured eight homes. The following week, the Evening of Giving raised more than $60,000 with net proceeds to be divided between the HBA Charitable Foundation and the Family & Children’s Services. The holiday season begins with the Ryal School Christmas party on Dec. 8, continuing a 40-year tradition of helping the primarily native American school located in rural Tulsa area.
Moore Home Builders
In our third year of a 5-year pledge of $5,000 a year to the Food for Kids Backpack Program for Moore Schools. Donated $3,500 to the Youth for Christ (Southwest Metro area) for getting at-risk youth off the streets. Eight members attended the Youth for Christ dinner and auction. Awarded four $1,000 scholarships to students enrolled in home building-related classes at Moore/Norman Technology Center. Donated $2,000 to the Moore Police Department to help purchase two Segways.
Central Oklahoma Home Builders
Jason and Jim Schuff of Vesta Homes have completed construction of the 2016 House of Hope. Proceeds from the sale of the home will go to benefit partner charities: CASA of Oklahoma County, The Down Syndrome Association of Central Oklahoma, Peppers Ranch and Cavett Kids.
BASCO
Members are working to grow and develop student chapter relationships and help students find internships with builders.
Southwestern Oklahoma
Association golf tournament netted $8,000 that will go toward building a home for a wounded veteran.
Inflation in prices received for building materials (prior to sales to consumers) was mixed in September according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. Although their monthly changes were relatively modest, the prices of OSB and ready-mix concrete have been trending upward for quite some time and remain at historically high levels.
OSB prices climbed 2.5% in September, continuing a 7-month trend that has the commodity at its highest price since June 2013. Since February, monthly increases have averaged 3.2%, pushing prices up by a cumulative, eye-popping 25%.
In addition, although the price of ready-mix concrete fell marginally in September, the long-term trend remains concerning. Monthly increases have averaged 0.3% over the last five years as the price of ready-mix concrete has steadily risen by roughly 20%. While gypsum prices picked up (+0.1%), the prices of softwood lumber and steel mill products fell by 1.4% and 0.5%, respectively.
After holding steady in August, the economy-wide PPI rose 0.3% in September. Over three-quarters of the increase was the result of a 0.7% increase in prices for goods, while the rise in ...read the article at the NAHB website
On Nov. 1, the newest modifications to the statewide uniform building codes go into effect. Most of the code changes deal with life-safety issues, and some are adjusted due to new and better products.
Fellow home builder Curtis McCarty who owns CA McCarty Construction in Norman serves as the governor-appointee to Oklahoma Uniform Building Code Commission and here are his thoughts on the top six changes, not in any particular order.
For an easy overview of all the changes, his recent PowerPoint presentation is on the OSHBA website (click on members). It includes great photos and graphics and is very easy to understand. Its 60 slides, but well worth the look.
For a more in-depth look, you can view a free copy of the changes here and to view the Oklahoma changes, click here
CO Detectors
Carbon monoxide alarms are now required to be hard wired and interconnected on new homes. Previously one could have simply installed a battery operated alarm outside the sleeping rooms. Combination Smoke/CO detectors are allowed in these locations if they are properly listed. They also have to be outside all sleeping areas. If you have a split-bedroom plan, it has to be outside each sleeping room. If two bedrooms in a central hallway, then just one is needed.
Fasteners
Wall anchors traditionally involve a cut or wedge-type nail, but now fasteners have to be from an approved list. Interior load-bearing walls are required to be anchored to the slab. Hand driven cut or concrete nails are not approved for this application.
The door between house and garage. Egress door from garage.
The door between the house and the garage has to have self-closing hinges, i.e. the door has to close behind you. This prevents carbon monoxide getting in the house is in case you leave a car running. And if you have a detached garage, now you have to have side door, so you have another way to get in and out of garage in case of a power outage.
Residential spas and hot tubs
There are now fencing requirements for pools and hot tubs. If you have a swimming pool, you have to have a safety barrier, i.e. four-foot tall with self-closing and self-latching gates, with the latch 54 inches above the ground. The fence cannot have pickets a certain distance apart. Most cities have not had a standard to really enforce swimming pools. If you are on two acres or more, you are exempt.
Storm shelters and safe rooms
If you a build a safe room or shelter in your house, it has to meet ICC NSSA500, i.e. it is being built to a recognized building code standard. “Many people are putting safe rooms under stairs and boarding it up, and doing things that would not withstand a tornado. If you call a safe room, you have to register it in each county with emergency management and it has to abide by code. However, any room or structure may be used as a place of refuge during a severe wind storm event, but shall not be defined as a storm shelter or safe room unless specifically designed to the requirements listed in Section R323. On your building plans, are you designating that area as a concrete closet or are you using the technical terms of “storm shelter” or “safe room”? In this case, verbiage matters.
Wood structural sheathing
The perimeter around the house or on the roof can no longer be installed with staples. You have to use proper nails, due to wind and the overall quality of installation. See the Fastener schedule in the IRC 2015 for a list of proper fasteners.
Congratulations to Steve Allen of Oklahoma City who joins the OSHBA leadership ladder in 2017 as vice president/secretary. Allen was COHBA Builder of the Year last year and is a past president of that association. Continuing in the leadership is David Blackburn of Tulsa as vice president/treasurer and Dan Reeves of Norman as president in 2017. Kurt Dinnes of Oklahoma City will remain on the leadership team as immediate past president in January.
Also, Dinnes has served as state rep to NAHB for several years, and NAHB has selected him as national area chair for the next two years. The new state representative will be Tony Foust of Norman, who has served as a BuildPAC trustee at the NAHB level for several years.
Congrats to these home builders who are taking time out from their busy schedules to serve our organization, as they were voted in during the recent fall board meeting in Tulsa.
Also, the leadership ladder for the Associates Council is joined by Connie Stokes of Stillwater as secretary. David Sanders of Tulsa is vice chair and Steve Taylor will be immediate past president and Chris Evans of Oklahoma City becomes president next year. Vanessa Shadix of Oklahoma City remains as treasurer. Again, thank you to these people for serving.
2016 Oklahoma Housing Hall of Famers ( from left), Bob Thompson, Ken Klein, Charlie Gilmore, Bill Rhees, and Reese Wilmoth
Hall of Fame
There will be much more on this later but this year’s Oklahoma Housing Hall of Fame was announced. They are: Bob Thompson of Norman, Ken Klein, Charlie Gilmore and posthumously Bill Rhees, all of Tulsa, and the first associate named, Reese Wilmoth.
We are honored to have these men represent the organization as pinnacles of the industry.
The Oklahoma State Home Builders Association's Board of Directors voted in 2015 to begin an Oklahoma Housing Hall of Fame. The goal is to honor and celebrate the men and women who have made significant and lasting contributions to the housing industry and/or to the Oklahoma State Home Builders Association.
Those nominated and honored are not necessarily members of the Association but have been instrumental in providing a positive image of the housing industry in Oklahoma.
Summit report
Congratulations to all who made the Oklahoma Building Summit & Expo a success. Twenty-two exhibiting booths were sold, and this year produced a profit, which can be poured back into making next year an even bigger and better event. It is scheduled Sept. 27-28 at the Cox Convention Center, so mark your calendars.
Other news
On Nov. 10 at the Tulsa HBA offices, a new HUB insurance product will be presented called Emerge Diagnostics, which has been shown to save 25-40 percent on insurance costs for pains and strains
The tool objectively diagnoses and identifies the location, extent, nature and age of soft tissue injuries. This provides data which leads to lower claims costs, a lower experience modifier and improved treatment outcomes for your employees. If your company is experiencing increased costs due to soft tissue claims, this strategy can be extremely beneficial to your business.
Another savings tool for your company is NAHB rebate program. In Oklahoma, the average savings members have seen is $1,278.28, which pays for your membership fee! If you are a Certified Professional Builder member, you save 5 percent on your General Liability insurance, which is on average $250 per year on your Compsource program. In summary with other programs, you could save as much as $3,028 a year through your insurance and rebate programs. And, as a member, you have access to the online state contract.
From NAHB state rep
OSHBA was one of the first in the nation to achieve the goal of every local association signing the NAHB local charter affiliation agreement.
NAHB voted in a dues increase of $16, but a resolution is before the membership to postpone it for a year. It will come up for a vote at International Builders Show.
Also, legislation dealing with overtime limits has been delayed, due to NAHB lobby efforts.
Associates
Scholarships to several of our state’s votechs will pick back up next year, with $10,000 allotted from OSHBA and the Associates. Approximately $5,000 in proceeds from the annual Associates Golf Tourney will be donated to Rebuilding Together, which previously was known as Christmas in April and repairs indigent homes.
A recent NAHB study shows that the median size of a subdivision in the United States is 25 total acres, and the median number of housing units in a subdivision is 50. The results are based on a survey of development projects currently under way or recently completed, conducted by NAHB’s Economics and Housing Policy Group in May 2016. NAHB conducted a similar survey once before, in 2014. Results were not drastically different, although the median number of housing units in a subdivision was somewhat higher in the earlier survey.
The 2016 survey collected information on whether a subdivision was inside or outside a metro area, and the type of housing built in it: single-family detached, attached (townhomes or apartment buildings) or a mix of the two. The median number of housing units in subdivisions inside metro areas is 50, compared to 46 for ... read the article at the NAHB website
Kendra Orcutt, Home Mods by Therapists, was awarded 2016 Occupational Therapist of the Year by the Oklahoma Occupational Therapy Association. Kendra holds the Certified Aging in Place (CAPS) designation and specializes in remodeling client’s homes for accessibility. She is a member of the Builders Association of South Central Oklahoma (BASCO).
Attentive audience during the opening session of the 2016 Oklahoma Building Summit & Expo
Editor's note: We asked participants in the recent Oklahoma Building Summit & Expo what they took away from the experience. Here are some of their comments:
“Add value, don’t cut price, for example, add a fence” – Caleb McCaleb, builder on Al Trellis of Home Builders Network on Smarter Responses to Tougher Times.’
“Buzz is the feeling” among the vendors of the annual Summit & Expo – CenterPoint Energy’s Steve Taylor, ramrodding the expo as Associates Council President
“This is something I can take home and apply to business.” – Associate Mark Priess of Thunder’s Pete Winemiller, senior vice president of guest relations, on “Moments Matter! Building a Culture that Employers…”
“Two-thirds of those registered are in the sessions. That’s a good number.” – people-counter Taylor.
“All good.” – Summit council chair Dan Reeves, OSHBA vice president/treasurer who is always straight to the point.
“I was thrilled the vendor booths were all sold out -- about 25 percent more booths than last year. This year, we surpassed attendance numbers, well over 600. I am also excited that this is starting to become the premier educational venue for homebuilders and suppliers in the region.” – Kurt Dinnes, OSHBA president
Zero-energy homes, also known as net-zero homes, produce as much energy as they consume on an annual basis, sometimes producing more energy from solar panels, wind power, or other sources. These homes are far from mainstream, but home builders like South Carolina’s Todd Usher, guest writer for this blog post, are leading the race to get them there.
At Addison Homes, we’ve always been green – a progressive niche in a mostly conservative market. Our process of continuous improvement has moved us toward ever-deeper shades of efficiency.
So after a dozen years building the most energy-efficient homes in town – including our market’s first home certified by the Department of Energy’s Zero Energy Ready Home program — we decided to go greener still and built the first mainstream zero energy home in Greenville, S.C.
Designed to showcase zero energy as an attractive, attainable option for conventional consumers, this home combines ... read the article at the NAHB Now website
Ashlynn Barton Bourque with Sherwin-Williams discusses 'colors of the future' at the 2016 Oklahoma Building Summit & Expo.
By Carol Hartzog Carol Hartzog Communications
I felt as if I was at a day-spa during the recent OSHBA Building Summit session on colors of the future.
It wasn’t the room or the people and there definitely wasn’t a masseuse nearby.
It was the words of Ashlynn Barton Bourque with Sherwin-Williams, presenting “Colormix 2017.” Here are some of her thoughts on what colors, textures and designs of the future will reflect:
Faith and spirit, with a greater need to retreat and meditate by the customer to pursue their ‘inner self.’ No frills.
Flowers continue to be ‘out’ and classic designs in with 1980s geometrics starting to emerge.
Incense and ‘accords’ of scented oils to calm the soul, freshening the air at Dr Pepper times.
Surface textures of damask and starlight sparkle. Color darkened and veined marble with white color ruling the roost, and other colors arising, particularly green.
Iridescent finishes still very important with highly glossed lacquered finishes, balancing ‘warm’ and ‘cool’ textures.
Mauve, taupe and grey featured prominently across product designs with smooth and powdery finishes. The palettes are duskier, combined with neutrals, mauve, sage and blues, paired with natural finishes.
On the intrepid, bold side, ‘you do YOU’ is the mantra. All about self-expression. The vibrant colors are orange and rich purples which blend a throw-back focus. Classic rock ‘n’ roll of the ‘90s associated with activism. Less individual and more tribe, with bold, eye-catching textiles. Surface texture would be lacquers, super glossy. Rich oranges, intense violets, and important grey tones. A warmer look. Painted woods.
Communities are more connected, more purpose driven, adapting to more diverse populations, painted in ocean blues, corals and muds.
Oranges and reds are important for 2017, sunlit yellow and teal, rich hues, deep brown as an anchor.
Global citizenship is emphasizing a “maker movement” with artisanal crafts important, such as metal working, knitting, lace making, all with a “relaxed” design.
African cultures are showing up, with intricate inlays of wood, and ceramics staying in the spotlight, looking perfectly imperfect. Three-dimensional wall coverings and heavily patterned tiles are a major industry theme. As always, there’s a focus on all-natural materials, weaving techniques. Berber-style rugs are displayed as art or on the floor, burnt orange to deep darkened browns. Metals all over the place, a combination of silver, copper, charcoals to enter the mix, notched or hammered.
Furniture is characterized by bulky and plump shapes with rounded softness. Meanwhile, office furniture reflects more and more people working from home, pulling the bulk out of pieces and making them more minimalist to fit in a person’s home.
A social conscience continues to grow – the customer cares about the materials we use with a sustainability movement in the mix. Bottom ash – from incinerating household and industrial waste – is being used more in products. Researchers are finding ways to distill and extract a range of pigments from quick-growing algae in the world to extract dyes such as blue, green and brown. Surface textures highlight leather pieces with natural stitching. An oxidized and weathered look is really making a stronger resurgence, with a rust patina on products that oxidizes over time.
And a back-to-nature appeal includes “forest bathing” which elevates the immune system and decreases stress levels, as neighborhood developments create more wooded areas.
Interior spaces focus on a holistic color choice of neutral, blush rose, browns. Anything natural is very important, such as botanical, pond groves or bush-country landscape prints on everything from dishware to walls.
These all “transport ourselves into calm spaces to escape the pressure.”
“There is an urge to travel, the thrill of being someplace new and disconnecting from everyday life. It is a psychological distance.”
Pete Winemiller, OKC Thunder senior vice president of guest relations, describes the "attitude of invitation" for his audience at the 2016 Oklahoma Building Summit & Expo.
By Carol Hartzog Carol Hartzog Communications
Fifty plus years ago, Martin Luther King Jr. enunciated his “I Have a Dream.” The unadvertised event drew 250,000 people.
“Everyone has a dream, regarding their business or their life,” said Pete Winemiller, senior vice president of guest relations for The Thunder. “If you continue to have that as a dream, when you wake up the next morn, what is it? It’s still a dream. So you have to put a road map in front of it.”
Winemiller explains to the state’s builders and suppliers last week how to approach that ‘dream’ every day to make it happen.
Those who attended the opening session love it.
“This is something I can take home and apply to business today,” said Associate Mark Priess.
Here is what Winemiller said:
Your philosophy is to be home-owner centered in this professional trade organization of residential construction and supply. You are trying to achieve something to be the very best.
The biggest gains are decided by the smallest details. To illustrate that:
Research has shown there are approximately 20,000 moments in each and every day. If you say you had a “bad day,” it wasn’t a 24-hour nightmare. And a “great day” wasn’t 24 hours of nirvana. Some moments went well. Some didn’t.
Think big, act small. People don’t remember days, they remember moments and moments matter.
If you focus on moments, you can make a difference in your business.
The bottom line is we are in the people business.
Why would the OKC Thunder, as with your company, lose customers -- fans, key accounts? Why would we lose those individuals?
According to the White House Office of Consumer Affairs: Why do we lose customers?
Approximately 1 percent of your customer base leaves because the individual dies, basically.
Approximately 3 percent of our customers cannot access services as they once did, i.e. move away.
5 percent are influenced by a friend, that is “I had a good/bad experience with this group.”
9 percent are lured away by competition.
14 percent are unhappy with the product, that is, it could have been the way a shirt fit.
A whopping 68 percent turned away by an attitude of indifference on the part of a company employee. No. 1 reason.
An attitude of indifference is a lack of interest in that individual -- that you are not being paid attention to vs. having “attitude of invitation.”
What is an attitude of invitation?
It can be a Smile, demonstrating what you have in your heart you wear on your face.
It can be paying attention. Listening
Eye contact
Validation, which means appreciation, recognition, being a simple courteous communicator
Offering assistance
A simple thank you
Courteous
Enthusiasm
Having fun
Are you ‘clicking’ with that person?
For the Thunder, the road map for clicking with guests is:
Communicate courteously.
Listen to learn, don’t listen to respond. Great listeners listen to learn.
Initiate immediately
Create connections. You make them feel good about themselves.
Know your stuff. I can do all four of these perfectly, but if I don’t know my stuff, I have cancelled everything.
“If you want to go fast, go alone. If you want to go far, go together.”-- African proverb.
Many things in your business you cannot control. But what we can control is how we treat our customers. Treat people better when you leave vs. when you came in.
The way you do this is think big, act small. Are there some small things we can do? If we did those on a more frequent basis, we would we be able to do them sooner or better.
“People forget what you did, what you said, but they won’t forget the way you made them feel.” -- Maya Angelou, American poet.
I haven’t forgotten how someone made me feel. We are in the feeling business. And make that for a special moment.
It’s not doing one thing 100 percent better. It’s doing 100 things 1 percent better. … Something you can commit to over 12 months that you do 1 percent better.
NAHB has commended Sen. Ron Wyden (D-Ore.) for introducing the Middle-Income Housing Tax Credit Act of 2016. The legislation builds on the successful Low-Income Housing Tax Credit by creating a new tax credit to spur the development of rental homes affordable to Americans with moderate incomes.
The new Middle-Income Housing Tax Credit (MIHTC) would allocate funds to states based on population. State housing authorities would then follow a competitive process to allocate the tax credits to developers for new construction or rehabilitation projects.
“Sen. Wyden’s plan would help spur the production of much-needed affordable rental housing for working American families,” said NAHB Chairman Ed Brady. “The new MIHTC would serve as a great complement to the Low-Income Housing Tax Credit, which represents the best of public-private partnerships and is the most successful tool for financing affordable housing.”
Under Wyden’s bill, rents in MIHTC properties must not exceed 30% of Area Median Gross Income (AMGI). While the Low-Income Housing Tax Credit caps the incomes of those in qualifying projects at ... Read the article at the NAHB website
Editor’s Note: Home Builder Craig Thurmond was last year’s OSHBA Builder of the Year. We congratulate him on this great honor.
The Mayor's Council of Oklahoma announced last week that Broken Arrow Mayor Craig Thurmond has been selected as the 2016 Mayor of the Year.
"I can't think of a more deserving public servant than Craig Thurmond, who is one of the hardest working people I know," said Vice Mayor Richard Carter. "So much of the success that's happened in Broken Arrow is directly related to Mayor Thurmond's ability to forge partnerships and get things done. I'm proud to serve alongside him in the Broken Arrow City Council."
MAJOR ACCOMPLISHMENTS
Mayor Thurmond played an integral role in forming Cities United, a working group of metropolitan Tulsa Mayors and City Managers, who worked diligently to capture the retiring Tulsa County Vision 2025 sales tax. With the Vision 2025 renewal, the City of Broken Arrow will hire 40 new police officers and firefighters over the next 5 years and commit approximately $3.3 million annually to street rehabilitation in the community.
The Rose District, Broken Arrow's downtown shopping and entertainment district, continues to flourish under the Mayor's leadership. In November 2015, the Oklahoma Chapter of the American Planning Association honored the Rose District with the Great Street Award for its diversity and character. More construction has taken place in the Rose District in the last five years, than in the past 50, and new businesses continue to open.
Broken Arrow's first conference center is scheduled to open in late 2017. Stoney Creek Hospitality began construction in June 2015 on the Stoney Creek Hotel and Conference Center, expected to be a regional competitor. The 8-acre site just north of Bass Pro Shops in Broken Arrow will include a 187-room hotel and a 40,000 square foot conference center. The public-private partnership will support the vision for long term economic growth for the community.
"Mayor Thurmond's dedication to serving his community is infectious, and it inspires so many of us, myself included, to take care of our citizens," said City Manager Michael Spurgeon. "Broken Arrow is fortunate to have a Mayor who is passionate about transparency, smart growth and is always looking for ways to move the community forward."
Mayor Thurmond was elected to the Broken Arrow City Council in 2001. He has served as Mayor since 2012, focusing on Economic Development and Public Safety. Mayor Thurmond serves on 18 local and national boards, councils and committees. He has worked in the land development and construction industries for 35 years in Oklahoma and California.
So you're looking at your to-do list and you have several things checked off:
attended the OK Building Summit & Expo
finished all of your homes for the COHBA Parade of Homes
enjoyed the final weekend of the Oklahoma State Fair
Now you're wondering, how can I reward myself?
Here is the first way:
Sign up and play in the annual State Associates Golf Tournament!
We are less than a week away from a great day (Oct 3) of golf with a great cause as part of the bargain. Proceeds will benefit Rebuilding Together (what used to be called Christmas in April). And besides that, every player will receive a box, not just a sleeve, of golf balls. Every one is a winner! Click here to sign up your team!
And if golf isn't your thing, well, our Homebuilders PAC Sporting Clay Tournament is coming up soon too. October 14 will see guys (and gals) with guns at Silverleaf Shotgun Sports for our annual event. Click here to sign up and help support the political activities of your association.
Now, if you're really adventurous, you can do both. Many do. But makes plans to join us for one of these great events and reward yourself! You will be glad you did.
Millennials have thrown the bathtub out with the bathwater.
That was one of the most surprising custom home design trends Todd Hallett had for the Oklahoma Building Summit & Expo this week — surprising to baby boomers and older folks, anyway.
Hallett, founder and president of TK Design & Associates in South Lyon, Mich., was among the experts giving tips and updates to some 600 builders and others. He said neither millennials nor Generation X homebuyers want tubs in their master baths — big walk-in showers will do.
A secondary bath can have a tub, he said, for guests, but not a big, built-in one. Make it a freestanding tub.
Builders aren't penciling tubs out of spec home plans, Hallett said. Custom homes are on the cutting edge of the trend, especially in California. Besides, he said, most builders in other parts of the country are reluctant to flush tubs — Realtors, too — out of fear that resales would suffer.
"But what I've seen happen the past five years is that there'll be a tipping point. Initially, no one will want to do it, and then suddenly everybody wants to do it," Hallett said.
American consumers paid $5.92 billion more than necessary for softwood lumber, according to a Viewpoint published today by the Montreal Economic Institute (MEI).
In a press release announcing the Viewpoint, MEI says that because of the softwood lumber agreement of 2006 “tariffs at the border have reduced Canadian exports and [allowed] American producers to increase their market shares. The latter thus registered additional net earnings of (US)$4.31 billion between 2006 and 2015.”
The Viewpoint’s author, Alexandre Moreau, says in the press release that American consumers overpaid for lumber because of the U.S.’ “protectionist measures,” and that consumers would not have paid the additional... Read the article at Pro Sales Magazine.
Families seeking to buy a home are struggling with the rising home prices in today’s housing market.
Across 40 large cities in the U.S., about 55% were considered affordable and were large enough to house working-class families with their two to four bedrooms, according to a new study by Redfin, an online real estate brokerage.
However, this does not mean that all of those cities are great markets for a family.
In order to determine the most family-friendly places in America, WalletHub’s analysts compared the 150 most populated cities across 36 key metrics. The data set ranges from crime rates to school system rankings to housing costs.
Here are the best cities in the each of the study’s topics:
Playgrounds per 100,000 residents: Madison, Wisconsin with 72.96
Violent-crime rate: Irvine, California with 0.49
Median family annual income (adjusted for cost of living): Scottsdale, Arizona with $101,811
Divorce Rate: Fremont, California with 12.2%
Percentage of families receiving food stamps: Irvine, California with 2.99%
Percentage of families living below poverty line: Overland Park, Kansas with 3.9%
We sifted through some of our photos from the Oklahoma Building Summit & Expo and posted a few that show some of the education and excitement that it is bringing to participants. Pete Winemiller, senior vice president for Guest Relations with the Oklahoma City Thunder (bottom right), attracted a big crowd for his presenttion. In the photo at bottom left, Summit participants take notes in a presentation from Ashlynn Barton Bourque, Designer Account Executive, Sherwin-Williams.
The McMansion style, built between 2001 and 2007 and averaging 3,000 to 5,000 square feet, lacks appeal with today's buyers compared with old vintage homes or large freshly built homes.
The realization is especially hard on homeowners trying to sell because when they bought the giant homes in the early 2000s, they thought of them as great investments, Feinstein said.
Then, the idea was that bigger was better because prices presumably would keep going up.
Now, housing analysts say the day of the McMansion has come and gone. An analysis just completed by Trulia shows that the amount buyers are willing to pay for McMansions over other homes has fallen 26 percent in just four years. As homes in general have been regaining value, McMansions have been losing ... Read the article at the Chicago Tribune website
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today we salute Cyber Cafe sponsors Kirkpatrick Bank, PSO and Spectrum Paint.
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today we salute Exhibiting sponsor Oklahoma Ready Mixed Concrete Assoiciation. Register today!
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today we salute Exhibiting sponsors GuildQuality and Mill Creek Lumber & Supply. Register today!
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute Exhibiting sponsors Buildertrend and Ferguson Buick GMC. Register toady!
The Oklahoma Buidling Summit & Expo is NEXT WEEK, September 21-22. Our 2016 Building Summit will have it all: A great lineup of speakers, a quality group of vendors in our expo, and great networking with colleagues and friends from around the state. What more reasons do you need to register and attend? Register today!
Check out the amazing experience that last year's Building Summit offered Oklahoma builders, associates, vendors and trades in the video above:
The housing market has been slowly climbing out of the Great Recession, and it still has a long way to go before reaching what are considered normal production levels. This month, a new trend started to emerge in the residential reports released throughout August. And according to experts, that trend mirrors exactly where the market should be.
Sales figures are following the traditional housing cycle pattern
Reports released in July were all positive with the exception of existing home sales, which dipped 3.2%. Builder confidence rose two points and housing starts increased 2.1%. Most notably, new home sales soared 12.4%.
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute title sponsors CenterPoint Energy and OG&E. Register today!
We mentioned it before and now it is up and running. Here is the release - -
The Oklahoma State Home Builders Association (“OSHBA”) has announced that the exclusive OSHBA Buyers’ Guide (the “Guide”) — the premier resource of relevant products and services for home building professionals — is now available at the OSHBA website at www.okhba.org.
OSHBA partnered with Overland Park, KS-based Strategic Value Media, a leading nationwide provider of print and digital media solutions for national, state and local trade and membership associations, to produce the Guide. OSHBA is proud to provide its members with this useful and easily accessible year-round resource.
“This comprehensive Guide offers access to a vast network of industry suppliers,” said Mike Means, Executive Vice President of OSHBA. “We are very pleased with the fine work SVM has done with this Guide, which we anticipate will now greatly assist industry professionals in making educated purchasing decisions throughout the year. The response to this Guide by the industry has been nothing short of outstanding.”
The 2016 version of the Guide features updated and expanded company and product listings, in addition to other valuable information relating to the home building industry. The Guide provides OSHBA members and other industry professionals with an efficient way to browse for goods and services. The Guide also offers home building suppliers and companies exceptional visibility by showcasing their products and services to a targeted, industry-specific buyer group.
If your company or business has not yet taken advantage of this exceptional opportunity to highlight your products and services in the Guide, it is not too late! To learn more about advertising your products or services in this exclusive Guide, please email oshba-advertise@svmmedia.com.
By the way, for those of you looking for prospects for our membership drive. The guide is open to members and non-members. You can tell the non-members because they don't have our logo. Just sayin'
GOT GAME?!
Hey, we are not all work and no play. Coming soon are two of our most popular events.
First, on October 3 is our annual State Associates Golf Tournament. Like last year, this event will be one that gives back to the community. What better way to take pride in your association and industry than giving back? The recipient this year is Rebuilding Together.
So go to www.okhba.org/golf to get your team registered. And if you need to give your buddies some incentive, click on the graphic and watch the short video below:
Second, join us on the afternoon of October 14 for the rip-roaring Homebuilders PAC Sporting Clays Tournament. We are returning to
Silverleaf Shotgun Sports. Also returning is Murphy's CookShack, the food truck whose BBQ thrilled the participants last year!
So click on over to www.okhba.org/shotgun and get registered. You are benefitting your association by insuring we have a strong PAC.
It’s a form of translation fit for a diplomat: listening to what clients say they want and then revealing to them what they actually want. As any experienced residential designer knows, “I want a white kitchen” can mean many different things. “Ninety-five percent of my clients come to me with a picture off HGTV.com or Pinterest, and it’s your typical white kitchen: white marble countertops and white subway tile backsplashes,” says designer Kathryn Salyer of Williamsburg, Virginia.
Salyer’s command of kitchen design, and her subsequent care and handling of the familiar white request, helps her recognize that, as she says, “What clients are really falling in love with is the ... Read the entire article at the Sherwin-Williams website
Builder & Developer Caleb McCaleb on the benefits of attending the OK Building Summit & Expo. Register today!
"I brought our whole crew of builders and office staff. Brought 11 people. Now I wish I would have brought a lot of my trade contractors." -- Caleb McCaleb
Editor's note: This column was published in the August edition of Oklahoma Builder magazine
By Steve Taylor Associates Council Chair
Can you believe we are coming down to the end of summer and school has even started for some districts in Oklahoma? Wow, where has the time gone!
We are just a few short weeks away from this year’s building summit and it is going to be great as we are expecting record attendance numbers.
That really got me to thinking about how valuable my membership in my local association is.
I have the chance to network and build relationships with the builders of my area and also have the opportunity to spread those relationships to a state and national level through the state association and my NAHB membership. That is the beauty of being a member of your local association. Three in one!
When I started out as a member of the association as an associate, I really did not put much stock in it. Yes, I wanted to have the opportunities to network and build relationships on a local and state level, but it was not until I added the term “active” to the membership title that interactions really began to happen for me as a member.
Being an “active” member of the association has given me more opportunity than I ever would have received just being a “member.” By investing myself into my local and state association, I have been able to help make a difference to the associations I serve. I would have never been your state associates chair if I had not become “active.”
Simply, by being an active member of your local and state association, you will receive much more back than you put in. The knowledge, friendships and benefits of my membership has been returned to me in a greater abundance!
Door monitors needed for Summit
In the coming weeks I want to invite you to do as I have, and invest yourself into your state association as an associate member.
Consider coming to the summit as a volunteer and play an active part in making this year’s show the best yet. We are expecting a big crowd of builders and trades and we could use your help!
We are in need of about 15 people per day to help be room monitors, registration helpers and general door greeters and helpers.
If you would consider doing this, please email me at steven.taylor@centerpointenergy.com or call me at (580) 250-5417. You can volunteer for one day, both days or even a half a day. The dates are Sept. 21-22.
Together we can serve actively as associates and help our state association do more for us!!!!!
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute exhibiting sponsors Acme Brick and Brewer Carpet One. Register today!
Ok, you've registered for the Summit. You put it on your calendar and all of a sudden it hits you, where will I stay? Where will I park?
Here is what you need to know for the first question. Stay at the Renaissance hotel. We have a block of rooms and it connected to the Convention Center. Click here to access our block.
And just as a reminder on why you should attend - here are some of our speakers:
Al Trellis is always a top speaker at different NAHB events, including IBS. Just get a load of these topics: Smarter Responses to Tougher Times, Road to Success is Always Under Construction, and the Value Driven Home Builder.
Lisa Peck is highly recommended and touches on interior design. She will be two different session on Design Trends and her last talk is Beyond Trends, How to Apply It.
Todd Hallett will be talking about floor plan trends. In one session he will incorporate "lean" design and yes, if you remember Scott Sedam, he will be building on what you learned in "lean" building! In his last session he will take some local floor plans and actually incorporate his ideas for the audience to see. Wow!
Two topics that were requested and we have brought in renowned companies to present are Quality Control presented by GuildQuality and Project Management presented by BuildersTrend.
One of our leading suppliers talks about the benefits of exhibiting at the OK Building Summit & Expo. Register today!
"We’re very excited about being part of the association and attending opportunities like this, because it is really valuable to us." -- Bob Chamberlain
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute exhibiting sponsors Huber Engineered Woods and Eide Bailly CPAs. Register today!
In its quarterly National Delinquency Survey, the Mortgage Bankers Association reported that 3.11% of 1-4 family mortgages were seriously delinquent in the second quarter of 2016. Measured on a not seasonally adjusted basis, the rate of serious delinquency, which includes both mortgages that are 90 or more days past due and mortgages in foreclosure, was 0.84 percentage point less than the 3.95% recorded in the second quarter of 2015. Since reaching a peak of 9.7% in the fourth quarter of 2009, the serious delinquency rate has experienced a steady decline. The current rate of serious delinquency was last seen in ... Read the article at the NAHB website
HBA of Greater Tulsa members help construct a Habitat for Humanity house in 24 hours.
Congratulations to the HBA of Greater Tulsa as they completed a Habitat for Humanity House in 24 hours! This was a terrific project that demonstrated the volunteerism and the care for the community by HBA members.
Read this - the project from slab to finish took 26.5 hours. Here is what else happened...
1 House built from start to finish
Over 400 hired workers
50 HBA member volunteers
1 Bomb threat
1 Death threat
1 neighbor arrested while resisting
170 teachers fed
1000 kids and parents for back to school night
7 applications to enter Habitat program
1440 lbs of ice
Over $2,000 worth of Sams food, drinks, and product
3 senior officers at a 6:15am photo opportunity
Approximately 120 workers in or on house at peak time of Thursday 6:00pm (Framers, roofers, HVAC, plumbers, electricians, brick masons, insulators, painters, tile installers)
Hundreds of compliments from neighbors and spectators
1.5 hours of sleep for Jeff Smith, CEO of the Tulsa HBA
26.5 hours of construction time
109 HBA staff hours worked
17 Media appearances and counting
They say a picture is worth a thousand words. How about a video -
Tony Foust, NAHB 2nd Vice Chair Randy Noel, Kurt Dinnes, Connie Stokes and Kenyon Woods prepare to hear from @RealDonaldTrump speak to NAHB.
Editor's note: This column will be published in the August edition of Oklahoma Builder magazine
By Kurt Dinnes Oklahoma State Representative
The National Association of Home Builders (NAHB) held its mid-year board meetings this year in Miami, Florida, and yes, that’s the same Miami, Florida, that has the Zika Virus outbreak. My new cologne of choice for this trip was OFF Mosquito Spray. While dodging mosquitoes and braving the accommodations at the Fontainebleu, both the State Representative’s Meeting and the Executive and Board Meeting agendas were full, so I will do my best to update you on some interesting, but not all, key advocacy efforts, NAHB policy and other information that is relevant to the Oklahoma homebuilding industry.
First, I want to take this opportunity to thank each and every one of our Local HBAs across Oklahoma. Oklahoma was one of the first states to fully comply with the NAHB Local Affiliation Agreement initiative. This very basic mutual written commitment between the NAHB and Local HBAs is a good step that will help maintain positive and professional relationships within a Federation of this size.
At this year’s mid-year meeting, we were privileged to hear from both presidential campaigns. In a last minute effort the NAHB leadership was able to get commitments from both the presidential campaigns to come speak to the NAHB members and directors attending here at our hotel during our meetings.
Donald Trump made the commitment to speak to us in person and Hillary Clinton sent her chief economic advisor, Gene Sperling, who seamed to be very knowledgeable about our country's economy. Both shared their campaign platforms and talked about how important the home building industry was to our economy and our nation. Although, the security detail for Trump was time consuming and very thorough it was great to hear from the candidate himself.
The upcoming NAHB 2017 International Builders Show (IBS) will be held in Orlando Florida January 10-12. This design and construction week which includes IBS and the Kitchen & Bath Industry Show (KBIS) will also feature the new CEDIA Smart Home Pavilion designated specifically for exhibitors who specialize in technology solutions for the home. With over 100 educational classes and 800 plus trade show partners IBS promises to be better than ever. A few other IBS highlights include Payton Manning as the opening speaker, an IBS house party at Mangos Tropical Cafe, a Spike Party featuring the Little Big Town Band, and the new NAHB Member Summit. The new Member Summit is a great opportunity to learn how the NAHB grassroots guide the association’s direction and activities. You will also get to hear about the NAHB’s many membership benefits and network with like minded professionals.
Businesswoman and “Shark Tank” personality Barbara Corcoran will present her unique winning strategies for leading teams to success. Early registration and related discounts are now available on line at BuildersShow.com.
NAHB Policy
NAHB Dues Increase
The NAHB leadership set a goal for 2016 to have all 50 states visited by an NAHB Executive Officer personally. Approximately 40 states, including ours, during our legislative day and OSHBA board meeting earlier this year, have already been visited in a town hall style meeting. With the feedback received from our grassroots membership the Senior Officers recommended the dues increase previously approved and slated to go into effect on January 1, 2017, be postponed for one year. Proper notice will be given and an official vote of the board of directors pertaining to this recommendation will be voted on at the upcoming IBS Board of Directors meeting.
If you would like to serve on the NAHB Board of Directors I would like to encourage you to check with the Local HBA you are a member of and ask if there are NAHB Board appointments either un-filled or the current appointees are no longer active. This is a great way to get involved and serve. If you are currently a NAHB Board of directors member and wish to serve on or are already on a council or committee, committee appointment applications are open and close October 1, 2016. Remember, if you are on a council or committee you must re-apply each year and be reappointed by senior officers.
Advocacy
Often, I will cover some of the key NAHB advocacy efforts on our behalf in this article, however there are simply to many key efforts and updates to key issues that are important to our industry and unfortunately not enough space in this article to affective address each. For your convenience an updated and very comprehensive outline of the NAHB advocacy efforts is available on the NAHB web site. (http://www.nahb.org/en/members/national-leadership/executive-board.aspx) I encourage you to open this link and see first-hand the issues that affect our industry and the efforts the NAHB takes on our behalf to protect our industry. Just to name a few key issues you will find on our behalf are; updates on the Wetlands (Waters of the United States) environmental issue, Confined Spaces in Construction amendments, the ongoing efforts on the upcoming Department of Labor’s new overtime ruling that basically doubles the minimum salary exemption for certain “white collar” workers, the legislative efforts with the Health Reimbursement Arrangements and the very important ongoing legal battle with the EPA’s Silica Ruling.
As you can see from the NAHB’s advocacy efforts and important ongoing regulations affecting our industry, your HBA membership is more important than ever. However, membership is just the start. Becoming an active member enables you to stay connected with other industry professionals and provides you with countless educational opportunities to stay informed and educated. As a professional in this industry, staying informed and educated can make the difference between a business that’s ordinary or extraordinary. As for myself and our company, active membership does make a difference.
As always, I would like to personally thank you. By reading this very article, you are wisely taking advantage of the work done on your behalf and our industry. This is made possible because of your valued membership in both OSHBA and The NAHB. Once again, if I can be of any help as your NAHB State Representative please contact me, I would enjoy hearing from you.
Kurt Dinnes is president of OSHBA and state rep to NAHB. He can be contacted at kurtd@suncustomhomesok.com or at (405) 641-2154.
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute title sponsors Oklahoma Natural Gas and Touchstone Energy. Register today!
Home builder Jim Schuff explains the value to his business gained from attending the Oklahoma Building Summit & Expo. Register today!
"This is fantastic. I don’t have to go anywhere. It’s 20 miles from my house. I can get here and get back home quickly, and deal with work issues. The most expensive part of the day is that $8 parking pass." – Jim Schuff
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute title sponsors Morrison Supply Co. and Sherwin-Williams. Register today!
Editor’s note: This excerpt was taken from an article published in the Washington Post
Second homes, often called “granny flats,” have become a new front in the conflict that pits the need for more housing in the country’s most expensive cities against the wishes of neighbors who want to preserve their communities. The same battles flare over large developments that might loom over single-family neighborhoods. But even this modest idea for new housing — let homeowners build it in their own back yards — has run into not-in-my-back-yard ... Read the article at the Washington Post website
I hope your summer is going well as some are getting into the swing of school starting and fall activities. One of those activities I hope you have on your schedule is the OK Building Summit & Expo Sept. 21-22 at the Cox Convention Center in Oklahoma City! This is going to be our best yet -- informational classes -- expo show -- and great networking opportunities with builders from across the state!
We need help! We need volunteers to assist us and help serve in registration, room monitors, IT support and general greeters and helpers. I envision this as an opportunity to use your talents to help the OSHBA cut some expenses and make the Summit a success! We need about 15 volunteers per day.
If you can help for a day, half a day or even both days please contact me at 580-250-5417 or by email at steven.taylor@centerpointenergy.com. Let me know when and what time you can be there.
Steve Taylor
State Associates Council Chair
P.S. Booth space is still available but running out!
Editor's note: This article will be published in the August edition of Oklahoma Builder magazine
By Kurt Dinnes
OSHBA State President
Summer has definitely settled in and the “heat is on” in more ways than one. Most people refer to these days as "the dog days of summer.” However, for builders, this can be very productive time. Custom builders will be working hard to catch-up time that may have been lost during the rainy season earlier this summer, while spec home and production builders will be finishing and evaluating their inventories for the fall season.
I have had the opportunity to visit with builders from around the state. The feedback that I'm getting has been a mixed bag. Homebuilding seems to be the strongest in some of our small towns, rural and resort areas. Our larger metropolitan areas are reporting new starts slowing.
However, the enthusiasm and feedback I get from our Enid builders leads me to believe Enid continues to set a respectable pace. Economic indicators can often be difficult to interpret and even more difficult to apply to our business growth strategies.
Here are a few obvious considerations as we plan for the second half of the year.
Our state’s tax collections are showing a downward trend between 3.5-7.5 percent, depending on the type of tax. The Realtors, at least in the OKC metro area, report the average size and price of homes selling is down approximately 25-30 percent over last year. Realtors report new homes selling the best are homes under 300K.
We know with the slowing of the oil industry and the historical uncertainty often preceding a presidential election can bring about conservatism with future homebuyers.
However, there are many positives notes. Oklahoma is still considered an affordable and great place to raise a family and, with interest rates at near record lows, can certainly help keep quality housing strong and affordable across our great state.
I am certainly not an economist. Rather, like many of you, I am a builder trying to be prudent about planning for the short term and long term and on a good day that's never easy. Perhaps, this may be a good time to exercise some conservatism while remaining optimistic.
One thing is for sure, we will certainly want to look at the first quarter after the election, as this most likely will be a greater indicator of the direction our economy and industry will be heading.
Summit upon us
I would be remiss if I did not mention that there are just a few days left before the early-bird registration closes on our upcoming Oklahoma Building Summit & Expo. I am so excited about this year’s Summit. Opening the Summit is Pete Winemiller with the OKC Thunder. While Oklahoma has embraced the Thunder, hearing from Pete about how they will overcome adversity with the loss of Kevin Durant, the experience, should be enlightening.
But there is more. You will hear from Al Trellis about the latest ideas on how to market your homes, from Lisa Peck on the latest design trends, and from Todd Hallett on how to refine your plans to incorporate not only the latest trend but help your bottom line. The Oklahoma Building Summit is the place to be to learn how to make your business more profitable.
Yet it is also an Expo! We have some terrific vendors who will be there and most will be offering superb show discounts! It will be a fun, educational, jam-packed two days.
And closing the Oklahoma Building Summit & Expo will be our very own NAHB Chief Economist Rob Dietz. A peek into the probable future will be beneficial for all members. As you can tell, I am excited and hope you are too.
I am personally registering three other of my team members so as not to miss any important information. I attend each year and can honestly say I take way valuable information that helps me and my team to do a better job building, selling and managing our company and you will too.
See you at the Summit!
In closing, remember, as a valued member of your Local HBA, you are also a valued member of this OSHBA and the NAHB. Together, we are all working to make a positive difference in our industry and keep the American dream of home ownership alive in Oklahoma.
Kurt Dinnes is president of OSHBA and state rep to NAHB. He can be contacted at kurtd@suncustomhomesok.com or at (405) 641-2154.
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute title sponsors Kelly-Moore Paints and Legacy Vinyl Windows. Register today!
Watch the video below as Andrew French shares his thoughts on the benefits of attending the OK Building Summit & Expo. Have you made plans to attend? Register here!
President Kurt Dinnes takes his show on the road! Live from the Fontainebleu Hotel in Miami during the NAHB Mid-Year meeting! Watch it below:
Subdued Trump tells home builders he’s one of them
Editor's note: The following excerpt was published in the Miami Herald
A subdued Donald Trump showed up to the National Association of Home Builders conference the morning after a raucous Broward County campaign rally Wednesday night. In front of a nonpartisan, buttoned-down audience, Trump found little taste for the red meat he delivers from the stump. “Wouldn’t it be nice if we could actually get along with Russia?” he floated at one point, to utter silence. Read the entire article at the Miami Herald website
One of America’s biggest builders is seeing sales of first-time buyer homes surge – but it’s not just millennials snatching up the homes.
Older buyers, including retirees, are buying more of D.R. Horton DHI, +0.50% entry-priced “Express” homes, the builder said on an earnings call Thursday.
Express accounted for 28% of D.R. Horton’s closings and 20% of its revenue in the most recent quarter, the company said. It’s increased the number of markets where those homes are available, and executives think there’s still a lot of room to grow.
“We commented in prior quarters about markets like Florida where there are perhaps more retirees,” CFO Bill Wheat told analysts. “We have seen more of larger mix of older buyers buying the Express Homes because they see the same value there.”
Many economists believe there’s still room to grow market share of true first-time buyers, as well. The National Association of Realtors said Thursday that first-timers made up 33% of all buyers of previously-owned homes, an improvement over recent months, but still well below the ... Read the entire article at the MarketWatch website
Editor's note: This article will be published in the August edition of Oklahoma Builder magazine
By MIKE MEANS OSHBA Executive Vice President
Ok, you have seen and heard the call to register for the upcoming Oklahoma Building Summit and Expo Sept. 21-22. You have registered, right?
If you haven’t, well, let me give you a few more excellent reasons as to why you should.
Reason #1 – Code Update. Yes, we have a new code taking effect in November! Sure, this may sound boring but knowing the latest version of the International Residential Code can save you a lot of headaches and unnecessary expenditures.
Reason #2 – Color Trends. We have Lisa Peck, a premier interior design expert and consultant coming to the Summit. What could be worse than putting your new home on the market only to find you are so using yesterday’s colors! That’s like wearing that wide tie to a party!
Reason #3 – Design Trends. Todd Hallett will be presenting on the latest design trends. Even more, he will show you how to cut corners, literally, to save dollars and build more efficiently. If you are a student of “lean building,” this is the class for you as you can also add “lean design” to your repertoire. We will be looking for a few good builders willing to let their designs be used for demonstration purposes.
Reason #4 – Quality Control. GuildQuality, recognized across the NAHB world as a quality provider (pun intended), will help you in ssuring your customers a great experience. This class is a result of builders’ requests.
Reason #5 – Project Management. This is another class from the “you asked for it” catalogue. BuilderTrend will be presenting ways to improve your bottom line.
What more reasons do you need? A great lineup of speakers, a quality group of vendors in our expo, and great networking with colleagues and friends from around the state. Quite frankly, we’re surprised you are not already registered.
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute title sponsors Compsource Mutual Insurance Co. and Dolese Bros. Co. Register today!
Realtor.com released its rankings Thursday of the 20 hottest real estate markets for July. California, yet again, scored the most metros on the list, and Vallejo, CA, is once again at the top spot. The list is representative of what the real estate website called the "hottest July" housing market in 10 years.
Realtor.com Chief Economist Jonathan Smoke estimated that July will end up with a median days-on-market figure of 68 days, which is one day faster than July 2015 but three days slower than last month. He said this trend is typical as the end of the summer selling season nears.
Smoke said that even though July saw the addition of 500,000 new listings, total inventory is lower than it was in July 2015, and it was still not enough to meet ... Read the article at the Construction Dive webstie
Thank you to all our great sponsors of the 2016 Oklahoma Building Summit & Expo. Today, we salute our Presenting Sponsors, HUB International, Mid-Continent Group and Grain Dealers Mutual Insurance Company. Register here!
According to Census Bureau’s Housing Vacancy Survey (HVS), the homeownership rate dropped to 62.9% in the second quarter of 2016. It is the lowest level since 1965, when the Census Bureau started tracking these data. This was a second straight quarterly decrease, down by 60 basis points on a nonseasonally adjusted basis from three months ago.
The homeownership rate continued to decline for all age groups except for Generation X, on an annual basis. The homeownership rate for Generation X increased modestly to 58.3%, up by 0.3% since a year ago. The homeownership rate for household heads older than 65 years old (77.9 %) decreased by 60 basis points. The largest declines, however, were for those ages less than 35 and 55-64, with an annual drop of ... Read the article at the NAHB website
With fitting artistic depictions of historical Oklahoma events, the Tulsa delegation meets with State Sen. J.J. Dossett, from left, Tulsa HBA executive vice president Jeffrey Smith, John Madden and Lana Nelson.
Editor's note: This Legislative Update by Mike Means will be published in the August edition of Oklahoma Builder magazine
By MIKE MEANS OSHBA Executive Vice President
One of the most significant legislative sessions ever has ended. The task of creating a state budget and closing a $1.6 billion shortfall was accomplished. It was not done however, without a little pain.
Of interest to the industry directly was the elimination of the Energy Efficient Residential Construction Tax Credit.
While the elimination of the tax credit is painful, especially to those who utilized the tax credit heavily, your state association was able to accomplish one small victory in the process. It was not eliminated retroactively!
There were several in the Legislature who favored eliminating the tax credit effective Jan. 1, 2016. Part of the rationale was to immediately stay the outflow of tax credits. While many thought it was unconstitutional, there was thought that because it was still in an existing tax year that it would pass that test. Our biggest argument was one of “bad faith.” It is bad faith to not only take it away but also to roll it back after many people had acted in good faith on its existence.
Thank goodness most legislators agreed with us. But with the looming shortfall, this particular tax credit was low-hanging fruit.
Another bill that indirectly affects our industry was a bill that stripped funds out of the reserves from several agencies. One of those agencies was the Oklahoma Uniform Building Code Commission.
As you know, this commission sets the minimum codes that will be followed in Oklahoma. The commission had plans to train inspectors, something we all know is important, to provide uniformity and accuracy in the inspection practice. With the Legislature stripping hundreds of thousands from the reserves, this training will be put on hold.
A big success for our industry was the ability to stop expansion of the sales tax in Oklahoma. There was a proposal to expand the sales tax in two different ways. One was to try and capture more sales tax via Internet sales. This was seriously considered despite the U.S. Congress had stymied many attempts as this affects interstate commerce.
The second, more onerous idea was to tax many of the service industries. Could you imagine the burden and the additional cost if you had to pay sales tax to your framers and trim carpenters?
OSHBA is also a part of the Construction Industry Coalition. We did help in the effort to ensure the rehabilitation work on the State Capitol continues. It is a beautiful asset to our state and has been neglected far too long. We all know that the longer we wait to repair it the more it will cost.
Turning sights toward the next session, we anticipate once again discussion of builder registration in Oklahoma. If you have any particular thoughts on this topic, please let us know.
Near the end of June, Brexit came, then it went and, according to Capital Economics, that’s where the story ends.
No more effect on the housing market, no more lowering the mortgage rates, according to Capital Economics.
In fact, last week, the 30-year fixed rate mortgage edged upward, and the 10-year Treasury yield rebounded sharply, according to Freddie Mac’s Primary Mortgage Market Survey released Thursday.
“The downward pressure on mortgage interest rates from Brexit already appears to be unwinding, with 30-year fixed rates increasing last week from 3.60% to 3.65%,” Capital Economics Property Economist Matthew Pointon said.
“Given we expect Brexit will have a minimal impact on the U.S. economy, we see no reason to change our forecast for mortgage rates to reach ...” Read the post at the Housing Wire website
Single-family lot prices set a new record in 2015, with half of the lots priced at or above $45,000. According to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC) data, this is the highest median lot value on record and exceeds the previous record of $43,000 reached in 2006, in the midst of the housing boom when twice as many single-family homes were started.
Given that nation’s lots are getting smaller and home production is still significantly below the historically normal levels, it might seem surprising that lots are becoming more expensive. However, the rising lot values are consistent with record lot shortages that NAHB reported in May of this year.
The rising lot values are most pronounced in the West South Central and Middle Atlantic divisions where lot values established historical records in 2015. In the West South Central division (that includes Texas, Oklahoma, Arkansas, and Louisiana), lot values had traditionally been below the national median but reached the $45,000 mark and caught up with the national median in 2015. This represents a significant jump in the division lot values since the housing boom years when more than half of lots were priced under $30,000. Read the entire article at the NAHB website
About 76% of Americans who are likely to vote in the 2016 presidential election say they are more likely to support candidates who make housing affordability a focus of their campaigns and a priority in government, according to a national public opinion poll by Make Room, a nationwide campaign giving voice to American renters.
Almost all Democrats, about 92%, say they would support a presidential candidate who make affordable housing a priority, and about 78% Independents said the same. While Republican numbers were much lower, still a majority at 55% said they would be more likely to vote for a candidate who made affordable housing a priority.
Likely voters not only want to see affordable housing on the candidates’ platforms, but also consider the issue to be an important factor in their voting decisions. About 60% of likely voters say that housing is a key issue to them in this voting season.
“The dual challenges of rising rents and stagnant wages do not discriminate: millions of Americans, regardless of political affiliations, are struggling to afford ... Read the article at the HousingWire blog.
Honored to be elected Secretary to the national Executive Officers Council
The week of July 11 saw executive officers, HBA staff, and volunteer leaders congregate in San Antonio for the Association Leadership Institute. This annual institute provides valuable resources for the modern HBA and the services it provides to its members.
This year was no exception. The speakers were excellent and the topics were very relevant. Every association should budget for their executive officer -- whether full-time or part-time -- to attend and be at the top of their game.
Think a moment about some of these topics – Building the Association of the Future, Effective Decision-Making in an Over-Thinking World, How to Generate Sponsorship Revenue (Which HBA doesn’t want to do that?), Reaching Future Leaders, Eight Steps to Get More Members to Your Event, Rev Up Your Social Media and Communications that Connect.
Yes, relevant, timely, and sure to be of benefit to any HBA. I know I once again learned some valuable ideas that will soon be implemented.
The two keynote speeches were also memorable.
The opening keynote was “Never Fly Solo” by Lt. Col. Rob (Waldo) Waldman. Rob is a decorated combat pilot and spoke about building trust. Trust is a key component of every relationship.
The closing keynote was “Successful Practices of a Market Leader” by Jason Young. Jason was a senior level manager at Southwest Airlines and spoke about its customer service culture. Valuable customer service should be a trademark of every HBA.
It is at the Institute where the senior officers of the NAHB Executive Officer Council are elected.
With the blessing of my senior officers, I was allowed to throw my hat in the ring and was elected as the 2017 Secretary for the Council. Provided I do not mess up and get tossed out, I should be Council President in 2019. I appreciate the confidence shown in me by my peers. I am sure they will help keep me on the right path.
I do want to take a moment and recognize a friend and colleague who helped me in my decision to seek the office. Although he is now in another state, Paul Kane, former Executive Officer for the Tulsa HBA, just finished his term on the Council ladder. Paul’s leadership has greatly influenced the path of the EOC and brought the very relevant education to the institute. It meant a lot to me to have his support. I hope to do as well for the Council as he did.
Another reason I want to serve the Council is because our Federation is going through some governance and growth pains. It is a changing world and a changing environment for membership organizations. Our Federation is no different.
I had the opportunity to go to Washington D.C, in late June and meet with leaders of NAHB and provide input as to the relationships between all legs of the Federation – national, state and local associations working together for the industry. This dialogue will be ongoing for the next few months.
So along with Kurt Dinnes, our State Representative to NAHB, and now myself, Oklahoma’s common sense approach to doing things should be well represented.
Election Update
First, a big thank you to those who contribute to our Homebuilders PAC, either through being a direct contributor, a contributor to NAHB Build-PAC -- by which we share once we meet our national goal -- or by participating in our annual Sporting Clay event. It is Oct. 14th this year by the way.
Through the PAC, we got involved in several open seats to elect those candidates we felt were friendly to the housing industry and to business issues. We were successful in the majority of the seats we got involved with. Some will be decided in the runoffs on Aug. 23.
To understand the slow-motion trends in single-family housing, start by looking at the oil market: It took years of oil priced around $100 a barrel to spur the investments that drove higher production, leading to the current supply-driven glut and prices closer to $50 a barrel. The levers of supply and demand worked, but they worked slowly -- as is happening in the housing market.
Every year since 2009 we've been running a housing deficit: More housing for sale has been absorbed than built. With a glut of housing left over from the housing bubble and the great recession, it's logical that construction of new supply was subdued for a few years. But vacant inventory for sale normalized in 2012, and currently stands at a 12-year low. So why aren't builders building more? The pace of construction remains ...Read the blog at the Boomberg site
The median lot size of a new single-family detached home sold in 2015 dropped under 8,600 square feet for the first time since Census Bureau’s Survey of Construction (SOC) started tracking the series.
An acre is 43,560 square feet, so the current median lot size is just under one-fifth of an acre. In 2014, Paul Emrath used a football field analogy to help visualize the median lot size that proved to be very popular. So using a football field as a measuring stick, 5.6 median lots would fit between the goal lines of a football field in 2015.
While nation’s lots are getting smaller on average, the regional differences in lot sizes persist. Looking at single-family (attached and detached) speculatively built (or spec) homes started in 2015, the median lot size in New England exceeds half an acre.
OSHBA members, Oklahoma Housing Hall of Fame nominations are now open. Click on this link to download the nomination form for the Hall of Fame. The guidelines are part of the packet, and the nominations are due by September 30.
According to data from the Census Bureau’s Survey of Construction (SOC), vinyl (including vinyl-covered aluminum) was the most common principal siding material on new single-family homes started in 2015 (27 percent), followed by stucco (25 percent), brick or brick veneer (22 percent each), and fiber cement siding (such as Hardiplank or Hardiboard) (19 percent). Wood or wood products accounted for 5 percent and stone, rock or other stone materials accounted for only 2 percent.
The Census Bureau’s SOC data are available by the nine census divisions. Vinyl siding was the most widely used primary exterior material in five out of the nine census divisions. In both the Middle Atlantic and New England, 70 percent of the new homes started in 2015 used vinyl siding. In the West South Central, which includes Oklahoma, brick or brick veneer was the top choice with at least 55 percent of new single family homes started in the last year using it as the primary siding... Read the entire article at the NAHB website
President Kurt starts with call for prayers and healing regarding Dallas shooting and then turns to business. This month deals with the State Treasurer's report, the Chartered Local Affiliation Agreements and then the upcoming OK Building Summit & Expo. Watch it below:
Southern Oklahoma Technology Center construction technology students did not disappoint their instructor, Robby Adams, at recent statewide construction competition. Posed on the frame of a home they are constructing are Phillip Owen (high school student, front row middle) of Ardmore and Brady Roberts (adult student, front left), who placed second in Cabinetmaking; Elisa Honea, Ardmore, who placed third in Carpentry (high school student, top) and Sergio Fuentes (high school student, front right), who placed first in District Carpentry/Math contest. The Southern Oklahoma Technology Center is one of six state technology schools that recently received $1,800 donations from state home builders through the Associates Council of the OSHBA.
Great Plains Technology Center in Lawton recently received a $1,800 check from the Associates Council of the Oklahoma State Home Builders Association. It will benefit the construction trades and electrical technology programs. From left are Steve Taylor, chairman of the Associates Council, and Superintendent Tom Thomas. This year, with matching funds from OSHBA, the Council provided six Oklahoma technical schools with $1,800 each for construction-related scholarships for a total of $10,800.
Northeast Technology Center in Pryor recently received a $1,800 check from the Associates Council of the Oklahoma State Home Builders Association. The funds will benefit the construction trades and electrical technology program (students pictured in top photo). At the award presentation were (bottom photo), from left, Rodney Darnell, Electrical Technology Instructor; Debby Peaster, Assistant Superintendent/Campus Director; Randy Chambers with OSHBA; Tim Palmer, Construction Trades Instructor. This year, with matching funds from OSHBA, the Council provided six Oklahoma technical schools with $1,800 each for construction-related scholarships for a total of $10,800.
Southern Oklahoma Technology Center in Ardmore recently received a $1,800 check from the Associates Council of the Oklahoma State Home Builders Association, represented by Steve Sullivan with OSHBA, left. Stephen Hadwin, Design and Fabrication Instructor at SOTC, receives the donation. The donation will benefit the construction trades and electrical technology program. This year, with matching funds from OSHBA, the Council provided six Oklahoma technical schools with $1,800 each for construction-related scholarships for a total of $10,800.
Jeff Click is interviewed in video posted at newsok.com. Watch the video
Editor's Note: Oklahoma City area builder and former OSHBA President Jeff Click was interviewed by Richard Mize, real estate editor of The Oklahoman, about the state of the housing market in Oklahoma. Click's perspective was included in following article, which was published June 24.
Uncertainty abounds surrounding Brexit, but one thing seems sure for U.S. housing: It will get a boost in even lower mortgage rates, to Oklahoma City homebuyers' benefit.
Why would Britain's vote to leave the European Union affect loan rates here?
Investor flight from roiling stocks to stable U.S. Treasuries drives T-bill prices up, which pushes yields down.
When Treasury yields go up, banks can charge higher rates for mortgages supporting the mortgage-backed securities. But Treasury yields headed down immediately Friday on news of Brexit.
Add that to an Oklahoma City housing market that has managed to perform well despite a stew of uncertainty — in the energy sector, in sluggish homebuilding and most recently in rising unemployment.
"It's a guessing game right now," builder Jeff Click said before the largely unexpected sea change in the United Kingdom. "I'm approaching 20 years in the business and this is perhaps the one season that I haven't quite been able to put my finger on ... " Read the entire article at newsok.com
Banks increased their lending to single-family homebuilders in the first quarter by $2.3 billion, nearly 18% higher compared to the same quarter in 2015, according to a new report by the National Association of Home Builders.
As of March, the outstanding stock of one- to four-family residential construction loans rose to $63.2 billion, according to the group's analysis of recent Federal Deposit Insurance Corp. data.
"The year-over-year growth of 18% in construction lending is consistent with our 2016 forecast," said Robert Dietz, the group's chief economist.
NAHB's forecast calls for 806,000 single-family starts this year, up 13% from 2015.
It’s a fact of life: Homes come with far more emotional weight than any other investment we make.
A home is a refuge from the world, a place to raise a family and, for some people, an investment they hope will bring them a good chunk of money down the road. We fall in love with houses in a way that we never fall in love with a portfolio of stocks and bonds.
Home Sales and Taxes: How Much Will You Owe?
All too often, though, we don’t realize that how we feel about homes blinds us when it comes time to buy or sell. We let our emotions blind us to cold facts about the market or the realities of ownership. Or we prioritize one set of emotional needs over others that are just are strong but may not be evident at first. And ignoring them can lead us to make ... read the entire article at the Wall Street Journal website
Steve Sullivan, coordinator of Builder/Developer programs with OGE, left, and Roger Farris, director of instruction, with Gordon Cooper Technology Center in Shawnee celebrate support by the state’s home builders to the center’s building trades programs. This year, with matching funds from Oklahoma State Home Builders Association, the OSHBA Associates Council provided six Oklahoma technical schools with $1,800 each for construction-related scholarships for a total of $10,800.
U.S. housing starts slipped in May as the construction of multi-family housing units dropped, but further gains in building permits suggested a rebound that would continue to support economic growth in the second quarter.
Groundbreaking fell 0.3 percent to a seasonally adjusted annual pace of 1.16 million units, the Commerce Department said on Friday. Starts in April were little changed at a 1.17 million-unit pace.
Economists polled by Reuters had forecast housing starts falling to a 1.15 million-unit pace last month.
Watch the video below and hear what builder Caleb McCaleb gained from attending the 2015 Oklahoma Builiding Summit & Expo:
"So many times we get so caught up in the sticks and bricks of building the house instead of the relationships of building the house. So the first seminar we went to was ‘how do we make the whole team work?’ And the second seminar we went to was about what our profitability is. How do you make more profit. If you are going to stay in business, you have to make a profit. It’s nice to hear someone say ‘you have to do this, this and this to get this profit.’ He told us the exact percentage we had to have for sales, the exact percentage for indirect costs and every piece of the house had a percentage tied to it." -- Caleb McCaleb
The Associates Council of the Oklahoma State Home Builders Association funded an $1,800 scholarship to construction trades programs Autry Technology Center in Enid. Above, from left is Jeff Clark, construction instructor, working with, from left, Shane Morrison and Cody Roggow, both of Enid. This year, with matching funds from OSHBA, the Council provided six Oklahoma technical schools with $1,800 each for construction-related scholarships for a total of $10,800. In the photo at right, Steve Sullivan, immediate past president of the Associates Council, presents a check to fund the scholarship to Autry Tech Center's Clark.
Editor's note: This notice was received from our member group at the Home Builders Association of Greater Tulsa:
HBA Members,
The Home Builders Association of Greater Tulsa, along with our industry partners, AIA, GTAR, and NAIOP, are hosting a mayoral forum on Wednesday, June 15, from 11:30am-1:00pm in the Mike Fretz Event Center. Mayor Dewey Bartlett and Councillor GT Bynum have graciously agreed to participate in this forum and we intend to get a clearer understanding of what each candidate expects to do with residential construction issues and policy if they are elected to office.
I urge you to attend this function so that you may educate yourself on the candidates and be prepared to vote on June 28th. With only 50% +1 vote needed to win the election, it is highly likely that one of these two candidates will be successful in their campaign this month.
Well the 2016 Legislative session has ended and the scorecards are coming out. Most of the ones I have seen rate the session as a C. When I was in school I did not like to see a C, I wanted A's and B's. I am sure most legislators would agree.
What made it a C in the "experts" opinion were many - lack of transparency in the budget process, lack of reform, robbing reserves from non-appropriated agencies and the use of one-time money to close the gaps. That is quite the list and I can't really disagree. One of the agencies I watch in particular, the Oklahoma Uniform Building Code Commission, lost $800,000 of its reserves. That means the plans to educate inspectors just got put on hold. Just what we need, right, inspectors that don't know the codes.
Of course, as an association we might rate the session a little lower. The legislature decided to kill a tax credit that allowed builders to build high-performance energy efficient homes for first-time or lower income buyers. The credit was limited to smaller homes and is one of the few credits that was third-party verified. The only good news is we were able to move the sunset date from January 1, 2016 to July 1, 2016.
Some say the legislatiure should have taken more time, even go into a special session. That really wasn't a possiblity. The legislature had to balance the budget and get out of town in time for primaries!
Speaking of primaries, our Homebuilders PAC board met and made some endorsements. They will be sent via email to members with the upcoming President's Monthly Message.
Pantone broke with tradition to release not one, but two colors of the year in 2016, and a recent Washington Post infographic(graphic at right) breaks it down for us, including a look at color trends since the 1970s and how they influence colors for furniture, fashion, interior paint and even cars.
The color-matching and identification company picked “Rose Quartz” and “Serenity” for this year’s trend-setting colors, calling the pink-and-blue combination “an antidote to modern day stress.”
But is the Pantone announcement as big a deal for home builders, designers and merchandisers as it used to be? In an age where consumers increasingly get there queues from Houzz, Pinterest, HGTV and other purveyors of home design ideas, maybe not so much.
Mary DeWalt, MIRM, CMP, and president of Mary DeWalt Design Group, said she and her fellow NAHB Design Committee members were intrigued by Sherwin Williams and Benjamin Moore’s choices for 2016 color of the year – both companies chose a variation of white.
“When we discussed trends, I mentioned the popularity of the urban/modern farmhouse style, which is very white-on-white, inside and out,” she said. “White walls with pops of accent colors are ... Read the article at the NAHB Now blog.
NAHB has released its latest projections of spending on improvements to owner-occupied housing by zip code. The projections show total spending on improvements, the number of owner-occupied homes, as well as average spending per improvement, in each zip code for calendar year 2016. Also shown for each zip are 2016 projections for the five key variables NAHB uses to estimate home improvement spending in relatively small areas.
The five variables are number of homes in the area, the share built in the 1960s, share built in the 1970s, owners’ average income, and their level of education. To illustrate how these variables interact, consider the four zip codes where spending per improvement is over $18,000 (compared to $5,800 for the average zip code). These four zips have relatively few homes built during the “sweet spot” for remodeling (between 1960 and 1980), but this is more than offset by home owners who are highly educated and have extremely high incomes.
On the other hand, in the fifth zip code on the list (94028, Portola Valley in California), the average remodel is a little over $17,000, and this is driven in part by the age of the owner-occupied housing stock (with a third of it built between 1960 and 1980), although home owners in Portola Valley are ... Read the blog at the NAHB website
Watch the video below and hear what builder Brian Wiggs gained from attending the 2015 Oklahoma Builiding Summit & Expo:
"We met some people that we didn’t know and learned about some new products, but we also met some people we did know and we learned more about the products they have for us. So it was really informational for us and gave us information to take back and put in our business. If I didn’t come here I would have missed out on working on my business. I spend so much time working in my business, and I don’t take enough time to stop and look back into my business and see what can I do better, and what things can make me better, make me more professional, and then hopefully sell more homes."
Results from a recent NAHB survey of single-family builders show that a majority of them (66 percent) are aware that unmanned aerial vehicles (i.e., drones) have been used on construction sites, and 22 percent have already used a drone in their own construction business at least once (including cases where they may have hired a third party to do so).
These results come from the monthly NAHB/Wells Fargo Housing Market Index survey, which often includes a set of “special” questions on a topic of current interest to the housing industry. The questions on drones were included in the April 2016 special questions.
The April 2016 survey also asked builders how likely they are to use drones in their construction business over the next 3 years. Twenty percent of home builders said “very likely” compared to 38 percent who said ... Read the article at NAHB's Eye on Housing blog
Last week was the next to last week of the session. The legislature worked fast and furious trying different revenue raising measures as they tried to close the $1.3 Billion shortfall.
They tried to raise the cigarette tax and failed. They attempted to remove some tax credits. A couple were sent back to the drawing board. Some passed.
The bad news/good news story dealt with the Energy Efficient Residential Construction tax credit. The bad news is the tax credit was one of those removed. The good news is that thanks to many of you who responded to our Call to Action, the bill was amended to July 1, 2016 instead of January 1, 2016 as originally introduced.
Watch the video below to hear a little more. This link will take you to the updated tracking list.
Wach this video and hear what Jim Schuff gained from attending the 2015 Oklahoma Builiding Summit.
"I just came from the Trade Show as a matter of fact and I was going around asking some of them so, it’s not just about me, I am concerned about how is this show working for them as well. So I was asking them hey, how was the show? And they said this is great, not too big where we lose focus on people or we feel rushed to go to the next person, but it is just big enough where we get to see a lot of different faces and get to visit with a lot of different people. I think this is the best format we’ve ever had. This is a great show."
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates that the number of custom home building starts (homes built on an owner’s land, with either the owner or a builder acting as the general contractor) posted a slight increase on a year-over year basis as of the first quarter of 2016. There were 31,000 total custom starts for the start of 2016, compared to 25,000 for the first quarter of 2015.
Over the course of the last four quarters, there were 164,000 total custom single-family home construction starts. Note that this definition of custom home building does not include homes intended for sale, so the analysis uses a narrow definition of the sector.
The Oklahoma State Home Builders Association is pleased to announce its designation of the exclusive publisher and advertising sales agent for the OSHBA Buyers’ Guide — Overland Park, Kan.-based Strategic Value Media, a leading nationwide provider of print and digital media solutions to national, state and local trade and membership associations. OSHBA is proud to provide its members with this exclusive, easily accessible, year-round, valuable resource that is expected to be first available this coming Summer.
“This comprehensive Guide offers access to a vast network of industry suppliers,” said Mike Means, Executive Vice President of OSHBA. “We’re pleased to offer such a needed resource, which will greatly assist industry professionals in making educated purchasing decisions throughout the year. As such, members may be contacted soon by Strategic Value Media regarding the different placement opportunities in our new online Guide.”
The Guide features updated and expanded company and product listings, in addition to other valuable information relating to the home building industry. The Guide provides users with an efficient way to browse for goods and services and offers home building suppliers and companies exceptional visibility by showcasing their products and services to a targeted, industry-specific buyer group.
The Guide will be accessible through the OSHBA website at www.okhba.org. We encourage you to take advantage of this exceptional opportunity to highlight your products and services. To learn more about advertising your products or services in the Guide, please email oshba-advertise@svmmedia.com.
We are down to the last two weeks of the Legislative session. By law the Legislature must adjourn no later than May 27. They are fast and furious at work on revenue measures and budget issues. (This is of course barring a special session!)
This week no video from me. Instead, please take a moment to watch a message from state president Kurt Dinnes.
There is a reason he talks about member engagement. Last week we sent an action alert. Thank you to the 456 who opened the email. A special thanks to the 85 who sent a message to their elected officials.
The Festival of Homes June 3-5 and 10-12 is the perfect opportunity for new home buyers to see and experience the quality of participating home builders along with the latest in home design and technology. As you walk through the different homes, you realize and experience these differences.
All Festival Homes will be open 1-7 p.m. during Festival dates.
The Builders Association of South Central Oklahoma (BASCO) along with the Moore Home Builders Association will feature two amazing Featured Show Homes this year. The Featured Homes highlight the best and latest trends in home building design, energy features and functionality.
One Featured Show Home will be in Highland Village, Norman. This home will be at 3208 Terrace Park Trail and is being built by Stonewall Homes, developed by Don Wells.
Another Featured Show Home will be constructed in St. James Park, Norman. You will find this home at 2506 Birmingham Drive. This home is being built by 1st Oklahoma Homes, developed by St. James, LLC.
Moore Home Builders Association is co-presenting the Festival of Homes with the Builders Association of South Central Oklahoma. You may view their feature home at 2008 NE 28th 25th Street in the Siena Ridge addition in Moore, built by Affinity Homes.
Proceeds from the sale of the BASCO Festival Show homes go toward funding the BASCO student chapter at the University of Oklahoma and scholarships to students at Mid-America Vo-Tech and Moore Norman Technology interested in careers in the construction industry. For more information, contact Dana Kelso, 405-360-4161 or email dana@basco-ok.com. View the homes in the Festival.
Steady job growth, affordable home prices, attractive mortgage interest rates and pent-up demand will help the housing market continue on a gradual upward trajectory in the year ahead, according to economists who participated in the recent NAHB Spring Construction Forecast Webinar.
However, supply-side headwinds led by a shortage of construction lots and labor, along with tight access to acquisition, construction and development (AD&C) loans, continue to hamper a more robust recovery.
“Builders remain cautiously optimistic about market conditions,” said NAHB Chief Economist Robert Dietz. “2016 should be the first year since the Great Recession in which the growth rate for single-family production exceeds that of multifamily. And we see single-family growth accelerating in 2017 as the supply chain mends and we can expand production.”
The states with the strongest housing market recoveries are also among the leaders in payroll employment gains since the end of the recession. The strongest housing recoveries to date are in Montana, North Dakota and Utah, all with robust energy sectors that helped push them near or beyond full recovery in housing production. The next tier of leaders includes Texas, Oklahoma, Louisiana and Alaska – again, all with prominent energy ... Read the entire article at the NAHB website
A new NAHB study shows that, on average, regulations imposed by government at all levels account for 24.3 percent of the final price of a new single-family home built for sale. Three-fifths of this — 14.6 percent of the final house price — is due to a higher price for a finished lot resulting from regulations imposed during the lot’s development. The other two-fifths — 9.7 percent of the house price — is the result of costs incurred by the builder after purchasing the finished lot.
Editor’s note: The following is a report presented to the OSHBA spring board meeting from the various homebuilders associations across the state; this one from David Ritchie with the Enid Home Builders Association
By David Ritchie Enid Home Builders Association
New homes are still going up, and the local economy continues to roll along well in Enid. Traffic has been good in open houses, and houses are selling.
Through an incentive provided by the Enid Home Builders Association, any member who attends the 2016 Oklahoma Building Summit & Expo will have their admission cost paid by the associaiton. And anyone who joins the association will have their membership dues covered for a year. The Enid HBA has 56 members.
Early today the Joint Committee on Appropriations and Budget (JCAB) started releasing bills on their way to developing a budget. However, the bills are a great cause of concern for many industries.
Let me take a moment to maybe clear some misunderstandings. I know many of you have read my emails regarding deadlines. Bills that come out of JCAB are exempt from those deadlines. Most of the time they are straightforward bills that authorize budget issues already resolved by the legislature. This year, with such a large shortfall, many of us have been watching them cautiously.
Today confirmed many of our fears. SB 1578 and SB 1580 affect our industry in drastic ways. SB 1578 is particularly concerning. SB 1578 deals with the energy efficient residential construction tax credit.
Quite simply the legislature is getting ready to repeal the credit. I had expected we might be on the chopping block and had offered some compromises. What happened was beyond my expectations. The Legislature is preparing to repeal the credit effective January 1, 2016! You read that right. They are wanting to retroactively repeal the credit.
This will affect many builders with many projects that are underway or under contract. This is bad faith by our legislators.
Please take a moment to send an email today or call your legislator on Monday or both! This is wrong and we must stand up for our industry.
Editor’s note: The following is a report presented to the OSHBA spring board meeting from the various homebuilders associations across the state; this one Steve Taylor,OSHBA Associates Council chairman
By Steve Taylor OSHBA Associates Council chairman
Residential building continues to be slow in Southwest Oklahoma, although building continues in the Elgin area because of its small-town feel and excellent schools.
In Lawton about four to five builders are building, but the out-of-town builders have moved out for the most part. Uncertainty around Ft. Sill and layoffs in the oil industry in the Duncan area with Haliburton, have caused people to take a wait-and-see attitude on building a new home. Commercial building in Lawton continues to be moderate with a new movie theater complex with businesses around it and several new restaurants in the area going in.
In the Altus Area, residential building continues at a moderate pace with about 3-4 builders doing 90% of the building. Due to the influence of Altus Air Force Base, two different subdivisions are going in under two builders with 140 homes each.
Southwest Oklahoma Homebuilders Association is undergoing changes in the coming weeks as we are ending our relationship with the Lawton/Ft. Sill Chamber of Commerce and moving our physical offices to the offices of Barnes, Welsh and Perry CPA. We have started a new newsletter to let the membership know the value of being a builder or associate member of the SWOKHBA.
Contemporary, zen-like bathroom retreats are very desirable for today’s new home buyers. These six simple design ideas will give your bathroom an ultimate spa-like sensation. Take a look!
1) No-Step Shower
A no-step shower is an easy install that creates an absolutely seamless sight line and addresses the importance of a smooth entry into the shower, especially for older buyers.
2) Innovative Storage
Having a place to store and hide essentials such as toothbrushes, razors and medicine, allows the bathroom to maintain a clean, minimalist feeling.
Editor’s note: The following is a report presented to the OSHBA spring board meeting from the various homebuilders associations across the state; this one from Rusty Appleton, Executive Director of the Central Oklahoma Home Builders Association
By Rusty Appleton Execuive Director COBA
It is a very busy time at COHBA. We just closed registration for our Spring Parade of Homes. This year’s Spring Festival will feature more than 135 homes, making it the largest Parade of Homes the association has ever had. The show will be held May 13-15, and 20-22. For the first time, we will require that the public to download a free ticket to tour the homes in our Parade. The goal is to create traffic, demographic, and sales data for the builders that haven’t been available before.
One of our goals for 2016 is to create an ambitious schedule of training events for builders and their salespeople. The goal of our education program is to not only provide our builders and their staffs with excellent education opportunities, but to bolster our branding efforts within the community by bringing other community stakeholders onto our campus. Our first event, with national speaker Jeff Shore, was a tremendous success with more than 200 people in attendance. Our next event, with another nationally renowned sales speaker, Myers Barnes, was April 19.
Our Spring Membership Drive will be May 2-6. Recruiters will earn triple spike points and cash rewards for each new member they bring in.
Planning for our newest event, the Street of Dreams presented by James Hardie Building Products and Harry’s TV and Appliances, is well under way. This single-site, luxury home tour will happen October 15-30. This show features seven COHBA member builders on one street at Black Oak at Iron Horse Ranch in north Edmond. Tickets will go on sale this summer, and sponsorship opportunities are available now. Contact Elisa Milbourn at elisa@cohba.org or (405) 843-1508 for more information on the Street of Dreams.
COHBA’s charity project, the House of Hope, is off to a great start this year. Last year’s home, built by COHBA member Phil Boevers, broke every record for the project: raising $100,000 for our foundation’s partner charities. Jason and Jim Schuff of Vesta Homes will build this year’s House of Hope, and they are excited to get this project underway. If you have any questions about the House of Hope project or would like to donate money or materials, please contact Rusty Appleton at rusty@cohba.org. Every person or company that donates $500 or more will be recognized in our 2016 Parade of Homes Fall Classic Publication.
Lastly, COHBA is actively engaged with the City of Oklahoma City regarding the passage of a new impact fee ordinance. The process of imposing impact fees on new development began in 2007, but fizzled out during the financial crisis of 2008. Two years ago, Oklahoma City staff reached out to stakeholders in the commercial and residential building industries for input on a draft ordinance. At that time, the ordinance included fees that were more than twice as high as those that are now proposed, included environmental regulations that went beyond what even the Corps of Engineers requires, and included other nonsensical requirements for pools, parks and common areas within newly developed neighborhoods.
Over the course of the subsequent two years, our government affairs team along with our attorney, Sean Rieger, has worked with the city to entirely remove bonding requirements for parks, wetland and other environmental restrictions, and slashed the overall fees for transportation and parks by over half of what the city originally wanted. There is still work to be done before we will support this ordinance as written. Right now, we are working with the city to remove language that would allow them to essentially ask for more money for road improvements regardless of the impact fee structure. Moreover, we have made it clear to the City Council and city staff that, if the overall amount of fees collected is significantly changed by another party's discussions with the city, we reserve the right to withhold the support we have tentatively given to the language as it is currently written. For more information on OKC impact fees, contact Rusty Appleton at rusty@cohba.org.
Feed a child a vegetable and she will be healthy for a day. Teach her to grow her own vegetables and she will be healthy for a lifetime.
Call it taking green to the extreme: Smart developers, entrepreneurs and non-profit groups are now installing community gardens in their developments and local neighborhoods, beautifying while enhancing social ties.
Gardens not only offer a chance for families and communities to engage in ... read the blog
Editor’s note: The following are reports presented to the OSHBA spring board meeting from the various homebuilders associations across the state; these are from Stillwater and Ardmore
Connie Stokes, Associates liaison representing Stillwater, reports that the HBA sold out all of the space at the recent Home & Garden Show. Building permits have risen a little, and a lot more building is going outside the city. Anything new will have three offers in one day because there is such demand for housing and very little inventory. In 13 years, Stokes has never seen this much demand. For example, recently a $150,000 existing home on 2.5 acres sold $5,000 above the asking price and had six bidders by the end of the first day on the market. Meetings are very well attended. Dues were adjusted this year to make “meal payment” part of the dues, which has increased the attendance. HBA meetings have been very well attended.
Ardmore: President of Southern Oklahoma Home Builders Association Brian Stedman reports the chapter is non-active, with 21 members. A few custom homes are being build but not much more is going on.
This week was another deadline week at the Capitol. The last one until sine die, which is when by the Constitution the Legislative session is done. It is the last Friday in May.
Until sine die, most bills go to conference where differences between the House and the Senate are negotiated. This is also called the silly season. You never know what will happen when a bill is in conference.
So I'm still keeping an eye on tax credits and any tax issues that may affect our industry.
Editor’s note: The following is a report presented to the OSHBA spring board meeting from the various homebuilders associations across the state; this one from Dana Kelso, executive officer with the Builders Association of South Central Oklahoma
By Dana Kelso BASCO Executive Officer
We are continuing to grow and develop our student chapter relationship with the University of Oklahoma, and recently awarded a $500 scholarship to a Student chapter member at our Associates Showcase.
Other news:
We will participate in the NAHB membership recruiting campaign with Triple spike month in May & October. Locally, we are in a membership drive and giving away a trip to Cabo to the member that recruits the most members between now and July 31st.
2016 Festival of Homes: June 3-5 & 10-12. We will have two Festival homes. Stonewall Homes and 1st Oklahoma Construction will each build a feature home for our Festival. We are co-presenting the Festival with Moore Home Builders.
We will offer the NAHB course Diversification: Capitalizing on New Business Opportunities May 17, 9 a.m.-3 p.m. at BASCO. Designation credits: GMB, continuing education credits: CPB, CAPS, CGA, CGP, CGR, CSP, CMP, GMB, GMR. All HBA members welcome. $225 includes lunch and course materials. Non-HBA members $275. To register email jami@basco-ok.com.
A new NAHB Economics research articleshows that the effective real estate tax rates vary substantially across and within counties, with the highest rate area displaying rates that are often several times higher than the lowest rate areas within the same county.
An effective property tax rate is the amount of property tax paid divided by the value of the home as reported by home owners, thus giving an apples-to-apples comparison of the true tax burden for homes in various locations.
Oklahoma property tax example:
As NAHB economist Natalia Siniavskaia explained in a recent Eye on Housing blog post, the report presents tables of effective property tax rates for more than 3,100 counties, mapped below, including the lowest and highest tract rates within each county.
At the low end of the national spectrum, there are 12 Louisiana parishes registering property tax rates that are effectively under $2 per $1,000 of value. At the high end, there are Orleans and Monroe Counties, New York and Camden County, New Jersey, with property tax rates averaging close to $29.
The regional location remains a strong factor in explaining ... read the NAHB Now blog
Editor’s note: The following is a report presented to the OSHBA spring board meeting from the various homebuilders associations across the state; this one from Mark Priess, Associate member from Tulsa
This year’s Greater Tulsa Home & Garden Show concluded with 500 exhibitor booths sold-out and more than 31,000 visitors (slightly down from 2015) attending the Show during its 4-day run on March 10-13. From first projections, the 2016 Show will be the most profitable in its history. It’s the first year in which $1 million in booth space was sold. What a money maker! Past chairs have already met and the Show’s Wrap-Up Party is scheduled on April 5.
Remodeled Tulsa Tour and Evening of Giving
The 2015 Remodeled Tulsa Tour featured 10 projects; eight single-family homes, one multi-family apartment building, and one commercial renovation, making it the largest number of projects featured on the Tour in many years.
A sold-out Evening of Giving fundraiser was held in the HBA’s Mike Fretz Event Center and featured a sit-down dinner that included silent and live auctions. Gross proceeds totaled $91,000 and net proceeds of $67,000 were presented to the Tour’s charitable beneficiary, the Lindsey House (a transitional living center for single mothers and their children). Replacement of every window in the Lindsey House’s 1920s apartment building (124 in total) resulted from the HBA’s 2014 and 2015 donations.
Honorable Mention: HBA Remodelers Council past presidents, Peter Grant and Ed Kaplan, were selected as NAHB Remodeler of the Month for May and November 2015, respectively.
Total Resource Campaign
Volunteers raised $427,000 in sponsorships/non-dues revenue through last year’s Total Resource Campaign. The 2015 TRC replaced the 2014 campaign as the 2nd highest fundraising effort in campaign history. The campaign funds the HBA’s 2016 programs, special events, and meetings.
New HBA Executive Officer
Following a national search the HBA Selection Committee recommended Jeffrey Smith as executive officer, succeeding Paul Kane. Hired in November 2015, the former CedarRock Homes owner resigned from the building industry to accept the position of HBA Executive Vice President/Chief Executive Officer. Jeff’s tenure as 2013 president and extensive service on numerous committees will serve him well in his career transition.
Military Appreciation Night
At the November 2015 General Membership Meeting, the HBA presented Military Appreciation Night honoring HBA members and their family members who are serving, or had served, in the United States Armed Forces. The guest of honor was John Kirkland, a WWI veteran, as well as the HBA’s oldest and longest-serving HBA member. Following Military Appreciation Night, John’s service in the Army Air Corps as a radio
operator and gunner was chronicled in a Tulsa World article in their WWII veteran series. Sadly, John passed away in March 2016, but with the knowledge and appreciation that Military Appreciation Night is slated as an annual HBA membership event.
Installation Galas
Installation of 2016 HBA President, Brandon L. Jackson of Tara Custom Homes, was held on December 4, 2015 at the Hyatt Hotel in downtown Tulsa. 2016 Senior Officers are Brandon L. Jackson, Peter Grant of Grant Homes Remodel & Restoration, and Ryan Farabough of Farabough Homes. Brandon was privileged to have been installed as HBA President by his former employer and past NAHB president, Joe Robson.
Efforts by Jeff Smith to promote HBA member participation in OSHBA was overwhelmingly positive given the large number of designated directors attending the installation banquet of OSHBA President, Kurt Dinnes, on January 9 at the Skirvin Hotel in Oklahoma City. HBA members were also there to support David Blackburn installation as Vice President/Secretary and Dave Sanders to the Associates Council Board of Directors leadership ladder.
Ryal School Christmas Party
Ryal School children returned to the HBA for the 2015 annual Ryal School Christmas Party. This year, every child had an HBA member chaperone to assist them while shopping at WalMart. At the HBA students and teachers were treated to a pizza party with entertainment provided by The Great Bradini and each student received a gift from Santa Claus.
Housing Starts
2015 year-end housing starts for the metropolitan Tulsa area were 2,789. February 2016 year-to-date starts total 455.
Membership
The HBA fell short of its 2015 new member goal of 200, but ended the year with 968 members and retention rates of 92.2% Builders, 85.1% Associates, 68.5% Affiliates. 2016 new member goal is 175 with total membership of 1,000.
Staff Update
Due to a staff resignation, Hali Mayfield was hired as HBA Director of Marketing and Public Relations. Hired in advance of the Home & Garden Show, Hali has demonstrated that she is a quick study and hard worker.
Bringing Housing Home
The NAHB Legislative Conference, Bringing Housing Home, was incorporated into the Show schedule since members and staff began working at the Show site on March 7. Congressmen Markwayne Mullin and Jim Bridenstine, along with Jed Cochran, Sen. Inhofe’s Field Representative, spoke at the dinner attended by Board members and Show volunteers.
Economic Forecast Seminar
On March 1, Dr. Robert Dietz, filled the vacancy left by the retirement of long-time NAHB Chief Economist, Dr. David Crowe. Rob was a featured guest at the annual Economic Forecast Seminar on March 25 at Forest Ridge.
Sales and Marketing Council
Reviving the HBA’s Sales and Marketing Council is being considered with input from former members and those with current interest. It is proposed that SMV be revived as an Associates Council committee before reestablishing as a full Council.
Memorial Dedication
A memorial plaque was dedicated in Bill Rhees’ honor on April 12 at the HBA Board meeting.
HBA Charitable Foundation
Planning is underway for Appetite for Construction, the annual fundraising event for the HBS Charitable Foundation. It is scheduled on April 28 at Metro Appliances and More.
HBA Golf Tournament
The annual tournament is scheduled on May 6 at Forest Ridge Golf Club.
Parade of Homes
Over 150 homes are entered in the 2016 Parade scheduled June 18-26.
Remodeled Tulsa Tour Name Change
The RTT has changed its name to the Home Remodeling Showcase, but will remain true to its remodeling roots featuring projects by HBA Remodelers Council members and hosting a fundraiser in the fall with a portion of the proceeds benefitting a designated charitable beneficiary.
President Kurt Dinnes shares about the OwnOK event, Homebuilders Day at the Capitol, and meetings with Governor Mary Fallin and Lt. Governor Todd Lamb. Watch it below:
Lance A. Windel, of Ardmore, relied on his experience as a commander of combat engineers in the U.S. Marines to attack the task of building homes in far-flung Oklahoma.
It helped. The three major obstacles — financing, logistics and post-construction issues — weren't insurmountable, he said, just challenging.
Deployed to Guymon to build 24 houses, with base camp 360 miles away at Ardmore, the Marines would find a way.
So he did.
Windel, who leads LW Development, presented “Tackling Rural Area Development” at the Oklahoma Housing Summit presented by the Oklahoma Housing Finance Agency at the Moore Norman Technology Center South Penn Campus. Read the article at The Oklahoman website
A busy week at the Capitol as the focus was on floor action in the opposite houses. Quite simply, now the House is considering Senate bills and the Senate is considering House bills. The next deadline is Thursday, April 21. After that, if a bill has isn't considered it is dead.
Our list keeps getting smaller. Click this link to see our list. It is down to less than 40 bills.
I do have a short video message that talks a little "politics." Watch the video below.
Editor’s Note: Connie Stokes is the OSHBA Associates Council liaison to NHAB. Here is her report of activities at the national level.
LAS VEGAS, NEV. -- We are working to make the Certified Graduate Associate (CGA) program stronger. Associate members who wish to set themselves apart in a very competitive industry will greatly benefit from this program. If I want my builder members and other associates to do business with ME (a member), I certainly want to be the best that I can be.
-- The Associate committee continues to work on a developing a scholarship program to help defray the costs of associates wanting to attend an NAHB National meeting. We want more of you to become involved on a national level. We need new voices in the Federation and this is our effort to make this happen! We hope to begin awards in the next two years.
-- Our annual dues to NAHB are $182. NAHB currently spends $303 per member.
-- The forecast for housing in 2016 is looking positive thanks to a firming economy, solid job growth, and rising consumer confidence and pent up demand.
-- Builders report their top concerns in 2016 include the cost and availability of developed lots and labor, federal environmental regulations and policies that make it more expensive and difficult to build homes as well as building materials prices.
A roof coated with reflective white paint will typically reflect 88% of the sun’s energy and reduce interior temperature by 2 degrees Celsius in spaces that are not air-conditioned, according to an Australian study.
That translates into an average reduction of 15% of a building’s energy use, the study found.
It’s one indication that reflective roof coatings are “an energy saver that hides in plain sight,” according to a recent article in Energy Manager Today.
While the coatings are primarily used on the flat roofs of commercial buildings, there may be residential applications in hotter climates as well. However, as the article points out, the coatings might not be ideal everywhere. Most asphalt shingle manufacturers do not recommend the coatings on their products.
Would switching to a lighter roof work for you? The federal Department of Energy’s Oak Ridge National Laboratory has developed a calculator that allows you to enter energy costs, heating degree days in your area and other factors to help you determine if a switch would be beneficial. The Cool Roof Rating Council is a great resource as well.
Governor Mary Fallin meets with OSHBA members and those from other organizations during the annual Capitol Day event.
Last week the Oklahoma State Home Builders Association held its annual Capitol Day. This year was a little different in two ways. First, it was in cooperation with the Oklahoma Realtors Association and the Oklahoma Mortgage Bankers Association. This really made it a Real Estate Day!
Later that afternoon the Board of Directors held their meeting at the Capitol. While attendance was slightly lower for the board, it did prove to be an interesting setting!
It was also different in that we had as our guest NAHB President and CEO Gerald Howard and NAHB Senior VP of Government Affairs Stephen Gallagher with us. They and the leadership of OSHBA met with both Lt. Governor Todd Lamb and Governor Mary Fallin to discuss workforce development issues.
This past week was also another deadline week. Bills from the opposite house had to make it through committee. The attached list is smaller than the last time you reviewed it!
This coming week is the week where those seeking public office will file as candidates. It is a time of much consternation for those in office - will they or will they not get an opponent. Once the dust settles, I expect the session to get very, very interesting. That's why tax credit reform, giving local governments more taxing power, and of course, cutting agency budgets are very much on the table for consideration.
No video this week as the office is dealing with a small server issue. Maybe next week? In the meantime, let me know if you have any questions.
Industry benchmarks on profit margins, asset levels, and equity positions are important because they allow businesses to compare their performance to their peers, and that can be extremely helpful in identifying areas for improvement and increasing efficiencies. This is the reason why NAHB periodically conducts a survey asking single-family builders nationwide to (confidentially) provide us their income statements and balance sheets. Complete results can be found in the recently released Cost of Doing Business Study: 2016 Edition, showing that profit margins continue to increase, but have yet to reach 2006-levels.
Builders reported an average of $16.2 million in revenue for fiscal year 2014, of which $13.2 million (or 81.1% of revenue) was spent on cost of sales (i.e. land costs, direct and indirect construction costs), thus leaving them with a gross profit margin of 18.9% ($3.1 million). Operating expenses… Read the entire article at the NAHB website
Vision supporters, including Mike Neal (left) of the Tulsa Regional Chamber and Tulsa City Councilors Anna America, Connie Dodson and G.T. Bynum, celebrate at a watch party Tuesday. MATT BARNARD/Tulsa World
Tulsa voters said “yes” to Vision in a big way Tuesday night.
All three local propositions passed by wide margins, as did a 0.05 percent county tax and sales tax proposals in Owasso, Collinsville, Jenks, Glenpool and Sapulpa.
“Elections are about choice, and the citizens of Tulsa have chosen progress,” said Jeff Dunn, chairman of the Tulsa Regional Chamber, which spearheaded the Vision campaign.
“The investments approved tonight will drive economic progress, moving Tulsa up the ranks among our peer set of cities,” Dunn said. “The confidence voters showed at the polls means we are a community that will not sit still while other cities pass us by.”
For Tulsans, Tuesday’s vote means permanent revenue streams to support more police and firefighters, maintain streets and improve public transportation. It also means a 15-year temporary tax to fund a $510 million economic development program that includes two low-water dams on the Arkansas River, a $65 million addition to Gilcrease Museum, a $55 million renovation of Cox Convention Center, $30 million for Expo Square improvements, $27.5 million for Tulsa International Airport and $25 million for the Tulsa Zoo.
Editor’s note: This letter was sent to Tulsa-area Home Builders Association members on Monday regarding an important vote today, April 5, regarding Vision Tulsa sales tax renewal plan.
HBA Members,
Tomorrow is an important day for the future economic development in the city of Tulsa and the metropolitan area. In recent weeks you have heard information regarding the Vision Vote and an extension of a city of Tulsa sales tax. I have attached information below, with links, so that you may educate yourself on this particular item as well as other items on the ballot tomorrow. Please take the time to review the information and most importantly, please take an opportunity to vote tomorrow April 5th.
The Vision Tulsa proposals have received the most publicity as it pertains to the April 5 vote, but several area cities — Glenpool, Jenks, Owasso, Sapulpa and Collinsville — also have separate sales-tax initiatives on their ballots tomorrow.
Vision Tulsa is a sales tax renewal plan (an extension of existing taxes) in Tulsa that is projected to produce about $884 million over 15 years. Those funds would pay for improvements to public safety, economic development and transportation. Put simply: A YES vote keeps taxes at the same rate; a NO vote means taxes would decline.
In addition to the Vision Tulsa votes on three propositions, there is a vote for all Tulsa County residents. That means Tulsans will see four sales-tax initiative propositions in the April 5 elections. The Tulsa World has published a 2-page cheat sheet that summaries the ballot proposals. Click here for the link to the ballot proposal summary.
The OK Building Summit is coming this September 21-22, 2016! We conducted several interviews and will be sharing those regularly. Subscribe to our channel on YouTube and stay current!
Findings from the latest NAHB study on housing preferences, Housing Preferences of the Boomer Generation: How They Compare to Other Home Buyers, shows there are some similarities and differences in what home buyers of different generations want in terms of square footage and number of bedrooms in a new home.
When asked how much finished space they would like to have, home buyers in general reported wanting a median of 2,020 square feet, about 9% more space than they currently have (1,859 sq. ft.). Age plays a key role in desired home size, however. Buyers in the Millennial and Gen X generations ... Read the entire article at the NAHB website
Industry benchmarks on profit margins, asset levels, and equity positions are important because they allow businesses to compare their performance to their peers, and that can be extremely helpful in identifying areas for improvement and increasing efficiencies.
This is the reason NAHB periodically conducts a survey asking single-family builders nationwide to (confidentially) provide us their income statements and balance sheets. See the complete results in the recently released Cost of Doing Business Study: 2016 Edition.
“The Cost of Doing Business Study contains a wealth of information about the residential construction industry and is a critical resource for builders,” said ... Read the entire article at the NAHB Now blog
According to data from the Census Bureau’s Survey of Construction (SOC), 58 percent of all homes started in 2014 were built within a community or home owner’s association. The Census Bureau defines a community or homeowner’s associations as “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory.”
When analyzed by the 9 census divisions, the highest share was in the Mountain Division (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming) where 76.5 of new homes were in such communities.
In the South Atlantic Division (Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia) 72.2 percent of new homes in 2014 had a community or home owner’s association, followed by the West South Central Division (Arkansas, Louisiana, Oklahoma, Texas) at 63.4 percent, and ... Read the entire article at the NAHB Eye on Housing blog
April 6 is a very important day for our industry. This is a day to set aside for activities you won't want to miss. First, I will give the breakdown and then some details.
That morning, beginning at 8:30 will be the joint industry event known as OwnOK. NAHB President and CEO Gerald Howard will be among the guest speakers. There is a cost and lunch is included.
At 2 we will meet at the Capitol for our annual Legislative Day at the Capitol.
At 4 we will stay at the Capitol for our Board of Directors meeting.
Then at 5:30 we will move across the street to the Oklahoma History Center for a joint industry Legislative Reception. There is no extra charge for this.
Where else can you see A.B. Stoddard and J.C. Watts on the same stage? You'll also want to hear about housing trends from Jerry and what regulatory issues are coming down the pike from Ari Karen. So register Today!
The event will be held at the Embassy Suites Downtown -- Medical Center as it is a bigger venue than last year and to provide easy access to the Capitol.
Our briefing at the Capitol and the Board Meeting will both be in Room 535.
Board materials will be coming shortly before the meeting, so keep an eye peeled.
Editor's note: This column is reprinted from the current edition of Oklahoma Builder magazine
By Kurt Dinnes NAHB State Representative
Looking forward for the remainder of 2016, there are signs conditions in the housing market should show continued improvement in the coming months and year, according to NAHB’s Chief Economist David Crowe. He projects about a 13.2% increase in single-family starts for 2016.
While the economic recovery has been uneven, it continues to add jobs, a key driver for the housing market recovery. And, interest rates are not projected to go higher than 4.5 in 2016 and post-bubble house prices have settled back to normal in most of the country, Crowe said. This means housing affordability is very high in many markets.
These factors coupled with five years of sub-normal household formation rates have created pent-up demand that will help reduce some of this excess housing inventory.
Oklahoma remains in the top 20 percent of the nation with respect to returning to more normal levels of housing production. However, it should be noted that if oil prices remain low in the oil-producing states, it will have an adverse effect on those state’s local economies which in turn can affect housing growth.
A savings of $5,700 per house due to advocacy
NAHB has seen many successes through its advocacy efforts, which have been quantified to a savings of approximately $5,700 per housing start (building permit) for a typical home builder in 2015. This alone is definitely worth the price of membership!
For more detailed information on how much you saved in 2015 can be found on the NAHB website under “Value of NAHB Membership.”
As we move deeper into 2016, the NAHB legislative and advocacy efforts on behalf of our industry continue. A couple, but not all, of the notable efforts are:
--Tax Bill signed by President contains victory for Housing
NAHB worked tirelessly to keep key tax provisions in the latest legislation. The Low Income Housing Tax Credit, Section 179 Expensing, Residential Energy Efficient Tax Credit were all preserved. Most importantly, rather than a year-to-year question mark, the dates have been set far enough out for review to provide certainty in your planning.
For example, the 30% credit on solar panels, wind turbines and geothermal heat pumps extends to 2020 before winding down for solar. There is more to it than this brief synopsis. Drop me a note if you would like more details.
-- Waters of the US (WOTUS)
Of course we have all watched the end of the year parlay on what would happen with WOTUS. Sadly, it looks like it will take action by the Supreme Court before any finality. The good news is at least the rule is stayed until then.
The House has voted to rescind the action under a Senate-passed Congressional Review Act resolution. President Obama, of course, has threatened a veto. This course is more circuitous but we can still hope. There was legislation to directly overturn the action by the House, but the Senate failed to secure the 60 votes needed. I am hopeful we will elect a new president who will curtail this burdensome overreach by government bureaucrats.
If you would like to see all of the current issues the NAHB is advocating on behalf of our industry, they may be read in their entirety in the “Quick Issues Report” that can be found on the NAHB website.
NAHB Programs and Policies
NAHB launched the new field representatives program last year to help strengthen the ties between the federation and its member associations. The three-year faze-in program was established to implement five new field representatives each year, for a total of 15 field representatives and two field representative support staff.
As you may remember, the first five field representatives started last year. This year another five were hired. Each is stationed in one of the NAHB’s five regions to serve as liaisons between NAHB and the HBAs. I had an opportunity to meet our newest field representative to also serve our region D -- Justin Reyes. I spent some time visiting with him and found Justin to be much like Charles Liuzzo our first field representative. He is enthusiastic, young and energetic. He will be serving our region out of Kansas City. We have already established a dialog with Justin, with respect to the leadership and potential opportunities of our local HBAs. Justin will be joining Charles, as together they will be serving our region. We will now have the opportunity to call on two highly energetic field representatives.
Also, starting this year, NAHB will conduct only two Board of Directors meetings, rather than the three as in previous years. This bylaw change was approved last year. The required meetings will take place at IBS and in a midyear meeting. The mid-year meeting this year will be in Miami, Fla.
In closing, I would like to take this opportunity to remind us all that our membership is not just with our Local HBA. Our membership includes our Oklahoma State Home Builders Association and our membership in the National Association of Home Builders.
I would like to personally thank you. By reading this very article, you are wisely taking advantage of the work done on your behalf and our industry. This is made possible because of your valued membership in both OSHBA and The NAHB.
As always, if I can be of any help as your NAHB State Representative please contact me, I would enjoy hearing from you.
Home builders remain confident but they face a labor shortage and that could impact home construction this Spring. So says David Crowe. The chief economist for the National Association of Home Builders joins John Wordock.
Join us for the 2016 Oklahoma Housing Summit, Oklahoma’s premier affordable housing event on April 14 at the Moore Norman Technology Center South Penn Campus Conference Center in Oklahoma City. See details and registration information here.
Read more about the Housing Summit in the news release below that was published on the Oklahoma Housing Finance Agency website:
OKLAHOMA CITY – The Oklahoma Housing Summit will take place April 14 in Oklahoma City. This one-day educational event held every three years offers the opportunity for those working in affordable housing to gather to learn about the latest happenings facing the industry. It is Oklahoma’s premier affordable housing event for 2016.
The Housing Summit will kick off with a breakfast keynote from Iraq veteran Noah Galloway who lost two limbs during combat. After a long road of rehabilitation and overcoming depression, he set a goal to get back in shape, live a healthier life, and inspire others. Galloway placed third on ABC’s Dancing with the Stars and will share his inspiring comeback story and message of “No Excuses.”
Following Galloway’s keynote, attendees will hear about Oklahoma’s Housing Needs Assessment, completed in 2015. This study, the first in the state since 2001, is a comprehensive look at the affordable housing needs in each county and includes information about disaster resiliency, fair housing and other key topics.
During lunch, Anne Mahlum, founder of the nonprofit, Back on My Feet, will share how the organization has transformed the lives of homeless individuals across the country through a running program. Back on My Feet’s mission is to use running to help those experiencing homelessness change the way they see themselves so they can make real change in their lives that results in employment and independent living.
The Housing Summit will offer a total of nine breakout sessions, featuring a mix of local and national speakers, from which attendees may choose.
WHEN: April 14, 2016
WHERE: Moore Norman Technology Center | South Penn Campus | Business Conference Center, 13301 S. Pennsylvania Ave.
Data from the Census Bureau’s Survey of Construction (SOC) shows a clear geographic pattern to the exterior amenities (patios and decks) included in new homes. In 2014, a majority (56 percent) of all new homes started had a patio. In contrast, only 23 percent had a deck. The Census Bureau’s SOC data is available by the nine census divisions. Patios are most common in new homes in the West South Central (79 percent of new homes started in 2014), followed by the Mountain (66 percent) and Pacific divisions (65 percent). Patios are least common in ... Read the entire blog at the NAHB website
Owning a business is rewarding for many people, but being in charge isn’t always fun – especially when you have to think about taxes. There are hundreds of rules and regulations the IRS and state tax commissions impose on business owners. These are some key things to be aware of:
Know your Forms and Deadline Dates
There are several forms you should be familiar with – W-2, W-4, 1120, 4868, 1099, 941, SS-4 – and those are just federal! These forms may look similar, but you need to ensure that you are using the correct documents. If you don’t make the appropriate distinctions, the IRS will probably show up in your mailbox.
Likewise, deadline dates with the IRS are not optional. The IRS has set firm final deadline dates for each form required to be filed. Each day a form or payment are late can cost a business owner hundreds of dollars in penalties and interest. We already pay enough in taxes, don’t needlessly pay more than you are required.
Withholding Tax
Be sure that the percentage of your employee’s paycheck that you withhold is going to the appropriate account. As the employer, YOU are responsible for that money, not the business. Not turning over payroll tax liabilities is criminal and closing up shop doesn’t make those penalties go away.
If the IRS finds that you have not been paying your business’ payroll taxes, they will come after YOU – the business owner. If that happens, your personally held assets are fair game to the IRS to collect on the back taxes owed.
Estimated Quarterly Tax
It feels like you just paid your quarterly estimated tax and here it is again! So don’t be late, get that 1040 ES form in the mailbox. Even if you pay everything that you owe, you’ll still be hit with penalties and fines if that amount isn’t on time.
For many business owners, making their quarterly estimated tax payments is required by the IRS, but even in cases where it is optional we highly recommend making the quarterly estimated tax payment because it prevents you from finding yourself at the end of the year with a large lump sum check to write!
Self-Employment
So what if you’re a one-person office? When you have employees you split the amount owed to Social Security and Medicare, but now you are solely responsible for that total. You’re in luck if you have a corporation, half of that expense can be written off.
Track all of your expenses
One easy way to do this is a planner. Jot down every time you have a business expense. Clip in receipts. Write down mileage. Make note of why it was a business expense. If a planner is too bulky or not your style, find something that works and will keep you accountable. You’ll be thankful you over-documented if the IRS decides to audit you. When an audit happens the IRS doesn’t need to prove they’re right, it’s your responsibility to prove they’re wrong.
Affordable Care Act
The rules for health care depend on the size and structure of your company. Be aware of what applies to you when reporting. We could say more about the Affordable Care Act, but it would take much more than this paragraph.
Plan for the long-term
Think about the next five years. If you’re planning to expand your business that will be more time spent on taxes. You should consider that you may want to hire an outside firm to take care of your payroll and accounting. Good financial planning and accounting can save you money in the long run. An accountant to provide you with your break-even point, so you know how much work each employee can take on, and how much additional revenue you need to generate to cover the cost of an additional employee. These costs to the business per employee go far beyond an employee’s salary. A good accountant and tax preparer will make sure that you are maximizing your opportunity to save on taxes while investing in your business.
Bottom Line
Stay up-to-date on your taxes. The IRS may not notice immediately if you fall behind, but that doesn’t mean you’re off the hook. It may take them a few months or several years, but the longer it takes the more you’ll owe. Be sure to get a good accountant and CPA, and do your research. You can also call 405-801-2146 and we would be happy to discuss how we can help you.
Have you registered for OwnOK? This event sold out last year, so register now and join REALTORS®, mortgage bankers, home builders, Employees Credit Union, Land/Title and other industry leaders at OwnOK on April 6.
Editor's note: Watch and listen to the March President’s Memo as OSHBA President Kurt Dinnes talks about the Bringing Housing Home initiative by the NAHB, the recent state leadership meeting and a new course for appraisers. Click here to watch the February President’s Memo.
Editor’s note: NAHB’s Housing Headlines featured this article from the Los Angeles Times.
For millions of young adults who make up the largest and best-educated generation in American history, coming of age in the wake of the Great Recession has been particularly painful. Read the article at the LA Times website
Editor's note: This column is reprinted from the current edition of Oklahoma Builder magazine
By Steve Taylor State Associates Chair
Welcome to 2016! I am excited to be starting my new role as the chairman of the Associates Council. I know we are going to have a great year!
I want to start out by saying thank you to Steve Sullivan for his leadership last year! We had our first two-day building summit under his leadership, and what a success it was. The trade show aspect added to the event and was well received by those who attended. This year we plan on doing the same with some minor adjustments. By now you should have heard about the event coming up later this year and are making plans to attend and even possibly be a vendor in the trade show if you are an associate member!
I wanted to use my first article to tell you about myself and the way I see our role in the Association.
I am a marketing consultant for CenterPoint Energy, the second-largest natural gas company in Oklahoma behind Oklahoma Natural Gas.
I serve as the first vice president of the Southwest Oklahoma Home Builders Association based out of Lawton and have been active in this great Association since 2012. I will be proudly serving as its president in 2017.
We have seen our ups and downs in southwest Oklahoma and, right now. residential building in our area is not good. Uncertainty with military cutbacks in the Lawton area has seen residential building permits drop to maybe one or two a month. That is not good for our industry or the economy in southwest Oklahoma.
I had an economist in college teach me that residential home building is the single most contributor to a local economy because of all the businesses and people it can touch as it contributes to the economy in employment and goods. I have come to believe that it’s important to be completely involved in it to the extent I am as a utility.
As an associate member, how can you help the local and state Association? First is be ACTIVE. The local Associations and the state Associations are here to take care of each other and they need our support as an active member. I look at all the trades that work closely with builders and wonder why more of them are not active?
Without the builder, many of us would not have jobs. We need to do everything we can to support them and support our local associations by helping gain new members. Will you join me? Here’s to a great 2016!
Editor's note: OSHBA President Kurt Dinnes has posted his first "President's Memo" in video form. Dinnes he discusses the many ways that OSHBA membership brings values to members, such as the Certified Professional Builder program and the State Rebate program, which he calls the "icing on the cake."
Looking for the latest “must have” design features to wow your move-up buyers? Experts offered the following tips during January’s International Builders’ Show in Las Vegas:
Kitchens that impress. “Kitchens will always be the center of the house. You can’t make an island too big,” said Dan Swift, president and CEO of BSB Design based in Des Moines. Double islands and drop-down islands that become a table are also popular options.
Laundry connections. Stackable washer and dryers in an upstairs bathroom where you can get light into the laundry space. “The laundry space is the ‘kitchen of the future,’” said Matt Sauls, vice president of marketing and development at Pardee Homes.
Editor's note: This column is reprinted from the current edition of Oklahoma Builder magazine
By Kurt Dinnes OSHBA President
I would like to personally thank all of you who had the opportunity to attend this year's Oklahoma State Home Builders Installation Banquet. This year's banquet set an attendance record, which is not surprising when two of Oklahoma's building industry icons -- Joe Robson and the late Mark Dale -- were inducted into the newly established Oklahoma State Home Builders Hall of Fame.
In addition, we had the honor of our Lieutenant Governor, Todd Lamb, as our keynote speaker who installed our state officers.
I would be remiss if I did not say once again what an honor it truly is that you, the members, have placed your confidence and trust in me to lead this great Oklahoma State Home Builders Association this year.
I would like to thank Phil Rhees for his dedication and service to the OSHBA last year and I very much look forward to his wisdom and advice as he continues to serve this year as our Past President. OSHBA has a rich history of serving our members and this industry, not only through its advocacy and legislative efforts, but also through its education, membership and local HBA support and services.
This year's leadership lineup is poised to continue this rich tradition. Remember, this Association exists to serve you, its members, so we want to hear from you. Please do not be bashful.
Please, never forget that your membership is not only your local HBA, but your Oklahoma State Home Builders Association and the National Association of Home Builders. Speaking of our Local HBAs across our state, I would like to welcome our new Local HBA Presidents. Our new Presidents are:
Pete Jackson - Builders Association of South Central Oklahoma (BASCO)
Steve Grogam - Bartlesville HBA
Kenyon Woods - Central Oklahoma Home Builders Association (COHBA)
Joe Claypole - Enid HBA
Brandon L. Jackson - HBA of Greater Tulsa
Brandon Waller - Moore HBA
Karen Ogle - Rogers County BA
Jake Clanin - Shawnee HBA
Brian Stedman - South Oklahoma BA
Dan Siebert - Stillwater HBA
Richard Hixon - Southwestern Oklahoma HBA
Congratulations to each of you! Thank you for volunteering your time and leadership to serving the home-building industry. By the way, I am asking our OSHBA team to put pictures of these folks up on our website so you know who they are.
I personally look forward to serving this great state association as its President this year. Together we can continue to make a positive difference in our industry and keep the American dream of home ownership alive in Oklahoma.
The economic and housing recovery continues at a slow, but steady pace. For the country as a whole, the NAHB/First American Leading Markets Index (LMI), released the last week of February, rose to .94 in the fourth quarter of 2015, .01 point higher than its level in the third quarter of 2015, .93, and .04 point higher than its level from one year ago, .90. The index uses single-family housing permits*, employment, and home prices to measure proximity to a normal economic and housing market. The index is calculated for both the entire country and for 337 local markets, metropolitan statistical areas (MSAs). A value of 1.0 means the market (or country) is back to the last level of normality.
Nationally, all three components of the LMI contributed to the 4-quarter growth in the nationwide score, .04 point to .94, but only house prices and permits contributed ... Read the entire article at the NAHB Eye on Housing blog
Oklahoma City home builder Jay Evans recently was awarded designations as a Graduate Master Builder and Master Certified Green Professional by the National Association of Home Builders.
Evans is one of only 36 Oklahoma City metro area home builders to hold both designations, and one of 100 across Oklahoma.
The founder and chief executive of Two Structures Homes, Jay has a passion for building high performance, energy efficient homes. He is a member of the Central Oklahoma Home Builder’s Association, and also holds designations as a Certified Professional Builder and Certified Green Builder and Certified Sales Professional.
According to the NAHB, this Master Certified Green Professional designation includes a series of hands-on curriculum requirements as well as significant experience in the field. Classes are conducted with the support and cooperation of Green Building Advisor, the leading green web publication in the field. The emphasis is on building science: a core competency in a field that changes almost daily as new products and techniques are introduced.
NAHB calls the Graduate Master Builder designation the ultimate symbol of the building professional. The designation requires builders to have a Certified Graduate Builder or Certified Graduate Remodeler designations or 10 years of building experience.
If a builder is interested in earning these designations, please contact Kathy Kastner at Oklahoma State Home Builders Association at kathyk@oshba.org.
It is always better to negotiate the sales price of your home from a position of offense, and one of the best strategies is often to hold firm on your asking price and say “no” to any counter offers.
This is among the tactics that Mar’Sue Haffner, a national sales trainer with the firm Sales Solve Everything LLC based in Plano, Texas, told builders during a Jan. 20 educational seminar at the International Builders’ Show in Las Vegas.
“A home is the biggest ticket item a customer will every buy and they believe they are supposed to negotiate,” Haffner said.
“Their first offer is a test,” she added. “Always flinch, even if they present a great deal” because you want the buyer to believe you would be making a major concession to consider or accept their counter offer.
Looking to boost sales? Tweaking one or more areas of your sales and marketing strategy could do the trick.
During the International Builders’ Show, Meredith Oliver, Master CSP, MIRM, and owner of Meredith Communications, in Raleigh, N.C., and Jared Weggeland, of Focus Homes in Lakeland, Fla., shared some helpful tips and takeaways on ways builders can improve their game plan to increase sales.
The turmoil in the stock market hasn’t hurt homeowners’ plans to spend on their properties this year, according to a new Angie’s List survey.
The survey found that among homeowners who’ve already set their spending budgets for 2016, nearly 79 percent plan to spend as much or more on home improvement projects compared to last year.
That’s good news for service providers, who are also optimistic about 2016. More than 90 percent of them said they expect homeowners to spend as much or more on projects as they did last year.
Most Oklahomans attending the International Builders' Show in Las Vegas binged on classes, presentations and aisle after aisle of booths, kiosks and displays, but a few strayed beyond the 500,000-square-foot show floor.
Not for the Vegas shows or casinos — and in this case what happened in Vegas, didn't stay in Vegas. They toured the 33rd annual New American Home, a "real-world laboratory" presented by the National Association of Home Builders.
The aim is to demonstrate design and construction techniques that can be reproduced in houses built any place and in any price range. Of course, the home itself is always as up the scale as can be, a real showstopper.
This year's New American Home, in suburban Henderson's MacDonald
Highlands addition, has three stories and 5,285 square feet — but when opened to include covered patios and the courtyard, the living space amounts to more than 8,000 square feet.
The Desert Contemporary-style home has five bedrooms, four baths, an office area, main living room, kitchen, pantry-prep room, dining room, laundry room, media room and the indoor-outdoor covered patio areas. The lead contractor was Element Design-Build Co. of Henderson.
The home was built "to showcase contemporary design and the latest technology in the home building industry," according to the National Association of Home Builders. "The home incorporates green and sustainable building materials, products, energy-efficient techniques, and construction methods in order to reduce its impact on the environment and provide the highest levels of comfort and quality for the occupants."
For detailed information about the New American Home, go to www.tnah.com.
Some Oklahoma builders regarded this year's showcase home as too similar to previous ones in Vegas, and skipped it. Others took the time, a half day at least, for a shuttle ride to the suburbs and back to check out the home.
Amy Reeves (right photo), who with her husband, Dan Reeves, is a founding partner of Landmark Fine Homes in Norman, carved time out of a wall-to-wall convention schedule to tour the New American Home.
Bringing back ideas
“I'm bringing back ideas,” she said, noting especially the “prominent use of water and fire features” that characterized the show home's plentiful outdoor living spaces.
Reeves' designer's eye was attracted to the modern lines throughout the house, and by the subdued color scheme, “emphasizing gray tones and muted colors.”
Chrome or nickel hardware finishes stood out, as did a wire-rope banister rail “that I'd love to use in one of our designs,” she said.
Solar panels
The home is able to achieve “net-zero energy” — meaning the total amount of energy used by the building will be roughly equal to the amount of renewable energy created on site.
The home uses solar panels, which should save an estimated $5,100 in annual energy costs compared to a typical home. It also has natural gas and electric car-charging stations in the garage.
“The ... mission is to show that housing performance (with regard to energy efficiency) can be incorporated into the most simple or most complex homes, and that it's equally as important as aesthetics,” according to the builders association.
Lightingcopied
Mike Gilles (left photo), owner of Savannah Builders in Edmond, said he toured the New American Home and took away “lots that I can use in Oklahoma houses.”
“The lighting scheme,” he said — especially an unusual concept for indirect lighting — will make its way into custom-build projects Savannah has currently under way.
Gilles and Reeves both noted the distinctive stairway.
Although Gilles, like other local builders, lamented the limited number of days per year that Oklahomans can actually live outdoors, he said he was a fan of the show house's attractive outdoor kitchen and expansive outdoor living spaces.
NAHB’s recently published Housing Preferences of the Boomer Generation shows that homebuyers in the Baby Boom Generation want a suburban neighborhood consisting of all single-family detached homes more often than any other community feature (of the 19 listed), and nearly 80 percent prefer a cul de sac over efficient traffic flow when given the choice.
These results are based on a survey conducted by NAHB in September 2015 that collected data from 4,326 recent and prospective homebuyers, stratified and weighted to be representative of the age, geography, income, and race and ethnicity of homeowners in the U.S.... Read the entire blog at the NAHB website
The count of unfilled jobs in the overall construction sector increased significantly in December, even as hiring in the home building sector has grown.
According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs (on a seasonally adjusted basis) increased to 207,000 in December from 138,000 in November. The December estimate solidly beats the previous cycle high of 168,000 open positions set during March and represents the highest count of job openings since early 2007.
On a three-month moving average basis, the open position rate (job openings as a percent of total employment) for the construction sector increased to 2.3% for December. The overall trend for open construction jobs has been an increasing since the end of the Great Recession. This is consistent with ... Read the entire blog at the NAHB website.
Topping the list of problems builders faced in 2015 and expect to face in 2016 is the Cost/Availability of Labor, an issue for 76% of builders who expect it to increase in 2016 and which has increased in importance the past three years. In 2013, 53% of builders rated labor as a significant problem, followed by 61% in 2014 and 71% in 2015. An expected skilled labor shortage can constrain an improving housing market.
The monthly NAHB/Wells Fargo Housing Market Index often includes a set of “special” questions on a topic of current interest to the housing industry. In January 2016, the special questions asked builders about the problems they faced in 2015 and expect to face in 2016.
Dan Reeves, right, owner of Landmark Fine Homes and vice president-treasurer of the OSHBA, and employee Jason Underhill look at new products on display at the International Builders' Show in Las Vegas.
Luckily for Oklahomans who attend the International Builders' Show — the mega-meetup for homebuilders, contractors, remodelers and suppliers presented by the National Association of Home Builders — it's often held in balmy Las Vegas.
The annual pilgrimage to the desert from what usually is the coldest, most brittle week of the year in central Oklahoma attracts several hundred people who work to design, construct, outfit and market efficient, stylish and well-built new houses.
This year's event, which took place Jan. 19-21 at the Las Vegas Convention Center, saw attendance numbers that eclipsed last year's total of more than 55,000, said Mike Means, executive vice president of the Oklahoma State Home Builders Association.
For Means and builders like Mike Gilles, founder of Savannah Builders, the annual convention is first and foremost an educational opportunity.
“I look for those simple, good ideas that save money and make for better houses” when applied to projects back home, Gilles said.
The 2016 show featured more than 120 hands-on, educational sessions taught by building industry experts from across the country. Topics ranged from sales and marketing to construction and codes.
Breakout sessions
Don Fryer of Tranquility Custom Homes took advantage of breakout sessions to brush up on building techniques that he can apply to houses such as those his company currently has under construction in the South Fork addition and at Northwood
Villas.
“Oklahoma gets so hot and so cold and so windy,” Fryer said. “We try to build with tighter and tighter envelopes while ensuring the best air quality inside the home. Except for a week here and a week there, we don't open our windows much.”
Convention-goers went in-depth with courses that counted toward industry designations, or got “hands-on” with demonstrations and educational presentations on the show floor.
Kenyon Woods, who owns Authentic Custom Homes with his wife, Brandi Woods, attended the show, representing the Central Oklahoma Home Builders Association as its president.
Software products
Woods said he was the most impressed by new software products, including programs to improve customer service and streamline project management.
Like most builders, Woods said he's always looking for new products that increase efficiency or reduce costs to his clients. This trip acquainted him with a new model of garage door “that I'll definitely be using” — probably on a home he's building for the “Street of Dreams” exhibit later this year.
Woods noted that exhibits from the Las Vegas area and other less-volatile climates featured more outdoor living spaces than practicality allows for most Oklahoma homes.
On the convention floor, the International Builders' Show featured more than 500,000 square feet of exhibits, showcasing more than 1,400 manufacturers and suppliers.
“It's everything you can imagine, products from the past to the future,” Fryer said.
Out on the floor, Gilles was drawn to indirect lighting schemes that he'll be eager to implement, especially in a modern custom home he's building near NW 7 and Dewey Avenue in the Cottage District.
Cabinetry innovations
Cabinetry innovations also caught Gilles' eye. Not the heavy woodwork Oklahomans are accustomed to, he said, but “plastic laminates that give a really clean look, like you'd see in hospitals or commercial designs.”
Means said that although most of his convention time was spent in industry advocacy meetings, he did spend “an hour or so” perusing trends and innovations in the wilderness of exhibits.
The most noteworthy new “must have” feature? “Definitely a solid-copper, free-standing soaking tub,” Means said.
Dan Reeves, owner of Landmark Fine Homes, said he has attended IBS every year since 2000, following industry economics and patterns that could affect the Oklahoma housing market.
As he and his wife, Amy, who directs design and decoration for Landmark, toured exhibits and took in classes, he made notes about what's trending nationwide and how his local business fits with those broad trends.
Although Oklahomans' new house wish lists line up with what other Americans are looking for from their builders, there were some new ideas on the horizon that Reeves noted.
“Screened-in porches,” Reeves said, are in demand, especially in custom builds for adults 55 and older.
That one wasn't as much of a stunner as another feature in growing demand across the country.
“Pet baths,” Reeves said, are (ahem) making a splash.
Dinnes speaks highly of the influence of his family, including his mother, far left.
As new OSHBA president, Kurt Dinnes decided to “borrow a page out of a book from a friend of mine…. and not stand up here and talk about all the great things we are going to accomplish this year. Quite frankly, that’s expected.”
Rather, he wanted to share a little about himself, and we feel that’s much more compelling as to what brought him to the OSHBA leadership.
Dinnes spoke of his roots. We thought you would enjoy getting an inside look at your new leader, and what shaped him. Here are excerpts from his speech.
“My story: As a young boy, I remember walking by new homes, and I was fascinated. I dreamed of becoming a custom homebuilder.
“I was raised by a loving family that believed in a strong work ethic and that the only thing that was free was advice, and there was plenty of that!
“Some early advice: When I asked about getting a car at 16, the answer was simple -- "get a job!" So, I turned to a restaurant I loved to eat at during lunch at school – the Taco Inn, where you could get four bean burritos for 99 cents. I applied, got hired on the spot and worked my way up to night manager, working until 2 or 3 or 4 in the morning.
“Yes, I saved and bought my own car. It was a ‘68 Mustang Fastback. I was so proud of it.
“Nearing graduation, I got a job offer to become a part of the founding management team to open the first Taco Mayo in Oklahoma. I was paid $800 per month as an assistant manager in 1978, which brought me to Norman, Oklahoma. My parents were shocked, and yes there were tears shed. They weren’t happy about the decision. But supported me non-the-less.
“The day after graduation I loaded my ‘68 Mustang with everything I owned.
“I had a hard time of it. I was 18 and leading people much older. I learned not everybody will work as hard as I will. A business mentor recommended a book. I read that book and it literally changed my life: Zig Ziglar’s “See You At the TOP!” The over riding principle was no person, no condition, no lack of entitlement is responsible or can keep you from a successful future; that responsibility is squarely up to you and the person you look at in the mirror. I learned to invest heavily in yourself, and to set goals big enough to include God.
“After about one-and-a-half years, I was asked by Taco Mayo to be a part and help build a franchising component. The new company was Taco Mayo Franchise Systems Inc. I was offered 12 percent of the company, and it cost me $1,200. It was 1980. I worked my way up from supervision to franchise licensing manager and eventually to president of the company. Over the years, we opened more than 140 restaurants in seven states.
“In 1999, I and other senior management bought out the original founder.
“My building career began in the early ‘80s designing and building Taco Mayos. In 2000, I decided if I was ever going to be a custom home builder now is the time. I jumped out and tried to buy lots, but developers did not want to sell to me.
“Eventually, I was able to get a lot and build that first home. It was a year after the tornado and I built it in Del City. My first custom home was for the Lee family.
“As a new builder I wanted to further add credibility to our custom building business, I learned about the Certified Professional Builder designation and worked to earn that.
“Today, Sun Custom Homes in Oklahoma City has six employees and builds 18-24 custom homes annually.
“I joined the local HBA and became South West Home Builders Association president, thanks to encouragement by Jim Schuff.
“A year later, Schuff calls me again and said Mark Dale wanted to have lunch with me. This time, he asked me to serve on the leadership ladder of COHBA, which led to me becoming president. Then I got a call from Jeff Click, on behalf of OSHBA, who asked me to serve on leadership ladder of OSHBA, which brought me here to stand before you tonight.
“Today, because of my involvement with Home Builders Associations and with the help of our Sun Team, I am blessed and able to continue to operate a successful small custom home building company.
“Since I was a young boy, this has been my dream!
“For this and many other reasons, as an Association, we must continue to work diligently to preserve this right, to ensure that future generations are able to do the same. So, together we can continue to make the dream, of home ownership, a reality for all.”
Oklahoma was well representated at the recent 2016 International Builders Show in Las Vegas. In the photo above, OSHBA president Kurt Dinnes learns about a construction accounting program (other captions at bottom of gallery).
Other captions for photo gallery:
OSHBA’s executive vice president Mike Means inspects a copper soaking tub (top row, right photo)
Amy and Dan Reeves (in back) watch a display at IBS (top row, left photo)
Home builder Don Fryer in the lighting area at IBS (second row, left photo)
Dan Reeves (right in photo) at IBS with Jason Underhill (second row, right photo)
Kelsey Rusnack, an employee with Two Structures Homes, takes to the ‘IBS drill.’” (third row, left photo)
Home builder Jay Evans, right, at the controls for a tub (third row, right photo).
COHBA president Kenyon Woods with one of the larger displays (bottom photo)
Jack Werner (right and standing in inset photo below) teaches the Certified Aging in Place Specialist class for OSHBA members.
The popular Certified Aging in Place Specialist (CAPS) class that Jack Werner teaches to Oklahoma home builders leads to more than wider hallways and gripping bars. The class teaches perspective and empathy for the aging and the disabled, Werner said.
“Builders know all the functional aspects – how do I build a grab bar that is safe and attractive – but it’s communicating graciously with people and talking in their interests and lingo,” Werner said. “It’s communications. It’s marketing. It’s construction. It’s where to get all the information about how to build it beautifully and safely.”
Now in his fifth year of teaching the three-day CAPS class, Werner brought it to a group of OSHBA members in January. Class members gained first-hand perspective of what it takes for the disabled to maneuver around a home.
For instance, during the course, they roll from room to room in a wheelchair, wear dark sunglasses smeared with petroleum jelly to mimic macular degeneration and try to open doors while their hands grip a tennis ball and are covered with a sock.
“That’s one of the more fascinating, fun things about the course,” Werner said. “And, I think everybody would agree, it’s a lot more difficult than they anticipated.”
Werner owns and operates AtoZ Inspections in Oklahoma City, which provides residential and commercial building inspection services.
Retired from a 27-year career with John Hancock Financial Services before entering the inspection business, Werner got involved in the CAPS course after remodeling his own home to accommodate the needs of his wife after she endured a pair of hip replacement surgeries.
The CAPS course can have a life-changing impact for wounded military veterans, aging Oklahomans or others who have been disabled. Werner cites the example of two of his former CAPS class students who donated their time to retrofit the home a child who was left a quadriplegic after being wounded in an accidental shooting.
“That’s one of the best demonstrations of the impact of the CAPS course,” Werner said. “It’s the most exciting, most functional, most important course. You can put it to use immediately and it serves everyone.”
In 2015, coastal tech hubs like San Francisco and Seattle were front and center for housing as millionaires with startup money sought shelter.
"But this year, the markets that shine brightest will be those that manage to strike a good balance between strong income growth, low unemployment and solid home value appreciation," said Zillow Chief economist Dr. Svenja Gudell.
Zillow analysts based their 2016 ranking on three variables: home value appreciation, unemployment rates, and income growth. Moreso than just price appreciation, the combination of these three... Read the entire post at Business Insider
Mike Means addresses a crowd of approximatley 300 at a Town Hall meeting on earthquakes held at the University of Central Oklahoma; inset below: Means and Curtis McCarty with Town Hall host Rep. Lewis Moore.
A pair of representatives from OSHBA recently were asked to address a topic that was once rarely considered by Oklahoma home builders: earthquakes.
Mike Means, OSHBA executive vice president, and Curtis McCarty with C.A. McCarty Construction, LLC., were among the speakers asked by State Rep. Lewis Moore, R-Arcadia, to address a Town Hall meeting at the University of Central Oklahoma.
The Jan. 14 meeting was called by Moore to discuss the increasing frequency of earthquakes in the area. About 300 people attended the event.
Means and McCarty were asked to address Oklahoma building codes and how they related to earthquakes.
McCarty is one of 12 members of the Oklahoma Uniform Building Code Commission (OUBCC), which is charged with reviewing and updating the Oklahoma building code every six years.
Means was the first person asked to speak after an opening presentation by Rep. Moore. Mike briefly discussed implementation of the statewide building code in 2008 and the process to update the code.
“Up until this year we had no idea we were going to be worried about earthquakes when we finally adopted a statewide building code,” Means said. “One of the things we were concerned about was making sure that new buildings could withstand the wind, because we have so many tornadoes in Oklahoma.”
Before McCarty could speak, the focus of the Town Hall shifted as vocal audience members unleashed pent-up frustrations over the earthquakes and possible causes.
Lines formed at either of two microphones on either side of the room, and audience members emotionally described their earthquake experiences and fears. Many demanded action be taken against saltwater disposal wells that are identified by some as the source of the sudden increase in the number of Oklahoma earthquakes.
Like others in the audience, Means said he was searching for answers, as well, because his home has also been shaken by recent earthquakes.
“I’m also here on a fact-finding mission about what people are experiencing,” he said.
When it comes to investing in the stock market, you may lose your shirt, but you probably won’t lose your home. In fact, when the equity market gets rough, real estate tends to be a life raft for investors seeking safety.
“Real estate is Americans’ preferred investment for money that they won’t need for at least 10 years and that hasn’t changed,” said Greg McBride, chief financial analyst with New York-based Bankrate.com. “Nervous investors always look to real estate rather than shy away from it in times of volatility.”
While stocks around the globe are off to a rough start in 2016, it doesn’t necessarily mean déjà vu all over again, at least ... Read the entire post at MarketWatch.com
From left, Associates Council vice chairman Chris Evans, treasurer Vandessa Shadix, chairman Steve Taylor and outgoing chairman Steve Sullivan.
Lawton’s Steve Taylor with CenterPoint Energy was selected as 2016 chairman of the State Associates Council at the Oklahoma State Home Builders Association’s annual installation banquet at the Skirvin Hilton Hotel in Oklahoma City with approximately 160 in attendance.
Taylor will lead the Associate’s Council along with a slate of offers that include Chris Evans, vice chairman of ProBuild, Oklahoma City; Dave Sanders, secretary (inset photo, right), of Sanders Engineering, Tulsa; and Vanessa Shadix, treasurer, Old Republic Title, Oklahoma City.
Sanders is new to the leadership ladder.
Steve Sullivan, coordinator of Builder & Developer Programs at OG&E in Oklahoma City, was selected as the “Associate of the Year.” Sullivan has been involved in numerous roles, not only with the state association as State Associates Chair for the past year, but also with the Central Oklahoma Home Builders Association, Shawnee and Enid home builder organizations.
He is the first multi-winner of the Associates honor, and the selection is made by his peers.
Joe Robson (third from left) and family gather at the OSHBA Installation Banquet and Oklahoma Housing Hall of Fame induction. Robson at the podium (inset below).
What makes an inaugural Oklahoma Housing hall of famer? That question was answered in a powerful video produced in conjunction with the induction of Joe Robson into the first class of the Oklahoma Housing Hall of Fame. You will want to watch this 3-minute, 20-second video about Joe and listen to the tributes from his industry friends and colleagues. Thanks to everyone who contributed their time and thoughts to the video. Watch the video here, and read some of the comments below:
“He just doesn’t quit. He just has that dogged determination that comes from being raised on a ranch and punched cows when he was growing up and he still lives those core values.”
-- Ken Klein
“What sets Joe apart is his ethics. He has a very strong and high way to do business and way to treat people.”
-- Doug Shrout
“I have always been struck that he is a man of faith, but he is also a man of family, and a man that sees something that needs to be done and does it.”
-- Sharon King-Davis
“He is willing to not only put his time and his talent but also his treasure. To me the three T’s are the most important that we have as people. And Joe is willing to invest all of those behind the people that he believes in and the causes he believes. “
-- Ken Klein
The family of Mark Dale gathers for a portrait at the OSHBA Installation Banquet and Oklahoma Housing Hall of Fame induction. Mark Dale (inset photo below)
The late Mark Dale touched the lives of his, family, colleagues and customers as a long time Oklahoma home builder. Along with Joe Robson, Mark was one of the first two inductees into the inaugural class of the Oklahoma Housing Hall of fame. The heartfelt, emotional tributes in this 3-minute, 41-second video tell a powerful story about who Mark Dale was and the impact he had. Thanks to all who gave their time and thought to this video. Watch it here, then read some of the tributes:
“When I think of Mark Dale I think of integrity, and also professionalism. There are not any other words that I can think of that describe Mark.”
-- Mike Means
“He would treat everybody with respect at all times and would never talk down to them and I think Mark did that better than anybody I ever met.”
-- Mike Gilles
“He had a standard and he did not waiver from that standard in how he put houses together. And he did it with a lot of class and a lot of flair.”
-- BK Turner
“Mark never sought involvement, Mark never sought the spotlight, but in so many instances inevitably whenever there was a situation that needed some really solid analysis, Mark’s name came up.”
-- Jeff Click
“I mean he answered a call to serve in a dark time. He helped hold back the darkness, not to overstate it too awful much, but he did. He was a public face for this business when it could have been a real downer and he kept it from being a real huge downer.”
-- Richard Mize
“There is not a week that goes by that I am not reminded of him, his influence over this industry, his influence over me.”
-- Jeff Click
Phil Rhees presents Oklahoma Housing Hall of Fame award to Lark Dale on behalf of her late husband, Mark Dale (inset photo below)
The Oklahoma State Home Builders Association honored the late Mark Dale of Edmond as one of the two initial “Hall of Fame” inductees into the Oklahoma Housing Hall of Fame.
Dale, OSHBA president in 2003 and a two-time president of the Central Oklahoma Home Builders Association, was inducted Saturday along with Tulsa builder Joe Robson at the organization’s annual installation banquet at the Skirvin Hilton, where approximately 160 were in attendance.
Robson and Dale were honored for their roles in helping grow the association into a consumer-advocacy organization, which has earned a listening ear by legislators.
Dale served as president of the Central Oklahoma Home Builders Association in 1990 when the state was coming out of a housing slump, and again in 2010 when builders were emerging from a recession two years before.
Honored posthumously, Dale was instrumental in furthering OSHBA efforts at the Capitol, which led to many initiatives benefiting consumer and builder. Among them were the state Certified Professional Builder program, which is an educational initiative designed to increase professionalism in the industry and set the best builders apart from their competitors.
He was the state’s “Builder of the Year” in 2004 and COHBA “Builder of the Year” in 1990 and 2010. He was a second-generation home builder and owner of Oklahoma City-based Carriage Homes. Also, he was appointed to the Oklahoma Board of Licensed Architects, Landscape Architects and Registered Interior Designers by Gov. Fallin.
“He was a two -time president for the Central Oklahoma Home Builders. He was the president of the Home Builder’s Association, he was a Life Director of the National Association, he was Chairman of the Legislation, but Mark put all of that behind himself and instead continued to push the association and to push the housing industry,” said Mike Means of Dale.
Robson is past chairman of the National Association of Home Builders, only the second Oklahoman to do so – the first in 1951. Serving in 2009, Robson worked with federal lawmakers to stabilize the mortgage market by shoring up Fannie Mae and Freddie Mac, the quasi-federal agencies that back up the mortgage securities industry.
Lt. Gov. Todd Lamb addresses audience at OSHBA Installation Banquet.
By Carol Hartzog
Lt. Gov. Todd Lamb opened the annual gathering of the state’s home builders Saturday night. Some may think it’s always good to have a legislative friend at your gatherings.
But this particular person has been a friend of the industry in a very big way.
In the introduction, OSHBA executive vice president Mike Means told a story. Mike was new to the OSHBA job, and Lamb was new to the state Capitol. They were friends having served in similar roles previously for Don Nickles, former US Senator.
In 2004, Lamb was elected to the state Senate, and Mike asked him to carry an important OSHBA piece, ‘Right to Remedy’ legislation. Right to Remedy, also known as Notice of Opportunity to Repair, allows a builder an opportunity to repair an alleged construction defect before it ends up in a lawsuit.
It took more than three years to finally accomplish this task at the Legislature, but it started with Lamb. Little did he know he was walking into a land mine by carrying the piece, as at that time the Senate was opposed to items considered tort reform.
He has been consistently recognized as a leader. He is former chairman of the National Lt. Governors Association. Additionally, he is past chairman of the Republican Lt. Governors Association and has been vice chair of the Aerospace States Association and remains on the board.
Lt. Gov. Lamb told home builders of the excitement he senses for this coming year.
Last year, he visited all 77 counties in 77 days, meeting with small business men and women, in open town hall meetings and one-on-one.
He considers his role as a small business advocate critical. He asked each county representatives: “Based on your life experiences and business model, what is the greatest impediment to growth, and what is your advice to address that impediment?” He’s got the facts, and now he’ll put that information to use. We have the right man on our side.
He told the group the state’s budget will be close to a billion dollars short.
“It’s a challenge but a huge opportunity with term-limited speaker and pro-tem. It’s a great opportunity to make very tough decisions that have needed to be made for a decade or more. Our best days are just ahead of us.”
“My agenda? I just want Oklahoma to beat Texas in something other than football. … I don’t want to take a back seat to the state south of us in anything -- veterans issues, workers comp, entrepreneurship, etc., and here’s why.
“I will admit it is selfish. This room is full of great entrepreneurs and visionaries. Here’s how it’s selfish. Monica and I have a 15-year-old son and 12-year-old girl. The last thing we want as parents is to buy a plane ticket to visit them because they are living somewhere else and, if they are living in Texas, I am going to need Rolaids.”
He said: When government casts a vision and gets out of the way and lets entrepreneurs like you to thrive and prosper, that’s when we grow.
Tulsa area home builders pulled in the honors Jan. 9 when Broken Arrow Mayor Craig Thurmond, left, was selected as the state’s ‘Builder of the Year,’ David Blackburn, inset photo below, of Tulsa joined the state leadership ladder, and Joe Robson, right, of Broken Arrow was inducted into the housing industry’s inaugural Hall of Fame.
The Oklahoma State Home Builders Association honored long-time Tulsa builder Joe Robson as one of the two first “Hall of Fame” inductees into the Oklahoma Housing Hall of Fame.
Robson, past chairman of the National Association of Home Builders, was inducted Saturday along with the late Mark Dale of Oklahoma City at the organization’s annual installation banquet at the Skirvin Hilton Hotel in Oklahoma, where approximately 160 were in attendance.
Also at the banquet, the home builders association also selected Craig Thurmond of Broken Arrow as the state’s “Builder of the Year.”
Robson and Dale were honored for their roles in helping grow the association into a consumer-advocacy organization, which has earned a listening ear by legislators.
Robson is only the second Oklahoman to serve as chairman of the national home builders organization – the first in 1951. Serving in 2009, Robson worked with federal lawmakers to stabilize the mortgage market by shoring up Fannie Mae and Freddie Mac, the quasi-federal agencies that back up the mortgage securities industry.
Robson was the state’s “Builder of the Year” in 1994, and served on the board of directors of OSHBA and was president the previous year. He was also president of the Home Builders Association of Greater Tulsa two years, and has been a Tulsa “Home Builder of the Year.”
In addition, he has served as director the Federal Home Loan Bank of Topeka; and was a member of the Oklahoma Judicial Nominating Committee. He is founder and president of his own building company in Broken Arrow, which developed the first master planned community in eastern Oklahoma.
As Builder of the Year honoree, Thurmond is a member of the Home Builders Association of Greater Tulsa and serves as mayor of Broken Arrow. He has served on the Tulsa group’s board of directors since 1996 and has been recognized as “Builder of the Month” 11 times.
A member of the OSHBA since 1993, Thurmond owns his company and has managed more than $1 billion of building projects in Oklahoma and California. Also, he also was appointed to the Oklahoma Department of Environmental Quality’s Stakeholder Advisory Committee, which is tasked with regulation storm water general permits for construction activities.
David Blackburn (inset photo), owner of Classe Homes in Tulsa, joins the leadership ladder as vice president/secretary. Blackburn has been building homes since 1977 and is a Certified Professional Builder, as is all the officers. They, along with outgoing president Phil Rhees, will serve as senior officers this year.
Dave Sanders of Sanders Engineering in Tulsa was inducted as secretary of the Associates Council.
Editor’s note: According to news reports at the end of 2015, the final overtime rules should be released by the spring of this year.
The U.S. Department of Labor released a draft regulation last June that proposes updating the salary level at which certain “white collar” workers would be exempt from minimum wage and overtime pay from the current $23,660 to $50,440.
NAHB economists have released a state-by-state breakdown showing in total, more than 110,000 construction supervisors would no longer be eligible for the exemption, and may be overtime-eligible under this new rule.
Under current law, workers who earn less than $23,660 a year are considered non-exempt employees by the Department of Labor and employers must pay them time-and-a-half for any hours they work over a traditional 40-hour work week.
The Fair Labor Standard Act’s white collar exemptions exclude certain … Read the blog
Make 2016 the year that you take your career and company to the next level! Start the process by attending the building industry's biggest and best event...the 2016 NAHB International Builders' Show® (IBS) in Las Vegas!
With more than 1,300 manufacturers and suppliers exhibiting, IBS is where new products are launched, the hottest trends are identified and top building professionals make connections.
Thousands of your peers realize 3 days at the show will set you up for a great 2016. Commit to making 2016 your best year, register today!
Registration options as low as $100 for NAHB members, $175 for non-members. Spouses attend for just $25!
Act now to save, you must register by January 16 to avoid onsite pricing!
Editor’s note: With the end of 2015 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In September, we used industry survey data to examine a perspective on industry organization.
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A previous post discussed how the current shortage of subcontractors in residential construction is becoming more acute. This is significant, because subcontractors are very important to the construction of the typical home.
NAHB addressed the topic most recently in the September 2015 Special Study in Housing Economics. The study clearly shows that builders’ use of subcontractors remains as strong as ever. For example, 70 percent of builders typically use somewhere between 11 and 30 subcontractors to build a single-family home. On average, 22 different subcontractors are used to build a ... Read the blog at NAHB’s Eye on Housing.
Editor’s Note: With the end of 2015 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In August, we published survey data that contrasted preferences between newly and existing home buyers.
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If you have ever wondered what drives a home buyer to select a particular home look no further. The American Housing Survey provides insight into the home buying process. The top two reasons for choosing a home were its size (cited by 76 percent of buyers) and room layout/design (74 percent). The house’s price and the neighborhood were each cited by 72 percent of home buyers. For buyers of new homes ... read the blog at NAHB’s Eye on Housing.
Editor’s note: With the end of 2015 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In May, we published survey data regarding home construction trends.
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Based on a December 2014 survey of builders, the Walk-in Closet in the Master Bedroom and the Laundry Room ranked as the top two features builders are most likely to include in new 2015 homes. Scored by a choice of Very Likely equal to 5 and a Not at All Likely choice equal to 1, these top two features rated at 4.9 and 4.8 respectively.
Some 98 percent of the builder responses rated the Walk-in Closet as a 5 or 4, and a slightly smaller share of 96 percent rated the Laundry Room as a 5 or 4. Both features speak to improving organization and storage characteristics of new homes.
Among the most likely features for 2015, energy figured into ... Read the blog
This greeting is one of my favorites. It is a season that brings hope and cheer to us as we remember the reason for the season and anticipate another year of God’s grace.
This coming year will challenge us to keep God as our focus. As our beloved state confronts lower energy costs and what that means to our economy, we will also be in the middle of a presidential election. The latter can be divisive as we each get emotionally attached to a favorite.
I’ve watched something similar happen in football. Bedlam, anyone? We have our favorite (OU!) and root for them to win. We get loud. We get crazy. But in the end, it’s just a football game and, afterward, we brag a little and move on. If our team loses, it doesn’t really affect us but momentarily, right?
But elections DO have consequences. As we struggle with our businesses, we are reminded of those consequences. Recently it seems the burdens of regulation are increasing at rapid rate. Can our economy sustain an expanding bureaucracy?
But there is hope.
The Housing Industry seems to be entering a new phase. First, we are finally seeing some growth as we see new household formation. But the expanse of financial regulations is making it more difficult for people to qualify and for our institutions to comply. Obviously, here in Oklahoma, we’re faced with a shrinking energy sector, which will reverberate through all sectors.
But there is hope.
Most think the direction of our country is on the wrong track. We think our candidate can fix that. This causes us to get more emotional, sometimes irrationally. We should not let differences of opinion affect us but sometimes we do. My resolve is to remember Christmas.
Christmas is more than a holiday. Hope comes with Christmas.
Christmas is a reminder once a year -- and many times I need a lot more reminders -- of who we are and what we are and that we need a Savior. By remembering our Savior, we can weather the differences and the emotions.
Well, here we are a little less than a month away from our annual installation banquet. Have you made your reservations yet? I hope you have because this one will be really special.
You heard it here first, Lt. Governor Todd Lamb is going to join us. Can't wait to hear what he has to say about the goings on in Oklahoma politics.
Of course, we will be installing Kurt Dinnes as our next President, Dan Reeves as our VP/Treasurer and David Blackburn as our VP/Secretary. And we will be announcing our Builder of the Year and Associate of the Year.
But I am really excited about our first inductees into our Hall of Fame. Come and join us as we recognize Mark Dale and Joe Robson! I can't think of two finer individuals to inaugurate the Oklahoma Housing Hall of Fame.
We want a good showing to honor these two pillars of our building family. It will be an evening you won't want to miss. So reserve your spot! Information below on how to sign up!
Builders, you can download the new state warranty from the contract site or they are available for purchase already printed and bound. The local associations may have some on hand or you can contact us and we can ship to you. Call our office at (405) 843-5579 for more information.
Come join us at the Skirvin Hilton Hotel on January 9 as we install Kurt Dinnes (at right) as the 2016 OSHBA President. It will be a lovely evening as we will honor our new officers, find out the Builder of the Year and Associate of the Year winners, and also induct our first honorees into the Housing Hall of Fame!
If you would like to reserve a room at the Skirvin, you can make a reservation by clicking here. Be sure to use the code OSHBA when making the reservation.
At the close of last year, many real estate experts predicted the U.S. Federal Reserve would raise interest rates in 2015. That prediction never came to be, but even if rates rise later this month or next year, Ralph McLaughlin, a housing economist at Trulia, doesn't think it will scare away many buyers.
If rates do increase, it could be as little as a quarter percent. McLaughlin doesn't expect that to have a big impact on the market, but it could temper home price growth, "which is good news for prospective homebuyers," he says. "Interest rates won't have much of an effect on the 'rent versus buy' math," he explains. "Buying would still be cheaper than renting in most metros around the country."
Here's a look at other real estate trends to expect heading into the new year.
1. Cooling coastal markets. Metropolitan areas on the West Coast and in the Northeast have been hot real estate markets during the past several years, but McLaughlin says some of the country's priciest housing markets are showing signs of ... Read the entire article at the U.S. News site.
NAHB has released estimates of spending on improvements to owner-occupied housing by zip code. The estimates are based on a model relating improvement spending to five key variables (number of homes in the area, the share built in 1960s, share built in the 1970s, owners’ average income and level of education) for calendar year 2015. The estimates show total spending on improvements, as well as improvements per occupied home in the area, in each zip code.
The zip code with the highest total spending on improvements is in Maryland; and the next four are in Texas. The four Texas zips have at least 20,000 owner-occupied homes; and the one in Maryland has over 15,000 (compared to the median of 1,362). Only zip codes in large metropolitan areas are likely to contain that many homes. The one in Maryland is a close-in suburb of Washington DC. Three of the Texas zip codes are in the Houston metro area; the other in Dallas-Fort Worth. In addition to a large-number of homes, these five zip codes are also characterized by college educated home owners with above-average incomes. This is particularly true for the zip code in Maryland, which also has a large share of homes in the key vintage for ... Read the entire blog at the NAHB website.
Editor's note: The recent donation of $67,000 to a transitional living program by the Remodelers Council of the HBA of Great Tulsa has been featured on the NAHB’s “NAHBNow” blog. Here is an excerpt:
It began as an offer by the Remodelers Council of the HBA of Greater Tulsa, Oklahoma to help with minor monthly repairs on a building that houses a transitional living program.
Three years later, the remodelers are still hard at work, using not only their tools, but also their wallets.
This month, the remodelers presented the program, called Lindsey House, with a check for $67,000 to purchase and install 124 new ... Read the full article at the NAHB blog.
Autry Technology Center student Hunter Ehlers, Jerry Williams from Whitton Supply Co. in Oklahoma City, Lindell Newman, owner of Pioneer Construction, and Lyle Phillips, president of the Enid Home Builders Association, unload one of the two SawStop table saws being donated to the construction program at Autry in Enid. Courtesy photo
Editor’s note: This article was published in the Nov. 20 editions of The Journal Record business newspaper
ENID (JR) – The Enid Home Builders Association donated two SawStop table saws, as well as extra supplies necessary to accessorize the table saws, to Autry Technology Center’s Construction program.
The donation is valued at around $7,000.
“The Construction program at Autry is valuable to our community because it is producing our future workers,” said Lindell Newman, owner of Pioneer Construction and past president of the Enid Home Builders Association. “If these kids don’t have skills they will not be prepared for the workforce.”
SawStop saws sense electrical conductivity within the human body with a detector that is on the blade. This allows the saw to stop and the motor to power off in less than five milliseconds, according to SawStop. This table saw also rolls and can move from site to site, which helps with speed of construction.
According to the Consumer Product Safety Commission in 2013, table saws injure more than 67,000 people each year. In the construction industry, table saws are used daily and by multiple people. Most students that enter the Construction program at Autry for the first time have never seen a saw and are unaware of the proper way to use one.
“This piece of equipment is the best of the best,” said Jeff Clark, Construction instructor at Autry. “I can take this saw to the site, which I couldn’t do with the old equipment. This is what the students will encounter in the workforce and we will prevent injuries as well.”
Lyle Phillips, president of the Enid Home Builders Association, taught at Autry as the construction instructor for 31 years. He understands the need for up-to-date technology and tools for the students.
“There are so many advancements that will continue to occur,” Phillips said. “Before we were using hand saws and sharpening them every night. Now, one man can do so much more which is more efficient. We want to make sure our future workforce is prepared.”
It is not only the technology but also the instructor that helps produce the best workers, according to Newman.
“(Clark) is an inspiration to these kids,” said Newman. “He is bringing the future forward. We are really having trouble finding help and (Clark) is teaching and producing the people we need.”
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates that the number of custom home building starts (homes built on an owner’s land, with either the owner or a builder acting as the general contractor) posted a slight increase on a year-over year basis as of the third quarter of 2015.
Over the last four quarters, there were 157,000 construction starts of custom homes, compared to 154,000 for the four quarters prior ... Read the post at the NAHB website.
EDITOR’S NOTE: This Associates Council Chair Report to be published in the next edition of Oklahoma Builder magazine is the second of two parts about the purpose and mission of associate membership – to provide unity, collaboration, promotion, forum, advocacy and community support.
By Steve Sullivan, Chair, State Associates Council
Builders, do business with active associates
If you believe in what your association does for you, in terms of industry advocacy which helps with the bottom line, doing business with those who volunteer their time to generate new members and net profits from HBA fund-raisers is a very good way to be a better member.
The associates on the sidelines will see the increased business opportunities the active associates are experiencing and will look to become engaged within the HBA as well. This translates into a stronger HBA, meaning a stronger advocacy arm for builders and associates.
Make sure all your suppliers, service providers and subcontractors are members of the HBA. If it affects builders, it will affect these trade partners as well.
Why should they not be a member also? They benefit from your success so they should also invest to protect that success. Builders should not feel badly about leveraging their position. These vendors need to invest in the industry that supports them, through builder business.
Builders should volunteer also, serve as an officer for your HBA and serve as a board member. Look to be a mentor for the new or younger builder members of your HBA.
Invest in the local HBA serving on behalf of all of us who earn a living in the building industry.
Prospective Members
Why should building industry participants cross the threshold from nonmember to member? Why join or maintain HBA membership?
Every associate would like the opportunity to sell to builders. The reason most join is to build their book of business. There will be opportunities but no guarantees. They want to network with like-minded industry professionals. Builders and associates also join to learn more about their business, whether it's about codes or best practices.
Educational opportunities are readily available at all three levels of membership. Associations, through a collective, offer insurance, whether it be health, workers compensation or any other needed insurance a company would require to supply or construct a home.
Without HBAs, there are limited opportunities for business. Without advocacy, environmentalists win, and anybody else who is against home building. Why?
Without advocacy, we as an industry have no voice in our cities, state capitals or in Washington, D.C. If that's the case, no reason for industry education, no need to meet new folks. You still might need insurance, but it will be extremely high because the associations’ discounts won't be available.
Membership -- Advocate
We lose political strength in those areas where membership is down. Legislators will take notice of the stronger locals -- those with high membership totals. To have legislative victories locally and at our state Capitol, we need all legislators to have an understanding of our issues.
If one or more locals are struggling for members, those districts will seem unimportant to those state legislators in those counties.
Why? Simply put: Lack of viable votes. Politicians are not as complicated as some would think. They see it as to how many votes can you deliver. It is always on their minds, or at least in tandem with any other thoughts.
Energy prices rebounded and the Consumer Price Index (CPI) rose moderately in October.
The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose at a seasonally adjusted annual rate of 2.4% in October after a 1.8% decline in September and a 0.8% decline in August. Excluding the volatile food and energy components, “core” CPI rose at a seasonally adjusted annual rate of 2.5% in October, similar to the 2.6% in September.
Energy prices have dominated inflation dynamics since mid-2014 when oil prices collapsed. In the previous two months, the sharp declines in energy prices have pulled overall inflation away from the core measure.
I am sure many of you, as I am, are looking at options for your healthcare needs. Especially since the annual enrollment date for most plans is during this month.
There are many insurance proposals to consider and I want to make you aware of one more option.
You may have heard about NAHB trying to put a program together. Well they have done it. So, take a moment to click the link below and check out the options. It may very well be worth your time.
There is still time to nominate someone (but time is running short) for our annual awards. The forms are attached and must be returned no later than 5:00 pm today.
Football, Halloween and other Fall activities were no match for the 2015 Parade of Homes. Potential home buyers flocked to more than 100 homes scattered all over the metro area. No other event in Oklahoma showcases more homes, in more price ranges, featuring more builders than the Parade of Homes.
The new housing market in Oklahoma City is very unique with significantly more builders than most markets our size. This enables the consumer to express his unique style while still ensuring he’s getting the latest technology, energy efficiency, and building techniques. We want our Parade of Homes to reflect that. And this year, I think we did that better than we ever have. We have some very exciting plans for the future as well: incorporating remodeled homes, more inner-city homes, more technology, and more access to design ideas just to name a few.
So, in short, if you liked this year’s Parade of Homes, you’ll love what we have in store. See you next year!
By Rusty Appleton, Executive Director, Central Oklahoma Home Builders Association
By Jaime Christensen Home Builders Association of Greater Tulsa
The Home Builders Association of Greater Tulsa recently presented Lindsey House, a transitional living center, with a check for $67,000 to assist in the purchase and installation of 124 new windows. This is the second installment of a $100,000 pledge to help rehabilitate this building and improve its energy efficiency.
Lindsey House is located in a 1920s vintage apartment building in downtown Tulsa. The nonprofit provides mothers caring for children with furnished apartments and social services, budgeting, and family assistance to help teach them the skills they need to overcome homelessness and thrive.
The renovation of Lindsey House is an ongoing project and many improvements have been completed by the Remodelers Council, including the Hardesty Child Enrichment Center, a new courtyard and numerous updates and cosmetic fixes. Many of the windows in the building are original and in desperate need of repair. The project is estimated to cost more than $100,000 to complete.
“Lindsey House is making a difference in the lives of these families and we are so very honored to be a part of that,” said Weldon Bowman, Chairman of the 2015 Remodeled Tulsa Tour. “We are committed to helping them not only through funding, but also by providing our services to restore their building and improve the lives of many disadvantaged mothers with children in our community.”
In October, the Remodelers Council was honored with a national award, the Council Award for Demonstrating Excellence (CADREs), for community service from the National Association of Home Builders (NAHB) Remodelers. The award was in recognition for renovation and repair that Remodelers Council members’ provided the mothers and children at Lindsey House for the last three years. What began as minor monthly repairs performed on an apartment building evolved into an outpouring of compassion and giving for families rebuilding their lives through this transitional living program.
Editor’s note: This column was published in the most recent edition of Oklahoma Builder magazine
By Mike Means OSHBA Executive Officer
What was I thinking? I thought for sure after the Oklahoma Building Summit & Expo things would slow down. I thought for sure there would be a day or two that might even be “dull.” What was I thinking?
Meetings, events, and budgets! Issues that can take up a day fast and you wonder where the time went.
We have already begun planning for next year’s Summit. The OSHBA Board of Directors held its fall board meeting and approved the new slate of officers and next year’s budget.
But I would like to share with you a little about the “meetings and events.”
We have some very serious issues facing us as a nation and it is imperative that we give our perspective to our elected officials. To that end, we recently met with Congressman Lucas, Congressman Russell and Congressman Cole. We delivered the Oklahoma perspective on employment, overreach by EPA and OSHA, and several other issues the homebuilding industry faces.
Of course, we wanted the inside scoop on who would be the next Speaker of the House, but alas, they were tight-lipped. (Editor’s note: Turned out to be Paul Ryan)
Yours truly has also attended several Oklahoma Uniform Building Code Commission meetings recently. This cycle was pretty unique. There was hardly any controversy until they got to Chapter 11.
You see, Chapter 11 is the energy code section and everyone, and I mean everyone, wants to give their two cents. Let me tell you that we should all be thankful for the work that Curtis McCarty, Todd Booze, Mike Gilles, Larry Cagle and Chris Ramseyer did on behalf of the industry.
The work is not done yet as final adoption awaits, post publication of this magazine. And then it has to pass the scrutiny of the state Legislature.
But at OSHBA it isn’t all work and no play.
OSHBA holds just a few events each year. One of them is our annual Sporting Clays tournament. I would like to take a moment to thank our chairman, David Brookshire, for leading the cause. The cause? Our Homebuilders PAC which helps our legislative efforts.
This year the event was held at Quail Ridge Hunting and Sporting Clays near McCloud. Owner David Martin worked with us and helped us have an enjoyable event.
Congratulations go to Randy Harnsberger with OEC for being the top shooter and winning a new Glock .45!
The top team went to Metro Appliances hosted by Mike Thompson. Larry Stein won an antique clay thrower donated by Mike Fretz. He won because he left the most clays intact during the shoot. Brian Stedman won the drawing for the new Franchi Instinct L shotgun. (And yes Mr. Chairman, it is an over/under, not a double barrel!)
Another event that is always a highlight is the State Associates Golf Tournament.
This year, thanks goes to Titian Burris with ClimateMaster for helping us hold a very successful event. The Associates decided this year to add a charitable component to the event so half the proceeds were dedicated to the Homeless Alliance to help in their efforts to alleviate the problems faced by the homeless.
Nope, never a dull moment with OSHBA. Maybe December, it might slow down…nope. I will be on the road coming to a place near you!
Editor’s note: This column was pubished in the most recent edition of Oklahoma Builder magazine
By Kirt Dinnes NAHB State Representative
As your State Representative to NAHB, I was privileged once again to attend the recent NAHB Fall Board of Directors meeting in Dallas.
While our industry is still facing some significant challenges, I am including NAHB Chief Economist David Crowe’s outlook along with a key advocacy victory and news of the long-awaited Health Insurance Program offered to members though the NAHB Affinity Program.
Economic Outlook
Looking forward, there are signs that conditions in the housing market should show continued improvement:
While the economic recovery has been uneven, it continues to add jobs, a key driver for housing market recovery.
Low interest rates and post-bubble house prices that have settled back to normal in most of the country.
Five years of sub-normal household formation rates have created pent-up demand that will help reduce some of the excess housing inventory.
NAHB/Wells Fargo Housing Market Index
The index, which measures builder confidence in the market for newly built single-family homes, rose one point to 62 in September from an August reading of 61. Any number over 50 indicates that more builders view sales conditions as good than poor.
Crowe’s analysis: “Our latest builder surveys show that single-family housing is making solid progress and we continue to hear from our members that more serious home buyers are returning to the market.
"Though builders are gradually adding inventory to meet demand, they are reporting concerns with lots and labor availability.
"Barring any unexpected jolts, we expect the housing market should continue to move forward at a modest but more persistent pace throughout the rest of the year.”
So, things are looking up on a nationwide perspective. But as my title to this article alludes, things are not quite so rosy here in Oklahoma right now.
I am playing off the title to a recent economic report from Ted C Jones, PhD, the chief economist from Stewart Title.
Dr. Jones shares the decrease in the price of oil is affecting our economy, but not to the extent is has in the past. That’s good news. It means as members of this great association we need to be smart and wise.
Now, with one national economist giving a broad report, another giving a more focused report, I decided to balance it with a laser-focused report from the chief economist for the Oklahoma City Federal Reserve chapter.
Chad Wilkerson recently shared that he expects Oklahoma to see very slow growth for the next 12-18 months.
The diversification we have seen in Oklahoma has helped us absorb some of the slack in the energy sector. But if prices stay depressed longer than 2017, it could begin to affect us even more.
Anecdotally, my personal business is a reflection of what Dr. Jones’ shared. I am blessed to have projects in the pipeline but clients seem to be moving cautiously.
That means for me I need to be not only their builder but also their sounding board on being wise during the building process.
Advocacy: Waters of the United States
NAHB's long and difficult fight to bring common sense to the Environmental Protection Agency's new Clean Water Act definitions achieved an important victory recently. The U.S. Court of Appeals for the 6th circuit ordered a nationwide stay on the agency's new definitions, which had dramatically expanded federal jurisdiction over our nations wetlands. The court agreed that new definitions finalized earlier this fall "dramatically alter the existing balance of federal-state collaboration in restoring and maintaining the integrity of the nations waters," as the states contesting new rules had changed.
So while the federal courts figure this out, the agencies will have to use their previous definitions. For the time being, EPA and the Army Corps of Engineers must prove that a water is jurisdictional before automatically sweeping it into their regulatory nets.
Our members want to protect our nation's waters. But we need clear rules. The October court decision is a huge step in the right direction.
Member benefits
The NAHB Executive Board approved a new Health Insurance Service for members through the Affinity Program.
The large insurance consulting and brokerage firm of Marsh and McLennan will be administering the program with the states that choose to be a part of the plan. Both Individual and group plans will be offered. For States such as ours that currently do not have a statewide health insurance offering, this is a welcome much-needed benefit to our members. Although the annual open enrollment period ends Nov. 1 each year, those who are interested in taking advantage of the new Affinity health insurance program can start making plans now.
My hope is you find this information both beneficial and useful, allowing you to plan wisely. To me, the benefits of this information and the sharing of knowledge among members is a tremendous value of being a part of this great association.
As always, if I can be of any help as your NAHB State Representative please contact me, I would enjoy hearing from you.
Editor’s note: The link to this Forbes article was provided in the NAHB’s Housing Headlines newsletter
By Joel Kotkin Forbes Contributor
It’s time to put an end to the urban legend of the impending death of America’s suburbs. With the aging of the millennial generation, and growing interest from minorities and immigrants, these communities are getting a fresh infusion of residents looking for child-friendly, affordable, lower-density living.
We first noticed a takeoff in suburban growth in 2013, following a stall-out in the Great Recession. This year research from Brookings confirms that peripheral communities — the newly minted suburbs of the 1990s and early 2000s — are growing more rapidly than denser, inner ring areas.
Peripheral, recent suburbs accounted for roughly 43% of all U.S. residences in 2010. Read the rest of the blog.
Editor's note: This column will be published in the upcoming edtion of Oklahoma Builder magazine
By Phil Rhees OSHBA President
I can’t believe I’m admitting this, but I’m old enough to remember a time when the OSHBA offered a very good insurance program and fought the occasional battle with our elected representatives at the state Capitol, but not much else.
Oh, we could host a mean hospitality suite at NAHB board meetings, mind you. I got involved at our state association at the very end of our previous state EO’s reign, and that guy knew his way around the concierge stands and hotel bars like nobody’s business.
I’m not knocking it. We were truly a different association then. But we’ve changed with the times and I believe we are all the better for it.
OSHBA’s commitment to the state membership has never been stronger.
We have made every effort to get the word out about the professionalism demonstrated by our members, and to increase the benefits that our members derive from being a part of our Association.
Insurance transition
This year, with our friends at HUB International, we managed to steer our way through a very tricky transition when Comp Source mutualized. This threatened our long-standing, state-endorsed workers comp program, which offers the lowest rates available anywhere to our members. In fact, premiums for some of our participating members actually went down after the transition!
Hall of Fame
We have created an Oklahoma Housing Hall of Fame this year, which will honor and celebrate men and women who have made significant and lasting contributions to the housing industry in Oklahoma, and who have promoted a positive image of the housing industry to the general public. Our first group of nominees will be inducted on Jan. 9 at the Skirvin Hotel in Oklahoma City at our installation banquet. I hope you all will join me there to honor some truly amazing people.
Summit & Expo
Of course, no conversation about the benefits of membership is complete without including the Oklahoma Building Summit & Expo. This event has become the 800-pound gorilla that we hoped for, and now requires year-round planning. You may have already heard that we almost doubled participation at this year’s event with the addition of the trade show component, and our sights are set even higher for next year.
We received some great feedback from our surveys of both attendees and trade show vendors, and virtually all reported they will make a return trip next year! We certainly learned a lot from our first trade show, and we will be tweaking it to create an even better experience for our vendors and attendees. In fact, our Summit committee has already met a couple of times to get the ball rolling.
I hope this event demonstrates the determination of the state leadership to create the best continuing-education opportunities available. There is no reason why OSHBA shouldn’t boast of having the best-trained builders in the nation!
Strategic plan
I can also report that we have met or exceeded most of the goals set out in the strategic plan in 2013 under Jeff Click’s leadership. I believe we have addressed all of the issues contained in that plan, and while membership growth and state Home PAC participation have not increased as hoped, I expect that we will take a fresh look at those issues when a new three-year strategic plan is created next year.
Commitment to membership continues
While the OSHBA’s commitment to its membership has never been stronger, there is still much more we can do!
Builders from around the state are reporting shortages in skilled trades, and we must find ways to encourage enrollment in various vo-tech training programs. Membership at some of the smaller local associations in Oklahoma is dropping, and we need to find a way to help them in their recruiting efforts.
Most of us are beginning to feel the effects of the downturn in the oil and gas industry, and we need to identify what we can do as a state association to help our members through it. We need to continue the battle at the Oklahoma Uniform Building Code Commission to fight the adoption of needlessly restrictive and expensive code changes.
We owe Curtis McCarty and Todd Booze a tremendous debt of gratitude for spending so much of their time representing us at the meetings.
Leaders move forward
We are very lucky to have an exceptionally strong leadership team to lead us through those minefields next year!
At our recent Fall Board of Directors meeting held in Tulsa, the board elected builder/remodeler David Blackburn from Tulsa to the leadership ladder as VP-Secretary in 2016. I’ve known David and his wife Linda for quite a while, and we will benefit tremendously from his leadership and experience. It also helps that he bleeds orange as I do, so he automatically qualifies as a good guy in my book!
The Board also elected Dan Reeves as VP/Treasurer for 2016. I’ve only known Dan for a couple of years, but I’ve been very impressed by his business acumen and kind heart. He will lead the charge as Chairman of the Building Summit and Expo next year, and he has some great ideas for its continued success. Now, if we can just get him to quit faking ankle injuries to get out of travel, we’ll be in good shape. (Kidding! Kidding!)
Kurt Dinnes is your President-elect for 2016, and I can’t think of anyone better-suited (literally!) or more well-prepared to lead than Kurt. He has built and run at least two very successful businesses, and has proven a quick-study when it comes to the issues we face in the housing industry. He has served us well as our NAHB State Rep for the past couple of years now, and has agreed to continue in that capacity to save us some travel budget money next year. He did a terrific job as my co-chair of the Building Summit this year, and I look forward to his leadership next year. (Not kidding about being well-suited……..the guy has some serious clothing game!)
I have to thank Dave Sanders for doing a great job as Chairman of the Insurance Committee this year. He came out of Insurance committee retirement as a personal favor for me for one year, and I am grateful, Dave. I guess he loved his return to involvement at the OSHBA so much, he has agreed to get on the leadership ladder for our Associates Council, so good for us!
Speaking of our Associates Council, Steve Sullivan served us well as council President, canvassing the state to drum up support and involvement from our associates. He had his work cut out for him this year, with the transition to Associates Council involvement with the Building Summit, and in determining a new direction and new goals for the Council. I’m very grateful for all the hours he spent piecing everything together. I’m grateful for all of the support Steve and OG&E have offered to the OSHBA over the years. We appreciate it!
Dusty Johnson has kept the Certified Professional Builder program rolling right along, and I appreciate the time he has spent convincing builders, many of us who can be stubborn and set in our ways, that raising the bar on our professionalism is good for business.
This is getting a little long, but I’ve gotta thank Jeff Click again for producing such fantastic videos in support of our industry and events. If the whole “homebuilding” thing gets a little stale for him, I think he has some nice prospects for a career in Hollywood!
Of course, no final OSHBA President’s article would be complete without thanking the glue that holds our association together. Kathy Kastner serves as an excellent right hand to our EO, and does a great job preparing for every event. And she’s got a great smile! Test this and see if I’m not right.
Mike Means, at the end of this year, will have fulfilled his promise to my dad that he stick around at least until my term ended. Not that we should be concerned that he is leaving any time soon, but my dad knew that I would count on his wise counsel this year with so many irons in the fire. Little did Mike know that he would also serve as a shoulder to lean on when my dad passed away shortly before this year began. You see, Mike and my dad had a great relationship based on their shared strong Christian faith, and I’ve been lucky enough to share that kind of friendship with Mike, as well. It’s been a bittersweet year for me, but he has been a true friend, not only to me, but also to this association. I believe we are very blessed to have him sailing our ship, and Mike, I appreciate all you’ve done.
Finally, let me say that it has been a great privilege to lead the OSHBA this year, and I greatly appreciate the opportunity! Our membership consists of an amazing array of truly talented people, and it has been an honor to meet and work with so many. This association cannot exist without the contributions of its members, so my hope is that each person realizes the responsibility they have to contribute something to the industry that supports them by volunteering, contributing to the Home PAC for state candidates or BUILD Pac for national candidates, or supporting your local’s charitable foundation.
A little play on the famous line from the “Terminator” movies, but it succinctly says what will happen next year at the Oklahoma Building Summit & Expo.
Most of you have seen the recent stories of our successful transition from a one-day education event to a two-day educational program with a trade-show floor component. Think about it – more than 600 attendees, 72 booths, fantastic opportunity to network and still get a quality education – does it get any better?
Well yes, yes it does.
OSHBA Vice President Dan Reeves will be chairing the 2016 summit planning committee and has begun analyzing the survey results (awesome by the way). Here are just a couple of thoughts from those who were there this year.
“I spend so much time working in my business I don’t take enough time to stop and look back into my business to see what I can do better and what things can make me better and then hopefully sell more homes. This Summit has helped me do that.” -- Brian Wiggs, Tulsa homebuilder
“The opportunities that are here to learn, to grow your craft, to take care of your families, just to have a better business. It’s here. In two days, you can learn everything you need to.” -- Tony Foust, Norman homebuilder
“The associate members, I feel, are a big support to the overall success of events like this. Not only can we bring new products, but it is a win-win situation. You get into it what you put into it and this is an amazing way to get close to your customers.” -- Jordan Williams, ProBuild
There were several very helpful suggestions to making the summit better.
An entertaining opening keynote that appeals to everyone – builder and associate alike. A small revamp of the expo will be in the works – you won’t want to miss it.
Another idea we will be working on – shorter classes! We’ve heard you loud and clear. So shorter classes with more diverse subjects is at the top of the list. We also want to add a little more repetition so you can attend your top priorities.
The date has been set – Sept. 21-22 – and it will be at the Cox Convention Center again. We will let you know when you can register, but hey, circle the date on your calendar now!
What was that date again? Oh yes, Sept. 21-22, 2016.
A pre-apprenticeship program is in action at Autry Technology Center, as students will build their 16th home this year (top photo). Area home builders provide building supplies and financial support, as well as opportunities for job shadowing, field trips and potential employment when they complete the program. Students work on a home as part of the Autry Technology Center program (below right).
By JIM STAFFORD Carol Hartzog Communications
ENID – With support from the Enid Home Builders Association and the Oklahoma State Home Builders Association, the Autry Technology Center’s thriving Construction Technology program will build its 16th home during the current academic year.
Area home builders provide Autry students with building supplies and financial support, as well as opportunities for job shadowing, field trips and potential employment when they complete the program.
Home builder support of the program continues long after the students complete one of five industry tracks, said Jeff Clark, Technology Construction instructor for Autry Technology Center.
The builders hire its graduates.
“The residential home building trade is doing very well at this time,” Clark said. “Due to the shortage of skilled and entry-level construction workers, the demand for people in the career field has increased. All of my former students are employed in the residential construction field.”
Autry’s program offers construction training in Lead Carpenter, Residential Carpentry, Finish Carpenter, Frame Carpenter and Cabinetmaker. The curriculum was developed by the National Association of Home Builders/Home Builders Institute.
Students who complete the program can enter the job market with an industry-recognized pre-apprentice credential, which is validated by the Institute and the National Occupancy Testing Institute.
Clark is a 1980s graduate of Oklahoma’s Career and Technology Education system who worked for many years in all phases of home building before returning to the Autry Technology Center to mentor a new generation of residential construction carpenters.
Recent feedback from an Autry alumnus provided some positive feedback on the center’s residential construction program.
A former student stopped by to show Clark his paycheck, which reflected a pay scale of $17 per hour -- slightly above the median average rate for all construction jobs in Oklahoma.
However, more than the size of his paycheck, the former student’s industry experience confirmed that Autry’s program provides a realistic experience for its students.
“Since the student is a recent completer of our Construction Technology program, he was able to inform me that the work and environment he is currently in is just like that of the Autry Technology Center program design.”
Housing starts for the month of September rose 6.5% to an eight-year high of 1.206 million units on a seasonally-adjusted annual basis. The increase was all in the multifamily sector, rising 18.3% to 466,000. Single-family starts were virtually unchanged at 740,000. This is the first month total starts passed the 1.2 million mark since October 2007.
The trends in both are more apparent on a quarterly or year-to-date basis that smooths some of the monthly irregularities inevitable in sample data. Single-family starts averaged 746,000 for the third quarter, up 5.7% from the second quarter. Multifamily starts averaged 418,000 for the third quarter, down 7.3% from the second quarter.
On a year-to-date basis, both increased: single-family starts are up 11% from the same period in 2014 and multifamily starts are up 13.8%. These averages provide a clearer picture of the steady increase in housing construction that we have been experiencing for several years.
Lately it seems the news from the Capitol has all been about the upcoming budget shortfall.
While the Legislature is not in session, interim studies are happening and preparation for the next session is underway.
Some new laws got some attention when passed but, with the effective date of Nov. 1 quickly approaching, it is worth a little review.
Texting
OK, here is the biggest. Builders and their subs live in their trucks. Business is done on the fly and that's just the way it is. However, a reminder is worth noting. Starting Nov. 1, the “texting” ban, HB 1965, goes into effect. Essentially it is a $250 fine for the use of a cell phone to send or read data. The good news, insurance cannot be denied if you have a violation. OK, so that isn’t really good news but so-so news.
Emergency vehicle
Another bill affecting those of us on subheadlinethe road a lot is HB 1113. HB1113 extends the requirement to yield the right of way that is typically given to police, fire and ambulance services to ODOT vehicles. This requires drivers to allow ODOT and Turnpike Authority maintenance vehicles, that are properly and lawfully making use of audible signals or flashing lights, to pass them or safely move to the left lane when these vehicles are pulled over.
Religious freedom
While this bill doesn’t affect our association members directly, I kept a close eye on this bill because I think religious liberty is at risk in this country. HB1007 protects religious leaders from being forced to perform marriages they disagree with. The bill states any ordained or authorized official is not required to solemnize or recognize any marriage that violates said individual’s conscience or religious beliefs.
Underage employment
Now, I know some of you out there value the lessons in life that can be learned from hard work. HB1903 amends language to state that no child under the age of 16 years old will be permitted to work, except when a child is volunteering at a charity recognized exempt under the Internal Revenue Code of 1986. I guess it will be up to each of us to determine if chores count as “work.”
Upon further reading of the statute though, we may be in luck. Too bad kids, but exempted from the law is work for parents or for a company in which they may have an interest.
It won’t be long before the Legislature will be back in session and writing more laws. My hope is to remind you that not being aware of a new law does not exempt you from it.
Members, it is with a great deal of sadness that we inform you of the death of Dick Coyle. Dick passed away late Saturday night after a short illness.
Dick was the President of the Oklahoma State Home Builders Association from 1982-1983. He was also a recipient of the prized Builder of the Year award in 1977.
Dick was a proud member of the Central Oklahoma Home Builders Association. Through his company, Coyle Enterprises, he developed many quality neighborhoods in the Central Oklahoma area.
Dick was very involved in Catholic Charities. He spent many an hour working on some very worthwhile projects and of course he put his money where his heart was. He will be missed by his many friends and especially by his family.
Funeral services will be held at Christ the King Catholic Church, 8005 Dorset Drive, Oklahoma City, at 11:00 am on Wednesday, October 21.
We say goodbye to a very dear friend of the Industry. We pray for God's peace on his family.
Editor’s note: OSHBA member Caleb McCaleb has been named to the Kansas City Federal Reserve Bank advisory board and was featured in this article in the Chickasaw Times newspaper
OKLAHOMA CITY – Chickasaw citizen and longtime Oklahoma homebuilder Caleb McCaleb has been named to the Kansas City Federal Reserve Bank’s Advisory Council.
Governor Bill Amoatubby said Mr. McCaleb was well qualified for the position.
“Caleb has the experience and knowledge necessary to offer sound advice on the state of the ecconom in this area.” Gov. Anoatubby said. “His decades of experience in the housing industry give him a unique understanding of how economic policy will affect people on a day-to-day basis.”
Mr. McCaleb was nominated by Oklahoma City Federal Reserve chief economist Chad Wilkerson, who is employed by the Fed and lives in Oklahoma City. Mr. McCaleb’s nomination was endorsed by President and Chief Executive of the Federal Reserve Bank of Kansas City Esther George.
“Mr. Wilkerson and I have known each other for more than a decade.” Mr. McCaleb said. “Since our business is home building and developing new communities in the Oklahoma City Area, he would call me frequently to get my opinion on the local economy, how people and families are managing, if (building) starts were up or down. I was kind of his ‘go-to’ guy.”
With his appointment, Mr. McCaleb now sees the economy through the eyes of colleagues on the advisory board who represent trucking, timber, real estate, airlines and many diverse businesses. The Kansas City Federal Reserve Bank is in the 10th District and represents Wyoming, Nebraska, Colorado, Kansas, Oklahoma, western portions of Missouri and the northern regions of New Mexico.
He is in his first year of a three-year term.
Mr. McCaleb is president of McCaleb Homes, Inc., and a 31-year veteran of the homebuilding profession. He is responsible for land acquisitions, finance and design of the company’s master plan communities. He is a graduate of Baylor University with a degree in entrepreneurship... Read the full article
Watch this 2.5-minute video as to why you should Save the Date for the 2016 Oklahoma Building Summit & Expo. Sept. 21-22 at the Cox Events Center -- from those in attendance this year:
“I’ve been in the building industry for 15-plus years and I am amazed every year I learn something new. You have these huge national speakers that pack thousands in a room and it is right here local.
“Well this year is special because this is the biggest builder show we’ve had as a Summit as it has been going on the last few years.”
“It’s not too big where we lose focus on people or we feel rushed to go to the next person, but it is just big enough where we get to see a lot of different faces and get to visit with a lot of different people.”
“My membership in the State Home Builders Association and this event is just one of many values that I get out of that membership.”
“So many times we get caught up in the sticks and bricks in building a house instead of the relationship of building the house.” -- Certified Professional Builder Caleb McCaleb, Edmond/OKC
“I spend so much time working in my business I don’t take enough time to stop and look back into my business to see what I can do better and what things can make me better and then hopefully sell more homes. This Summit has helped me do that.” -- Brian Wiggs, Tulsa home builder with CPB-affiliated company
“The opportunities that are here to learn, to grow your craft, to take care of your families, just to have a better business. It’s here. In two days, you can learn everything you need to. “ -- Certified Professional Builder Tony Foust, Norman
“I mean this is fantastic. You don’t have to go anywhere, it’s right here just 20 miles from my house.” – Certified Professional Builder Jim Schuff, OKC
“I’ve already learned a lot of things that I will go back and start implementing with our company and our trades tomorrow.” – home builder Andrew French, with CPB Tom French Construction Co., Edmond/OKC
“If you are going to stay busy, you have to make a profit and it’s nice to hear somebody say you gotta do this, this, and this to get this profit.” -- Caleb McCaleb
“The associate members, I feel, are a big support to the overall success of events like this. Not only can we bring new products, but it is a win-win situation. You get into it what you put into it and this is an amazing way to get close to your customers. “ -- Jordan Williams, ProBuild
“You gotta be around the builders, you got to play with them and this is the way builders play. “ -- Randy Chambers, OGE
“Whether you are looking for continuing education or wanting to better your business, the Oklahoma Building Summit will be able to provide. “— Certified Professional Builder David Denny, OKC
(Special thanks to Jonathan Meisner, videographer)
We asked our exhibitors what they liked most about the 2015 Oklahoma Building Summit & Expo. Turns out, there was a lot to like for the awesome exhibitors who showcased their products to more than 600 attendees on our Expo floor for the two days of the event.
Here are some of the exhibitor comments:
It was a good layout, very easy to get in and out of, and we found the staff at the facility and the show organizers to be very easy to work with, which really makes a huge difference.
The direct access to the builders.
The flow of the room and the breaks.
The potential to visit with builders from all over the state in one setting is an enormous potential opportunity.
Well attended by builders, content of the seminars was very good.
Ability to meet and talk in person with some outlying builders, etc., that aren’t available to us normally.
Size, location, show hours.
Trade expo and leads generated.
I felt like the builders who attended were excited to stop and visit with the vendors. We had better communication and leads than the local events where it tends to be social only.
Interaction with builder members in the exhibit hall.
See you next year for the 2016 Oklahoma Building Summit & Expo September 21-22, 2016.
Editor's note: This column wil be published in the upcoming edition of Oklahoma Builder magazine
NAHB held its summer Executive Board meeting this year in Washington, D.C. It was literally a "fly in and fly out" one day of condensed meetings.
For those who could not attend personally, the meetings could be attended through a sophisticated virtual teleconference that accommodated interaction and voting remotely.
It worked well and I saved two days of travel and considerable expense to the Association.
Advocacy
Clean Water Act
NAHB is actively engaging our legislators concerning the Wetlands (Waters of the United States) environmental issue.
In May, the EPA and the Army Corps of Engineers finalized the long-awaited rule to define "waters of the United States" and the jurisdictional scope of the Clean Water Act.
The areas of concern include tributaries, adjacent waters, ditches and other waters that pose a "significant nexus" to a jurisdictional water.
The House approved H.R. 1732, the Regulatory Integrity Protection Act, which would require EPA and the Corps to withdraw the rule and develop a new plan in consultation with state and local governments and other stakeholders, including the small business community.
The NAHB is actively urging the Senate to pass companion legislation S. 1140, the Federal Water Quality Production Act. The Supreme Court has already ruled twice there are limits to the scope of federal jurisdiction under the Clean Water Act.
The NAHB and other stakeholders filed two lawsuits challenging the final rule: One in district court and one at the court of appeals. It will be about a year before the various parties start arguing over the substance of this rule.
The NAHB also sent a letter to the EPA administrator requesting a 90-day extension to the effective date. This is an important environmental issue developers and builders will want to watch closely.
OSHA and 'Confined Space' definition
In May, OSHA issued another long-awaited Final Rule on Confined Space in Construction. Although the rule encompasses a number of confined spaces, the two that most affect builders are crawlspaces and attics.
The new rule requires identification and a valuation of a confined space by a competent person; hazardous atmosphere testing and monitoring; written confined space entry program and entry permit; controlling contractor/host employer be the primary point of contact for information about worksite permit spaces; specified duties for authorized confined spaces entrants, outside attendance and supervisors; emergency rescue requirements; and workers to be trained on hazardous procedures for entering confined spaces.
The new standard was set to become effective Aug. 3.
However, in response to NAHB's request for additional time to train workers and acquire the equipment necessary to comply with the standard, OSHA issued a 60-day temporary enforcement policy, postponing full enforcement until Oct. 2.
The NAHB and the Texas Association of Builders have also filed a petition for review in the Fifth Circuit Court of Appeals challenging the final standard, so the impact of the rule may not be known until this case is resolved.
NAHB Policy
If you would like to serve on the NAHB Board of Directors, I would like to encourage you to check with your local HBA and ask if there are NAHB Board appointments either un-filled or the current appointees are no longer active.
If you are currently a NAHB board of directors member and wish to serve on or are already on a council or committee, committee appointment applications close Oct. 18.
Remember, if you are on a council or committee, you must re-apply each year and be reappointed by senior officers.
ICC
The International Construction Code organization, (ICC)
Registration for local code officials ended Aug. 30. So local code officials who are members are able to participate in remote voting on proposed building codes.
NAHB will develop an Online Governmental Consensus Voting Guide for members to discuss and distribute to their local and state registered ICC code officials to use during on line voting.
Oklahoma currently has a low number of registered code officials, so please continue to encourage your state and local code officials to register and become ICC members for future remote voting. This is a very important way we as members have an opportunity to influence code changes through our local and state code officials.
Health Reimbursement Arrangements
An unintended consequence in the Affordable Care Act (ACA) is preventing small businesses from helping their employees afford health care. An IRS interpretation of the ACA prohibits stand-alone HRAs, which had been a means for employers to provide pre-tax dollars to employees for medical care services.
As of July 1, all employers regardless of size could face fines of $100 per day per employee if they offer HRAs.
The $100 penalty went into effect for businesses that provide reimbursement for more than one employee.
At NAHB's urging, the Small Business Healthcare Relief Act was introduced in the House and the Senate. The legislation (bipartisan in both chambers) would enable small businesses to continue to use HRAs without fear of penalty
Overtime Rule
The Department of Labor (DOL) released a draft regulation proposing updating the salary level at which certain "white-collar" workers would be exempt from minimum wage and overtime pay from the current $23,660 to $50,440. It would take effect on Jan.1.
Under the current law, workers who earn less that $23,660 annually are considered non-exempt employees and employers must pay them time-and-a-half for any hours worked over a 40 hour work week.
The Fair Labor Standards Act white-collar exemptions exclude certain executive, administrative and professional employees from federal minimum wage and overtime requirements.
NAHB has submitted a request for a 90-day extension to the comment period.
As you can see, your HBA membership is more important than ever.
However, membership is just the start. Becoming an active member enables you to stay connected with other industry professionals and provides you with countless educational opportunities to stay informed and educated. After all, the home building industry is one of the most heavily regulated industries. As a professional in this industry staying informed and educated can make the difference between a business that's ordinary or extraordinary.
As for myself and our company, active membership does make a difference.
As always, I would like to personally thank you. By reading this very article, you are wisely taking advantage of the work done on your behalf and our industry.
This is made possible because of your valued membership in both OSHBA and NAHB.
If I can be of any help as your NAHB State Representative please contact me, I would enjoy hearing from you.
Check out these winners from this year's annual Sporting Clay tournament. This annual tournament is a blast (pun intended) and helps raise funds for our political action committee. See more photos on the OSHBA Facebook page.
Editor’s note: Be sure to save September 21-22, 2016, on your calendar for next year’s Oklahoma Building Summit & Expo
We asked for unfiltered feedback on the recent Oklahoma Building Summit & Expo, and more than 25 percent of those who attended responded to our survey request. We’re committed to considering all of the comments — both the positive and negative — to provide an even better experience in 2016.
Here is some of what you told us in the wake of the Summit:
What did you like best about the Summit?
Easy access, and great to talk with all the vendors.
Final speaker!! Loved his attitude & take on the economy.
Good variety of classes.
New location. Cox Center worked out very well.
I was able to have time to meet and talk to vendors and suppliers. Most of the time this is hard to make time when working on multiple projects at the office.
It was nice to put a face with the businesses we use.
Seeing new products and meeting new potential suppliers.
Guest speakers. Chuck Shinn was excellent.
Great way to view products and get the Associates involved with the format.
Combination of education and vendors.
What can we do to improve the Expo component?
Continue to grow it.
Cut down the lunch time to 1 hour.
Bring in more vendors. Take off software companies.
Enjoyed it as it is.
Get a few more vendors, but not too much.
Having more relevant exhibits.
More vendors.
More focus on energy efficient products for the home.
Reduce the time of the breakout sessions. I’d rather have the time to talk with other attendees and vendors.
Have more unique home product booths.
What topics would you have liked to have seen covered?
Tips for efficiently managing jobsites or something on how to be a more effective superintendent.
Social media, marketing/advertising, new home sales training,
Marketing, sales, social media Apps, latest technology.
Communication between builder and lumberyard. How to make it smoother.
Social media/marketing, design and trends.
More on earthquake construction and liability.
More code classes.
More new products and design concepts.
Automation, both in the home and with our business.
National market comparison.
What improvements would you like to see for the 2016 Oklahoma Building Summit & Expo?
Shorter classes — 45 minutes is the ideal length of time for people to pay attention – anything over an hour has diminishing returns.
Some type of documentation for attending classes.
Need more classes on energy efficient building.
Bigger and better.
Easier registration/more communication in general with exhibitors.
More classes geared toward design trends and social media. What’s new in the building industry?
Lunch was too long. It would be better to cut the first day down so that people could have some of the afternoon to work.
More vendors in the expo.
Classes geared toward associates as well as vendors.
Anticipate what membership wants to learn about and adjust room sizes accordingly.
If it affects builders, it will affect associates. We must be active.
(EDITOR’S NOTE: This is the first of two parts about the purpose and mission of associate membership – to provide unity, collaboration, promotion, forum, advocacy and community support. It will appear in the upcoming edition of Oklahoma Builder magazine)
As of July, OSHBA had 911 builder members, 1,303 associate members, 325 affiliate members. We are not close to the national average of one-third builders to two-thirds associates and affiliates. The power of two-thirds of NAHB membership can be a major force for the HBA if given the guidance and structure to work as a collective. We need more associate members in Oklahoma!
Steve Sullivan
Associates are the home-building industry’s suppliers, service providers and product manufacturers. They support the industry in many different capacities and are a vital component of the association.
For us, joining an HBA is an opportunity to network and spotlight our products and services provided to builders, remodelers and associates; learn more about the industry, help promote a positive economic and regulatory environment for home-building and related businesses.
Part of business success is about what you know and who you know.
Associates benefit from the strengths of industry representatives advocating for small and large business on industry-related issues. Our home builder associations are here to help us with local, municipal, state and national issues and concerns.
OSHBA encourages associate members to learn more about home building and broaden our industry knowledge.
Getting by just to get by doesn’t cut it anymore in today’s world. Knowledge is power and awareness is critical if you want to be successful. Time spent by associates to be more aware of the building industry can only help make them better professionals.
Associates frequently say: “This HBA needs more builders to come to the general membership meetings.” I’m more focused not on quick sales and business card overload to a builder, but more about developing “social capital” which helps me with warm introductions to business opportunities. Home builder and associate meetings are ideal for lead generation.
Many of us join our local, state and national association of home builders just to get business from the builder members and some associates. Business does not come to you by just simply being a member. If you want to do more business with builders, you must get involved, be active. Learn all you can about our industry.
When I joined the HBA, I could not see how getting involved was going to help me with gaining business or where it would lead down the road. After joining and serving on different committees, I met and worked with the executive officer and many other people.
At first I felt out of place, but after a while I started to share my ideas. Some of the committee members would say “I have sat on this committee for years, that will not work.” However, others would say “it’s great to have new blood with new thoughts.”
Builders, do business with associates!
The builder member who regularly engages associate members is one that should be held in high esteem. Business is business and builders need to get the best possible combination of price and quality.
However, doing business with an associate member who can provide what the builder needs is an outstanding example of how our association is supposed to work. Builder members should engage with active associates & seek bids from associates, particularly those who volunteer their time to help the local HBA.
It will be up to each individual associate to be professional, know the builder’s product and who the associate is competing against.
Associate membership has many other benefits and privileges, from discount programs for many goods and services to a wide variety of insurance discounts for property, general liability, workers comp to auto insurance. Get involved!
Editor’s note: This blog post was excerpted from a story published in Sept. 18 editions of The Wall Street Journal. Oklahoma City’ was ranked sixth nationally in this economic survey by the financial website WalletHub.
Six years after the recession ended, some cities across the country are still struggling to bounce back. Nowhere has the fallout been more acute than in the American Southwest, according to new research from personal finance website WalletHub.com
In a study released this week, the company ranked the 150 largest U.S. cities based on which had made the most economic progress since the recession, which began in December 2007 and ended in June 2009. (Oklahoma City was ranked sixth overall).
Of the 15 cities that have recovered the least since the recession, nine are in the Southwest, including five in Arizona (Tucson, Glendale, Tempe, Mesa and Phoenix) and four in Nevada (North Las Vegas, Henderson, Reno and Las Vegas).
Researchers looked at 17 economic indicators, including the change in the poverty and violent-crime rates, home-price appreciation and wage growth, and ... Read the article
Editor’s note: This column will be published in the upcoming edition of Oklahoma Builder magazine
This issue I thought I would get a little serious with you.
The topic in this month's magazine deals with education and how it ties to the industry. The annual Oklahoma Building Summit & Expo helps our builders to be the best that they can be. We cover many topics, from energy efficiency to concrete issues to business operations. We also try to each year keep you up-to-date on legal issues. This is good stuff – for your business.
Mike Means
The Home Builders Institute works hard to ensure we have a well-trained labor pool. I am especially excited about how they are taking our soldiers who are exiting the military and teaching them skills they can use in the workplace. Imagine the quality of a worker that has the discipline and team training that the military brings combined with the skills from HBI! This is good stuff – for your business.
For several years, the State Associates Council has awarded scholarships to our local technology centers. These scholarships have helped young people in school learn about the construction industry and even receive specialized training in one of the trades.
Do you realize the average age of a plumber in this country is over 50? Training the next generation of trades is crucial to our industry.
The Autry Technology Center in Garfield County puts more emphasis on residential builders. This is good stuff – for your business.
But what are you doing to help yourself? And I am not talking about business skills. What about feeding your soul?
Earlier this summer, I was privileged to attend NAHB’s Association Leadership Institute. One of the keynotes was the author of the Chicken Soup for the Soul series. He gave some great advice and also challenged us to think about our souls. One thing to consider is who we hang out with. He said we are the average of the five people we most associate with.
As a member of a professional association, you’ve taken that first step to hanging with the right people. I would also encourage you to take some time to read your Bible, volunteer, and be sure to take some time for yourself and your family.
The CPB of the Month for June 2015 is Dave Carr with Dave Carr Construction. Dave is a member of the Central Oklahoma Home Builders Association and has been an active builder in the Greater Oklahoma City area for over 45 years. Dave is the epitome of professionalism and is living proof that the old adage "can't teach an old dog new tricks" doesn't apply to him. Dave has been a Certified Professional Builder for many years and is a regular attendee to the OK Building Summit & Expo. Dave also regularly attends the International Builders Show that is presented by NAHB and always participates in many of their education offerings.
Dave is the current Membership Chair for COHBA and is also on their Board of Directors. He not only actively recruits new members - he actively advocates for builders to become certified professionals.
Please help us to congratulate Dave Carr as the CPB of the Month!
Watch this video and then take action to benefit the Home Builders PAC. You can also give yourself an opportunity to win a beautiful new 12-gauge shotgun.
Now that you have watched the video, click here to register for the annual Sporting Clays event and benefit the Home Builders PAC. It will be a blast (pun intended!).
I announced before that our OSHBA Board of Directors has voted to create the Oklahoma Housing Hall of Fame. It is time that we recognize the past and present giants of the housing industry in Oklahoma, and I’m looking forward to getting the ball rolling.
Phil Rhees
A Board of Governors will eventually be created to administer the program and select the inductees, but as we plan to honor our first class of Hall of Famers at our annual officer installation and banquet in January, the OSHBA Executive Committee and Executive Officer will handle the responsibilities until a Board of Governors can be appointed by next year’s president and approved by the Board.
It is time to nominate someone you feel fits the bill. Application forms are on the OSHBA web site and also at the OSHBA office, or you canclick here to download.
Any member of our state association can place a name into nomination, but it must be received no later than ten days prior to our Fall Board of Directors meeting. (Since this year it is October 1 that means September 20!!).
Nominees may be persons (living or deceased) who have made significant and lasting contributions to Oklahoma housing and/or to the OSHBA. They can be builder OR associate members, elected or government officials, or Industry-allied professionals…..basically anyone who has contributed or supported our industry in a substantial or unique way, even if they live out of state!
So get with your friends and colleagues and start talking about who you would like to nominate! I’m sure all of us know a few members that qualify as “no-brainers” for this honor, and I expect this first class will be very special, indeed!
OSHBA's annual Homebuilders PAC Sporting Clays event will be October 6.
Summit is over, school's back in session, now what?
Upcoming events you won't want to miss - - -
October 6 - Annual Homebuilders PAC Sporting Clays Tournament.
This event is sometimes called "golf with a shotgun." We will meet at Quail Ridge Sporting Clays and shoot those pesky little orange clays. Top 5 shooters will have a shoot-off for top shooter. Top shooter wins a new pistol!
This event also helps us raise funds for our political action committee. Our association is strong because our PAC is strong. So come support the cause and have fun doing it.
October 19 - Annual State Associates Golf Tournament.
This year's tournament will be held at the Rose Creek Golf Club in North Oklahoma City. This course is scheduled to go private soon, so here is a chance to play a great course at a reasonable rate.
Something new this year - the proceeds will go to a charity. The committee this year selected the Homeless Alliance to be supported. If golf is your game then sign up to join us. Hole sponsorships are still available.
Ok, so they are not events, but we do want to take the opportunity to remind everyone nominations are open for the following. Click on the title for more information or the document attached:
Editor's note: This article was originally published on the NAHB's Eye on Housing blog
The 2014 Survey of Construction (SOC) from the Census Bureau shows that the average completion time of a single-family house is around 7 months, which usually includes around 25 days from authorization to start and another 6 months to finish the construction. The timeline from authorization to completion, however, is not consistent across the nation, depending on the housing category, the geographic location, and metropolitan status.
Among all the single-family houses completed in 2014, houses built for sale took the shortest time, 6 months to completion after obtaining building permits, while houses built by owners required the longest time, 11.5 months. Single-family homes built by hired contractors had around 8 months from permit to completion, and homes built for rent normally needed ... Read the full article at the NAHB website.
I announced before that our OSHBA Board of Directors has voted to create the Oklahoma Housing Hall of Fame. It is time that we recognize the past and present giants of the housing industry in Oklahoma, and I’m looking forward to getting the ball rolling.
Phil Rhees
A Board of Governors will eventually be created to administer the program and select the inductees, but as we plan to honor our first class of Hall of Famers at our annual officer installation and banquet in January, the OSHBA Executive Committee and Executive Officer will handle the responsibilities until a Board of Governors can be appointed by next year’s president and approved by the Board.
It is time to nominate someone you feel fits the bill. Application forms are on the OSHBA web site and also at the OSHBA office, or you can click here to download.
Any member of our state association can place a name into nomination, but it must be received no later than ten days prior to our Fall Board of Directors meeting. (Since this year it is October 1 that means September 20!!).
Nominees may be persons (living or deceased) who have made significant and lasting contributions to Oklahoma housing and/or to the OSHBA. They can be builder OR associate members, elected or government officials, or Industry-allied professionals…..basically anyone who has contributed or supported our industry in a substantial or unique way, even if they live out of state!
So get with your friends and colleagues and start talking about who you would like to nominate! I’m sure all of us know a few members that qualify as “no-brainers” for this honor, and I expect this first class will be very special, indeed!
The plunge in oil prices increasingly looks like it is here to stay, and that could be bad news for home values in three states that are most exposed to job losses in the drilling fields.
So far, the energy-price declines don't look like they will lead to home-price declines as severe as those inflicted on Texas during the 1980s oil patch downturn, according to an analysis by Eric Brescia, an economist at Fannie Mae. But his analysis shows that homeowners in North Dakota, Wyoming and Alaska are "at risk of experiencing significant house price declines."
Kelly Parker holds IRC code book as he stands before audience in breakout session.
By Jim Stafford
Carol Hartzog Communications
Kelly Parker lifted a hefty book the size of 1960s Sears catalog up high as a room full of people looked on at Oklahoma City's Cox Convention Center.
Instead of "Sears," the cover of the book said "IRC," an acronym for International Residential Code.
"How many people know we have a statewide building code that went into effect in 2010?" asked Curtis McCarty, standing next to Parker in the first breakout educational session at the 2015 Oklahoma Building Summit & Expo.
Kelly Parker holds IRC code book as Curtis
McCarty looks on in background.
Dozens of hands went up in a room filled with home builders and members of the building trades.
"Is everybody up to date on that code and what it means to the industry and what it means to us as builders?" McCarty asked.
Fewer hands went up.
McCarty is owner of Norman-based C.A. McCarty Construction, LLC, and teamed with Parker, a consulting engineer and President of GWS Systems, to lead an educational session called "Top 10 Reasons for Inspection Rejection."
The pair showcased issues both nationally and locally that have caused new construction to be rejected by inspectors.
They prefaced the session by emphasizing the importance of the building code and how it was adopted and evolves.
McCarty is one of 12 members of the Oklahoma Uniform Building Code Commission (OUBCC), which is charged with reviewing and updating the Oklahoma building code every six years.
"He is your liaison to that commission," Parker told the audience.
The pair recommended that builders acquire a copy of the IRC and use it as a guide to avoid having their work rejected by inspectors because it is not built to the code.
"This is the book that governs how we build a house in Oklahoma and across the country," McCarty said. "The IRC is written specifically for residential construction."
In Oklahoma, codes are adopted for statewide use, although individual communities are free to revise certain codes to make them more stringent.
However, an estimated 40 percent of all new construction is built in unincorporated areas of the state.
"Are you obligated to build to a code when you are not in the jurisdiction of a municipality?" Parker asked. "Yes, although it won't be inspected. You can request an inspection."
The most common complaint the OUBCC hears from the public revolves around the lack of enforcement in unincorporated areas, McCarty said.
The commission works to improve building codes that ensure quality construction across the state while keeping costs affordable for consumers.
"At some point the cost of what we are required to do has no return on investment to the consumer," McCarty said. "So, why would you keep making it more stringent if there is no return on the investment. We have to take those factors in to consideration."
After providing insights into the building code, McCarty and Parker launched into their list of top 10 reasons for rejection of construction, beginning with failure to provide a field survey to establish property boundaries.
"We're trying to educate our builders on what the top problems are, the top violations to improve construction and overall quality across Oklahoma," McCarty said. "That's really what this whole Building Summit is about."
The Expo hall was a center of networking during the 2015 Oklahoma Building Summit & Expo.
By Jim Stafford
Carol Hartzog Communications
The 2015 Oklahoma Building Summit & Expo was (pick one): A) A smorgasbord of industry educational opportunities; B) a go-to place to see and touch cutting edge building products; C) the state's largest networking event for home building leaders; or D) all of the above.
If you attended the two-day Building Summit on Aug. 26-27 at Oklahoma City's Cox Convention Center, you know that "D" is the easy answer to this quiz.
Approximately 625 Oklahoma home builders, trades and suppliers converged on the Cox Center to be challenged by speakers, enlightened by educational session leaders and to enjoy the camaraderie of their peers.
Displays on the floor of the Expo were a big draw
This surpassed the 500-attendee goal the planning committee set, and the current summit count almost doubles the number of attendees last year.
The Building Summit opened with a keynote presentation by Charles Shinn Jr., Ph.D., a Denver-based industry consultant who challenged his audience to become the builder of choice. Then he told them how to accomplish that mission.
Breakout educational sessions brought information on a wide variety of industry topics, including the top reasons that inspectors reject new construction, 25 critical mistakes builders make, the challenges of using concrete in construction, the limits of general liability insurance and much more.
In between speakers and classes, the trade show in the Cox Center exposition hall and an area designated for networking, was a big draw for participants. More than 53 vendors showcased the latest products for use in home building, while the builders swapped stories with each other in the networking area.
An evening banquet featuring David Wood of Giant Partners as guest speaker, along with musical entertainment, concluded the first day.
On the final day, two sessions of concurrent breakout classes preceded closing keynote by Ted C. Jones, chief economist and senior vice president for Stewart Title Guaranty Co. in Houston.
Mike Means is on top of his game at the Oklahoma State Home Builders Association, having successfully lobbied over the past 11 years for several laws to support the building industry and offered countless hours of continuing education to OSHBA members.
For his videotaped final legislative update to the members of the Oklahoma State Home Builders Association (OSHBA), Mike Means opened by pretending he was caught practicing his putting at work after the session adjourned in late May.
An ardent golfer and the association's chief officer, Means recently moved to digital reports — seasoned often with comedy — to gain more attention from his membership.
"People are having fun with it, because I'm having fun with it," he said.
On the golf course, Means, 58, shoots around 90 and follows the famous adage that if he shot any better, he'd be neglecting his business. Any worse, he'd be neglecting his golf.
At OSHBA, Means is on top of his game, having successfully lobbied over the past 11 years for several laws to support the building industry and offered countless hours of continuing education to OSHBA members. Founded in 1948, the association today has 2,600 members statewide ... Read the full article at NewsOK.com
The sagging home ownership rate — at 63.4 percent, the lowest in 48 years, the U.S. Census reports — won't be helped by mortgage disclosure rules going into effect Oct. 1.
Ted C. Jones
That's according to Ted C. Jones, chief economist and senior vice president for Stewart Title Guaranty Co. in Houston.
It's because the actual process of financing the buying and selling of houses will be so much more difficult, he said.
"We're going to continue to have more renters than owners than normal, and part of that, almost all of that, is a function of our government — Dodd-Frank and the CFPB," he said at the Oklahoma Building Summit & Expo at Cox Convention Center.
Jones was talking about the federal Consumer Financial Protection Bureau and reform of financial services regulation that Congress passed in response to the financial crisis, credit freeze, housing crash and the Great Recession.
Keynote speaker Charles Shinn addresses audience at opening session of 2015 Oklahoma Building Summit & Expo
With construction still dealing with a post-crash workforce shortage, "it is imperative to have a dedicated team all pulling in the same direction," expert says at homebuilders event in Oklahoma City.
The "Profit Doctor" prescribed teamwork for peak performance for homebuilders and others at the Oklahoma Building Summit & Expo — emphasis on the others.
Charles C. Shinn Jr., Ph.D, first gave a vocabulary lesson on "team."
"Expand your understanding of the word ‘team' to include company employees, trade contractors and suppliers," he said, "to have an engaged, dedicated and motivated ‘team' to become highly profitable."
With construction still dealing with a post-crash workforce shortage, "it is imperative to have a dedicated team all pulling in the same direction," said Shinn, president of The Shinn Group of Companies and Builder Partnerships in Denver.
Nationally, almost all trades are in short supply, especially framers, drywall installers and painters, Shinn said in his opening keynote presentation Wednesday at the seventh-annual summit at Cox Convention Center.
EDITOR'S NOTE: Several 2014 Summit attendees told us what dollars they saved in learning process-efficiency principles. This year's Summit that begins today at the Cox Center in Oklahoma City will be equally beneficial to the bottom line. Here's what builder Jim McWhirter says.
Jim McWhirter
"Lean construction principles are all very practical ideas. I've been building and developing for more than 31 years now, and I have noticed and thought about these issues for years now. I think for savings, smaller-volume builders are there, whether you build 10 houses a year or 500 houses a year. I can see where the savings could go anywhere from $2,000 per house on a smaller house on up to a larger home where you could save $10,000 on a larger home."
-- JIM MCWHIRTER, CPB, Choctaw/Midwest City
Past president of Central Oklahoma Home Builders Association
EDITOR'S NOTE: Presenting sponsors of the 2015 Oklahoma Building Summit & Expo are HUB Insurance, Mid-Continent Group and Grain Dealers Mutual Insurance Company. Summit speaker Tom Cordell is an attorney that Mid-Continent Group utilizes for litigation regarding construction issues. He will be leading a breakout session class 2-3:30 Wednesday, Aug. 26.
Tom Cordell is a partner in the Chickasha law firm Frailey, Chaffin, Cordell, Perryman, Starkel, LLP, and has practiced law with the firm since 1981. The firm is one of the largest non-metropolitan law firms in Oklahoma, yet represents clients statewide from various insurance clients, financial institutions, municipalities and individuals.
Tom Cordell
Currently president of the Lawyers for Civil Justice, Cordell is active in professional organizations, including the Federation of Defense & Corporate Counsel, the Oklahoma Association of Defense Counsel and has served as chair of the Insurance Section of the Oklahoma Bar Association. Specialties include insurance law, product liability, wrongful death and commercial litigation.
Cordell's presentation at the Building Summit & Expo will cover the topic of "Why Your General Liability Insurance Is Not a Warranty." He recently took the time to answer questions about his upcoming presentation:
Question: What do you plan to address in your breakout session at the Building Summit?
Answer: I end up doing a lot of coverage work on issues that deal with construction defects. What builders seem to believe is their general liability policy is almost like a warranty or a bond. It really isn't, and there really needs to be some more education as to what the general liability policy is for and its purpose and what it does and does not cover.
Q: What is the purpose of a general liability policy?
A: It can be a physical injury or it can be property damage but it has to arise out of an accident. For example, if somebody is up shingling a roof and their foot slips and they hit a package of singles and it falls down and hit somebody on the head or falls down and breaks some equipment or something like that -- that's an accident and would be covered. Normally, these policies don't cover poor workmanship. For example, if a worker comes out and just does a bad job putting on the roof and the roof has to be replaced, there is no accident. There is just poor workmanship and a CGL policy doesn't cover that sort of thing.
But a lot of times builders say "Well I'm covered, I've got insurance." Well, you are covered for accident. If you want to be covered for your workmanship, then you go buy a bond, a performance bond or builders bond or something like that.
Q: How can I protect myself as a builder against poor workmanship?
A: There is a performance bond, and a performance bond is something that guarantees you are going to perform your work in a workmanship like manner and if you don't, then a performance bond is going to step up. Now a lot of times the performance bond companies require almost 100 percent premium. You have to guarantee that you are going to pay for that.
Q: How can General Liability insurance protect a builder in case of accident because of poor workmanship?
A: On poor workmanship, if you are a builder and a roof is put on improperly and it leaks, and when it leaks that causes it gets into sheet rock and the damages cause the sheetrock ceiling to fall down, and it falls down and it breaks a vase on the piano and ruins the rug. Although the replacement of the roof isn't going to be covered by the General Liability policy, it will cover the sheet rock, it will cover the broken vase, it will cover the damage to the piano or the rug. So it will cover certain things, it just won't cover replacement of the poor workmanship. It will cover accidents that occur as a result of the poor workmanship. Those are areas that a lot of people just don't understand, so that's going to be the nature of the presentation, what is and what isn't covered by your CGL policy.
EDITOR'S NOTE: Several 2014 Summit attendees told us what dollars they saved in learning process-efficiency principles. This year's Summit will be equally beneficial to the bottom line. Here's what builder Jeff Starkweather says:
Jeff Starkweather
"One of the tips I took away from the conference is the incredible amount of money you can save just by managing waste and scheduling. Those numbers are up to $10,000 per house, which is incredible. Just being cognizant of your preplanning and how to line up your schedule to where you are not having wasted days can save an incredible amount of time and money."
-- JEFF STARKWEATHER, CPB, Tulsa
A council chair of the Home Builders Association of Greater Tulsa
Editor's note: Ted C. Jones, Chief Economist - Senior Vice President for Stewart Title Guaranty Company, will deliver the closing keynote address at the 2015 Oklahoma Building Summit & Expo on Thursday, August 27. Jones recently shared some of his perspective in advance of the Building Summit. The following is the third of three blog posts from that conversation:
Q: You maintain an active Twitter account and post of a lot of statistics that you have uncovered. How does that help you or your customers?
Ted C. Jones
A: My job description is to provide internal and external customers better information to customers to help them make a better, informed decision. Twitter is basically my own reading and my own research. The stuff I put on there is stuff I find appealing. For instance, last month 40 percent of all existing home sales were on the market for less than 30 days. What that says to me is we still have a sellers market in this country and it was at a higher percentage the month before, which says to me that perhaps our inventory is even shrinking nationwide. And what that says to me is that rents and prices are going to continue to rise.
Q: You also post a lot of what you call "I did not know that" stats. Can you give us an example?
A: For instance, I like the information from the National Association of Home Builders. They have some real pertinent information on their blogs. NAHB, for example, said they were talking about labor shortages with their builders, and 72 percent of builders said there was a real shortage of labor. That means I have three out of four builders who are looking for people. That's probably why we haven't gone back to that 1.1 million new home sales a year, because we can't find the people to build 1.1 million.
Q: What else would you want your Oklahoma audience to know before you speak at the Building Summit?
A: When we walk in there we will have the latest statistics. Ultimately, statistics are like in-laws who stay more than 3 days with you. Remember that infamous line, fresh fish in your refrigerator after three days are just like your in-laws. You have to clean up the mess after they leave. I think that's true of old statistics of any kind. It's got to be fresh. The freshest is the best.
Editor's note: Ted C. Jones, Chief Economist - Senior Vice President for Stewart Title Guaranty Company, will deliver the closing keynote address at the 2015 Oklahoma Building Summit & Expo on Thursday, August 27. Jones recently shared some of his perspective in advance of the Building Summit. The following is the second of three blog posts from that conversation:
Ted C. Jones
Q: Would you describe your speaking style?
A: I don't know where you went to college, but I was never more disgusted with a monotone, boring speaker in my life. I swore I would never do that if I had a chance to speak or teach. First of all, as a speaker you have to be charged with accurate, reliable statistics that truly tell the story, not the story you want to tell but the story that is actually taking place. For example, I was speaking in Cleveland. What can I say about Cleveland? A couple years ago, I told them we have some good news. My good news was you didn't live in Detroit. You have to be truthful. You cannot be a feel good economist. Bad news is bad news. I kind of have this philosophy that bad news comes first because if you can get the bad news over with then you have time to reconcile about a way to fix this. My speaking style? I'm not a Will Rogers, but I guess I have a little dry humor like Will Rogers. I've read a lot of his material. I don't use it. First of all, just give me the facts and don't tell me your opinion. I will ask for your opinion if I want it. If they want my opinion, I'll tell it. They may not like it. The facts up front. Don't be feel good. Be truthful. Adults can't take economics in a large quantity of numbers, but I add a little bit of levity in between.
Q: How many speaking engagements do you make annually and what is the most frequent question you are asked by your audiences?
Probably 150 a year on average. The most frequent question? One of them is "when are interest rates going up?" Another, I had when I spoke at a group this morning. In the U.S., we have more jobs than at any time in history. The question this morning was "yeah, but what kind of jobs? Are they really good jobs or bad jobs?" The good news is the jobs we created in the last 12 months pay more on average than the jobs we had before. So actually for the first time since 2006, we are creating a little bit better jobs than we had. You got from 2006-2015, we were creating jobs, but most people were talking pay cuts. The good news is we are finally creating better jobs.
There is still time to register and attend the best Summit yet! Still time to get some of the best education and best building tips on the planet right here in your own back yard!
You really can't afford to miss the opportunity to learn from Chuck Shinn, known nationally in the building community as the "Profit Doctor."
Top off your evening with us enjoying a delicious surf and turf meal. Listen to our keynote speaker give "money in the bank" networking tips you can use to build your business now.
Part of your registration will include the opportunity to visit our Expo during lunch times and before dinner. We have an outstanding lineup of vendors. Yes, lunches are included in your registration!
Are you asking yourself, "Is it worth my time?" ... It is! Guaranteed!
Editor's note: Ted C. Jones, Chief Economist - Senior Vice President for Stewart Title Guaranty Company, will deliver the closing keynote address at the 2015 Oklahoma Building Summit & Expo on Thursday, August 27. Jones recently shared some of his perspective in advance of the Building Summit. The following is the first of three blog posts from that conversation:
Ted C. Jones
Question: What message will you be bringing the Oklahoma audience?
Answer: I'll be looking at where the economy is, job growth, the whole works. In Texas, just as you have in Oklahoma, it's not nearly as bad as North Dakota. But we are seeing a toll being taken on what otherwise were dynamic economies, some of the best in the country, with the downturn in oil prices. But we're seeing housing sales hold up extremely well. Oklahoma City for example, in the last 12 months you still had 13,300 net new jobs. That's a pretty impressive job growth rate, 2.15 percent. So, OKC for example, is still growing jobs at better than the national rate, despite the decline in oil prices.
Q: What is driving Oklahoma's economy?
A: We're not just a one-trick pony, your state and my state. Oklahoma City is a major transportation center. It's a regional financial service center. It serves a very large population of medical and other facilities, and as we know, it's a major government entity. So it's just not a one-trick pony.
Editor's note: This article was originally published on the NAHB's Eye on Housing blog
NAHB's analysis of the most recent Census Bureau's Survey of Construction (SOC) shows that in 2014 custom home building expanded across all regions of the Unites States, except the Mountain division where the custom home share of new single-family starts remained stable under 16 percent, the lowest share in the nation. The New England and East North Central divisions registered the highest custom home market shares, close to 43 percent, up from 37 and 39 percent respectively in 2013.
The SOC differentiates between houses built for sale, houses built by contractors, owners and for rent. Built for sale, or spec houses, are houses built on builder's land with the intention of selling the house and land in one... Read the entire blog post.
EDITOR'S NOTE: Several 2014 Summit attendees told us what dollars they saved in learning process-efficiency principles. This year's Summit will be equally beneficial to the bottom line. Here's what builder Brandon Jackson says.
Brandon Jackson
"I've been concentrating on the Lean process, being able to look at the project from a value-engineering standpoint and working with the subcontractors, helping each other do a faster, more efficient job, I think as far as my overall framing costs, I could probably save 10 to 15 percent, so maybe $2,000 per house, getting away from a lot of waste and inefficiencies."
We would like to thank our outstanding presenting sponsors of the 2015 Oklahoma Building Summit & Expo
HUB International
HUB International is a global insurance brokerage providing property, casualty, risk management, life and health, employee benefits, investment and wealth management products and services. HUB is dedicated to helping businesses and individuals evaluate their risks and manage their insurance needs. Visit the HUB International website.
Mid-Continent Group
Based in Tulsa, Mid-Continent Group develops, markets and underwrites specialty commercial insurance and surety protection. With a long history of financial strength and stability, Mid-Continent Group of companies is rated A+ VIII (Superior) by A. M. Best. The companies of Mid-Continent Group include: Mid-Continent Casualty Company, Oklahoma Surety Company, Mid-Continent Assurance Company and Mid-Continent Excess & Surplus Insurance Company. Visit the Mid-Continent Group website.
Grain Dealers Mutual Insurance Company
Since 1902, Grain Dealers Mutual Insurance Company has offered a broad array of property and casualty insurance solutions. In 2009, Grain Dealers Mutual became an affiliate of The Main Street America Group, a super regional insurance company based in Jacksonville, Fla. Main Street America offers a wide range of commercial and personal insurance, and fidelity and surety bond products to individuals, families and businesses throughout the United States. Visit the Grain Dealers Mutual Insurance Company website.
Editor's note: This article was originally published on the NAHB's Eye on Housing blog
Interest rates on conventional mortgages used to buy newly built homes increased in June, according to data released earlier today by the Federal Housing Finance Agency (FHFA). The data show the average contract interest rate increasing by 9 basis points to 3.86 percent, the highest it's been since January.
The average initial fees and charges on the loans decreased by 3 basis points to 1.08 percent, but this small change was not enough to prevent the effective interest rate (which amortizes initial fees over the estimated life of the loan) from climbing to 3.98 percent. This also represents a 9 basis point increase ... Read the NAHB blog post
EDITOR'S NOTE: Immediate past OSHBA president Todd Booze with Ideal Homes of Norman worked with Chuck Shinn in his business. Shinn is the lead speaker for the Oklahoma Building Summit & Expo. Here's why you should come to hear him.
Why should Oklahoma builders go hear Chuck Shinn at the Oklahoma Building Summit & Expo?
It's a great opportunity for builders here in Oklahoma to hear somebody of this magnitude who has had the impact on the industry in helping builders improve their businesses. That's the bottom line -- how to improve your business and your company to operate better, which at the end of the day translates into more profit.
Todd Booze
Home building is a very tough business, very tough industry to survive and in, and Chuck brings a lot of wisdom to the table because he's been around it for 40-plus years and worked with thousands of builders across the country, seeing what works, what doesn't work. He's got a good program to teach guys if they'll come and listen and want to improve their businesses.
Chuck is kind of the godfather of the industry. He works with builders largely from an operational perspective. He's kind of the "Profit Doctor" - a label used to describe him-- but he gets in and works with builders helps them operate better and more efficiently, more profitably. He works on a lot of systems and processes. This is where builders usually fall apart.
Shinn consulted with Ideal Homes. Did that benefit your business and in what way?
Yes it did. It was early on in our careers and we were growing from a startup builder to getting up to where we were approaching 150 to 200 units. He came in and consulted with us operationally on how to manage the operation. Once you start to get that big, it's no longer a one-man show where you wear all hats. You've got to have systems and processes that support what you're trying to do. Consultants such as Shinn work on workflow to manage the process as efficiently as possible to reduce variance, which all translates into profit at the end of the day.
How does Shinn's approach differ from last year's Summit keynote Scott Sedam's approach?
Scott is more focused on the lean side of things. Chuck overlaps a lot into that in terms of relationships with your contractors and vendors, and eliminating waste and reducing variance. But Scott dives a lot deeper into the relationships between the builders and the trades, or reducing waste in your houses through design efficiencies. Chuck does a lot of the same stuff, but Chuck is more of a global consultant, from the front door to the back door, from sales processes all the way to construction and warranties.
What key areas does Shinn lay out for builders?
It's absolutely discipline. You can get pulled from one direction to another overnight, but you have to put the systems into place and trust them to have the discipline that goes with it. A lot of guys in this business are smaller operators and get jerked around all over the place and don't stick with things.
What else would you want Oklahoma builders to know about the Chuck Shinn presentation?
Usually you have to travel far away or sign up for one of Chuck's private seminars, which would cost someone a couple of thousand dollars. However, they can come to the Oklahoma Building Summit & Expo for $50-$75 registration fee, depending on if you register for the early-bird special. It's the best opportunity they have to improve on their businesses. We are coming out of the recession and things have changed from what they used to be. Chuck is going to shed a lot of light on that.
After nine years of service to the Tulsa HBA, I have decided to pursue a new opportunity. Having navigated the HBA through the worst recession in memorable history and overseeing the biggest remodel our building has experienced since its construction, I am proud of my accomplishments here. While this decision did not come easily or lightly, my entire family is excited about starting a new chapter in our lives. In this regard, I have accepted the position of Executive Vice President of the HBA of Raleigh, North Carolina.
Paul Kane
I believe that this move will give me an opportunity to take on new challenges with the HBA that has the largest membership in the country (over 3,000 members) and at the same time move our family closer to many colleges and universities of interest to our children who are rapidly approaching college age.
The decision to leave Tulsa and the HBA is among the hardest decisions I've made. The past nine years have been exciting and fun for me. However, I do look forward to starting anew with a new association, and I believe that it will be good for the Tulsa HBA to bring a new executive, with new ideas, new talents and a new enthusiasm.
In order to facilitate the transition, I have told the senior officers and Board of Directors that I will remain for eight weeks before I leave. This would make my last day in the office Friday, September 18. This will enable me to help with the transition period.
I have loved working at the Tulsa HBA. I have more respect and admiration for the leadership, the board, the members and employees of the HBA than I have probably ever adequately expressed. I look forward to hearing about how the Tulsa HBA will continue to grow and thrive under the guidance of my successor. Thank you for giving me the opportunity to be your executive officer for the past nine years.
As President of the Oklahoma State Home Builders Association, Phil Rhees also serves as co-chair of the 2015 Oklahoma Building Summit & Expo, August 26-27, along with Kurt Dinnes. Rhees recently sat down to answer questions about the upcoming session and how it will benefit OSHBA members. The following is the third in a series of three excerpts from that conversation:
Question; Do you try to use the Building Summit to update your membership on new technologies that are emerging?
A: Definitely. The big focus right now in the state of Oklahoma, primarily, is energy efficiency. There are changes happening all the time in that particular area. We have a couple of speakers who are going to come in and specifically talk about different areas of energy efficiency throughout the homes we are building. We expect it probably to be the most well attended educational event that we offer.
Q: What will Chuck Shinn bring to your membership as a keynote speaker?
A: Chuck is known for being a consultant for builders in the area of profitability. He's going to bring a couple of sessions that talk specifically about the things that keep builders from being as profitable as they can be. And also he's going to show us a lot of different ways from his point of view that we can increase our profitability going forward.
Q: What kind of bottom-line advice will Chuck should bring to your membership?
A: I expect he will bring advice on how we can make more money. But I also expect him to bring in advice on how we can cut a lot of our expenses, certainly, and to touch on our subject from last year on how we addressed the lean process on how to cut down a lot of waste, and how basically that would increase our bottom line. So, I think last year's speaker and this year's speaker are going to be approaching the same idea from two different ends.
Q: What does your closing speaker Ted Jones and economist bring to your membership?
A: You would expect an economist to come in and speak a lot of economist's language and maybe possibly put everybody to sleep. Ted won't do that. Ted is very humorous and brings a lot of humor into his economic projections. He's going to be focusing on the state of Oklahoma and our local municipalities and some of the economic drivers and economic indicators we should be looking for in the next year.
Q: What do you hope your members or participants in the show will take away from that they can use in their business?
A: We try to keep all of our education fresh and renewed every year. We do have a few speakers who come in that are really popular that update us every year to current changes in codes or different thinking in terms of energy efficiency. This year we have different speakers coming in, and we also have HOUZZ, which is a large marketing organization, that will come in and talk about how to better market online and how to better support your organization.
EDITOR'S NOTE: Several 2014 Summit attendees told us what dollars they saved in learning process-efficiency principles. This year's Summit will be equally beneficial to the bottom line. Here's what builder Lance Windel says.
Lance Windel
"One of the big things we've talked about was the start package. We kind of know the importance of the start package, but we got away from making sure we have a complete house start package before we start every home. I think if we get back to that, that's going to be cost-savings. I think if we look at the course of a single home, I think we can see easily $1,000 plus a home in call-backs or mistakes that were made because we all didn't understand exactly what that build was before we started."
LANCE WINDEL, CPB, Ardmore
State Representative for Southern Oklahoma Home Builders Association
In his 47 years as a consultant to the home building industry, Charles Shinn, Ph.D., has seen builders across the country cripple their operations by making critical mistakes and limiting profit potential.
After working with Dr. Shinn, also known as the "Profit Doctor," clients improve their bottom line from an average profit margin of 3-1/2 percent to a whopping 10 to 12 percent.
Charles Shinn
The Profit Doctor will bring his remedies for improving builders profit to the 2015 Oklahoma Building Summit & Expo as keynote speaker on Aug. 26. Shinn will also lead two breakout sessions later that day.
The Summit continues into the next day with a keynote by Ted Jones, Houston-based chief economist with Stewart Title who happens to be very entertaining.
Shinn created the Denver-based Shinn Group of Companies to help increase the professionalism and management standards of the home-building industry. He focuses on helping builders improve the performance of their company and maximizing total profits.
Shinn recently took the time to answer questions about his consulting practice and upcoming appearance in Oklahoma City. The following are excerpts of that conversation:
Q: How did you get the nickname "Profit Doctor?"
A: I was given that title by "Builder" magazine probably 20 years ago. It was actually in 2000. They did an article of one of our consulting assignments and at that point the author called me the Profit Doctor. "Dr. Housecall — the Profit Doctor Is In" was the name of the article.
Q: What is the most important educational focus you bring your clients to help them improve their bottom line?
A: I bring in systems and procedures, and management capabilities and cost controls. That's what we've done for the 47 years.
Q: How is your consulting business structured?
A: We do a lot of educational seminars. We have management educational seminars for every discipline that a builder has from superintendent, production manager, estimating purchasing, accounting long - all the different disciplines. And then we have a segment called managing for-profit that is basically for the builders and upper management team. We basically start talking to them about what it takes to put in profits. Our builders earn typically about three times the average builder for profit in the industry. We deal with somewhere between 500 and 600 builders across the country and Canada (among Shinn's past Oklahoma clients is Ideal Homes of Norman).
Q: What are you going to tell your Oklahoma audience in your keynote address?
A: Basically, everything I speak about is how to be in control of your organization, how to gain control of your variances and the money that slipping out of your fingers and how to improve your profitability of your organization - from your relationships with your trades and your vendors to in-house systems; what systems are going to give you the best returns for the dollar and effort spent. That's basically what we do.
Q: The titles of your breakout sessions in Oklahoma City are intriguing: One is "25 ways to improve profitability" and the other is "25 critical mistakes that builders make." What's the general theme of the classes?
A: In order to achieve profitability, you must plan for it. Once the strategy is laid out, you need to compel events to conform to the plan, measure and analyze results, take corrective action when necessary and finally, tighten the plan for continuous improvement - and profit. (Watch for subsequent blogs that detail some of Shinn's talking points).
Q: What is most frequent question you get from your audience when making similar speaking engagements?
A: The most frequent problem I would say that I am asked about is that builders don't believe they can do better. We show them how. Everything that I explain to them is pretty easy to do, but it takes discipline to do it. The average builder in the country makes about 3.5 percent profit. My guys will typically make around 10 to 12 percent. If you have the discipline to implement and to follow what I preach, you can improve your organization tremendously. A lot of times the questions I get are more, "How do I implement this. How do I do it?' And we go through about exactly how you implement all this and how you get it to work. It isn't like overnight that this will happen but it's a journey. I give you the map for the journey, but I'm not going to go from 3.5 percent profit to 12 percent profit overnight. It's not going to happen. So what I'm doing is I'm giving them a roadmap for their organization. It doesn't make any difference whether or not it's a 25 units-a-year builder or 1,000-units-a-year builder. The same principles apply.
Q: What else would you want Oklahoma builders to know about your upcoming appearance at the Oklahoma Building Summit && Expo?
A: I want them to come with an open mind because I will challenge the conventional wisdom. So I want them to come to the sessions with an open mind, and I want a lot of questions from them.
As President of the Oklahoma State Home Builders Association, Phil Rhees also serves as co-chair of the 2015 Oklahoma Building Summit & Expo, August 26-27, along with Kurt Dinnes. Rhees recently sat down to answer questions about the upcoming session and how it will benefit OSHBA members. The following is the second in a series of three excerpts from that conversation:
Q:How many vendors do you anticipate participating in the Expo?
A: This year our hope is we will have somewhere between 90 and 100 vendors exhibiting at the show. That compares to last year when we had approximately 10 booths that were operating during the event.
Q:In what ways will be Expo benefit your members as they network with the vendors?
A: We hope that our members will be able to go to the Building Summit and learn about new products, new ideas that will help them in their approach to building a home. Energy efficiency is a very big buzzword in the state of Oklahoma for builders right now, and we will learn different ways we can make our houses more energy efficient. There will be some vendors out there who will specifically address those needs. As a builder, I would like to attend this show and be able to talk to a lot of different vendors in one location without having to spend a lot of time looking all over town or looking on the Internet for information. I can go directly to those vendors there and hopefully get their information or be able to buy their products to put in my home. So you can be at the Summit and hear a lot of speakers talking about how to build a more energy efficient home, then you can walk out onto the floor exhibition floor and see a lot of the products you are going to need to be able to build a more energy efficient home. So, you can talk to them about buying those products and putting them in your house. It's a one-stop shop.
Q: What is your ultimate goal with the Building Summit & Expo?
A: Our focus is on our membership in the state of Oklahoma. We want to be able to provide the best education possible for Oklahoma builders so we can produce the best product that we possibly can. So, our goal is to try to offer a local educational source and to be the go-to source in Oklahoma for education on homebuilding. There are also benefits to people who aren't able to make the International Builders Show every year. The education we are offering is the exact same levels you'll find at the International Builders show. You can just stay here, stay at home, and not spend near as much money to attend that show. So, when the public takes a look at us and they see we are a member of the Oklahoma State Home Builders Association, they can be assured that we are offering education to all of our homebuilders and they have the opportunity to be educated to the level they expect. As a homebuyer, I would expect to be able to walk in to a house that has the Oklahoma State Home Builders Association logo and Certified Professional Builder logo and know they have the highest level of education possible.
Q: What's the purpose of your banquet on Wednesday night?
A: One of the other reasons we extended this into a two-day show was that a couple of years ago we got rid of our Oklahoma State Home Builders Association summer convention. That was a great opportunity for our builders and associate members from around the state and their families to come together and network and have a good time and learned a lot in a relaxing location and relaxing atmosphere. So one of the things we wanted to do in this particular situation this year was to offer an evening dinner event for builders and their spouses and associate members and their spouses to come in and have an entertaining event where they can come together and network like we used to. We expect to have a band there and will have a speaker who is more of an entertaining speaker. We always have a good time when we get together as a state Association. And I know a lot of our members have missed that. We are putting that together this year, and we're hoping it's a first-class event.
Q: Why should builders attend this event?
A: It is amazing to me how much builders in Oklahoma are looking to get better. They want to get better at their craft, they want to raise the bar, raising expectations on what we are supposed to be as builders in Oklahoma. So, we're supporting that idea. We want our builders to be the most educated and the most energy efficient builders in the United States. So, we are offering lots of opportunities for this to happen in a local location in Oklahoma City. You can get away and you can come to this Summit for a couple of days. It's very inexpensive and you can learn something in enjoy yourself.
Editor's note: The link to this article was provided by the NAHB's Housing Headlines, a weekly email containing compilation of the week's top housing news.
Price volatility in uncertain markets tends to scare investors away. This is why when volatility jumps in the stock markets, potential buyers hold on to their orders as sellers send prices tumbling.
But if jumping into uncertain waters doesn't feel good, then why is it that researchers found that the more uncertain prices are in the housing market, the more that people dive in and buy?
James Banks, Richard Blundell, Zoé Oldfield, and James P. Smith studied the relative volatility of different housing markets in the US and UK and found two big things: People are more likely to purchase a home earlier in life in places that have high price volatility, and people are more likely to move up to a larger house in those same uncertain conditions.
Jim Schuff, Past President of Central Oklahoma Home Builders Association, attended the 2014 Summit and was impressed with the Lean principles he learned. Many profitable tips will be learned this year at the summit, and so you need to register today. Click Here!
"This is the first one of these building summits I've been to and I've already picked up a lot of good information. The trick is going to be going back and implementing those ideas. I've got to go back to my guys and utilize this. Cutting back on waste. That's the biggest thing. You look at these jobs sites and you fill a 40-yard Dumpster twice on one little house. Too much waste."
-- JIM SCHUFF, CPB, Oklahoma City
Past President of Central Oklahoma Home Builders Association
As President of the Oklahoma State Home Builders Association, Phil Rhees also serves as co-chair of the 2015 Oklahoma Building Summit & Expo, August 26-27, along with Kurt Dinnes. Rhees recently sat down to answer questions about the upcoming session and how it will benefit OSHBA members. The following is the first in a series of three excerpts from that conversation:
Phil Rhees
Question: Why did you expand the Building Summit to two days this year?
A: We wanted to include more content for the Oklahoma Building Summit. We wanted to expand our education offerings, to improve the quality of those, as well as the quantity of offerings we have. But we also wanted to add a tradeshow aspect to our event to offer builders a local way to come to the show and talk to a lot of different vendors and suppliers from around the state. We felt like it might be helpful to a lot of our state membership, to those who don't get to go to the International Builders Show, to be able to visit with some of those vendors.
Q: You added the word Expo to your title. What does that indicate about the show?
A: That indicates the tradeshow aspect that we've added to the summit. It will be a two-day tradeshow as well. We will have booths and vendors operating out of those booths who will be able to directly market to our membership.
Q: Who is your target audience for the Building Summit?
A: Our main audience is our builders. We target them with our education primarily. But we do have a lot of associate members that go to these events to learn a little bit more about what's going on in our industry. So, we also have a pretty big associate member attendance.
Q: How many builders to you anticipate attending the show?
A: We have a little over 1,000 builder members. We are hoping to target at least half of those at the show.
EDITOR'S NOTE: Several 2014 Summit attendees told us what dollars they saved in learning process-efficiency principles. This year's Summit will be equally beneficial to the bottom line. Here's what builder Shawn Forth says:
"There are 200 things in a house, and if we can just get to one a month or a week, I think we can create some great savings. I think It's going to help tremendously. We're going to build 24 to 30 homes this year; those numbers are pretty easy to figure. Twenty four times $10,000 is a quarter of a million dollars. I think there is a huge opportunity there to create some savings, so taking a day to come out here and work toward that goal is pretty easy."
Now it's up to you. As most of us know, late last year the OSHBA Board of Directors voted to suspend holding a summer convention. Instead, they opted to make the OK Building Summit a two-day education event and include a trade show or expo component. I know many of you are participating by renting a booth. After all, what a great way to support the industry and meet over 400 decision makers! (What? You haven't reserved a booth space? Click here for information.)
Steve Sullivan
Those of us involved in past summer conventions asked "what about a networking opportunity?" Well, we have been given the night between the two days of education to do just that. And it is going to be a "must attend" night for you!
See, first we have invited David Woods with Giant Partners to present his Art of Networking talk. Why? Every survey taken among the associate members points to "networking" as their primary reason for joining. Networking - something that everyone is terrific at, right? NO! In fact, one of the biggest requests from Associates is teach us how to network. So, we asked and we received.
But there is more! We hear David, share a great message and then what? Well, we've got a great band (Best 4 Last) playing and giving you the perfect opportunity to put your new found skill to practice. Grab a beer, listen to some good tunes, and meet new friends!
So even if you aren't attending the builder education part of the Summit or showing off your stuff at a booth, you can still come and participate in a terrific night of fun and networking!
The time to get registered and book your hotel is now! For what you may ask? The upcoming OK Building Summit & Expo, that's what.
This year's Summit is your "I don't want to miss this" event of the year. Great education to stay at the top of your building game. Great opportunity to meet and greet those special vendors who supply the products talked about (and who can also offer extra tidbits you need to know as a builder). And, a GREAT opportunity to network with your peers from across this great state.
Visit the Summit's website to see the list of speakers, sponsors and the two-day agenda.
Builders - there is not a better way to get up-to-date on codes than this Summit. Ok, so maybe codes are not your thing. But what about profits? Have you heard that our keynote is Chuck Shinn - aka "the Profit Doctor?" He is Worth.Your.Time.
Associates (and/or potential exhibitors)- still room to show your stuff if you're in to that sort of thing. If not, there is something for you. Networking! That's right, an evening event that will entertain and provide that perfect opportunity to meet decision makers. You can purchase tickets just to the dinner if that's what you want.
Oh, one last thing, we have arranged a block of rooms for you. Come the night before - see downtown OKC (it is a hip place). Spend the night after the dinner. Or both. Same low rate applies. Did we mention it is at the Renaissance?! It's a sweet place. Click here to get booked.
The disabled Army vet moves around with ease in his new master bathroom. Dungan worked closely with OKC builder Jim Bower to customize accessibility for the entire family, including recessed countertops, retractable cabinets, wider door frames, and threshold elimination. Photo provided for OSHBA by Shannon Cornman
Smart home built for vet through Gary Sinise Foundation
By LUKE BOYD
In September 2010, Army Sgt. Rusty Dunagan's life changed forever.
While on patrol in Afghanistan, an improvised explosive device, or IED, exploded when he stepped on a landmine connected to it, causing him to lose both legs and his left arm.
Dunagan endured 30 surgeries and overcame serious infections in the years following that day.
Confined by a wheelchair, he had to re-learn how to live. Simple tasks, such as taking a shower, doing the dishes or even watching television were suddenly more complicated.
He struggled to find a house suitable for his needs.
Rusty Dunagan and OKC builder Jim Bowers of Jim
BowersConstruction embarked on a new friendship
after completionof the Dunagan's dream home.
The home was made possible through programs
by Gary Sinise Foundation and Stephen Siller
Tunnel to Towers Foundation. Photo provided for
OSHBA by Shannon Comman
That's when a family member called the Gary Sinise Foundation. Sinise is best known for his role as "Lt. Dan" in the six-time Academy award-winning film "Forest Gump."
The foundation's R.I.S.E (Restoring Independence Supporting Empowerment) program helps disabled veterans build homes that could accommodate their handicap, and helps them achieve the freedom that those without physical disabilities enjoy. Also, the Stephen Siller Tunnel to Towers Foundation worked to make the home a reality.
Today, Dunagan is living in a new home, but it's just not any home.
Built in north Edmond, his home uses "smart" technology to power everything from the television to the cabinetry. With one touch on his iPad or IPhone, Dunagan can turn off any light, raise and lower cabinets and blinds, lock doors, control the air conditioning and more.
"Everything is so simple," said Dunagan. "I don't have to worry about whether the doors or locked or if my kids are safe. It's nice to have that peace of mind.
OSHBA member Jim Bowers was the contractor and builder of the home, and donated his time and resources to the nine-month project.
Bowers illustrates the importance of being a part of a professional organization such as OSHBA which values "paying it forward" to so many in our communities.
"Sure, we wanted to build the best possible home we could, but part of being an OSHBA member is not just about building a great house, but being able to give back to the community we live and work in. It felt good to be a part of something special," said Bowers.
It was Bowers' job to communicate with all the vendors and make sure the nine-month project stayed on track - a job that was made more difficult with the extreme weather this spring.
"I have so much appreciation for the sacrifices that Rusty made," Bowers said. "The rain threw us off a little bit, but everybody pushed through it. The crew we had was amazing.
The bathrooms feature custom vanities, showers and tubs enabling Dunagan to use them with very little effort. The home even has a central vacuum system throughout the house.
All that technology required $100,000 worth of servers and wiring.
Joel Berrettini of I.T and Media was the brains behind the Sinise project. Berrettini is based in Wisconsin and is contracted for many of the Sinise homes across the country. He traveled to Edmond and installed everything himself.
If Dunagan ever needs help programming a feature or troubleshooting an app, Berrettini is just a text message or phone call away.
"Joel was amazing," said Dunagan. "He was here three days wiring everything. He even installed my TV in the garage. If I ever have an issue, he can access my iPad from his office and fix it."
Facing eastwardly from the Great Room, the French
doors are double-paned with low-E glass and
have center blinds. The lever is set out of the
reach of the Dunagan's 18-month-old daughter.
Photo provided for OSHBA by Shannon Comman
The home is 4,300 square feet and would typically require an enormous amount of money to heat and cool, but this one comes with geothermal wells donated by Titian Burris with ClimateMaster and state of the art foam insulation donated by Oklahoma Foam.
"Towards the end, when we were finishing up the house, we used the heat and air conditioning a lot," said Bowers. "But the bill stayed right around $150. For a house this size, that's really good."
Dunagan, who is now retired, works for Congressman Steve Russell. He and his wife Angie have five kids: Marissa 17; Daniel, 15; Rocky, 12; Annalisa, 5; and Rosalee, 18 months. One of his favorite features about the house is having his kids' bedrooms on the other end of the house, giving him and his wife Angie some privacy. But like most fathers, he wants to make sure his family is safe at all times. That's why he had the builders install cameras throughout the house.
"I can see what's going on at all times," said Dunagan. "Even though we love having some space to ourselves, I still like knowing what's going on over there and that they're safe."
In recent years, tornadoes have wreaked havoc in Oklahoma. Bowers, and the Sinese Foundation, made sure the Dunagan's would be safe should one ever come close to their dream home. A state-of-the-art, safe-room includes air conditioning and is powered by a propane generator. This means that even if the home were to lose electricity, the generator would still allow Dunagan and his family to maintain all the technological advantages of their home.
"If the power went out, we'd never know it," said Dunagan. "The generator would kick on right away. With all the weather we have here, that's going to make a big difference."
The foundation also provided custom landscaping for the five-acre yard, complete with an automatic underground sprinkler system.
"The sprinkler system has a rainfall sensor that automatically tells the sprinklers to come on when it gets too dry," said Dunagan. "So even if I'm out of town for awhile, my grass won't die."
OSHBA members, what track are you on? The 2015 Oklahoma Building Summit & Expo on August 26-27 offers the expected 400 to 500 builders, associates and trades in attendance the ability to pick and choose breakout sessions in focused tracks that meet their needs.
The Summit will offer two breakout sessions daily of four workshops each. They will feature more than an hour each of intensive education delivered by experienced instructors.
General topic areas of each breakout session will include a Construction Track, Business Management Track and Building Performance Track, with a fourth session presenting a different aspect of either the Construction Track or Business Management Track.
Here's a rundown of the specific subjects to be addressed and instructors for each breakout session:
Wednesday, August 26
Morning session - 9:45-11:15 am
Construction Track: Top 10 Reasons for Inspection Rejection; Instructors -- Kelly Parker, P.E., and Curtis McCarty
Business Management Track: 25 Ways to Improve Profitability; Instructor -- Chuck Shinn
Building Performance Track: Energy and Water Efficient Plumbing; Instructor -- Mike Burch
Construction Track: (Ready Mix) Concrete Issues
Afternoon session - 2-3:30 pm
Construction Track: Why Your GL Insurances Is Not a Warranty; Instructor - HUB International
August 26-27, 2015, in downtown Oklahoma City at the Cox Convention Center. This is our time and place for our annual OK Building Summit. Only this year, it has been updated. Not that the old summit was like a home in need of repair, but rather a tried and true event but with more pizzazz.
Mike Means
This year's Summit is actually the OK Building Summit & Expo. That's right, we have added a trade show component to go along with the Summit.
But wait, there is even more. The first evening, the State Associates Council is organizing some fun and networking for those spending the night.
And speaking of spending the night, we have a great block of rooms available at the Renaissance Hotel across the street. Book now and plan on having a great time learning, discussing and being entertained.
So, let's get back to the Summit & Expo. This year's event features the same quality education you have come to expect.
And, we have scheduled time for you to meet with the vendors and suppliers. This is new and a feature that was requested. So when you hear about improved insulation techniques, there is an insulation company to bounce around ideas and questions.
A special thank you to our friends at HUB International for being the presenting sponsor for this year's OK Building Summit & Expo. They also brought in Mid-Continent Group and Grain Dealers Mutual Insurance Company as part of their team.
Let me take a moment to share what will be highlights.
First, our opening keynote is Chuck Shinn. He is known in the homebuilding business as the "Profit Doctor." He is sure to give you great ideas on how to make your business more profitable.
Our closing keynote is Ted C. Jones, chief economist for Stewart Title. Ted will entertain you and help you be prepared for the expected economic trends.
You don't want to miss this year's OK Building Summit and Expo. Registration is now open, so get registered.You can register here.
The "Profit Doctor" is coming to Oklahoma, and he will bring his healthy recipes for builder success to the Oklahoma Building Summit & Expo Aug. 26-27 at Oklahoma City's Cox Convention Center.
Charles C. Shinn, Jr. - also known as the "Profit Doctor" -- will kick off the 2015 Oklahoma Building Summit & Expo at 8 a.m. on Wednesday, Aug. 26. Also, Shinn will lead two workshops on Business Management during two of Wednesday's breakout sessions.
Charles Shinn
The 2015 Building Summit & Expo is designed to increase profits of Oklahoma's home builders, from Shinn's opening keynote presentation to the closing talk Thursday from economist Ted C. Jones.
A special thank you to our friends at HUB International for being the presenting sponsor for this year's OK Building Summit & Expo. They also brought in Mid-Continent Group and Grain Dealers Mutual Insurance Company as part of their team.
In between the opening and closing presentations will be two days of educational workshops that will provide tips on the latest construction techniques, business management education and even tracks on best practices in the building industry.
Surrounding all of the educational classes and presentations will be an Exposition by scores of industry-related business that offer the most advanced materials and solutions for builders.
The two-day Building Summit brings more opportunity for networking, continuing education and discovery of new concepts offered by vendors.
"I'm really excited about presenting an expanded Building Summit this year," said Phil Rhees, OSHBA President. "The booth space is selling quickly and momentum is picking up. And we have quite a few new presenters this year with a variety of content that we think will appeal to everyone. It will be time well spent for builders, associates, trades and exhibitors alike."
The Summit will kick off with a keynote talk at 8 a.m. on Aug. 26 from Shinn entitled "Strong Teams Win." Shinn will show us how to bring our teams to peak performance, which of course will translate to a healthier bottom line for builders.
Shinn will present two Business Management track breakout sessions in both morning and afternoon sessions on August 26.
After Shinn's keynote address, a series of breakout sessions begin with workshops on timely topics both morning and afternoon of both days. Morning sessions begin at 9:45, while the afternoon workshops begin at 2 p.m.
Lunch will be 11:30-2 p.m. each day to allow networking and vendor presentations in the Exhibit Hall. The Wednesday session will conclude with a reception in the Exhibit Hall from 3:30-5:30 pm, followed by a banquet dinner from 6:30-9.
Thursday's workshops begin at 8:30 a.m., followed by a second morning session at 10:15.
Ted Jones will deliver his closing keynote at 1 p.m. Thursday. The chief economist for Stewart Title Guaranty, Jones brings expertise in applied real estate research and an economic forecast sprinkled with humor.
For registration information or to reserve exhibition booth space, visit the Oklahoma Building Summit & Expo website at www.okbuildingsummit.com.
Parade of Homes People's Choice Award winners named by the Home Builders Association of Greater Tulsa
The Home Builders Association of Greater Tulsa recently announced winners of the People's Choice Awards from the 2015 Parade of Homes. Here are the winning homes and builders listed by price category:
$184,999 and Under
Rausch Coleman Homes, 12810 E. 67th Pl. N., Hickory Creek
$185,000-$219,999
Hayes Custom Homes, 7616 E. 84th St., N., Carrinton Pointe
$220,000-$269,999
Banner Custom Homes, 18304 E,. 50th Pl. S., Stonegate IV
$270,000-$324,999
McCullough Homes, 12921 S. Ash St., Birminham at Yorktown
$325,000-$379,999
McCullough Homes, 10330 E. 121st Pl. S., Chisholm Ranch Villas
$380,000-$449,999
Smithco Construction, 8400 E. Greeley Pl., Wellstone II at Forest Ridge
$450,000-$599,999
Hayes Custom Homes, 6521 N. Oakwood CIrcle, Twin Creeks at Stone Canyon
$600,000-$899,999
Crestwood at the River, 6319 E 119th St. Villas at Crestwood Canyon
$900,000 and Above
Brian D. Wiggs Homes, 10529 S. Koa St., Fountain Ridge
Norman's Curtis McCarty, representing statewide homebuilders, has been reappointed to a four-year terms on the Oklahoma Unified Building Code Commission. The commission was established five years ago.
He is one of two reappointments to the UBCC this year. Joe McKenzie representing the mechanical trade was also reappointed. He works for Harrison-Orr Air Conditioning in Oklahoma City. The two, among others, were originally appointed by the governor to the task force.
Curtis McCarty
The statewide code was mandated by law in 2009, and modifications were made the last two years revolving around education requirements and terms of office. Overall, the code makes it easier for builders building in different cities and jurisdictions, construction advocates said.
"The UBCC puts everyone on the same playing field," said McCarty, owner of C.A. McCarty Construction, and liaison for the Oklahoma State Home Builders Association.
The group works with legislative, municipal and construction-industry leaders to continue to refine statewide residential and commercial building codes.
The code oversees all electrical, mechanical, plumbing, energy and building codes that will be adopted by the state.
With the unified code, trades will be able to count on continuity of materials and standards -- something that could ultimately reduce time and costs for the consumer, said McCarty.
McCarty has been in the home building business for 23 years and is vice chairman of the Norman Chamber of Commerce and chairman of the governmental affairs for the chairman. The OSHBA's state builder of the year in 2010, he served as Norman Planning Commissioner nine years, and is currently serving on the Board of Adjustments for the City of Norman.
Also, he chairs the Codes and Technical Committee for Oklahoma State Home Builders Association, was the 2007 president of Builders Association of South Central Oklahoma, is a member of the Oklahoma State Homebuilders Association and the National Association of Home Builders. McCarty is also one of a approximately 100 builders in the state to carry the designation of Certified Professional Home Builders and is nationally certified as a Green Home Builder.
Editor's note: This article was originally published on the NAHB Now blog:
With the Senate out of session from June 29 through July 6, NAHB members are encouraged to meet with their senators in their home districts during this interval and urge them to support S. 1140, the Federal Water Quality Protection Act.
The bill compels the Environmental Protection Agency and the U.S. Army Corps of Engineers to withdraw their final rule defining "waters of the United States" that will place millions of additional acres of land under federal jurisdiction.
The rule, which will be effective 60 days after publication in the Federal Register, will make it more difficult for home builders to provide housing ... Read the blog.
Wood framing expert Matthew Brown will bring his unique perspective on top framing concerns to the 2015 Oklahoma Building Summit & Expo in a breakout session entitled Engineered Wood Issues.
Brown will teach his class at 10:15 a.m. on Thursday, August 27 at the Cox Convention Center. The two-day Building Summit & Expo begins on Wednesday, August 26.
Matthew Brown
With more than a decade of experience as the Design and Quality Manager for Accent Homes, Inc., in northern Indiana, Brown joined APA-The Engineered Wood Association in July 2014 to lead its educational efforts.
"My role with APA-The Engineered Wood Association, is to build relationships with builders, suppliers, code officials, engineers and architects to be a resource for engineered wood products," Brown said. "I work to educate the wood industry on the impacts of energy efficiency and educate the raters, code officials and builders on the advantages of wood construction for energy efficiency and sustainability."
Brown's agenda for his session includes top framing concerns, wall bracing requirements and simplified wall bracing, as well as wall systems, floor systems and roof/ceiling systems.
"I have a deep understanding of the true energy efficiency of engineered wood products and bring knowledge of how engineered wood products can effectively compete in today's advanced energy codes," Brown said.
Editor's note: This article was originally published on June 17 on the NAHB Now blog:
Builders and developers continue to report easing credit conditions for acquisition, development, and construction (AD&C) loans according to NAHB's latest quarterly survey on AD&C financing.
As NAHB economist Robert Dietz reports in a recent Eye on Housing blog post, only 1% of builders reported worsening credit conditions for single-family construction in the first quarter of 2015, compared to 46% who reported better conditions. Similarly, only 7% said credit availability for land development was worse during the first quarter, compared to 42% who said it had improved.
Editor's note: This column will be published in the upcoming edition of Oklahoma Builder Magazine
I recently had the opportunity to go turkey hunting with my son, Corey, and long-time Tulsa HBA associate member Dub Jester out in Roger Mills County in western Oklahoma. Corey did end up bagging a turkey after much patience and a heckuva shot, but my pride for my son's hunting prowess is beside the point.
When you are turkey hunting, you have quite a bit of time to think about things, and my thoughts turned to Dub and our HBA associate members. As it is with many long-time members of our association, especially our associate members, so many of their contributions and achievements go unrecognized.
Phil Rhees
Sure, we honor some with awards, but for most of them, it's not about that. They have a true love for the people of our association and what we stand for. They spend countless hours donating their time at golf tournaments, home and garden shows, parades of homes, and the like, and they convince the companies they represent to sponsor events and contribute to this and that, and also make time to recruit new members.
For those of you who feel unappreciated for the work you do, I believe I speak for all builder members when I tell you how grateful we are for your support and friendship over the years. Our industry and our advocacy for residential construction would fail without your involvement in our many association issues and events.
So, in honor of our many associate and builder members who give so much more than what is asked of them, I am pleased and excited to announce that our OSHBA Board of Directors has voted to create the Oklahoma Housing Hall of Fame.
It is time that we recognize the past and present giants of the housing industry in Oklahoma, and I'm looking forward to getting the ball rolling.
A Board of Governors will eventually be created to administer the program and to select the inductees, and as we plan to honor our first class of Hall of Famers at our annual officer installation and banquet in January. Until then, the OSHBA Executive Committee and Executive Officer will handle the responsibilities until a Board of Governors can be appointed by next year's president and approved by the Board.
We expect to open up the nomination process sometime in June, and all members will be notified at that time. We will offer application forms on the OSHBA web site and also at the OSHBA office.
Any member of our state association can place a name into nomination, but it must be received no later than ten days prior to our Fall Board of Directors meeting later on this year.
Nominees may be persons (living or deceased) who have made significant and lasting contributions to Oklahoma housing and/or to the OSHBA. They can be builder OR associate members, elected or government officials, or industry-allied professionals -- basically anyone who has contributed or supported our industry in a substantial or unique way, even if they live out of state!
So get with your friends and colleagues and start talking about who you would like to nominate! I'm sure all of us know a few members that qualify as "no-brainers" for this honor, and I plan to nominate a few of them myself.
In the meantime, to Dub and all associate members working to create a better Homebuilders Association, once again thank you!
The Better Business Bureau of Central Oklahoma has taken over customer dispute resolutions for the Central Oklahoma Home Builders Association.
"The BBB offers a more complete mediation process and possesses unique expertise in communication between a business and a customer," said Rusty Appleton, the group's executive director. "They have the ability to mediate directly between entities and will take it through to arbitration if necessary. In the past we were able to facilitate arbitration, but the organization we partnered with dissolved years ago and we never replaced it."
Editor's note: Peter Grant of Grant Homes Remodel & Restoration was selected as the NAHB Remodeler of the Month for May. The following Q&A is found on the NAHB website.
How has the remodeling profession changed since you've been involved?
As a result of the popularity of remodeling television programs beginning with "This Old House" and culminating in the multitude of programs on HGTV as well as others, people are much more savvy and expect a much higher level of professionalism, quality and service.
Right now, what is your focus as a remodeler — more growth or steady revenue at greater profitability? Please explain.
We just came through a two-year period of rapid expansion and now are focusing on maintaining steady revenues and profit margins.
Many remodelers are reporting increases in their average job size in 2015, are you seeing this as well?
Attention OSHBA member golfers: here is your chance to show off your swing and raise money for a worthy cause. It's the 10th annual OSHBA Golf Tournament on October 19 at the Rose Creek - Tour 18 course in Edmond.
"We are playing for a great cause this year, the Homeless Alliance," said Titian Burris, OSHBA Golf Chair. "Let's all chip in - associates and builders alike - and raise $10,000 for a great cause."
Entries are sought from teams that will compete for cash prizes, while sponsors for the event are being recruited. We're seeking a wide range of sponsors, from title sponsor and team sponsors down to individual golfer sponsors and snack sponsors.
Editor's note: This column will be published in the upcoming edition of Oklahoma Builder Magazine
By Kurt Dinnes
NAHB State Representative
This is a beautiful season that I personally look forward to each year. The grass is greening up, trees are budding, flowers are blooming and home buyers start getting active.
As homebuilding continues to evolve, especially with the rising cost to heat and cool homes today, building energy efficient homes that incorporate "green building standards" are becoming more important to homebuyers across the country.
As a small custom builder myself, we offer energy efficient and green building options as well.
Kurt Dinnes
But to my surprise, they are often not chosen by our custom clients. They seem to be opting for luxuries or other amenities.
Perhaps with the lower cost of energy here in our great State, the demand is not as great as it is in other parts of the country. There, dense populations and higher energy costs heavily influence buyers to choose more energy efficient and green built options.
I think we would all agree that the cost of energy will most likely not get any cheaper.
The rising cost of energy will eventually make energy efficient and green building options much more important to buyers in the future here in Oklahoma.
As I have had the privilege to talk to many builders across the state, I am happy to say many builders are already incorporating energy efficient and green building techniques in the homes they are building.
One exciting example of this is some new housing developments are being developed with geothermal wells already installed on each lot, allowing all homes to be heated and cooled, as well as the hot water, assisted by a geo-thermal system in each home.
I believe energy efficiencies and green building methods are not just a trend. This type of construction is here to stay.
It will become increasingly more important as the demand for these types of homes grows that we, as builders, stay educated and informed.
As members of the Oklahoma State Home Builders Association, we have several great educational opportunities.
Certainly one of the best venues for education is the annual Oklahoma Building Summit.
This two-day event will offer educational opportunities that include construction techniques, green building methods, energy efficiencies, building code changes and compliance as well as business and legal classes.
This year, the Oklahoma Building Summit will be held at the Cox Convention Center and will include a trade show that will feature many suppliers, manufacturers and service providers showcasing the latest and greatest for the home building industry.
Becoming a Certified Professional Builder is another very important opportunity to stay ahead as a builder.
The CPB is a program run by OSHBA and provides a certification of high standards as a builder that among other requirements includes additional annual education.
This additional CPB education can help you, as a builder, gain the added knowledge to have that competitive edge as well as a discount on your general liability insurance provided you are taking advantage of the OSHBA-endorsed insurance program.
As for myself, I would not leave home without it!
My personal experience as a CPB is that it has added that extra professionalism in the minds of my clients.
I not only share the CPB designation with potential clients but also post the CPB logo on all my signage, business cards, marketing and at our job sites as well.
On the national front
I wanted to take the opportunity to update you on the national front. Here is a quick update on a few NAHB efforts on your behalf:
On the National Green Building front, I wanted to reiterate this important NAHB legislative victory I reported to you earlier this year. The ICC National Green Building Standard was approved for use in residential military construction. NAHB's subsidiary, the Home Innovation Research Labs, is now the No. 1 residential green certification programs, having certified more than 45,000 homes, apartments and lots to the Standard.
The NAHB Bring Housing Home Initiative, for the second year now, was another big success. It is estimated more than 200 lawmakers, at home in their respective districts, meet with NAHB members to discuss the issues affecting our industry and how they can help. Your Oklahoma State Builders Association leadership during this initiative scheduled meetings and met with Congressmen Lucas, Russell and Bridenstine. I attended the meetings with Congressmen Lucas and Russell, and can honestly say that meeting them at home in their home districts in a relaxed atmosphere is much more personal and productive. If you did not get a chance to meet with your lawmakers at home in their district, I would encourage you to do so. I think you will be very pleased with the results as well as knowing you too can make a difference.
The NAHB Senior Officers have asked the State Representatives collectively to present a proposed By-Law amendment for their consideration that properly addresses the minimum membership requirements of local HBAs and chapters by the NAHB Spring Board Meeting in Washington D.C., fast approaching in early June. We, as State Representatives have been meeting via telephone conferences, with several more to go, in order to accomplish the task. I can say that the integrity of all local HBAs is first and foremost, so as to not lower standards and to best equip the locals with the ability to be an effective HBA within the NAHB Federation. Addressing the chapters is a little more difficult. However, I feel confident that we, as State Representatives, will find the right resolution to this long standing challenge of minimum memberships of local HBAs and chapters as well.
The 2015 Oklahoma Building Summit & Expo will conclude with a highly educated look to our economic future. Ted C. Jones, Chief Economist with Stewart Title Guaranty, brings his expertise in applied real estate research to the Building Summit as our closing speaker at 1 pm on Aug. 27 at the Cox Convention Center.
Jones typically gives more than 150 presentations on real estate and the economic outlook each year, sprinkling his own brand of humor in to the mix of numbers and economic forecasts.
The speech will close out two days of classes relating to topics timely to the building industry, an industry exhibition and an opening keynote address by Home building expert Charles C. Shinn, who will also lead some breakout sessions.
Before assuming his role as Chief Economist - Senior Vice President for Stewart Title Guaranty, Jones serve as the first director of publicly traded Stewart Information Services Corp. (NYSE-STC) for 17 years. He earned a Ph.D. in finance with a minor in statistics and a master's degree in land economics and real estate from Texas A&M University.
Prior to joining Stewart he served as chief economist at Texas A&M University's Real Estate Center, the nation's largest publicly funded real estate research group.
You will not want to miss Stewart's presentation - or any of the 2015 Oklahoma Building Summit.
NORMAN — Homebuilders in Norman and Moore — along with subcontractors and suppliers representing every craft, trade and hardware component that goes into a house — have been racing to prepare 35 houses to show off to the public starting next weekend.
Mother Nature has conspired to slow them down.
With the Oklahoma Climatological Survey recording more than 20 inches of rainfall for central Oklahoma since the first of the year, "we've been scrambling" to get houses out of the ground, said Tony Foust ... Read the article at newsok.com
So, session is over but we will be working with legislators over the interim to once again advocate for the industry. If there are any questions or ideas you want to convey, please give me a call.
Editor's note: This column will be published in the upcoming issue of Oklahoma Builder Magazine
By Steve Sullivan
Chair, State Associates Council
I was excited when I learned the focus of the current issue of Oklahoma Builder magazine was on green building, because we all know the greatest component of green building is energy efficiency and that is right up my alley with the work I do for Oklahoma Gas & Electric.
Let me share some of the things I think you should know when it comes to building energy efficient homes.
Why Build Energy Efficient Homes?
Steve Sullivan
When building an energy-efficient house, the whole house is treated as a system. It will perform better, be healthier, safer and it will use less energy.
Does this sound like a home you would want for you and your family?
Before starting any new construction, you should ask yourself if the home I'm building will be energy efficient. Making the right decisions up front is crucial.
State and local building codes set minimum requirements, energy-efficient programs offer a higher standard in energy efficiency, and they save energy, money and more.
These homes employ advanced materials and innovative designs. They increase energy efficiency, reduce utility costs while delivering a higher level of comfort in every season and provide a higher standard of construction value and overall quality.
Energy-efficient home energy benefits
There is a great inconsistency in the marketplace of what is considered an energy-efficient home. An energy-efficient home is built to more demanding specifications and is equipped with energy-saving features that deliver better performance, greater comfort, lower utility bills all while helping to protect the environment.
By design, these homes are more energy efficient than the standard new home.
There are no second chances to do it right the first time. It must be built right during construction. Energy- efficient homes are inspected by third-party home energy raters (HERS) during and after construction.
Thermal envelope
Energy-efficient building practices include tighter construction, including framing techniques and continuous air barriers that help to reduce leaks and drafts.
Four primary forces that affect the durability are building materials, air, heat and moisture.
The air barrier, thermal barrier and moisture barrier work together as a system to manage air flow, heat flow and moisture flow. It is important to control moisture, vent cooking and bathrooms with Energy-Star rated fans that vent to the outside of the house.
With energy-efficient homes, there are intensive caulking and foaming of all penetrations to stop air infiltration.
Improved thermal systems pay special attention to gaps, voids and insulation compressions so as not to reduce the effectiveness or insulating power of the insulation.
Typical homes have 70 percent natural air changes per hour while energy-efficient home have 35 percemt or less natural air changes per hour. They have insulation that is properly installed and increased insulation levels.
All of this is like closing a hole in your wall the size of an open window. You feel more comfortable, your house has less drafts and your utility bills are lower.
Heating Venting and Air Condition Systems (HVAC)
Energy efficient HVAC systems are more efficient, and their ducts are better sealed and are tested for leakage. HVAC systems are "right-sized," when it comes to tightly constructed energy efficient homes. Bigger is not better.
Duct connections must be sealed properly. Doing it right helps keep dust and other air quality hazards out of your house, improving indoor air quality. Energy efficient duct work has less than 5 percent duct leakage to the outside compared to 28-32 percent leakage in standard homes.
Windows
High-performance energy efficient windows will greatly impact a home's comfort as well as energy usage. Your windows must be sealed properly when installed or they will not perform as rated. Make sure your builder understands the science behind the window ratings.
Performance Testing
This is the most important step. Energy -fficient homes require performance testing including thermal bypass inspection, blower door testing for air infiltration and duct blaster testing for duct leakage. These test are performed by a licensed HERs rater who will assign the HERS index.
The HERS index was created by Residential Energy Services Network to give homeowners and buyers a standard by which they could measure the energy efficiency of houses they currently own or are planning to buy. It's kind of like the home industry's version of the miles-per-gallon rating you find in the auto industry.
A home's HERS Index Score is increasingly being used by builders to market their properties - the lower the number, the more energy efficient the home.
The U.S. Department of Energy has determined that a typical resale home scores 130 on the HERS Index while a standard new code-built home is awarded a rating of 100. As an energy expert, I consider HERS index of 70 or below to be energy efficient.
When you look at all the facts, the answer to the question of why build an energy efficient home is simple, it's because it's the smart thing to do!
Home building expert Charles C. Shinn brings to Oklahoma over 35 years of experience improving industry standards and profitability on Aug. 26-27 as keynote speaker at the 2015 Oklahoma Building Summit & Expos.
Often referred to as the Profit Doctor, Shinn created the Shinn Group of Companies to help increase professionalism and management standards of the homebuilding industry. Operating under the Shinn Group of Companies umbrellas are Shinn Consulting, Home Builder University and Builder Partnerships.
The Shinn Group has over 500 builder clients, located across the United States and Canada, including top performers among regional homebuilders.
Because of the shortage of trades and trained employees, Shinn has lately focused efforts on builders becoming the "builder and employer of choice."
"He has made presentations on this topic that have been extremely well received since they are so pertinent to the challenges the builders are facing today," said Mike Means, Executive Officer of the Oklahoma State Home Builders Association.
Among the topics Shinn will address are controlling and decreasing direct construction costs, scheduling and tips to decrease the cycle time.
Shinn holds a BA in Economics and an MBA and Ph.D. in Business Administration from American University in Washington, D.C.He will make the keynote address on Aug. 26, and will also lead breakout sessions at 9:45 am on business management and at 2 pm on Management for Profit.
Drought? What drought? Even my cattle-rancher friends out near Elk City must be hoping for a dry day or two at this point. Our prayers once again go out to all of you who live in the Oklahoma City area with the recent tornadoes and unprecedented flooding. This time we also pray for those around my hometown of Tulsa. In fact, me and my honey spent a little time in our shelter Saturday night! Tornadoes were just a little too close for comfort for Gina! As always, the OSHBA stands ready to help our members who have been affected by the storms any way we can, so please let us know if we can help.
Phil Rhees
The weather has affected some planning by our local associations. I've heard that many of the Parade of Homes are turning to Floats of Homes!
All kidding aside, we are still hard at work on OSHBA business. We are putting the finishing touches on the classes that will be offered at the OK Building Summit in Oklahoma City, August 26th and 27th, and I'm really excited about our new offerings this year. Booths are selling quickly and momentum in picking up!
It can be challenging to keep those seminars fresh, but with the 2015 IRC about to roll out for statewide adoption early in 2016, there are many new issues to discuss. Also, we have quite a few new presenters this year with a variety of content that we think will appeal to everyone. See below for a link to the Summit registration, and don't forget to bring along your superintendents and framers!
Finally, we should complete work this month on our new state builder and remodeler warranty, which is the final piece to our new state contracts, so look for those to roll out in June. I would be remiss if I didn't thank Paul Kane, Mike Means, Don Fryer, Mark Livingston, David Blackburn, Jeff Smith, and Mark Priess for their hard work on the Contracts Committee, going back to 2012 when we started this little adventure. Gentlemen, I very much appreciate the time and wisdom each of you lent to this effort!
Editor's Note: The following column was published in the Oklahoma Builder Magazine
By Mike Means
OSHBA Executive Vice President
As I write this, I can't help but reflect on my now 11 years as your state EO. It has been a tremendous ride and I have enjoyed every moment. I have also learned a tremendous amount about the building industry.
We all know that there is more to green building than just energy efficiency, but we also know that energy efficiency is one of the biggest pieces of the puzzle.
Mike Means
I have always been intrigued by energy efficiency. One reason is having once owned a house that was built in 1920 and still had the original windows.
Original windows on a home that old add character. It also adds extra dusting to your cleaning routine. The character comes from seeing the waves in the glass and the little air bubbles that might have occurred in their manufacture.
Old windows allow the bright sunlight in on a cool spring morning, making the old couch a cozy place to sit and read the paper.
But old windows allow the summer heat to shine through and you listen to the whir of your air conditioner try to keep up. Old windows mean a higher electric bill.
So, back to my intrigue about energy efficiency. We sold that old house and built one out in the country. This was 1994.
The rural electric coop wanted me to do something called geo-thermal. Sounded interesting.
So I started some investigating. I was convinced it was the thing to do. But I had already started the project and had already blown the budget by adding wood floors to two extra rooms and increasing the driveway by a few hundred square feet.
It just wasn't meant to be. But I never got over my intrigue.
Then as things changed and I came to work for the HBA, I got immersed in our Green Building Summit and our Energy Efficient Tax Credits and the NAHB Green Standard and the utilities' Demand-Side Management programs and wow, was my intrigue rewarded!
Energy efficiency is a way of life for most builders.
Now, add to that the OUBCC with its code cycles and then the government's mandates to try and increase energy efficiency. Intrigue has just turned to conspiracy. Well, that may be a little harsh.
Builders will build what the public wants. What the public wants sometimes is not in their best interest. That's where our education comes into play.
The more we learn about the science behind energy efficiency -- and green building -- the more we can help educate our buyers so that what's in their best interest is in what they want.
This is the next to last legislative update for this session. In fact, by the time you read this the Legislature may have finished the year and adjourned "sine die."
The main issue I discuss in this week's video is the retention of our energy efficient tax credit.
Watch the video below:
Since the day was jam packed with legislation, I am not attaching the tracking list. I will send it with final analysis next week.
Editor's Note: This story was first published on the City of Edmond website
Edmond Electric recently presented a rebate check in the amount of $7,264.00 to Turning Point Ministries for the installation of geothermal heat pump systems at their Legacy Station development.
Through a partnership with the Oklahoma Municipal Power Authority (OMPA), Edmond Electric is able to offer several programs to residents and commercial businesses. Some of these programs include geothermal heat pump rebates, geothermal loop financing and lighting rebates. To find out more, visit edmondelectric.com.
About Turning Point Ministries, LLC
Founded in 2008, Turning Point Ministries is a non-profit Christian-based community organization dedicated to building affordable housing for hard-working moderate-income families in Edmond, Oklahoma. Turning Point builds homes with the help of volunteers and donors. They are a "hands-up, not a hand-out" ministry. Houses are sold to selected qualified families and financed with affordable loans. Turning Point Ministries has been instrumental in helping modest income Edmond families attain homeownership and/or lease a well-kept Turning Point home in anticipation of future homeownership.
The Builders Association of South Central Oklahoma and the Moore Home Builders Association are proud to present the 2015 Festival of Homes.
Tour 35 new homes in Moore, Norman, South Oklahoma City and surrounding areas. Pick up a free tour booklet at participating 7-Eleven stores starting May 21.
There will be two show homes. One in Norman at 2017 Providence Drive in the Hallbrooke addition, and one in Moore at 1301 Sand Plum in the Willows addition.
The homes will be open daily from 1-7p.m., June 5-7 and June 12-14.
The BASCO show home (Norman) was built by DaVinci Homes and the Moore home was built by Canterra Signature Homes, financed by Republic Bank.
Builders Association of South Central Oklahoma is located in Norman, Oklahoma and serves the counties of Cleveland, McClain, Garvin and Grady. They keep their members informed on changes in the industry and material improvements, through educational programs at the local, state and national levels.
The Moore Home Builders Association brings quality builders to the city of Moore and provides valuable assistance to local-home builders and citizens.
Editor's note: The following article was posted on the NAHBNow blog
The Home Innovation Research Labs and the Forest Products Laboratory invite home builders and remodelers to discuss the challenges you're facing today in your pursuit of building better homes and any ideas you have to solve them.
Your input will help inform a Residential Construction Industry Research Agenda dubbed #Home2020 to guide funding to develop the resources, methods and tools needed to produce high-performance residential buildings for today's market.
Make sure your voice is heard in this industry-wide opportunities assessment. Visit home2020.homeinnovation.com today and share the top three challenges you face or ideas that you think could make home building better.
The #Home2020 portal allows visitors to write about all types of residential construction - new and remodeled one- and two-family homes, low-rise multifamily, and mid- and high-rise residential buildings. Topics range from the performance of building materials, to the design and construction process, and to whole-building performance metrics. (The "About" section of the portal provides more detail.)
Visit the NAHBNow blog and return as often as you want from now through May 31.
Oklahoma has an important new voice connecting local OSHBA members to the National Association of Home Builders. Charles Liuzzo was named field representative after serving four years with NAHB BUILD-PAC.
Charles Liuzzo
The field representative program is newly created and is intended to connect NAHB with its local members at a grassroots level. It provides assistance to locals with executive officer training and support and strengthens locals membership recruitment and membership services provided by NAHB.
Also, the field rep program will be a communication conduit to NAHB so the NAHB can better understand issues affecting locals across the country.
Each field representative will live in the area he or she serves and be on the road with local member 40 weeks our of the year. The field rep program will start with five field reps the first year: one in each region utilizing existing NAHB Staff at a cost of about $690,000.
Liuzzo will ensure that all members are aware of national/local resources, letting members know what NAHB is doing on Capitol Hill as he covers an eight-state area of the three-year field representative program.
As an example of his services, Liuzzo said he was attending the San Antonio HBA boardmeeting and the membership was discussing the federal Truth in Lending act and its confusing rules. Liuzzo was able to give them an update and provide an NAHB education tool kit of which members were not aware.
In his role with BUILD-PAC, Liuzzo served as the main point of contact for members and local associations in 25 states and helped develop fund-raising and political advocacy awareness campaigns. He is a native of Baltimore, Maryland, and resides in Dallas.
Jeff Click, homebuilder, is all about a level — and not a carpenter's.
It's the next level he's about, and cliched or not, if anyone can scale the next one, it's Click and his few fellow travelers. It's a little troupe dancing and playing and building to the sound of a drum that is still an outlier in suburban home design in Oklahoma City.
Call it modern, or contemporary, or "new urban" — it's edgy. And that's another cliche that Click, 39, and company will happily demolish. Design is one thing. Floorplans are a dime a dozen. Mod is in the eye ... Read the story at newsok.com
Steve Allen, the builder and designer perhaps best known for his spacious and luxurious Allenton Custom Homes, said that over the years his customers have repeatedly offered one note of feedback.
Steve Allen
They want an even greater sense of community when they choose a house in a suburban addition.
In Princeton Parke, northwest of Portland Avenue and NW 164, Allen has responded by creating a neighborhood that he called "intimate" and "homey" — without sacrificing the luxurious details and high-end finishes that are his trademark.
The addition is featured in the Central Oklahoma Home Builders Association's Parade of Homes Spring Festival ... read the story at newsok.com
As home building industry professionals know, each state has different requirements for builders and remodelers that want to do business.
That can be confusing for businesses that cross state boundaries or want to consider new marketing opportunities. NAHB's Residential Contractor State Licensing directory has helpful links to make this information easier to find.
Four states (Alaska, Michigan, Oregon and Virginia) require pre-license education or ... Read the entire blog.
Well, not so good news this week. Our Registration bill failed by a vote of 8-37 (I said it wrong in the video - that was another vote I was watching that day). So that means it is done for the session. It will be back to the drawing board next session.
Watch the video report:
That doesn't mean the work is done for this session. There are still plenty of bills to keep our attention, even though the list keeps getting smaller. We must be vigilant in watching what happens during the budget negotiations. As our legislative chairman likes to say - "if we aren't at the table, we may be on the menu!" So, yes, we will keep watching.
Editor's note: this is taken from report presented at Spring board meeting
David Ritchie
By David Ritchie
Enid Home Builders Association
The market is very good. Most homes priced below 265,000 are selling at or soon after completion. All builders are moving as fast as possible. Market seems to have not suffered from drilling slowdown.
A move to register and regulate builders fell to defeat in the state Senate Wednesday even though builders themselves were asking for it.
House Bill 1828 by Rep. Steve Martin, R-Bartlesville, was defeated soundly with just eight senators voting for it and 37 against. The measure earlier passed out of the Senate Business and Commerce Committee 6-2 with changes meant to move it along for more work.
Mike Means
Tough challenge
Proponents' aim was to get it to a House-Senate conference committee to make it palatable, said Mike Means, executive vice president of the Oklahoma State Home Builders Association.
"We knew it was going to be tough," Means said. "We knew we had some members opposed to it, and they were very vocal, and once it starts it goes downhill fast."
The Oklahoma Professional Residential and Commercial Builders Registration Act was modeled after the state builders group's Certified Professional Builder program, including its continuing education requirements. The state Construction Industries Board would have handled registration.
Editor's note: This is taken from reports submitted at the spring board meeting
By Steve Taylor
2nd Vice President
Southwest Oklahoma Home Builders Association
Steve Taylor
Residential building continues to be slow in Southwest Oklahoma. In Lawton about 4-5 builders are building but the out of town builders have moved out for the most part. Uncertainty around Ft. Sill and layoffs in the oil industry in the Duncan area with Haliburton, have caused people to take a wait and see attitude on building a new home. Building continues in the Elgin area north of Lawton but it has slowed as well. Commercial building in Lawton continues to be moderate with a new movie theater complex with businesses around it and several new restaraunts in the area going in.
In the Altus Area, residential building continues at a moderate pace with about 3-4 builders doing 90% of the building. There is a small commercial segment but the hope of new troops to Altus Airforce Base has some new apartments going in.
Southwest Oklahoma Homebuilders Association is undergoing changes in the coming weeks as we are ending our relationship with the Lawton/Ft. Sill Chamber of Commerce and moving our physical offices to the offices of Barnes, Welsh and Perry CPA. Sharleen will no longer be our EO as we are still in transition on what do in that aspect. We have started a new newsletter to let the membership know the value of being a builder or associate member of the SWOKHBA.
The 51st Annual Lawton Home and Garden Show we put on was March 27-29 at the Comanche County Colesium in Lawton.
Sorry this report is late. Had a couple of technical difficulties. Needless to say, in the attached video it will mention an Action Alert that you have already recieved!
This week is the final deadline week prior to the end of session deadline. Floor action must be completed in the opposite body. So, for example, that means House bills must have final action on the Senate floor to remain alive.
That is the situation with our Registration bill. Thus the Action Alert.
I will probably be sending the other alert later this week that deals with our tax credits. As the video says, tax credits are getting a lot of attention and the Energy Efficient Residential Construction credit is getting even more. Keep an eye on your emails!
Editor's note: This is taken from reports submitted at the spring board meeting
By Mark Priess
Home Builders Association of Greater Tulsa
Past
Total Resource Campaign
TRC volunteers exceeded the campaign's fundraising goal of $360,000 and raised over $400,000 in sponsorships/non-dues revenue. This was the 2nd highest fundraising effort in campaign history and these funds support the HBA's 2015 programs, special events, and meetings.
Mark Priess
Harvest of Homes
The Owasso Chapter's Harvest of Homes was held in October 2014 with over 20 homes featured in the Greater Owasso area. Harvest, however, has been discontinued in 2015.
Installation Galas
Installation of 2015 HBA President, Allen Jenkins of Celebrity Homes, was held on December 5, 2014 at the Hard Rock Casino. 2015 Senior Officers are Allen Jenkins, Brandon L. Jackson of Tara Custom Homes, and Peter Grant, Grant Homes Remodel & Restoration.
Installation of 2015 OSHBA President, Phil Rhees of BMI Next Generation Homes, was held on January 10 at the Mayo Hotel. Efforts to encourage greater HBA participation were successful.
Current
Building Renovation
The HBA's renovation of the banquet hall, kitchen, board room, staff offices, library, and classroom is expected to be completed in Spring 2015. This was the first complete remodel of the building since the 1970's. The HBA established temporary headquarters in Broken Arrow and hosts offsite meetings at various member offices throughout the area.
2014 Housing Starts
YTD housing starts for the metropolitan Tulsa area were 2,889, as compared with 2,787 starts in 2014.
Membership
The HBA reached its 2014 new member goal of 160 new members. The 2015 new member goal is 200 and currently HBA membership is 934.
40Below
Last year, the HBA established a new group specifically to attract and cultivate leadership among HBA members 40 years of age and younger. Led by Erin DeWeese and Cahn Wiggs, this group received Council designation in 2015 and has established a calendar of events that includes professional development, philanthropic contributions, and networking opportunities.
Home & Garden Show
This year's Show concluded last weekend with 500 exhibitor booths sold-out and 33,000 visitors attending the Show during its 4-day run on March 12-15.
Staffing Updates
Due to a staff vacancy, Jaime Christensen was named Director of Marketing and Public Relations. Gabrielle (Gabby) Bridenbaugh was hired as HBA Council Coordinator.
Future
HBA Golf Tournament
The annual tournament is scheduled at Forest Ridge Golf Club on May 1.
HBA Charitable Foundation
Planning is underway for the annual fundraising event in May 2015 at Metro Appliances & More which benefits the HBA Charitable Foundation.
Parade of Homes
Planning efforts are underway with 140 homes entered in the 2015 Parade scheduled in June 2015.
Rogers County Builders Association
Rogers County Home & Garden Farm & Ranch Show will be April 10-12, 2015 at Claremore Expo.
Annual golf tournament is May 8 at Heritage Hills, and plans are being made for a picnic at Claremore Lake in June.
I am pleased and excited to announce that our OSHBA Board of Directors has voted to create the Oklahoma Housing Hall of Fame. It is time that we recognize the past and present giants of the housing industry in Oklahoma, and I'm looking forward to getting the ball rolling.
Phil Rhees
A Board of Governors will eventually be created to administer the program and select the inductees, but as we plan to honor our first class of Hall of Famers at our annual officer installation and banquet in January, the OSHBA Executive Committee and Executive Officer will handle the responsibilities until a Board of Governors can be appointed by next year's president and approved by the Board.
We expect to open up the nomination process sometime in June, and all members will be notified at that time. We plan to offer application forms on the OSHBA web site and also at the OSHBA office. Any member of our state association can place a name into nomination, but it must be received no later than 10 days prior to our Fall Board of Directors meeting later on this year. Nominees may be persons (living or deceased) who have made significant and lasting contributions to Oklahoma housing and/or to the OSHBA. They can be builder OR associate members, elected or government officials, or Industry-allied professionals ... basically anyone who has contributed or supported our industry in a substantial or unique way, even if they live out of state!
So get with your friends and colleagues and start talking about who you would like to nominate! I'm sure all of us know a few members that qualify as "no-brainers" for this honor, and I expect this first class will be very special, indeed!
Continue reading to know where we are in the session.
This week saw another major deadline at the Capitol. Bills had to be heard at the Committee level in the opposite house or they are dormant for the year. For example, a House bill had to be heard at the Committee level in the Senate to stay alive. If a bill was not heard, then it is dormant.
Here is a real example: HB 2231 was the Construction Registry bill that was supported by many in the commercial construction industry. That bill had made it through the House and was awaiting action in the Senate. It got assigned to the Senate Judiciary and Senator Anthony Sykes, Chairman of the Committee, decided not to hear the bill. So by not being scheduled before the deadline, it is now dormant. It cannot be heard this year.
Discussions are still ongoing on resolving the budget issues. According to today's Oklahoman there may be a deal on the table for the wind industry incentives. If so, that provides some relief for the legislature to consider when dealing with other incentives. One of which, is our energy efficient residential construction tax credit. The bill that puts a sunset of June 30, 2018, on the credit.
Our hope is that bill doesn't go anywhere. Why? Because there will be an incentive review process started if current legislation passes. It is my opinion to not do any legislative work until the process has a chance to work.
Our Registration bill is still awaiting a floor vote. Currently the title is off the bill. Our goal right now is to get the bill passed by the Senate and send it to Conference Committee. There we will have a chance to address some of the issues causing concern and then present a clean bill for the legislature.
The Oklahoma Senate will soon be voting on HB 1828, which is our bill to start Builder Registration in Oklahoma. This is an issue widely supported by our members and was approved by the Board of Directors to pursue.
Almost every aspect of the building process is covered by some form of licensing or registration. The black hole? The Builder, the one that controls the process and is the one in direct contact with the customer.
This bill is simple registration. There is nothing onerous about the bill. It simply requires general liability insurance and workers compensation.
Contact your Senator today and let them know you support HB 1828.
Editor's Note: KFOR Channel 4's "In Your Corner" featured a recent segment on HB 1828 that the OSHBA supports. Here is a transcript. Thank you for highlighting this important legislation.
In Your Corner: Proposed Law would regulate builders.
OKLA. CITY - Over the years we've tracked down our fair share of contracting criminals.
We even helped authorities put some of them behind bars.
Right now all trades involved in a construction project are regulated, but not general contractors.
The Oklahoma State Home Builders Association and other trade groups are rallying support for House Bill 1828 that would require all builders and remodelers to register ....
The Senate followed tradition and went home on Wednesday of this week. The House worked Wednesday for the morning and then adjourned for the week. That allowed me to get this report to you just a little earlier than usual.
We have another deadline week next week. Bills have to make it out of the opposite house committees or they are dormant of the remainder of the session. That means a lot of committee work this coming week. Then it is on to floor action and then possibly conference work. Some bills finally found their way to the Governor's desk this week.
The city of Oklahoma City provided us with a list of Top 10 building (non-mechanical) reasons for rejecting a new building during inspection, and we're going to list them in a countdown to No. 1. Today we offer reasons 5-1.
5. Interior Wall Bracing – (R602.4 Interior load-bearing partitions): Interior load bearing partitions shall be constructed, framed and firestopped as specified for exterior walls.1. Wind Bracing Requirements - (Section R602.3 and Table R602.3 (3) The nailing requirements are usually incorrect
4. Sill Plates (Anchoring) – (Section 403.1.6): Bolts shall be placed 6 feet on center and not more than 12 inches from corners
3. Field built Beams - (Section R602.7 for Headers): (2x10, 2x12's nailed together to carry roof loads and cover spans). No direct language in the code to address this application, we reference Table R502.5 (1) and 502.5 (2) (maximum spans for headers).
2. Roof Bracing (Valley, Hips, Purlins) - Section R802 (Sec. R802.5.1) (Sec. R802.3): Improper bracing off of TJI's Purlins may be installed to reduce the span. Hip and Valley rafters shall be supported at the ridge by a brace to a bearing partition or be designed to carry and distribute the specific load at that point
And the No. 1 reason for building rejection (non-mechanical) in Oklahoma City:
1. Wind Bracing Requirements - (Section R602.3 and Table R602.3: The nailing requirements are usually incorrect
Learn how to avoid these issues at this year's Oklahoma Building Summit Aug. 27-27 More info.
The city of Oklahoma City provided us with a list of Top 10 building (non-mechanical) reasons for rejecting a new building during inspection, and we're going to list them in a countdown to No. 1 Today we offer reasons 10-6.
10. Locked and / or Occupied: The inspector must gain access in order to perform a final inspection. When the house is furnished or (occupied), the inspector cannot enter without the builder or owner present.
9. Mud and Water in ditch (footings) – (Figure 403.1a (4): Footings shall be supported on undisturbed natural soil or engineered fill.
8. Improper depth and steel size (footings): The following footing requirements will be considered minimum standard for the City of Okla. City. Type, 1story; dimension, 12 inches wide by 18 inches deep. Material, concrete. Reinforcement 2 5/8" bars or 4 ½ “ bars.
7. No Tempered Glass - (308.4 item (2): Within a 24 inch arc of the door (Hazardous Locations) is considered a specific hazardous location for the purpose of glazing
6. Fire Blocking– (R602.8): Fire Blocking required. Blocking shall be provided to cut off all concealed draft openings (both vertical and horizontal).
Stay tuned for reasons 5 through 1.
Learn how to avoid these issues at this year's Oklahoma Building Summit Aug. 27-27 More info.
Editor's note: This column is reprinted from the March edition of Oklahoma Builder magazine
By Steve Sullivan
Chair, State Associates Council
The 2015 NAHB International Builders' Show's (IBS) theme was All Homes Start Here, and that's precisely the message that the 55,000-plus attendees heard throughout the three-day event, as well as the fact that Home is the foundation of not only family life, but for our communities and their economic growth.
As an Associate Member of the National Home Builders Association, this is a show that you should consider attending in the future, and here are the reasons why:
It provides pertinent information that allows you to keep abreast of national trends, policies, inventions, energy and other technologies.
It provides you with continuing education involving all aspects of the building industry. For me, one area I wanted to learn more about was the international energy conservation code (IECC) changes that would impact Oklahoma.
It gives you a more relaxed venue to work with key account stakeholders, as well as major decision-makers, in national, state and local homebuilders associations, some of which have a strong lobbying presence that can affect your business.
New builder technologies and techniques are introduced and showcased, as well as existing best practices.
There are many educational opportunities available with both Pre-Show Education
Steve Sullivan
Courses and standard IBS Educational Sessions. The Pre-Show Courses are in-depth courses on specific topics taught by NAHB-approved instructors. These are not included with your basic registration, and require a separate fee. IBS Education Sessions are very popular and are available on a first-come, first-served basis.
All training sessions are uploaded to NAHB's Online Library for your future use.
After the show, all paid full registrants -- excluding spouse, exhibitor and student registrations -- receive an email providing complimentary access to a one year subscription. This is an on-demand access to more than 100 education sessions in 10 different building industry topic tracks that cover the entire building industry. You'll find the know-how you're looking for, as well as insights you may never had expected!
My experience at the event was definitely a positive one!
In between sessions, caucuses and general meetings, I walk the show floor. Make sure you wear comfortable shoes because there is a lot of ground to cover, you can literally spend days just visiting booths in all of the buildings. The show floor provided me with countless opportunities to network, learn, share information and make connections with builders, associates and the industry's best suppliers and manufacturers.
This year's show had everything from small gatherings, roundtables, meet-and-greets, awards programs,evening receptions, and even a Spike concert featuring ZZ Top to close out the event.
So, as you consider your options for continuing education, I would urge you to look at IBS. Attendance at the event has grown 40 percent over the last two years because builders and industry professionals know that IBS keeps them up to date on the latest trends, newest techniques, and the most forward-thinking business strategies.
I know I do and hope that you will join me in 2016
In closing, one of my goals is to get to know associates throughout the State Home Builders Associations and, so far, I have been able to attend meetings in Enid, Oklahoma City, and Tulsa. At those meetings I gathered ideas, as well as concerns, that you might have so that we can work on them together in order to make our Association more beneficial for each of us.
I am bringing your concerns and ideas to the Associates' Council, as well as to the OSHBA Executive Committee. Please contact any of us listed below, to share your ideas or concerns.
Associates Council Officers for 2015:
Chairman: Steve Sullivan, OG&E, (405) 553-3393
Vice Chairman: Steve Taylor, CenterPoint Energy, (580) 250-5417
Treasure: Vanessa Shadix, Old Republic Title Company of Oklahoma (405) 942-4848
Secretary: Chris Evans, Building Specialties, (405) 232-2595
State Representatives for 2015:
Central Area (Central Oklahoma Home Builders Association, Builders Association of South Central Oklahoma, Moore Home Builders Association), Laurie Matthews, American Eagle Title Group (405) 550-3952
Northeast Area (Homebuilders Association of Greater Tulsa, Rogers County Builders Association, Bartlesville Home Builders Association) Mark Priess, HUB International/CFR (918) 712-5274
Northwest (Enid Home Builders Association, Stillwater Home Builders Association and
Southwest, Oklahoma Home Builders Association) Titian Burris, ClimateMaster Inc. (405) 473-7100
Southeast (Ardmore Home Builders Association) Randy Chambers, OG&E (405) 553-3961
NationalConnie Stokes, Realtor Team Stillwater (405) 612-0016
The Oklahoma State Home Builders Association is for all of us who touch the homebuilding industry. It is important that we support the Association that looks after our interest and helps keep legislation from adversely affecting us. So, I challenge each of you to invite someone to
Builder registration made it out of a state Senate committee Thursday, but it probably won't get much further without some remodeling.
Mike Means
The measure, which started in the House, would regulate homebuilders and commercial contractors. It passed the Senate Business and Commerce Committee 6-2 with changes meant to move it along for more work. It goes next to the full Senate.
Lawmakers let proponents know substantive changes would have to be made, said Mike Means, executive director of the Oklahoma State Home Builders Association.
"Many said it had a lot of work to make it acceptable and expressed pessimism ... Read it on newsok.com
Editor's Note: This column is reprinted from the March edition of Oklahoma Builder magazine
By Kurt Dinnes
NAHB State Representative
OSHBA Vice President/Treasurer
Housing
Kurt Dinnes
Home building is up across the nation. The total housing starts hit the one million mark in 2014 for the first time since David Crowe, the NAHB's Chief Economist, is predicting as much as a 24 percent increase in overall housing starts, which includes single and multi-family, for this year. We are very fortunate Oklahoma continues to be one of the strongest states returning to near normal housing numbers.
NAHB's advocacy efforts quantify as a savings of approximately $6,880 per housing start for a typical home builder last year.
These savings include the NAHB victories:
The ICC National Green Building Standard was approved for use in residential military construction. NAHB's subsidiary, the Home Innovation Research Labs, is now the No. 1 residential green certification program, having certified more than 45,000 homes, apartments and lots to the Standard.
The final definition of a Qualified Residential Mortgage will enable more credit-worthy households to quality for a mortgage than the original 20 percent down-payment requirement sought by regulators, among other onerous criteria.
The Federal Housing Administration announced a half percent cut in FHA mortgage insurance premiums, enabling 250,000 new home owners to buy a home over the next three years.
Fannie Mae and Freddie Mac will also make homeownership more affordable by agreeing to purchase mortgages with down payments as low as 3 percent. Combined with safeguards put in place to ensure creditworthiness, this is a positive move that should bring more first-time buyers into the market.
And the Federal Housing Finance Agency will increase funding for affordable housing by requiring the GSEs to start paying into the Housing Trust Fund. That pumps at least $300 million a year into supporting rental and homeownership opportunities for very low income families.
Field Rep Charles Liuzzo
The NAHB launched the new field representatives program to help strengthen the ties between the federation and its member associations. The field representatives will be stationed in each of NAHB's five regions and will serve as liaisons between NAHB and the HBAs. I had an opportunity to meet our field representative for region D, Charles Liuzzo. I spend some time visiting with him and found Charles to be an enthusiastic, young energetic person who is making this transition from his involvement with BuildPAC. We have established a dialog with him with respect to our local HBAs, leadership and potential opportunities to begin serving our great state.
NAHB Board
The NAHB Board meeting during IBS went much more smoothly than the Fall Board meeting, thank goodness! Issues were calmly discussed and voted on effectively. Some notable changes as a result of those votes are;
The Affiliate dues increase to $15 is now official.
NAHB will begin requiring two board meetings, rather than three, beginning next year. The required meetings will take place at IBS and in July.
The New 2015 NAHB leadership was elected, electing Tom Woods, a home builder from Blue Springs, Mo.,as our new Chairman and Louisiana custom home builder Randy Noel, endorsed by Oklahoma, won the Third Vice Chairman position in a close race with Dean Mon.
I remind you our membership is not just with our Local HBA. Our membership includes our Oklahoma State Home Builders Association and our membership in the National Association of Home Builders.
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I would like to personally thank you. By reading this very article, you are wisely taking advantage of the work done on your behalf and our industry.This is made possible because of your valued membership in both OSHBA and the NAHB. As always if I can be of any help as your NAHB State Representative, please contact me. I would enjoy hearing from you.
Now skip over to the end of the construction project
Realtors - licensed
Appraisers - licensed
Inspectors - licensed
Bankers - licensed
Mike Means
But the person that holds the purse strings and is THE point of contact with the consumer? Nothing but a Black Hole.
A strong majority of Oklahomans support some kind of registration or licensing of builders, according to findings of a "Sooner Poll" study earlier this year.
Our bill would provide minimum regulation of the building industry. There are several items in the proposed legislation that are already required. It just takes the extra step of providing a central place to register and for public examination by the Construction Industries Board. It provides for a regulation by peers by establishing an advisory committee within the CIB.
Here's what's required:
Minimum workers compensation insurance policy - minimum premium policy even if no employees
General Liability insurance policy - One million ($1,000,000.00) aggregate
Continuing education in a manner similar to the other groups under CIB jurisdiction.
Minimum of two years industry experience to obtain registration, not necessarily as a builder.
Written warranty for residential projects
Written contracts over certain dollar amount.
Almost 80 percent of the membership of the Oklahoma State Home Builders Association supports the registration of builders. There are a percentage of those that don't support registration because they prefer licensing.
The bill does amend the makeup of the CIB Board to give contractors a seat at the table.
For questions, contact me at mikem@oshba.org. And thank you for your support.
Builder registration has hit some bumps but has made it out of the state House and to the Senate.
Mike Means
House Bill 1828 will be heard Thursday by the Senate Business and Commerce Committee, said Mike Means, executive vice president of the Oklahoma State Home Builders Association.
The association is pushing for the legislation, called the Oklahoma Professional Residential and Commercial Builders Registration Act, which would require all builders and remodelers to register with the state.
"We have had our Certified Professional Builder program for several years. It was put in place to avoid licensing or registration at the time," Means said. "However, as things in the world have progressed ... Read the article at newsok.com
OSHBA members walk the halls of the Capitol on Wednesday to urge legislators to vote for the Builder Registration bill.
Oklahoma's home builders descend on the state Capitol Wednesday afternoon to "walk the halls" in a show of support for issues impacting the construction industry.
Mike Means
We have overcome the first hurdle - House passage. Now, on to the Senate.
Let me give you a little history, as you ready to join us in this annual OSHBA event,
We have had our Certified Professional Builder program for several years. It was put in place to avoid licensing or registration at the time.
However, as issues in the world have progressed and changed -- I will leave to you to decide if for the better -- OSHBA members have looked at licensing or registration as a way to promote the industry.
We have polled our directors each year and the number has moved from a small majority to a great majority in favor of this.
This past year, we took a poll of our members and found that 78 percent support this. So the Board voted to initiate legislation. We modeled our bill after our existing CPB program, complete with continuing education requirements.
House Bill 1828 is our vehicle. It passed the House committee by a vote of 7-1. The "no" vote was by a legislator who felt it was just more government intrusion. We took it to the floor of the House where it met some stiff opposition -- believe it or not -- over the amount of required continuing education. The bill failed by a vote of 34-47.
Rep. Scott Martin kept the bill alive procedurally and we struck the Title to the bill. The bill was reconsidered and barely passed.
The bill now awaits hearing in the Senate Business and Commerce Committee. It is to be scheduled for this Thursday morning.
I have developed a few ‘talking points’ for our membership. Look for that upcoming blog.
And as always, thank you for your support on this issue as the Voter Voice request will make the rounds soon. Check your email box.
The city of Oklahoma City provided us with a list of Top 10 mechanical reasons for rejecting a new building during inspection, and we're going to list them in a countdown to No.1. Today we offer reasons 5-1. Drumroll please...
5) Restricted airflow by flexible ducts not installed properly, bends and turns too sharp
4) Walkway or catwalk to equipment over 20 feet in length and less than 6 feet in height
3) Walkways, service space floor and platform materials too thin, too light or not complete
2) Building locked or no access provided (ladder etc.), Wrong permit purchased or wrong inspection type scheduled
And the No. 1 reason for mechanical rejections in Oklahoma City is
1) Improper support of ducts, vents & and condensate drains
The city of Oklahoma City provided us with a list of Top 10 mechanical reasons for rejecting a new building during inspection. Today we offer reasons 10-6. Reasons No. 5-1 will be published in a few days.
10) Appliance or equipment installation instructions not available at time of inspection
9) 90% appliance vent not insulated in accordance with manufacturer's instructions
8) No sediment trap, or improperly installed sediment trap (not installed in accordance with appliance manufacturer's installation instructions
7) Improper vent clearance to combustible materials
6) Refrigerant lines not properly protected at top plate and through masonry wall
Hope you are having a fun Spring Break. This week looks to be fairly slow because of it at the Capitol.
Our Registration Bill -- HB 1828 --- was reconsidered and passed late last week. Now it is on to the Senate.
I have attached a video that goes into a little more detail.
Lot of other things to keep you informed by clicking on the full tracking list (click here). It is going to be a little smaller this week as the dormant bills are removed.
Editor's Note: This column is reprinted from the March editions of Oklahoma Builder Magazine
By Mike Means
Executive Vice President, OSHBA
A firestorm happened many years ago when then-First Lady Hillary Clinton published a book using an African proverb as a way to raise children. Clinton said, "It takes a village to raise a child."
Conservatives were worried the interference of government in the raising of their children would expand. Liberals countered with the call for more funding of early childhood education. It was amusing for politicos observing the political dialogue. I will pass on making any comment.
However, the proverb came to mind when thinking about the opening days of the legislative session.
Mike Means
Just as one Representative or one Senator cannot pass legislation without the assistance of many others, so too a lobbyist cannot affect the outcome of legislation without the assistance of others. By that I mean it takes the collective effort of the lobbyist coupled with the interest and involvement of association members to have a legitimate effort of passing or stopping legislation affecting the industry.
The main buzz around the Capitol, and sure to continue for weeks, is the budget situation,There will be bills affecting the future of tax credits and it will take a collective effort to ensure a positive outcome.
So, once again, I want to raise awareness how vital it is that you respond to our electronic "calls to action" when you receive them via email.
I share a story that I have shared before, but it is critical in understanding the role each of you play as a member of our association.
You are a valued member and your voice is important.
Here is the story. A few years ago during one of our association's Capitol Days, we stopped to visit a state senator. He shared that when a lobbyist discusses an idea, it raises his awareness. But when a constituent discusses an idea, it catches his attention. If a constituent doesn't contact him on a particular bill, he figures it doesn't matter to his district so he is free to vote his personal values. But if a constituent contacts him, then he is going to vote according to the values of his district.
I share that to once again tell you how important you are. You see, it does take a village to affect legislation. As part of the home builder village, take time to help your industry.
OSHBA leaders conduct a planning meeting for the 2015 Oklahoma Building Summit.
About 10 gathered recently to get down to details for the Oklahoma Building Summit & Expo, even though the expo is five months away - Aug. 26-27.
The show expands to two days this year, which gives the gives planners a speaker/topic lineup even more widespread.
The brainstorming session spanned everything from on-demand water' to crazy mistakes builders make.
The group decided to lead-off with a keynote speaker, someone the Summit has not hosted in the past. Then, they landed on three overall topics, with as many as eight breakout sessions from that outline, repeating some of the more popular three topics for attendance ease.
The three overall sessions will cover: construction, energy efficiency, foundations and soils, and builder-specific business topics, such and mortgage rates, OSHA, Lean construction, tort law, sales and marketing, for example.
Thanks to HUB International as overall sponsor. Several sponsors have already come forward, to the degree the 10 different sponsor spots are already taken:
Title sponsors, Exhibit sponsors and other sponsor levels are still available. Go to www.okbuildingsummit.com for more information and sponsorship forms.
Exhibit sponsors and other sponsor levels are still available. Go to www.okbuildingsummit.com for more information and sponsorship forms.
Specifically, the group is looking at these topics:
Construction, such as wind bracing/framing, working with engineered lumber, nailing, sheathing, roof bracing; top 10 reasons for inspections rejections; concrete; and IRC/ICC for all four trades -- plumbing, electrical, heat & air and builders.
Energy Efficiency, such as code changes and updates, insulation innovations, HERS, HVAC, basic fundamentals, top mistakes builders make.
Business, such as sales and marketing, social media, insurance, estimation, business law.
Another week of the session is down. One more week until another deadline is here.
Week didn't end well as our Registration bill was voted down. We will try to resurrect and get reconsideration early next week to keep it alive. Some issues were raised that can be resolved but that is hard to do while debate is going on. It means we will have to strike the title and work on some amendments. If we are not successful it is back to the drawing board.
As I mentioned, this coming week is another deadline. Floor action must be taken in the house of origin or the bill is dormant for this session. That means, for example, a Senate bill must be heard on the Senate floor before adjournment on Thursday or it is done for the year. I expect next week we will have a lot less bills to worry about. Let's hope ours isn't among them!
With our Builder Registration bill working its way through the Oklahoma House, I have been asked several times recently about the fee builders will be charged annually by the Construction Industries Board (CIB) if, and when this bill becomes law. The fee as presented will be $300 annually. This is about the same as what we are currently paying our municipal or county permitting authorities for registration...and all they do is verify our General Liability and Worker's Compensation insurance. Keep in mind, it will no longer be necessary or required for cities and counties to charge you for registration or to verify insurance.
Phil Rhees
Another comment I've received about our bill laments the fact that the Construction Industries Board (CIB) will have oversight of this program. Under the current make-up of the CIB, I would agree! However, we have inserted language that changes the composition of the CIB's seven members to include one plumber, one electrician, one mechanical contractor, one homebuilder, one commercial contractor, one roofer, and one building inspector. All must have at least 10 years' experience, and will be appointed by the Governor to staggered terms of four years. They will also be limited to two full terms.
The bill also creates an Advisory Committee of residential and commercial builders who will be the first to hear all grievances against registered builders, and will advise the CIB as necessary. This is the peer group that will set the rules and oversee the registration of builders. It copies all of the other groups that are under the CIB umbrella.
I feel confident that this legislation will raise the bar on professionalism in our industry, and level the playing field so that ALL builders in Oklahoma are held to a minimum standard.
Phil Rhees
2015 OSHBA State President
Last month we announced a state affinity program with Liberty Mutual! Well to help jump start the program Liberty Mutual is giving away 2 free tickets to a Thunder Basketball game. Must enter by March 31 by using this form. There is no purchase required and you do not have to call for a free, no-obligation quote! (But you are more than welcome to!)
This opportunity is for Associates and Builders! All you have to be is a member!
I'm including a short video message if you want to get the main point of this week's message.
But for those who like to read and browse the list...here goes:
Last week was a deadline week at the Capitol. You may recall at the beginning of the session there were over 2,000 bills filed! Well, as usual, with this first deadline there are now only about a 1,000 left. You see, if a bill is not heard and voted out of a committee in its house of origin, then the bill is done for the year.
So, the good news is our Registration bill was not only heard, but overwhelmingly passed out of committee. By a vote of 7-1 our Registration bill - HB 1828 - passed the House Business, Labor and Retirement Laws Committee. It now goes to a vote on the House floor sometime in the next two weeks. You know what that means...yes, an ACTION ALERT will be coming soon. We will all need to be involved if we wish our bill to pass.
Today - Monday, March 2 -- the House is scheduled to take up HB 1775. This bill will create a new severance tax on aggregates. It would require a vote of the county that wants to raise the tax. But the bottom line is that would increase the cost of aggregates - the material that is used for concrete and sheetrock. We haven't seen the need to raise taxes on this commodity.
The so-called budget shortfall is the focus of the legislature this session. Thus all tax credits are in the bulls-eye. We are watching all the various bills dealing with tax credits and will keep you apprised of any action we need to take.
As usual, the complete list of all the bills we are tracking is available by clicking here.
Editor's Note: This column is reprinted from the March editions of Oklahoma Builder Magazine
"An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today." -- Lawrence J. Peter
By Phil Rhees
OSHBA President
Even NAHB's terrific economist David Crowe will admit to the truth of that statement. Crowe has a wry sense of humor and entertaining presentation skill. With his Ph.D, he is not your average colorless economist.
Phil Rhees
Crowe gave a presentation to the NAHB Board of Directors at the International Builder's Show in Las Vegas, where he compared himself with weather forecasters who predict a few snow flurries, only to be proven wrong by a blizzard. Economics is not an exact science, but many factors taken together can predict the behavior of our economy. Sometimes.
At the IBS Board meeting, Crowe listed 10 reasons this year will be better than last. The charts that accompanied his presentation are on NAHB.org, under the IBS Board of Directors meeting materials, so feel free to look at them yourselves.
Just a disclaimer: I do not necessarily agree with everything he said, only the parts that turn out to be correct by the end of the year! Here is his forecast.
Much steadier growth will follow the recent recession. Gross Domestic Product reached a robust 5 percent in the third quarter of last year, and he expects the fourth quarter to report about the same. Even though that growth rate is unsustainable this year with the fall of oil and gas prices, he still expects GDP to grow at a rate of 3.4 percent this year.
We are seeing Average Monthly Job Gains of more than 250,000 per month, and that rate should stay consistent through this year, increasing consumer confidence.
Speaking of Consumer Confidence, it, and Consumer Sentiment, are finally reaching pre-recession levels, and should stay there through this year.
We are seeing Growing Pent-Up Demand, with more than 7 million lost sales since 2007. There is recent evidence that those people who lost their homes during the recession are nearing the point where they've cleaned up their credit, so that they might now qualify for a new mortgage. Also, Millennials who have been renting or living with their parents are feeling much more confident in the housing market and are beginning to finally buy homes.
Total Residential Home Equity is improving around the country, especially in the hardest hit areas like California, Phoenix, and Las Vegas. However, we all know that real estate markets are local, not national, and since Oklahoma prices stayed reasonably stable, we shouldn't expect a large bump in most areas of our state.
Household Balance Sheets are returning to normal, as many families have been focused on reducing their debt and increasing their savings. This trend is expected to continue through 2015.
Median Household Income is slowly, but steadily improving, and with the drop in gas prices, most families are feeling more breathing room when looking at their budgets.
Mortgage Credit Access is slowly improving, with signs pointing to continued easing. Fannie Mae and Freddie Mac recently relaxed their qualification standards a bit, which should help more families buy their homes.
Mortgage Rates remain historically low, and Crowe expects the 30-year fixed rate to stay below 5 percent through this year.
Housing Inventories are rising slightly, a statistic resulting from increased building activity by homebuilders, and more people are wanting to move, and thus are putting their homes on the market.
Well, by my count that is indeed 10 reasons why this year will be better than last. There are other factors, such as how a lack of existing homes for sale in many local markets are inspiring builders to ramp up production, and how NAHB's own Housing Market Index reached 57 in January for the first time since 2007 Any number more than 50 indicates that more builders view conditions as good than poor.
Even with rising concerns about how falling oil prices will affect oil-producing states, Crowe sees it as generally positive for homebuyers in those states as long those low oil prices don't last much past this year. Well, hope does spring eternal, as they say.
Editor's note: This column is reprinted from the February edition of Oklahoma Builder magazine
By Kurt W. Dinnes
NAHB State Representative
OSHBA Vice President/Treasurer
2014 was another good year for our industry with housing starts robust and builder confidence continuing to rise all across our nation. The good news is it looks like this trend should continue in 2015.
Kurt Dinnes
As I settle in to my new role as your NAHB State Representative and First Vice President and Treasurer, I realize that I will be writing articles and forwarding valuable information to you from both the NAHB and from our State Home Builders Association. I also, need to effectively communicate your successes, needs and concerns related to our industry back to our State Homebuilders Association and the NAHB. To serve you better, I hope to get to know as many of you, "The Members," and how your business is going across the state. So, please feel free to contact me by email, text or voice (that's the phone).
To help with this, I would like to take this opportunity to put the "person" with the "face and name" you see at the top of this report. I own and operate Sun Custom Homes, a small custom home building company in the Oklahoma City area. I am married to my best friend, Megan, and she a beautiful person, as well. I have two children, Alexa and Westin, and both are attending college. We also have a four legged family member named Aspen, named after the white snows of Aspen Colorado, and she is a West Highland Terrier, a dog that is, (but don't tell Aspen that). My son Westin, has shown an interest in the business in both design and project management. He is currently in his second year at the School of Architecture at the University of Oklahoma. This should settle the question, yes we are OU fans. Let me also say, this does not mean we do not like the other schools around the state, if you know what I mean!
We live in the Norman area and attend Journey Church. Although I am passionate about custom home building and design I do have a few other interests. I enjoy the outdoors, fishing, skiing and I am an avid cyclist. Megan and I love to travel both domestically and internationally when we can. I am often teased by some of my builder friends about the time we devote and places we travel. I believe this teasing is made possible only by social media - yes, Facebook. My lovely wife is compelled to post our travels. Social media is an absolutely valuable resource for your business, however it can be over-telling of your personal life when you try to get away for a little R&R without the ribbing.
Without boring you any further, I hope this helps you know me a little better and puts a person with the name and face. As I serve you and our State Home Builders Association I hope to get to know you better as well. With that being said, let's all commit to getting as much out of our membership in 2015 by participating and attending our OSHBA and NAHB events, but most importantly our local association meetings and events. Our local associations are truly the "grassroots" of our membership.
In serving and getting to know you better this year, remember our associations at all levels are effective because we care, participate and yes, RECRUIT. Collectively, our voice can be better heard as we work together to protect our industry and the American dream of home ownership.
Editor's note: This column is reprinted from the February edition of Oklahoma Builder magazine
By Steve Sullivan
Chair State Associates Council
Since this is my first article as your new Chair for the Oklahoma State Home Builders Association Associates Council, I would like to thank all of you for allowing me this opportunity.
I feel very blessed to be a part of an association with so many good people that is organized to promote its members and is dedicated to providing safe, quality and affordable housing for the citizens of Oklahoma.
Steve Sullivan
It's truly a privilege to be involved with such quality leadership and I am looking forward to working with the Executive team and doing my part on behalf of the Associate members.
As your chair, one of my goals is to get to know associates from throughout the state home builders associations. So, I will start of by sharing a little information about myself.
I have been with OG&E for more than 35 years, and have held various positions within the company. Since 1996, I have been a key building-science resource, working primarily on residential energy efficiency projects.
I have managed OG&E's Positive Energy (trademark) program, having certified homes 50 percent more efficiently than the standard constructed home. During this period, I have been an active member and advocate of the state's home builders.
During my tenure, I plan to attend at least one meeting in each association and will make myself available to all areas. During my visits I hope to be able to have honest discussions that will allow me to gather ideas, as well as concerns that you might have, so that we can work on them together in order to make our association more beneficial to each of us.
You can rest assured I will bring your concerns and ideas to the associates' council as well as the OSHBA executive committee.
Focus for2015
The Oklahoma Building Summit will become a two-day event at the Cox Convention Center. The planning committee has been very active and has already met with the planner and discussed possibilities for the Summit.
We are currently looking at having an area dedicated for booths on the "Trade Floor" that will be completely separate from the rooms for the Educational Events.
We are also planning an evening function for additional networking and entertainment, as well as specific events for the spouses and families at and during the summit. We are far from having all the details worked out but more information will be forthcoming.
We also ask all associates to get engaged and assist with the Summit, which is scheduled to be held on Aug. 26-27.
As you are aware of, the Installation Banquet was held in the Crystal Ballroom at the Historic Mayo Hotel in Tulsa on Jan. 10 and your Associates Council Officers for 2015 are the following:
Chair: Steve Sullivan, OG&E, (405) 553-3393
Vice Chair: Steve Taylor, CenterPoint Energy, (580) 250-5417
Treasure: Vanessa Shadix, Old Republic Title Co. of Oklahoma (405) 942-4848
Secretary: Chris Evans, Building Specialties, (405) 232-2595
State Representatives for 2015:
Central Area (Central Oklahoma Home Builders Association, Builders Association of South Central Oklahoma, Moore Home Builders Association), Laurie Matthews, American Eagle Title Group (405) 550-3952
Northeast Area (Home Builders Association of Greater Tulsa, Rogers County Builders Association, Bartlesville Home Builders Association, Mark Priess, HUB International/CFR (918) 712-5274
Northwest, (Enid Home Builders Association, Stillwater Home Builders Association and Southwest, Oklahoma State Home Builders Association) Titian Burris, ClimateMaster Inc. (405) 473-7100
Southeast (Ardmore Home Builders Association) Randy Chambers, OG&E (405) 553-3961
National Director: Connie Stokes, Realtor Team Stillwater (405) 612-0016
A parting thought
Nationally, the ratio of Builders to Associates is two Associates for each one Builder. In Oklahoma, we have 2,403 members, 1,266 are Associates, 900 are Builders and 237 are Affiliates.
How can we get more associates involved? How do we show them the importance of them being members for their industries and how it relates to the home builders?
The Oklahoma State Home Builders Association is for all of us who touch the home builders industry. It is important we support the association that looks after our interest and helps keep legislation from adversely affecting us.
So, I challenge each of you to invite someone to your next meeting. Remember, that personal invitation is still the best means to grow. And we need your continued support in this area as it will continue to be one of the top goals of the coming year.
Some 400 Oklahoma homebuilders and hammer slingers of all descriptions attended the 2015 International Builders Show in Las Vegas, but a few skipped out for a while if they could to investigate another Vegas attraction.
Not Cirque du Soleil, or an Elvis impersonator, or even a roulette wheel.
Tony Foust
What stole Moore-based builder Tony Foust's attention was a 13-mile bus ride from the Las Vegas Strip to Henderson, Nev., to tour what was called the New American Home.
Foust, founder of DaVinci Homes, said the New American Home, constructed annually in conjunction with the huge trade show, was "breathtaking.
At 5,891 square feet, the four-bedroom contemporary home is a "sort of a fantasy home in a lot of ways," Foust said, especially considering the nearly $3 million price tag, but it features "systems that really do fit our Oklahoma market."
Indoor-outdoor space in the New
American Home at the International
Builders Show in Las Vegas. Trent
Bell Photography”.
Built and designed by Las Vegas builder Blue Heron, the home was meant to present the nation's builders and others "a collection of takeaway ideas for every price point that can be rolled into mass production quickly and efficiently," according to the National Association of Home Builders, which organizes the International Builders Show
Foust, who holds the association's Certified Green Professional designation, said he was most impressed with the New American Home's energy efficiency, driven by an array of solar panels installed on the home's spacious flat roof. The panels use the desert sun to generate enough electricity during the day to upload excess power back onto the grid, making the house a "net-zero" energy consumer.
Editor's note: Oklahoma builders were among the thousands at the recent International Builders Show in Las Vegas who made a field trip to nearby Henderson, Nev., to tour The New American Home that offered a vision of the future. We asked Wayne Farabough of Tulsa and Lyle Phillips of Enid to describe what stood out to them about the home.
Wayne Farabough
Wayne Farabough: The technology and the performance of the green building elements are what made it unique. This home had solar panels on the roof and was actually a negative energy home. It would put energy back into the grid because it was making more energy than it was using. Other green elements ranged from the tankless hot water system to the high-efficiency heating and cooling systems, insulated walls. I saw the green energy savings features and building elements you are seeing more and more in Oklahoma.
Lyle Phillips
Lyle Phillips: It was a pretty open and livable home. It had all these smart home technologies, where you can program everything from your cell phone. They created a big transition between the indoor and outdoor space with sliding walls that you can open up completely or close them off, all electronic. It had solar panels on the flat roof, which wouldn't work so well in Oklahoma. It was self-sustaining, generating enough electricity to offset the times when the sun wasn't out. I liked that feature. Although this home had all the bells and whistles - it was a $3 million home - I think it was pretty well representative of things to come.
What happened in Vegas stayed in Vegas when it comes to bad news for the housing industry at least.
Kurt Dinnes with Kohler representative
at the IBS show in January.
Kurt Dinnes, senior partner in Oklahoma City's Sun Custom Homes, said that while homebuilders in Las Vegas and the rest of the Sun Belt are still working their way out of the economic downturn and housing crash, Oklahoma is ahead of most of the country in returning to pre-crash construction rates.
Dinnes brought that news back from the 2015 International Builders Show held in Las Vegas. He was among more than 400 Oklahoma builders and others in the industry who attended the trade show, classes and business meetings Jan. 20-22 at the Las Vegas Convention Center.
Dinnes said that as an Oklahoma representative to the National Association of Home Builders, he "spent more time in meetings than out on the event floor" at this year's show.
Home builder Dan Reeves, left, visits with American
Propane Association representatives. Reeves
partnered with ONG two years ago on one of ONG's
first concept homes where 92 percent of the home's
primary heat source was natural gas.
He said the attitude among the nation's builders was bright, mirroring data that showed builder confidence had moved up in 2014 over the previous year.
Mike Means, executive vice president of the Oklahoma State Home Builders Association, agreed that a "positive attitude" pervaded the convention.
For three days in early January, a group of Oklahoma home builders laced up their hiking shoes and explored the massive Las Vegas Convention Center along with 120,000 of their closest friends.
Tony Foust
Welcome to the 2015 International Builders Show, where the latest in building trends that are emerging in the industry are showcased across almost 1 million square feet of exhibit hall space.
For the 400 Oklahomans who traveled to the show, it was an "invaluable opportunity," said Oklahoma City builder Tony Foust.
"I love the International Builders Show," Foust said. "For three days you can roam the floor and see, feel and touch everything that is going on in the market and learn how you can implement new technologies in our market. "
The Las Vegas show had expanded to include the annual Kitchens and Baths show and now is known as Design and Construction Week.
The influence of the International Builders Show didn't end when it closed on Jan. 22. It will carry over into the 2015 Oklahoma Builders Summit at the Cox Convention Center in the first two-day Summit on Aug. 26-27, Foust said.
"The Oklahoma Builders Summit is going to be considerably a lot like an IBS," he said. "There will be a day of education, bringing us up to date on things in the market, the trends, things that are going toward sustainability, energy efficiency, building a smarter home, things that let a family know what makes this home different than what it has been in the past."
"The other key part is that we are also going to have vendors who can present the goods, the services, the materials they have, the latest things that are on the market that you don' necessarily have the opportunity to see."
Expansion of the Oklahoma Building Summit to a second day brings those emerging building trends directly to Oklahoma builders in a way that mimics the Las Vegas show, Foust said.
"It's a great opportunity for builders and associate members to take a look at the technologies and where building is going," he said. "We're forward thinking enough that we are doing it now."
If anyone needs a reminder of what controlled chaos looks like, just attend the next International Builders Show (IBS)! As a member of the Conventions and Meetings Committee at NAHB, I get a peek behind the curtain to view the unbelievable coordination required to produce a show that size. At the recent IBS in Las Vegas, there were 12,629 registered exhibitors and, with the combination of IBS and the Kitchen and Bath Show, we had over 55,000 registered attendees! That's a lot of people to house, feed, and transport in a short period of time, and a huge logistical challenge during set-up and tear-down.
Phil Rhees
It certainly makes me appreciate the smaller scale of our upcoming Builders Summit and Expo at the Cox Convention Center, August 26-27 in Oklahoma City! I am really excited about the addition of the trade show this year, and I think it will be a great resource for Oklahoma builders and vendors.
If you are a vendor, you will have no better opportunity to get your product in front of over 400 builders and decision-makers from across the state. This is the show where you can have quality contact with the people that can specify your products on Oklahoma jobsites!
If you are a builder, you will get to see some of the latest products and business-support information in one easily-accessible location, just a short drive from your office. Couple that with our usual timely and relevant educational seminars, and the 2015 Oklahoma Builder's Summit and Expo is well worth your time! Remember, we expect the Oklahoma Uniform Building Code Commission to recommend adoption of their amended 2015 International Residential Code later this year, which means it could be adopted statewide in early 2016. We expect to have educational tracks at the Summit reviewing the significant changes, so make plans for your superintendents and subcontractors to attend, as well.
HBA members across the state will get the first crack at sponsorships and booth registration, and if they are not all sold, we will open it up to non-members. Please don't wait until the last minute, as we expect to sell out quickly. You should be receiving your registration form by email any time now, but make sure to let us know if you don't receive one within the next week. We will probably begin attendee registration in late Spring.
Last week saw the official beginning of the 55th Legislative Session. As usual, it began with the Governor's State of the State speech. Unlike the past few years, the Governor's speech did not have the usual "applause interruptions with standing ovations." Several observers remarked that they didn't remember the last time that happened.
The root cause may be the fact that the Legislature seems serious about tackling the issues facing the state, especially in education. Or it may be that this wasn't an election year. Either way, it seemed a little subdued.
Not much action taken overall last week. Expect things to pick up this week. We shall soon see what the Legislature is serious about. This morning I listened to one state senator talking on the radio. He said, "out of 2,000 bills filed, we will get serious over about 300 of them."
Editor's note: This column is reprinted from the February edition of Oklahoma Builder magazine
By Mike Means
Executive Vice President, OSHBA
As your association gets prepared for the upcoming legislative session, I thought I would bring you up-to-date on our legislative priorities. These were discussed at our last Board of Directors meeting and will be the primary focus for this year's session.
Mike Means
Before I get to the topics, I first want to say thank you to those members who generously contributed to our political action committee. Your dollars combined with fellow members' dollars allowed us to participate in many, many campaigns. And in case you missed my report to the Board in October, we were successful in every general election we were involved in! That is a pretty good percentage, so pat yourself on the back for helping your industry out.
Here are the top priorities of your association:
Builder Registration
We will be pursuing the formal registration of builders this year. I know we are in the age of pushing back on over-regulation, but we should all recognize that there is a need for some regulation. If there is a way to consolidate some of regulatory burdens that makes sense doesn't it? The elements we are advocating include appropriate insurance, general liability and workers compensation, and continuing education. Be sure to keep an eye on your email for alerts and action items as we proceed through the legislative session.
Protect the Energy Efficient Residential Construction tax credit
This tax credit enables builders to build small entry-level homes to the energy efficient standard that many larger homes enjoy. As the market continues to evolve, there is still a large gap between the cost to build a smaller high-performance home and the value of appraisals. We think the economic impact to the state of Oklahoma far exceeds the cost of the credit.
Non-working HOAs
We are attempting to pass legislation, again, that will allow municipalities the authority to exercise cleanup operations in a neighborhood that has an HOA that is non-working or non-functioning. Those neighborhoods still have an obligation to provide working drainage easements and should not cause problems for future developments. This issue needs to be addressed as the economy continues to grow and land becomes more expensive.
As usual we also play defense if the situation calls for it. We will work toward keeping the industry as strong as it possibly can be. Your involvement is key and we trust that is one of the reasons you are a member. As we go through the session if at any time you have a question, please feel free to contact us.
Your OSHBA is a co-sponsor of this timely industry workshop from 8:30 a.m. 1:30 p.m. Feb. 12 that looks at emerging trends in real estate and home building. Register here.
I am going to do the weekly update in a different fashion this year. Instead of giving a whole list of bills to wade through my plan is to have a list with a link so you can view them if so desired.Otherwise, I will touch on a couple of highlights each week to keep you current with the mood and actions of the Legislature.
Things kicked off February 2 with the annual State of the State given by the Governor. Then the process will begin of hearing and voting on the various bills.
This first report will give you the key bills to watch -- HB 1650 removes the mesh size of the net for commercial turtle hunting; SB 492 removes the civil liability penalties if one shoots down a drone (outside city limits of course) flying over one's property.
Ok, so those aren't the key bills. Just a couple of the more than 2000 bills that will be considered at the beginning. I will give you the real ones to watch starting next week.
It is with a great deal of sadness that we share with you that a long-time member of the Builders Association of South Central Oklahoma has died. Ben Newcomer, a past state president and a past recipient of the Builder of the Year award, passed away January 29.
The memorial services will be held Tuesday, February 3, 2:00 pm, at the McFarlin Memorial United Methodist Church at 419 S. University Blvd in Norman, if you would like to attend.
Donations can be made in his name to the McFarlin Alzheimer's Ministry, or the Alzheimer foundation of your choice.
Editor's note: This column is reprinted from the February edition of Oklahoma Builder magazine
By Phil Rhees
OSHBA President
Just when you thought you were safe from the pithy and endlessly upbeat articles from when I was your NAHB State Representative, I'm back with a vengeance! Needless to say -- but I'll say it anyway -- I am extremely grateful for the opportunity to lead our great association, and I will do my best to continue the extraordinary efforts of my predecessors.
First, let me begin by thanking Todd Booze for his steady leadership in 2014. During his term, we have achieved many of the goals set under the Strategic Plan created during Jeff Click's term as President, and we had our most successful Oklahoma Building Summit yet!
Phil Rhees
Speaking of Mr. Click, he deserves tremendous praise for creating some wonderful videos in support of membership that will be great tools for local associations in their quest for new members.
My good friend Kurt Dinnes has been a terrific addition to the leadership team and, in addition to his hard work as our NAHB State Rep, his membership training sessions held in November were a great success, and the lessons learned should pay dividends for all local associations whose staff and members attended. His business acumen and experience will be a great asset to our association as he serves as VP/Treasurer this year, and I am blessed to have him as a confidant and friend.
I also want to welcome Dan Reeves to the senior officer team as VP/Secretary. He's already hit the ground running with ideas for next year's membership goals, and is also getting caught up on the many different initiatives we've been working on for the past couple of years. He's a quick study, and will be a tremendous asset to our leadership team.
Our Exec team is fantastic and incredibly experienced! Jeff Click from COHBA and Jeff Smith from Tulsa have agreed to serve as my advisors, and Steve Sullivan will serve as Associates Chair this year.
Of course, no offering of thanks is complete without mentioning Mike Means.
I don't have the space to list all he does for this association, and the wisdom he brings to the table. But I am very grateful for his counsel and leadership.
At the end of the year, he will have lived up to the promise he made to my father that he stick around until my term as president was up. It is my fervent hope that he stays much longer than that! And I have to thank Kathy Kastner for her hard work keeping Mike organized and the state office running so smoothly.
There is much in store for OSHBA members this year, and perhaps the most anticipated is the addition of a trade show to our annual Building Summit!
As of this writing, we are very close to closing a deal for a Presenting Sponsor for the event, which will move to the Cox Convention Center in downtown Oklahoma City this year for a two-day show August 26-27.
We only have around 80 booths available for vendors this year, and they are going fast, so make sure to get in touch with us ASAP to make your reservation.
This is the only event where you can get in front of more than 400 builders -- decision-makers -- from around Oklahoma at one time, and we think it will be incredibly successful. In addition to the trade show, we are again offering the excellent continuing education classes we've all come to expect from the Oklahoma Building Summit, with engaging speakers and relevant topics that will improve your business.
With the anticipated help of the Associates Council, we are also bringing back an evening dinner event on the 26th, open to everyone, which will combine great food, giveaways, entertainment, and hopefully a silent auction!
We've also negotiated a good deal on a block of rooms at the Renaissance Hotel adjacent to the Cox Center, so stay overnight and have some fun.
Finally, I'm very excited to announce the creation of the OSHBA Hall of Fame!
We are still working out the details, but I envision this as an award of excellence to builders and associates who, through a combination of successful business operation and service to both their local and state associations, have established themselves as icons in our industry.
This will be a VERY exclusive club, and will be the highest honor bestowed upon any member in Oklahoma.
Our first Hall of Fame class will be inducted at our next OSHBA Installation Gala in January 2016, and you will not want to miss it.
The 2015 OSHBA Executive Committee posed for a photo at the Installation Banquet in early January. Here's the awesome group shot as they were poised to begin the new year. Also enjoy photos of others gathered at the banquet.
Executive Committee, from left, Associates president Steve Sullivan, former president Jeff Click, Vice President/Treasurer Kurt Dinnes, President Phil Rhees, Vice President/Secretary Dan Reeves, immediate Past President Todd Booze and Jeff Smith, former president of Greater Tulsa association
More than half of the attendees at the state installation banquet, held in Tulsa, were from Tulsa, among them former local association president Rob Miles, current Tulsa association vice president Brandon L. Jackson, Wade Hight, and longtime state leader Mike Fretz.
Jeff and Deziray Click, left, joined Robin Schuff, Gina Cox and Reese Wilmoth for some laughs at the Installation Banquet.
From Left, Mark Priess, Lana Nelson, John Madden, Rita Boggs share a table at the banquet.
Congratulations to Paul Kane, executive vice president/CEO of the Home Builders Association of Greater Tulsa, who was installed this week as chair of the NAHB Executive Officers Council during the NAHB International Builders Show in Las Vegas.
Paul Kane, right, installed during ceremony at NAHB International Builders Show in Las Vegas
2015 Associates Council: Immediate Past President Gina Cox, President Steve Sullivan and Vice Chair Steve Taylor. Not pictured are Treasurer Vanessa Shadix and Secretary Chris Evans.
Leading the State Associates Council for 2015 is Steve Sullivan. He was installed as State Associates Council President at the OSHBA's annual installation banquet in early January.
Sullivan is a member of the Central Oklahoma HBA, the Enid HBA, the Southern Oklahoma BA, and the Shawnee HBA. He works for OG&E as a Builder-Developer Representative specializing in their energy efficient programs. Sullivan has been active in the association for years and has served in various capacities over the years.
As an inaugural member of the state Green Building Council, Sullivan has helped the Oklahoma Building Summit grow to the prominence it has achieved. He and wife Linda live in Oklahoma City.
Joining Sullivan on the Council's leadership team will be Vice chair Steve Taylor, with CenterPoint Energy in Lawton; Treasurer Vanessa Shadix with Old Republic Title in Oklahoma City; and Secretary Chris Evans with Building Specialties in Oklahoma City.
2015 promises to be an exciting year for the Oklahoma State Home Builders Association. As you can see, it is under good leadership.
Rusty Appleton, center, took on the reins recently of Central Oklahoma Home Builders Association's Executive Officer position. He will get great guidance from Paul Kane, left, most recently honored as National E.O. of the Year, and Mike Means, the state's executive officer and on the NAHB ladder of that organization.
2015 Senior Officers, from left, Vice President/Treasurer Kurt Dinnes of COHBA, President Phil Rhees of Greater Tulsa, Vice President/Secretary Dan Reeves, Immediate Past President Todd Booze of BASCO
ByCAROL HARTZOG
Carol Hartzog Communications
These four men are going to take your membership dollar to the next level of service.
They are building from the feedback you gave us two years ago, written into a strategic plan, and now these four have a "laser focus" on your priorities. Our hats are off to the leadership team to take time out from their families and jobs to further our cause.
Incoming President Phil Rhees stated the board's 2015 priorities during the recent installation banquet:
Education: The largest Oklahoma Building Summit yet is planned Aug. 26-27, with more vendors, more learning venues and more social time, and with a regional reach.
Legislation: OSHBA will be pushing for builder registration again this year, to raise the professionalism of the industry and set you, the member, apart from everyone else in the field. Also, OSHBA will be fighting again mandatory fire sprinkler installation in new homes.
Codes: With the need to be prepared to address amendments to the 2015 IRC in place, we will need to address amendments that are overly burdensome.
From the several comments made from the banquet's podium, we've highlighted a few with our descriptives:
The hammer. Todd Booze in thanking Gina Cox, Outgoing Associates Council chair. "We are losing you this year on the advisory board. The thing we appreciate about her is that she and a couple of associate leaders boxed our ears pretty good and got us thinking about a few things. A lot of times we don't show appreciation for the associates. We thank all of you. They are the lifeblood of our association."
The screwdriver. Mike Means, showing appreciation to outgoing President Todd Booze: "I've been used to dealing with custom builders. Todd Booze is a production builder - one of the largest in Oklahoma. His tremendous ideas challenged me as your E.O."
The duct tape. Todd Booze in passing the gavel to Phil Rhees: "Phil Rhees is a gentleman in every sense of the word. He is always the calmest demeanor when the rest of us are blowing off steam."
The pliers. All active members. Todd Booze: "If I had not taken this role, I would never have had the opportunity to meet with you across the state. Sometimes we sit here and get frustrated, as it is always the same 20 people representing our industry. But all of you need to be commended for what you do. Because ya'll are driving the changes in our industry."
...And from outgoing president Booze, our deepest thanks to:
Executive assistant Kathy Kastner. "You could be chasing a million things (when you come into a meeting. But no matter what day it is), she always has a biggest smile on her face, to let you know that things aren't really that bad."
Executive Vice President Mike Means. "He's brought a new level to E.O.'s in our state. He's made us relevant at the Capitol. He pushed us to get involve. He's not only our state E.O., but he's with the best E.O. in the country with Paul Kane in Tulsa," as honored by NAHB this year.
Mike Means installs OSHBA 2015 president Phil Rhees. "Often, I ask the incoming president if there is someone special you would like to read the installation oath to you. Phil selected me, and I am honored," said Means.
Phil Rhees was installed as OSHBA president at the state association's annual installation banquet in early January.
Rhees is president of BMI Properties and is a long-time member of the Home Builders Association of Greater Tulsa, serving as president in 2002. He is the son of a home builder - Bill Rhees, who died this past year and was past president of the Tulsa association. The younger Rhees followed in his footsteps as local president.
Rhees is a recognized leader of the association and was recognized as the Tulsa-area association "Builder of the Year" in 2000. His leadership naturally transitioned to the state level where he served as the state representative to the NAHB 2004-2011. He then was the national area chairman 2011-12. His state peers recognized Phil as the 2009 State "Builder of the Year."
Phil grew up working for his dad in the building business. He became a full-time partner of the business in 1994. Phil, his wife Gena, his son Corey and daughter Rachel are avid OSU fans.
Kurt Dinnes was installed as First Vice President/Treasurer and Dan Reeves as Vice President/Secretary. Dinnes is owner of Sun Custom Homes in Oklahoma City and Reeves is the owner of Landmark Fine Homes in Norman. They, along with outgoing president Todd Booze, will serve as the senior officers this year.
Builder Association of South Central Oklahoma was well represented at the state banquet. Among the attendees were, from left, former BASCO president Bob Thompson and wife Nancy Thompson, Certified Professional Builder committee chair Dusty Johnston, and former BASCO president Dan Reeves and wife Amy. Dan joined the state leadership ladder this year.
Immediate past OSHBA president Todd Booze was recognized as the 2014 OSHBA "Builder of the Year" during annual installation festivities in Tulsa in early January.
Mark Priess was selected by his peers as the 2014 OSHBA "Associate of the Year."
Oklahoma Builder of the Year Todd Booze, right, gives Associate of the Year Mark Priess a hug. Booze is outgoing president of the state association and was honored for his initiation and work with six statewide Building Summits. Priess has been active in the Greater Tulsa association eight years, serving on its board, councils and has been Associate of the Year locally.
Selected by his peers, Booze was recognized, not for his work as President, which was noteworthy, but more for his role as leader of the Oklahoma Building Summit, completing its sixth year this last year.
The Summit has increased in attendance and prominence since Booze initiated the idea when chairman of the Green Building Council. It is the premiere education event for Oklahoma builders.
Priess was recognized for his continual presence and participation in many of the activities of the association. He has been recognized for all his work in the HBA of Greater Tulsa. He continued that level of activity and excellence as he participated in the state association's projects. His level of commitment and passion for the industry is contagious.
More than half of the attendees at the recent state banquet were of Tulsa, among them longtime home builders and state leaders, from left, Charles Gilmore, Greater Tulsa Executive Vice President/CEO Paul Kane; Associates Dave Sanders and Mark Priess, and longtime builder Howard Kelsey.
(EDITOR'S NOTE: Throughout the year, various OSHBA meetings have provided important information for our membership. In a look back, and to the future, we share news vital to you.)
Mike Means
From the state office: Executive Vice President Mike Means is joining NAHB's Executive Officer Committee next year. The trustee for BuildPAC will be Tony Foust, with Jeff Click as alternate.
HBA of Greater Tulsa has rolled out an "Under 40" younger-member group and it's gaining some great success, so much so, the association plans to bring the group into the leadership ranks as an official council next year. Possibly a model to copy?
Kent Bradley
Stillwater HBA: Hats off to past president Kent Bradley, who is newly elected county commissioner.
BASCO's Bob Thompson reports home builders have been working closely with code-inspection officials as the cities of Moore and Norman raise various fees and impose high-wind building codes. So BASCO decided to host brown bag lunches and, guess what, the city officials are joining as they break bread over differing views.
Building permits remain flat, like everyone else.' Thompson said the high-wind construction mandates were thought to add $1 per square foot to the cost of a home, but it's turning out to be more like $2.50 per square foot. The sense is a similar code change will be brought to the state level for consideration by the UBCC.
The high-wind codes cause potential liability issues because some home owners might assume that a house built to the code will be able "tornado proof" when in fact it is not built to withstand extreme winds of tornados.
Lawton HBA's longtime Executive Officer Sharleen Gehers will be leaving the position in June and the HBA is looking for a new home and a new EO.
(EDITOR'S NOTE: Throughout the year, various OSHBA meetings have provided important information for our membership. In a look back, and to the future, we share news vital to you.)
Builders Association of South Central Oklahoma—Norman building permits are up 8 from 2013, with year-to-date permits totaling 326.
Home Builders Association of Greater Tulsa—Housing starts reported for the Tulsa metro area September year-to-date totaled 2,149 and included starts reported for Claremore and Rogers County.
Bartlesville Home Builders Association— Bartlesville's EO said the builders are staying busy, and there seems to be quite a bit of activity in the area. They continue to meet the first Tuesday of each month at Sterling's Restaurant to discuss any topic that anyone wants to talk about.
Ardmore Home Builders Association — Housing prices in the Ardmore area are up and the real estate market remains strong. New restaurants and hotels are under construction with a TJ Max and Chick Fil A scheduled to open, along with renovation of the Mountain View Mall. Building activity in area communities of Lone Grove and Plainview remains strong with more land available for future development, although infrastructure issues remain to be resolved. The City of Ardmore is in a landlocked situation and future development is stymied.
Stillwater HBA reports the association always battles much of the home building occurring outside the city limits, and outside code restrictions, which also skews the permit numbers. Stillwater's permits are down 30 percent over last year, with only two permits let in July, for example. And of this, 22 housing starts were outside the city limits. Hats off to past president Kent Bradley, who is a newly elected county commissioner.
Southwest Oklahoma Home Builders Association — Construction is projected to decline 10 percent for the year, which is attributed to cutbacks at Fort Sill because of military budget sequestration. There has been one building per month since May and a projected number of less than 40 for 2014. Last year's permits total 50-60 new homes. Many builders are getting out of the business due to over-inventory and lack of available financing. Inventory levels are high in Lawton. It is the slowest since the early 80s and the most difficulty environment in which to sell a home in 30 years. "Times are tough down here."
Enid HBA reports building permits are up, but there is still a shortage of residential properties. Many out-of-city builders are arriving on the scene.
Happy New Year! I hope my first "President's Memo" finds everyone happy and healthy after celebrating the holidays with family and friends. I don't know about you, but I'm kind of anxious for my schedule to return to some semblance of order, and I need to get back to the gym!
Phil Rhees
This will be quite a year for firsts at the OSHBA, as we have quite a few new initiatives that should benefit all members. Some you already know about, such as the trade show addition to our annual Oklahoma Building Summit, which will be held August 26 -27 this year at the Cox Convention Center in downtown Oklahoma City. Others are in the planning stages and will be announced soon. We also have a new building code to consider, and rest assured we have some very smart people watching that process closely. And last, but certainly not least, we have a new legislative session about to kick off at the state capitol, and our EO, Mike Means, is all over that like white on rice! Please watch for the regular updates Mike sends out regarding the status of legislation as it is processed, and be ready to contact your legislators if necessary.
I will have an "open door" policy as your President this year, so please do not hesitate to call or e-mail if you have a problem I can help with. I can be reached at phil@bmipropertiesllc.com, or at 918-232-7844. This is going to be a great year, folks, I can feel it!
(EDITOR'S NOTE: Throughout the year, various OSHBA meetings have provided important information for our membership. In a look back, and to the future, we share news vital to you.)
OSHBA has seen a 4 percent increase in membership, growing to almost 2,400. The association also won the NAHB retention award, a first for the association in recent history, at least under Means' leadership.
The OSHBA Associates Council golf tourney netted $3,400, with 80 players in the spotlight. Thank you builders for making up one-third of the play action. The dollars traditionally have gone to vo-tech scholarships.
Mark your calendars for Jan. 10, when the OSHBA hosts the annual installation banquet, this year at the beautiful Mayo Hotel in Tulsa (link) when Phil Rhees will be installed as president.
It's never too early to mark your calendars for the IBS-style state home builders' trade show/summit, Aug. 26-27, at the Cox Convention Center. This year brought in the most builders ever - 400 - and next year, the association is opening up the event to more vendors, planning for 80-100 booths and as many as 600 people.The board drew on the Texas experience with their Sunbelt Builders Association Show. "The vendors like to support an event where the majority of the attendees are the owners," Executive Vice President Mike Means said, "The people who come are business owners. It's not like having a 2,000-person convention and three-quarters of them are not decision makers. The vendors say that is the ONE thing they like is that everybody there are potential buyers for their company." The board wanted past supporters of the summit to know, they will be "first at the trough" in sponsorships.
As a result of last year's membership survey, the individual association representatives attended membership training. We encouraged incoming council chairs and presidents to attend.
Several sessions of membership training for individual associations were held in the fall. Some of the ideas include giving the evening of the Oklahoma Building Summit's two-day event over to the Associates Council to create a new networking opportunity. Another idea was a possible event at the International Builders Show in Las Vegas to invite attendees to come and network.
Video membership campaign
Jeff Click, immediate past president, took the reins to develop a video-driven message of value of OSHBA membership.From the membership survey last year, he said, 4,000 members were unaware the value that was available to them. OSHBA contracted a storyteller to transmit the culture of our association, capture their attention long enough to tell a story with a more in-depth video. We thank HUB International for sponsoring the video production.In reviewing November website stats, turns out the three top blog posts for page views across November were all videos, topped by the "Networking is a Great Value" membership video.
(EDITOR'S NOTE: Throughout the year, various OSHBA meetings have provided important information for our membership. In a look back, and to the future, we share news vital to you.)
Central Oklahoma Home Builders Association —The COHBA's Fall Classic Parade of Homes was a great in which more than 100 homes entered. The Association also had three Featured Developments, and highlighted its new Parade of Homes logo on all media and signs as COHBA launches its new branding.
Builders Association of South Central Oklahoma— The 2015 Festival of Homes has been set for June 5-7 and 12-14. Days have been changed for 2015 event, and homes will be open 1-7 p.m. Friday-Sunday over those two weekends. The kick-off party is June 4.The 2015 Festival Show House will be built by Tony Foust of DaVinci Homes at 2017 Providence Drive in Hallbrooke.
Moore Home Builders Association —The Moore HBA is participating in a joint venture with BASCO's Festival of Homes to be held in June 2015 The association closed on its 2014 Project Home built for the Southwest Showcase of Homes in September.
Home Builders Association of Tulsa — Exhibitor booths at the 2014 Show were sold out and more than 36,000 visitors attended the Show over its four-day run. This was the second-highest attended show in 10 years.
Rogers County Builder Association —Home & Garden Farm & Ranch Show will be April 10-12 at the Claremore Expos. They began accepting applications on Nov. 1.
Home Builders Association of Greater Tulsa— Planning efforts are underway for the Parade of Homes, with 156 homes entered in this year's Parade and three subdivisions featured. The 2014 Parade of Homes featured more than 150 homes covering 13 communities throughout the Tulsa metro area. Twilight Tours were hosted at Forest Ridge in Broken Arrow. A special Parade tour was organized by the 40Below committee for their membership, which showcased homes build by builders 40 years of age and younger.
Home Builders Association of Greater Tulsa —Twenty three homes and 16 builder companies were featured in the HBA's annual fall showcase of homes in the Greater Owasso area on Oct. 24-26. Homes are located in Owasso, Collinsville, Skiatook, Sperry and Verdigris.
(EDITOR'S NOTE: Throughout the year, various OSHBA meetings have provided important information for our membership. In a look back, and to the future, we share news vital to you.)
Builders Association of South Central Oklahoma— Brown Bag lunches continue with City Hall to help create better communications between the City of Norman inspectors and BASCO builders. Annual donations were provided to the Norman Public Schools, Moore Norman Vo-tech and Mid-America vo-tech. BASCO sponsored the Frontier Country Wine Walk on Nov. 1. October BASCO membership totaled 213, with 83 percent retention.
Stillwater HBA —In May, Stillwater increased dues $50 and are now paying for general membership meeting meals for all members in attendance. So far, membership meeting attendance has increased about 10 per meeting. The Builder Relations Committee continues to meet monthly with representatives from the City of Stillwater to work on building industry issues. They have developed a great working relationship over the years.
Enid HBA — The Enid group hosted its largest event of the year in November, which was a Home and Craft Show.
Home Builders Association of Greater Tulsa — The HBA's annual sponsorship campaign concluded Oct. 22. Before the deadline arrived, $408,000 already had been raised, the second highest raised in the history of the campaign.
Moore Home Builders Association —Tom Pollard and Marvin Haworth served on a committee of the City of Moore to create new building codes focusing on tornado impact on residential structures to be adopted by the City of Moore. The new codes were passed by the City Council in March.
Oklahoma State Home Builders Association— Home builder association membership statewide showed a 4 percent increase year over year, with 2,499 members vs. 2,403 at the end of 2013. That's a net gain of 96 members. The largest percentage gains were the Oklahoma State HBA with 11.8 percent, and the HBA of Stillwater with a 10.9 percent increase. Numerically, the Central Oklahoma Home Builders Association showed a gain of 45, which topped the state, followed by the HBA of Greater Tulsa with a gain of 37 new members.
(EDITOR'S NOTE: Throughout the year, various OSHBA meetings have provided important information for our membership. In a look back, and to the future, we share news vital to you.)
Central Oklahoma Home Builders Association—The annual Children's Christmas event was held the first of December at the Science Museum Oklahoma. The Association provided Christmas for more than 50 children involved in the Cavett Foundation with life-threatening illnesses. The event was made possible by the "House of Hope" built this year by Jay Evans. The home is located at 841 S.W. 11 in Moore.
The COHBA's Annual Table Top Night in May was sold out with double the number of sponsorship packages. More than 60 Associates displayed their wares to builder members during the event.
The Lindsey House in Tulsa
Home Builders Association of Greater Tulsa—Seven homes were featured in the Remodeled Tulsa Tour in September. The Tour's Patron Party was renamed An Evening of Giving, with the charitable benefactor being the Lindsey House, a transitional living center home to single mothers and their children. The party featured a sit-down dinner, silent auction and a live auction. Net proceeds to the Lindsey House were in excess of $40,000, a portion of which was earmarked to replace every window in the 1920s apartment building which is home to 11 families.
Check presentation at the Lindsey House
Moore Home Builders Association The Moore HBA made its fifth $5,000 of a five-year commitment to the Food for Kids Backpack program last spring. The Association recommitted its five-year commitment of $2,500 annually to the Youth for Christ Organization and Table Sponsor of $500 at its annual banquet and auction. YFC is dedicated to getting kids out of street gangs in the southwest Oklahoma City area.
The Moore HBA sponsored two tables at the Cleveland County Reserves Deputies fund-raising banquet held in March at BelMar. Guest speaker was Barry Switzer. The Association awarded four $1,000 scholarships to students enrolled in home building-related classes at Moore-Norman Technology Center. The Moore HBA donated $5,000 to the Moore Education Services Committee, and the Association donated $5,000 to the tornado recovery effort in Washington, Ill.
Enid Home Builders Association The Enid HBA is raising money for the CDSA youth build program, helping troubled youth.
Editor's note: The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center. We asked several participants to share with us the top money saving tip they learned at the 2014 Summit:
"In my mind, build to the code and keep yourself out of court. There are a lot of lawsuits out there because people aren't building to the code. I think that's the thing that probably frustrates me the most. The people who don't build where there are no inspections don't follow the code. If you are building outside a municipality, you need to build to the statewide code. Just do the job because the rest of us are."
(EDITOR'S NOTE: Throughout the year, various OSHBA meetings have provided important information for our membership. In a look back, and to the future, we share news vital to you.)
A new NAHB field representative program has been introduced this past year and will be a great asset to local HBAs. It will be phased in over several years. Field reps will live in the region they represent. They will travel and be available to local builders, associates and executive officers.
The most recent number is $5,372 savings per housing-start a typical builder will see as a result of NAHB advocacy victories in 2014.
Economic reports from surrounding states of Missouri, Kansas and Nebraska show those states are recovering slowly. Housing permits up 2-3 percent.
NAHB International Builder's Show
The first annual joint Kitchen and Bath/IBS was a huge success. More vendors, more visitors. NAHB reduced their meeting space tremendously in order to sell $3 million in additional floor space.
"Green" building consumers are driving the market. Approximately 92 percent would purchase another "green" home; 94 percent would recommend a "green" home to others.
I am sure that you are as excited as I am about the upcoming legislative session! No? Well, it is okay by me if you're not.
However, don't let a lack of enthusiasm stop you from participating in the political process. How can you help? Let me share the top ones.
Mike Means
First, if you personally know a legislator, even if you don't live in his or her district, would you drop me an email and let me know? The more connections I am aware of the easier it is to let the legislator know how bills affect people they know personally.
Second, if you receive a voterVOICE action alert, please respond. It is easy and takes less than a minute. But the importance of your personal contact to your legislator cannot be over-emphasized.
Lastly, let me know if you have any questions or concerns. I am more than willing to learn how legislation may or may not affect your business. I can also assure you that the officers are more than willing to hear other suggestions or ideas as to what your association should be pursuing.
Editor's note: This column is reprinted from the Winter 2014 edition of Oklahoma Builder magazine
By GINA COX
Chair/State Associates Council
Wow, the year is winding down and so is my term as your State Associates Council Chair.
2015 has an awesome opportunity for Associates. The Audacious Goal for our Strategic Plan states that we, the Association, strive to be the premier resource for our members. To be that premier resource, we have to continue to provide a variety of educational opportunities and what better way to do that than to expand the Oklahoma Building Summit to be even bigger and better!
Gina Cox, State Associates Council Chair
At our Fall Board meeting, Phil Rhees, our incoming president, and Mike Means presented the concept for this summit. As Randy Chambers put it - "we are back in business!"
This event will be a lot like the convention. It will be a two-day event in Downtown OKC. It will be two days of education, a tradeshow floor with 80-100 booths with opportunity for more than just five minutes of stopping by, and an evening event that will be nothing but FUN!!! There will be sponsorship opportunities for your companies, the opportunity for us to raise some money for scholarships and education events and an exciting social event that allows for lots of networking!
Associates have been asked to help make this THE premier event for our State Association. I am very excited for the opportunity for us to help in planning this event and I encourage everyone to make plans to participate.
Membership continues to be a focus in the Strategic Plan. A fabulous video has been produced and was unveiled at the Fall Board meeting. The video is a tool that all Associations across the state can use in their recruitment efforts. This video highlights the value of membership, not only for builders, but for Associates as well. My message in the video is this, "As Associate members, remember that the value is in the relationships you make with everyone, not just the builders. I would not trade the friendships I have made over the last 16 years for anything!"
The final item of business is the announcement of your incoming officers for 2015:
Steve Sullivan - State Associates Council Chair
Steve Taylor - State Associates Vice Chair
Chris Evans - State Associates Secretary
Vanessa Shadix - State Associates Treasurer
I would also like to thank the following for volunteering to the following positions in 2015:
Laurie Matthews - Central Area Rep
Mark Priess - NE Area Rep
Randy Chambers - SE Area Rep
Titian Burris - SW & NW Area Rep
Connie Stokes - National Associates Council Rep
Titian Burris - Golf Tournament Chair
In summary, 2014 was the year the groundwork was laid. I leave you in good hands! Thank you for giving me the opportunity to serve as your Chair for 2014. We have very hard working members and leadership that will continue to make the future a success.
Although it wasn't his first installation, it was his first installation while serving as President.The Southwest Oklahoma HBA (still affectionately known as the Lawton HBA) recently held their annual installation banquet. As they are usually one of the first to hold their annual banquet, President Todd Booze made the trek to Lawton while I, your trusty EO, made the trek to Bartlesville.
Todd shared an update with the members about the state of the industry. It was well received by many.
Steve Taylor, Volunteer of the Year
Prior to Todd installing the officers, outgoing president Tim Lederer announced that Colin Hawkins as Builder of the Year.Steve Taylor, with CenterPoint Energy, was recognized as the Volunteer of the Year.
Tim Lederer presents Colin
Hawkins as the Builder of the Year
Todd then installed Colin Hawkins as the 2015 SWOKHBA President. He also installed the 2015 Officers and Directors.
Last Friday night was another opportunity to visit one of the local home builder associations and install their new officers. This time it was the Shawnee Home Builders Association. Shawnee is a great place to visit and the HBA has its own cabin right by a lake.It is a terrific setting to have a get-together and celebrate.
Andy Hammons (l) presents the president's plaque to
Jake Clanin (r).
There has been a lot of talk about getting the Gen Y and the Millennials involved in the associations. Well Shawnee has done it. 2014 saw Jake Clanin serve as president and he has passed the torch to Andy Hammons. Both of these fine "younger" men are representing the industry well. Andy, in his acceptance speech as president, expressed a strong desire to reach out and recruit new and younger builders.
They will, of course, be ably assisted by a great board filled with enthusiastic members. Shawnee HBA is pleased to be so ably represented by such individuals. The new board is seen to the right.
Greg Brown and Mike Means
Of course, when one goes to visit a local association one gets to catch up with the friends they've made through the years. A builder that I call a friend and also a great supporter of the work we do at the association is Greg Brown. Jake and Andy also say he is a great mentor. The future looks bright in 2015 for the Shawnee HBA.
Editor's note:The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year,Aug. 26-27 at Cox Convention Center. We asked several participants to share with us the top money saving tip they learned at the 2014 Summit:
"I'm going to say there are probably several ideas that I need to implement. I couldn't really focus on one, but clear across the board from scheduling to product management to sub-contractor management. And if I save money I'm making money, which is a good thing. think could save quite easily just in a material management save $10,000."
SHANE ROSS, CPB
Ardmore,Past president of South OK Home Builders Association
Editor's note: This column is reprinted from the Winter 2014 edition of Oklahoma Builder magazine
By Todd Booze
OSHBA President
As we approach the end of 2014 and everyone's focus has turned to the holidays and spending time with family and friends, we should be grateful for our industry and all that it has provided for us this year.
While many across the United States had expected this year to be a break out year for homebuilding, it looks like overall housing starts in Oklahoma are going to be slightly down from prior year's activity.
Todd Booze
With that being said, most indicators that traditionally predict market conditions remain positive across the state related to housing inventory and job creation.
If there is one concern echoed across the nation, it's the rapidly increasing cost of housing due to replacement lots, materials and the tight labor force. The main concern is that incomes have not been increasing at the pace of housing costs and that is starting to impact affordability indexes.
While Oklahoma continues to be one of the more affordable markets in the country, it is certainly something to keep your eyes on in years to come as most predict mortgage rates will be increasing.
As my term is quickly coming to an end, I want to reflect on one of our main focuses over the last couple of years -- increasing the value of our membership.
I would like to start by thanking all of you who have been involved with the Association whether it's at the local, state or national levels. Frequently, your efforts go unnoticed and unappreciated. Thank you for your commitment to our industry and for taking time away from your business and family.
I would especially like to thank Immediate Past State President Jeff Click, Treasurer Phil Rhees and Secretary Kurt Dinnes; Build PAC Trustee Brandon Perkins, Insurance Committee Chair Roger Gose, CPB Committee Chair Dusty Johnston and Code Committee Chair Curtis McCarty; Local Presidents John Hallaway (Bartlesville), Brett Knapp (Rogers County), Tim Lederer (SWOKHBA), Steve Allen (COHBA), Bob Thompson (BASCO), Brandon Jackson (Tulsa), John Jennings (Moore), Brian Stedman (SOBA), Roger Gose (Stillwater), Lindell Newman (Enid) and Jake Clanin (Shawnee).
Also, I would like to extend our thanks from all Builders to our Associate Members.
The Associate Members play a vital role at local and state levels, from participation on the Board of Directors to various committees that support our builders and the Association. The leadership they provide is greatly appreciated and if not for them many things we do, from education and the Parade of Homes events would not be possible. So next time you see an Associate, give him or her a hug!
These Associates have had a leadership role on the state level: Gina Cox, Chair; Steve Sullivan, Vice Chair; Vanessa Shadix, Treasurer; and Steve Taylor, Secretary; Regional representatives: Mark Priess, Chris Evans, Laurie Matthews, Titian Burris and Randy Chambers.
When your renewal for membership comes due and you're wondering if writing that check is worth it, I want you to think about all the people behind the Association that give of themselves to maintain a positive and productive environment for us to operate. Can you imagine what the conditions would be like if not for the efforts of all past and present active members of our Association?
I can tell you from my past 24 years in this industry, my perception of what the Homebuilder Association does changed once I got involved. From the words of one of our state's past great leaders Mark Dale, "If we don't have a seat at the table, we may find ourselves on the menu!"
This could not be truer from work at the state level with our legislators and the relationships that have been developed at the local levels with municipal government. So whether you have the time or ability to help with Association affairs, know that the cost of membership dues is one of the best investments you can make in our industry.
I would also like to encourage all of our members to be more supportive financially of our advocacy efforts.
At the national level, NAHB's lobbying efforts have saved thousands of dollars on the cost of housing by preventing intrusive legislation by the EPA and working on National Building Codes. Sometimes, it is difficult for local members to make a connection to what goes on in D.C., but if not for the efforts of our NAHB staff over the last few years, the landscape would look drastically different.
We are proud of what Oklahoma has done in terms of supporting Build PAC. We are recognized nationally as one of the highest contributing states per capita of members. However, we need to do more. Nationally, all of our PAC funds come from approximately 5 percent of our membership. While our state participation rate is slightly better, it is far from where it should be!
In addition, when we exceed our National Build PAC goal, 50 percent of those funds come back to the state to use to support industry friendly legislators. If we could get every member to give $1 a day, that would raise approximately $875K, 15 times more than we do now.
Finally, I would like to congratulate Dan Reeves with Landmark Fine Homes, our new addition to the State Ladder. Along with Dan, Kurt Dinnes and Phil Rhees, I can assure you our leadership of the State Association is as strong as ever and will remain focused on the issues most important to you and our industry.
Thank you and it was a pleasure to serve our State Association.
We are in the process of setting up a calendar of education courses and topics for 2015 and need your help. While we know some of the familiar topics that have been of interest, we need to know what you would like.
So, please take a moment and respond to this email and let us know what topics you would like to know more about. AND, it doesn't matter whether you are a builder or an associate member, we all want to stay at the top of our game. What will it take for you?
Give it some thought. Let us know. Thank you.
OSHBA Staff
PS - need examples? Here are some of the topics we held in 2014 - Concrete Staining, LED Lighting, Marketing your CPB Designation, Adding Universal Design to your existing plans...
Editor's note:The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center. We asked several participants to share with us the top money saving tip they learned at the 2014 Summit:
"The thing I've heard the most this morning is managing your time and waste better. If you can manage your time and waste better, their numbers are high; their numbers are $10,000 a house. I think realistically you can save $1,000 or $2,000 a house if you manage your waste and your time better. Making additional side trips, obviously material waste, things of that nature."
My time as President of the State Association is rapidly coming to a close. I would like to thank you once again for the opportunity to serve you and our industry.
Todd Booze
As I look back over last few years, the Leadership of the Association has directed its focus on increasing the value of the Association and how we serve our membership. Based off feedback from the membership it seems we are heading the right direction in meeting your needs and expectations of the Association. I appreciate all of you who have been involved at various levels in the Association's affairs for the betterment of our Industry.
I have also enjoyed the many relationships I have developed across the state with like-minded builders and associates who truly care about our industry and have committed countless hours to that end. As we move forward this next year there are many issues our Leadership will be addressing and your support of them is greatly appreciated. As Phil and the rest of leadership team continue to forge on the initiatives important to us all, I would encourage you to continue to support their efforts in 2015 and beyond.
Again it has been an honor to serve our membership this past year and thank you for the confidence you placed in me. Please make plans to attend the installation of officers on January 10th in Tulsa. In the meantime, I wish everyone a Merry Christmas and a prosperous 2015!
One of my favorite duties as the State EO is to go visit the local associations and install their upcoming officers. I especially look forward to Bartlesville because of their tradition. You see, their local executive officer, who is a volunteer, always buys the lunch and ... it is prime rib. Wow!
The usual format includes me rambling about the latest issues facing the association and the state. Then a few questions. Then swearing-in the new team.
Aaron Rovenstine
The 2015 President for the Bartlesville HBA is Aaron Rovenstine. Born and raised in Bartlesville, Aaron began his career in construction, working "Hands On" with some of the premier contractors of the area. Today Aaron is building custom and spec homes of the highest quality. His daily uncompromising attention to detail, assures the homebuyer of true long-term value. Aaron's character and integrity promotes a trusting environment for the customer to enjoy the construction. Experienced: Establishing his business in 2006, he has developed a fine list of satisfied customers that are eager to offer references at anytime.
EDITOR'S NOTE: This State Rep Report by Kurt Dinnes is reprinted from the Winter 2014 edition of Oklahoma Builder magazine. Read it here.
By Kurt Dinnes
Oklahoma State Representative
The NAHB is keeping the heat on advocacy and administrative issues that can affect our business. I recently attended the NAHB Fall Board meetings in Phoenix. I left the meetings with two key observations.
The first is that the NAHB is working diligently on a daily basis, on our behalf, with respect to advocacy efforts not only on Capitol Hill but all across our country. This further emphasizes the importance for us to communicate our challenges and successes around our state to NAHB leadership.
Kurt Dinnes
The second is that the NAHB is trying to make needed changes, albeit slowly, within the organization. These changes will help provide better communication and services to local and state HBA's, while exploring ways to reach out to and attract the younger generation within our industry. Difficult changes are being considered that rethink the number of meetings and how all meetings within the NAHB can be more efficiently and economically conducted given today's technology.
AFFILIATE DUES RATE
The NAHB Board of Directors approved a 2015 combined budget for the NAHB and the National Housing Center that reflects an increase in the annual dues rate for NAHB Affiliate members to $15 effective Feb. 1. Pending formal ratification of this increase at the 2015 International Builders' Show, the current $5 Affiliate dues will increase to $15 for new and renewing members with anniversary dates of Feb. 1 and subsequent. It should also be noted that there are discussions as to whether proper notices have been given for said ratification and the effective date for the increase may change, provided it is ratified. I will keep you posted.
FIELD REP PROGRAM,
This much needed program was voted in after much discussion on the floor. The program is intended to reconnect NAHB with its locals at a grass roots level by providing assistance to locals with EO training and support and strengthening membership recruitment and membership services provided by NAHB. The field rep program will also be a communication conduit to NAHB so it can better understand issues that are affecting locals across the country.
Each Field Rep will live in the area he/she serves and be on the road in locals 40 weeks a year. The program will start with five Field Reps the first year: one in each region utilizing existing NAHB Staff at a cost of about $690,000. Five more will be added the second year at an additional cost of about $800,000 for a total of $1.5M. An additional five reps will be added the third year. There will be two full-time staff to assist the Field Reps, one in the field and one in-house at NAHB headquarters. This program was eliminated due to budget restraints years ago and the Federation is optimistic about its return.
REDUCTION OF BOARD MEETINGS
In very contested and protracted discussions, the Board voted to reduce the number of required Board meetings from three to two a year, beginning in 2016. The Board asked the Officers to establish a task force charged with developing an appropriate leadership calendar, featuring two Board meetings while preserving the governance and networking needs of the organization. This modification, coupled with a well thought-out meeting strategy, will save money and time for the association as well as board members. It will also make NAHB participation more convenient, rewarding and feasible for many more members.
International Builders' Show: Bigger and Better in 2015
We're going back to Las Vegas, Jan. 20-22, for the 2015 International Builders' Show and second annual Design & Construction Week. Five industry tradeshows will participate: IBS, KBIS, the International Window Coverings Expo and new entries, Las Vegas Market, featuring furniture and home goods and the International Surfaces Event, combining all types of flooring, stone and tile. Just a quick reminder you canregister at BuildersShow.com/Register.
First Look: NAHB's New Website!
The new, more user friendly nahb.org website is set to debut at the 2015 International Builders' Show. The entire membership is anxiously awaiting these improvements.
As I mentioned, this is just a brief summary of some of the NAHB Fall Board Meetings. If you would like a complete summary of the NAHB actions, votes and advocacy efforts, please contact us at the OSHBA offices and we will email you a full report.
Real Estate editor Richard Mize of The Oklahoman attended OSHBA's Aging in Place training and wrote a column detailing his experiences after participating in the class:
My inner fifth-grader can just go sit in the corner, because I've made peace with the bidet.
Until this week, seeing or reading or hearing about a bidet would automatically make me blush and stammer or, in some types of company (mainly other guys with assertive inner fifth-graders), send me into fits of snickers and smirks.
One extreme or the other: blushing or hitting bottom.
Oklahoman reporter Richard Mize maneuvers a wheelchair
during OSHBA's Aging in Place certification training class.
PHOTO BY PAUL HELLSTERN/THE OKLAHOMAN
You don't know what you don't know or what you've never had to think about. This week, while studying principles of aging-in-place home remodeling, I thought of something that hadn't occurred to either my inner grade-schooler or 50-year-old, able-bodied me:
If you can't reach yourself, a bidet could be a blessing like no other a preserver of dignity.
As someone said: "Independent living means being able to go to the bathroom by yourself." Even an inner smart-aleck punk kid should get that.
I was taking classes offered for the National Association of Home Builders' Certified Aging-in-Place Specialist designation taught by Jack Werner, A to Z Inspections & Training, at (read the entire article at newsok.com)
Editor's note:The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center. We asked several participants to share with us the top money saving tip they learned at the 2014 Summit:
Dan Reeves
"I think taking Lean down to the smallest details, like eliminating phone calls, because most phone calls lead to 5 or 6 phone calls, which is time.The time of each job, their estimate today is that $500 for every day that you can save is what it will save you in overhead.
"So if you can save two weeks you are looking at $5,000 per house, which is a lot of money."
Editor's Note: Watch this minute-and-a-half long video that highlights the value that belonging to the OSHBA brings its members.
Todd Stone
Before becoming a member of the Home Builders Association, I really didn't realize exactly what it was I didn't know. Once we became a member, then all of a sudden I realized there's a large group out there who will act collectively and act in our own best interest.
-- Todd Stone, Builder Member
Phil Rhees
For me, personally, the added value that I get from my membership and what drew me initially to the Home Builders Association was the tremendous discounts I got on the premiums for general liability and worker's comp. I also receive tremendous savings on my builder's risk insurance as a member of the association. And to me that's a huge benefit.
-- Phil Rhees, OSHBA President 2015
Gina Cox
In looking back over the last 16-plus years of membership, when I came as a member, I thought of it only as a networking opportunity. But in reflection, the biggest value I have received is basically the relationships on a personal level and a professional level. I wouldn't trade the networking resources that I have available to me for anything.
--Gina Cox, 2014 State Associates Chair
By drawing from these people, it allows you to continue to hone your craft, to hone your skill, provide a better home for the end user.
Elizabeth Wazwalik lined up the chair carefully, back toward the door, its two big rear wheels just clearing each side of the frame: Bump!
She was trying to get from a standard corporate classroom through a standard glass door into a standard office foyer — and back — and she was struggling because she was in a manual wheelchair.
She had never tried to use a wheelchair: BUMP!
Home builder David Bryan tries to maneuver a wheelchair
through a door way during a Certified Aging-in-Place class
PHOTO BY PAUL HELLSTERN, THE OKLAHOMAN
PAUL HELLSTERN - Oklahoman
Kendra Orcutt, who was in charge of this teachable moment, watched her strain with the hand rims to pull the wheels backward, getting nowhere.
It didn't help that Wazwalik held a tennis ball and wore a sock on each hand. Bump!
Thirty seconds passed. Bump!
"You're probably not going to have enough strength, so you'll have to try a different approach," said Orcutt, an occupational therapist who prescribed the tennis balls and socks. They help people get a feel for arthritis.
Wazwalik pushed away from the door and took advantage of the openness of the classroom to get the chair turned around. Another 30 seconds ticked away.
"Do you see how much space you need to do that? If you're in a narrow hallway, you can't do that," Orcutt said.
Wazwalik, with her feet, finally pushed the door open and got the chair's front wheels over the room divider, a nothing of a thing to anyone not in the wheelchair — but the (read the entire article at newsok.com)
Editor's note: The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center. We asked several participants to share with us the top money saving tip they learned at the 2014 Summit:
"If we could just save two or three trips that could be 10 to 20 percent savings just in man hours spend and gas and time. I think that's something we can take away from this very easily. We do drywall and paint for a living, and it could save us possibly $100 per job."
Editor's note: This transcript is from a video that highlights the educational value the OSHBA brings its members.
In the ever-changing environment of our industry, it is imperative that we're keeping up-to-date with what is happening and how things are to be done. We're the general contractors on site, but many times we depend too much on the trades.
The association brings education to our membership to keep them up-to-date on those things -- whether it's codes, materials application -- things we run into everyday out there in the field.
We bring in a lot of national experts and consultants who work with builders across the country and have had the opportunity to see what has been successful and what hasn't been.
Our focus is to bring that information to the builders so they keep abreast of our ever changing environment.
-- Todd Booze, President 2014
Watch this 60-second video to gain insight into how the OSHBA works to keep members abreast of an industry environment that is in constant change.
Congratulations to longtime home builder Dan Reeves, of Landmark Fine Homes in Norman, the newest member of upcoming 2015 board of directors for the Oklahoma State Home Builders Association. Come January, he will be inducted as vice president/secretary.
Reeves has always been on the cutting edge of innovation and partnerships in the industry.
Dan Reeves of Landmark Fine Homes
Last year, Reeves partnered with Oklahoma Natural Gas to roll out one of the few, if any at that time, "concept" homes with 15 CNG-powered options, including a fueling station in the garage.
Landmark was named America's Best Builder 2012 by "Builder" magazine, the leading media brand for the residential construction industry which serves as the magazine for the National Association of Home Builders.
Landmark was selected due to its "innovative business strategies, careful attention to customer service and a distinct approach to quality home building," according to the magazine.
In 2009, Landmark built only the third home in the state at that time to be certified by the National Home Builders Association as a gold-level Green Home, the first being in the Edmond area and the second in Broken Arrow. The gold certification meets the highest "green" standards under the NAHB's green building program Election of
"For Dan Reeves, a single phone call from his wife, Amy, would change everything.
"She called me one day and said, Hey, we haven't seen each other in a couple of years,'" he recalled with a laugh.
She had a point. They worked opposite shifts Dan Reeves as a field training officer with the Oklahoma City Police Department, and Amy Reeves as an elementary school teacher. Their spare time was gobbled up by the growing homebuilding work they had going on the side.
"And I was glad she called," Dan Reeves said. "I was tired."
"And so we took a leap of faith," Amy Reeves said, "left our careers and started a homebuilding company."
Eleven years later, there are no regrets, not even with a market downturn thrown in to complicate things. Dan Reeves credits his police department training "Prepare for the worst and hope for the best" for not only getting Landmark Fine Homes through but even growing it a little.
"We retained earnings and (did) not just spend all our money, to make sure we're going to be around to take care of our customers and our family and our employees," he said. "I think you can see there were a lot of other people who were spending it as they were making it, overextending themselves."
The Best Builder' award was hardly a cosmetic one. Dan Reeves said his company had to provide details about its systems and practices, accounting, employee retention and more when the company applied for the award.
"Having beautiful homes, all that plays a part," he said. "But it's a little easier to build a beautiful home than it is to build a company."
His wife said, "A lot of times people, I think, misconceive America's Best Builder as just the sticks and brick and the exterior and what you see. But it really is a lot of the behind the scenes, how you run your organization."
Amy and Dan Reeves grew up in the Moore-Norman area, were high school sweethearts and live within miles of their childhood homes. Both are active in the community through Relay for Life, Central Oklahoma Habitat for Humanity and the American Red Cross.
Amy Reeves has served with the Salvation Army for years, including four years as kettle chairman, and Landmark's annual "Thanksmas" brings friends, colleagues and families together during the holidays at one of its model homes to collect food and toys for the Salvation Army. The Reeves have three children.
Dan Reeves cut his construction teeth in high school and college working with his uncle Lyndsey Gay, who owns L.G. Construction in Oklahoma City. Reeves put that experience to work in his spare time after going to work as a police officer, heeding the advice of another uncle who also worked in law enforcement.
"He said, Don't work extra police jobs because you'll die a young man,'" Reeves recalled.
So Reeves built instead. And the buyers came. Then he built more, and more buyers came.
"And it was growing and growing," he said. "And (Amy) was doing the books after teaching all day. And we grew it. Basically it came to us."
Dan has been active in the state association for years, and we are sure, years to come. Congrats Dan!
Ok, I know I am showing my age when I use the title of an old Jethro Tull song as the title to my blog. But it was what came to mind after touring the Acme Brick Plant in North OKC. Brick is the favorite facade on building new homes in Oklahoma and I was curious as to how they are made. So I accompanied a bunch of Certified Professional Builders on a seminar we had arranged for continuing education purposes.
First, a big shout out of thanks to Bryan Smittle, District Sales Manager, and John Spence, Plant Manager, for allowing us and taking us on a guided tour of their plant.
Acme Plant Manager John Spence explaining the
science behind the making of bricks.
The North OKC plant is the #1 plant for Acme (once again proving Oklahoma is number 1!) and mainly produces bricks for the residential market. Brian joked about being a "burnt dirt" salesman, but let me assure, the science behind making the brick was fascinating.
The tour followed the path of the clay as it enters the plant. Since it was a very cold day for our tour we didn't spend too much time looking at the mounds of dirt, except to note that it is worked continually to provide for thorough mixing of the material.
Conveyer taking raw material up to be pulverized.
It is then brought into an area where it is beaten and pulverized (think OU-Baylor last weekend) into very fine almost sand like material.
Very fine clay ready to be
sent through the extruder.
As the material goes into the extruder, additives are introduced to give the brick the various colors that you find. It comes out of the extruder and then it is cut into the bricks. They are then stacked and allowed to dry to a certain point.
Finished bricks on the left
and "green" bricks ready
for the kiln on the right.
At that time they are then sent into the kiln for firing and extreme hardening.
Coming out of the kiln. That is fire in between the bricks
in the1800 degree kiln.
The bricks are then sorted, stacked and palleted, ready to be shipped to your new home. Where you can rest assured of such quality that Acme gives a 100 year warranty.
100 year warranty on Acme Bricks.
If you want to know more about our Certified Professional Builder program, give us a call or visit our website - www.osha.org.
It's hard to believe we are already in the last couple of months of 2014! I wish all of you a great Thanksgiving Holiday!
October was an extremely busy month at OSHBA. Let me share some highlights:
Todd Booze
First, I would like to thank David Brookshire for his efforts in helping put on the annual sporting clay shoot which benefits our State Homebuilders PAC. It was a tremendous success with close to 100 participants and we appreciate all of you that participated. We had a special guest come and speak to our group at lunch - US Senator James Inhofe - who filled us in on the state of issues in Washington D.C. After last Tuesday's election I am sure the Senate can now get moving on the nation's most pressing issues that have not been addressed over the last 8 years.
Second, the IRC review committees are in full swing reviewing the 2015 IRC. A special thanks to all of you that are participating at your local level. Our plan is to get feedback on suggested amendments to the code, gather and review at the state level, and then prepare those for upcoming technical committee meetings.
Later this month the OUBCC will be accepting applications for the various technical committees - Building, Plumbing, Mechanical and Electrical - so if you are interested in serving please contact Mike at the State Office (405-843-5579). This also serves as a plea to encourage trades to participate in the technical committees of their disciplines so we can have representation from the residential industry.
Also in October we held our final Board meeting of the year in Stillwater. Here are a few items of interest to update you on;
Building Summit: Mark your calendar for August 26-27th at the Cox Convention Center in downtown OKC. The committee is in the process of developing training curriculum so please respond to the surveys regarding items of interest. This will ensure our collective needs are addressed.
Legislative Agenda 2015: As mentioned earlier this year, we will be moving forward with legislation to implement statewide builder registration. With over 78% of our membership responding in support of this we feel like the timing is right. We will need help across the state with you, our members, contacting your local legislative representatives to encourage their support.
Finally, the Board approved next year's slate of officers and I would like to congratulate and thank them for their commitment to serve our industry.
President- Phil Rhees
1st VP/Treasurer-Kurt Dinnes
2nd VP/Secretary- Dan Reeves
Associate Council
Chair - Steve Sullivan
Vice Chair - Steve Taylor
Treasurer - Vanessa Shadix
Secretary - Chris Evans
Build PAC Trustee-Tony Foust
The installation of Officers is scheduled for January 10th at the Mayo Hotel in Tulsa. Please make plans to attend. There is a link for registration on the website.
Editor's note: The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center.
"I've already talked to our team, sitting through a couple of classes. One of the big things we've talked about was the start package. We kind of know the importance of the start package, but we got away from making sure we have a complete house start package before we start every home. I think if we get back to that, that's going to be cost-savings. I think if we look at the course of a single home, I think we can see easily $1,000 plus a home in call-backs or mistakes that were made because we all didn't understand exactly what that build was before we started."
-- LANCE WINDEL, CPB, Ardmore
State Representative for South Oklahoma Home Builders Association
OSHBA has partnered with an Oklahoma City-based non-profit organization to support a $10 million grant for workforce development.
OSHBA has partnered with a non-profit agency
on a work training program.
The non-profit It's My Community Initiative recently was awarded a $10 million grant from the U.S. Department of Labor to help long-term unemployed Oklahomans get job and career training through the Work Ready Oklahoma program.
OSHBA is one of 10 Work Ready Oklahoma employer partners. Program partners include government agencies, other non-profits, education and job-training providers, businesses and industry associations.
The federal grant is for four years. It is part of the Labor Department's Ready to Work Partnership initiative to support collaborations to connect ready-to-work Americans with available jobs.
The grant and the statewide Work Ready Oklahoma program were profiled by the Journal Record newspaper in an article published October 27.
Editor's note: The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center.
"I've been concentrating on the Lean process, being able to look at the project from a value-engineering standpoint and working with the subcontractors, helping each other do a faster, more efficient job, I think as far as my overall framing costs, I could probably save 10 to 15 percent, so maybe $2,000 per house, getting away from a lot of waste and inefficiencies."
-- BRANDON JACKSON, CPB, Tulsa
Incoming president of the Home Builders Association of Greater Tulsa
Editor's note: The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center.
"This is the first one of these building summits I've been to and I've already picked up a lot of good information. The trick is going to be going back and implementing those ideas. I've got to go back to my guys and utilize this. Cutting back on waste. That's the biggest thing. You look at these jobs sites and you fill a 40-yard Dumpster twice on one little house. Too much waste."
-- JIM SCHUFF, CPB, Oklahoma City
Past President of Central Oklahoma Home Builders Association
Editor's Note: This transcription is taken from a video that highlights the value in networking that the OSHBA brings its associate members.
Most people think the Home Builders Association is basically home builders. But in reality, a large portion of the membership are Associate members. And I think what an Associate Member needs to realize is they're not only focused on trying to earn a builder's relationship and business, but it's other associate members that have the opportunity to use their product and services as well. So it is truly a large network you are trying to develop a relationship with. There are many networking opportunities on a state level and on a local level.
Local levels have monthly membership meetings that give opportunities to socialize and network. There are the quarterly state board meetings that give the opportunity for networking and then there's the legislative part of it with education on code and government affairs. In looking back over the last 16-plus years of membership, when I came in as a member I thought of it only as a networking opportunity. But in reflection, the biggest value I have received is basically the relationships on both a personal level and a professional level. I wouldn't trade the networking resources that I have available to me for anything.
--Gina Cox 2014 State Associates Chair
Click the arrow on the video link at the top to watch this 95-second video and gain insight into value that networking brings both members and associate members alike.
Editor's note: The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center.
"One of the tips I took away from the conference is the incredible amount of money you can save just by managing waste and scheduling. Those numbers are up to $10,000 per house, which is incredible. Just being cognizant of your preplanning and how to line up your schedule to where you are not having wasted days can save an incredible amount of time and money."
-- JEFF STARKWEATHER, CPB, Tulsa
A council chair of the Home Builders Association of Greater Tulsa
OSHBA members share the many benefits membership in the organization brings them in a new video series that launched today.
For example, members share their perspective on the continuing education opportunities that the OSHBA offers, and the cost savings through rebate programs. But OSHBA membership delivers benefits in a myriad of other ways.
In the video series, members also discuss the professional development and networking opportunities the OSHBA provides. And they highlight the OSHBA's legislative advocacy, which allows members to have a much louder voice in critical public policy issues.
"We have a much louder voice when we come together to address issues, whether it is at the state or at the local level," said Todd Booze, 2014 OSHBA President.
Editor's note: The Oklahoma Building Summit registered the most participants of any summit in its six-year history - more than 400, and raised the most revenue, which will turn back into producing a bigger event/show next year, Aug. 26-27 at Cox Convention Center.
"Lean construction principles are all very practical ideas. I've been building and developing for more than 31 years now, and I have noticed and thought about these issues for years now. I think for savings, smaller-volume builders are there, whether you build 10 houses a year or 500 houses a year. I can see where the savings could go anywhere from $2,000 per house on a smaller house on up to a larger home where you could save $10,000 on a larger home."
-- JIM MCWHIRTER, CPB, Choctaw/Midwest City
Past president of Central Oklahoma Home Builders Association
OSHBA leaders begin planning the 2015 Building Summit at a recent meeting.
Planning for the 2015 Oklahoma Building Summit Aug. 26-27 began in earnest Thursday, with more than a dozen Oklahoma State Home Builders Association leaders looking over survey results of the 2014 summit.
A good response rate from the 400 surveys was received, with the Lean building practices (keynote) getting the most thumbs-up responses.
The business performance segment, by attorney Sean Rieger received the next best reviews for breakout sessions, followed by energy efficiency Kelly Parker with GWS and Curtis McCarty's talk on Top 10 mistakes builders make.
All supported an expanded trade show concept, which is in place for 2015 for the two-day show to be held at Cox Convention Center, with most willing to spend an overnight for the conference purposes.
Topics suggested for future consideration by participants were: Residential design, local municipal building inspector presentation, the cost of construction, state of the economy, proposed code changes and passive homes.
Improvements suggested in the summit were more networking time. Next year, that will be in the offing as the show can host as many as 100 vendors and the two-day event opens up more socialization time.
The survey summary, as provided by OSHBA executive vice president Mike Means: "We are on the right track. We will be giving more time for participants to visit with vendors and there will be more networking."
The group discussed opening up the advertising options to Wichita and Northwest Texas and expand the coverage area. Another suggestion was allowing the vendors to have mini-education' sessions at their booth location.
The evening event would be opened up for entertainment, with options for silent auction, giveaways.
"Let's make the evening a big splash. Make it fun," said Phil Rhees, incoming OSHBA president and 2015 summit chair. "This is what used to be the state convention. It's just not called that."
As we move into the final stretch of 2014 I'm glad to update you on the progress of a few of our initiatives for this year.
First, the OK Building Summit in September was a tremendous success. Attendance numbers were as high as we have ever seen. It appears we are continuing to address the training needs of the most relevant issues to our membership. With the success of the last several years of the annual OK Building Summit, we are excited to announce bigger plans for next year's event. We will be scheduling the summit to be a two day event - August 26-27 - in a much larger facility to expand the exhibitor showcase as well as evening events to allow for networking among Builders and Associates. This will allow more time to share ideas and discuss the issues we face in our industry. We attribute the success and interest of the event back to the feedback you have given us on past Summits. So look for emails soon from OSHBA to give us your opinion of last month's Summit and, more importantly, what training needs you would like to see addressed in 2015. We look forward to hearing from you.
Also in September, the Code Review Committee of OSHBA met to discuss our plans for the 2015 IRC review. The OUBCC Technical Committees will begin meeting early next year. We need to be prepared to address amendments to the 2015 IRC and prevent codes that are overly burdensome or expensive and provide no value to homeowners.
To begin the process, local HBAs will begin meeting to review all the trade disciplines in the code. We will be having individual meetings with builders, electricians, mechanical and plumbing contractors at local levels to present amendments to the state association that can be taken forward to the OUBCC.
This is your opportunity to get involved and have an impact on our industry. This is one of the most important functions of the Home Builders Association and our opportunity to shape the environment in which we build. So contact your local association for more information to participate on a committee.
Finally, I hope you have made plans to attend this week's clay shoot. All proceeds will go to our state Homebuilders PAC. Advocacy is another one of our main functions and the PAC is necessary to keep our seat at the Legislative table. The support of building and business friendly lawmakers that seek our input on issues that affect our Industry is a must! See below for more details.
Join us on Oct 8. for our annual Sporting Clay tournament at the Silverleaf Shotgun Sports complex. It will be the best $135 you can spend helping the industry.
Here's the details:
$135 gets you entered. Ammo is provided. And you go from station to station shooting these orange clay pigeons (guaranteed not to be in the news)! Best shooter and best overall team win a prize!
And as an extra incentive, right before we start we will announce the winner of our Shotgun raffle. $20 buys you a chance to win a brand new Ruger Red Label O/U 12 guage shotgun. (Need not be present to win, but hey, what a great way to break it in!)
It will be October 8th, 9:00 start, at Silverleaf Shotgun Sports just North of Edmond. (There is an 8:45 am mandatory safety meeting)
MIDWEST CITY In a show-and-tell keynote presentation at the recent Oklahoma Building Summit, lean building advocate Scott Sedam displayed example after example of waste in the building process.
As he spoke to about 400 Oklahoma home builders at the Reed Center in Midwest City, Sedam's accompanying slide presentation displayed multiple examples of waste that are everyday occurrences in the home-building industry.
The Building Summit was presented by the Oklahoma State Home Builders Association.
In a presentation titled "My Favorite Train Wrecks," Sedam's examples ranged from Dumpsters full of usable air-conditioning ductwork, to dozens of wood trusses exposed to weather for long periods of time, to homes overbuilt with features.
"We see these things happen all the time, and all it is is money," Sedam said.
All are examples of waste and add to the builder's cost of doing business, adding an average of $9,000 per construction job, he said.
(Editor's note: This column is reprinted from the Fall 2014 edition of Oklahoma Builder magazine)
Gina Cox, State Associates Council Chair
Even though the lazy days of summer have come and gone, the Oklahoma State Homebuilders Association has been busy with the final stages of planning for the OK Building Summit. But, by the time you read this, the Summit too will have come and gone. I would like to extend a BIG THANK YOU to all the Associate Members who sponsored and participated in this event. Your time and resources make this a success as well as a valuable asset and are very much appreciated.
The Audacious Goal for our Strategic plan states that we, the Association, strive to be the premier resource for our members. To be that premier resource, we have to continue to provide a variety of educational opportunities and what better way to do so than to expand the Building Summit to be even bigger and better! Plans are already in the works for 2015, and it has the potential of not only continuing to provide the education aspect, but it will give us more of an opportunity for networking and fellowship. I hope that those of you who have participated in the past at the Building Summit will make plans to continue to do so, and I encourage more Associates to look at participating so that we CAN make this a premier event. It will take all of us to continue making it a success.
Fall Board is around the corner - we will be meeting a little earlier so that we can allow time for us to continue our discussions on the best way we, as a Council, can serve the State Association to help accomplish its goals for 2014 and beyond. I would like to extend an invitation to any Associate to come find out what the State Associates Council is all about. We still need to work on ideas for fund-raiser events and defining our own goals and purpose. If you have ideas or suggestions, and cannot attend, please feel free to contact one of the Associate Officers. This is your Council. Your input does matter! It will also be election time for our Officers. If you are interested or know of someone who would be an asset to the leadership of our team, please let us know and make plans to attend.
Change is not easy and as we move into the last quarter of the year, I feel not much has been accomplished. In reflection, I realize that when we are in the midst of change - redefining ourselves, our goals and purpose, it takes time and planning. This is the year of planning. You can't just say we are going to change and it happens. I can only hope that in the limited time we meet, we are able to lay the groundwork for the next group of leaders to be able to continue moving forward and making those changes happen.
Looking forward to seeing you at Fall Board (October 23 in Stillwater).
(Editor's note: This column is reprinted from the Fall 2014 edition of Oklahoma Builder magazine)
Mike Means
It is with a touch of sadness that I reflect on reaching my 10-year milestone with the Oklahoma State Home Builders Association. As I say that it is hard to believe it has already been 10 years! Why, I can still remember when I was raising all your property values as County Assessor! Just kidding of course as I had a wonderful working relationship with the Association.
Why the sadness? Two people who were instrumental in the beginning of my career with the Association passed away this year. One was the person who hired me; the other was one who encouraged me. I'm speaking about Mark Dale and Bill Rhees.
Mark Dale was State President in 2004. I was changing careers at the time and the HBA was seeking a change in administration. Mark and I were like best friends from the minute we met. He was my legislative chairman up until his death. I could trust in his wisdom and he appreciated my political instincts. He will be missed by many of us. However, Jeff Click, my new legislative chairman and I have a relationship much like Mark's and mine. It is a blessing.
Bill Rhees was on the Association's Insurance Committee when I came on board. There was already ongoing discussion about possibly going to a self-insurance model and there was much division and contention at the time. I was plopped right in the middle of it.
At about the same time, we got word that Blue Cross Blue Shield was no longer going to underwrite our health program. Bill's calm demeanor and willingness to hear both sides of the issue was that of a statesman. His humor brought levity to and eased tension in the meetings. We became friends and shared our faith stories with each other. He was a solid Christian and encouraged me greatly. I still wonder where his infatuation with flatulence jokes came from.
Mike Means is shown with legendary New York
Yankees star Bobby Richardson.
But enough melancholy.
I titled this piece "Giving Back." The reason? I recently attended a banquet sponsored by some builders who "give back." They treat their employees and subcontractors and their families to a big banquet. But more than an appreciation dinner, it also includes a Gospel message and ideas on how they too can give back. These builders recognize and give the glory to God for their success. They feel they are giving back to God some of the blessings they have received by honoring those who helped them achieve their success. I was pleased to be a part of that banquet and meet their keynote speaker.
Pictured with me is former Yankee 2nd Baseman Bobby Richardson who is a devout Christian and shares his testimony with others. If you see me, ask me about the evening and I will share more than what I can in this column.
Thank you for allowing me this time to give back to a couple of men in the industry. They helped me in my first 10 years. And God willing, I will continue to give back as we journey through the next 10.
Editor's note: This article was published September 23 in The Journal Record newspaper. This presentation has been edited to provide highlights that relate to OSHBA members.
By Brian Brus
Courtesy of The Journal Record
OKLAHOMA CITY - City Council members took a big step recently toward working around limitations imposed by the state Legislature in dealing with dilapidated structures.
The amendments would significantly escalate fines and improve the assessment and recoupment of abatement costs associated with more than 12,000 abandoned properties in the city. The council unanimously supported the proposed ordinance changes. Further discussion is planned for Oct. 7, with a final vote Oct. 21.
City officials last year commissioned a study to clarify the effects of dilapidated properties and suggest a solution. The work by GSBS Richman Consulting found that vacant and abandoned buildings in Oklahoma City cost $2.7 billion in lost property values annually and $6.5 million in city services.
But then the Oklahoma Legislature quickly passed the Protect Property Rights Act to keep municipalities from creating such registries under the justification of protecting owners with well-kept properties from incurring unfair costs.
The bill was supported by the Oklahoma State Home Builders Association, Oklahoma Credit Union Association, Oklahoma Bankers Association and the National Federation of Independent Business.
City Councilman Pete White at the time said that legislators incorrectly perceived a conflict between personal rights and communal responsibility, and council members have since expressed frustration at how state government won't let municipalities govern themselves. Tuesday's ordinance language was a response to the constraints created by the new state law, City Manager Jim Couch said.
Bob Tener, the city's development services director, said staff has rebuilt last year's abandoned buildings ordinance to create what he called an escalation strategy for fines related to exterior property maintenance code violations, with penalties rising from $100 to $300 and $500 on subsequent responses by city employees.
"The proposed ordinance will create a schedule of escalating class A fines to increase the pressure on the offender to remedy the problem," Couch said in a supporting memo to council members.
Registration is open for IBSx, the new International Builders’ Show® virtual experience from NAHB. The in-person event was transitioned to a virtual show due to health and safety concerns surrounding the COVID-19 pandemic.
NAHB strongly supported this action
Let’s go to our resident WOTUS specialist: NAHB Environmental Policy Program Manager Owen McDonough, PhD.
The International Builder’s Show in Orlando, this year had an overall increased attendance of 80,000. This is a great sign for the housing industry. NAHB Economist Robert Dietz, Ph.D., says GDP growth is expected to be 2.4 percent in 2017, up from 1.6 percent in 2016. Mortgage rates are projected to be on a gradual increase from 3.7 percent in 2016 to 4.5 percent in 2017 to 5.3 percent in 2018. Nationally, housing starts are projected for single family to continue to rise from 780,000 to 855,000 in 2017, and 961,000 in 2018.
Copyright © 2017. All rights reserved.
NORMAN — Homebuilder Tony Foust's genius may not be immediately apparent to the naked eye — it lingers behind walls, disguises itself in wide hallways and hides in plain sight in tile underfoot..jpg)
All hail the happy home owner: the No. 1 referral source for home builders and remodelers. Companies that forget to keep that top of mind are companies that are in for a bumpy ride, presenter Ed Earl of Priority One Projects told attendees at an educational session during the 2017 NAHB International Builders’ Show.
Despite a Jan. 20 White House Memorandum from Chief of Staff Reince Priebus directing federal agencies to withdraw or postpone recently finalized regulations, the Environmental Protection Agency (EPA) has not withdrawn the Jan. 19 Construction General Permit (CGP) for review.
At an International Builders’ Show seminar in Orlando earlier this month, Brian Hall, vice president of construction at Charlotte, N.C.-based Classica Homes, outlined four steps his firm has taken to ensure it is the “builder of choice” in its local market.
To provide the best possible building experience for your customers, open communication and planning are the best strategies to reduce conflict, manage expectations, eliminate costly errors and gain trust.
BREAKING NEWS -- Jeff Click, (right) owner of Jeff Click Homes of Oklahoma City, was named Oklahoma State Home Builders Builder of the Year at tonight's annual Installation Banquet and Hall of Fame Induction. Click is a former President of the OSHBA. Steve Taylor, (below, left) immediate past Chair of the State Associates Council, was named State Associate of the Year, while Phil Rhees, (below, right) 2015 OSHBA President, was presented the President's Award by outgoing President Kurt Dinnes. 
Taking the helm as NAHB’s Chairman of the Board of Directors this year is Granger MacDonald, a Kerrville, Texas-based builder and developer with 40 years of experience in the home building industry. MacDonald is chairman and CEO of the MacDonald Companies, a diverse development, construction, and property management enterprise with nearly 50 neighborhoods completed and managed throughout Texas.
Now is the time to register for this year's annual Installation & Hall of Fame banquet. We are just two weeks away from when we will install Dan Reeves as our 2017 State President and induct 5 new members into the OK Housing Hall of Fame. Also the Builder of the Year, Associate of the Year, Big Spike and Little Spike will be revealed. We are excited that NAHB 1st Vice Chair Randy Noel will be in town to install the officers. 
In a major victory for home building firms and other small businesses across the land, the Senate passed the 21st Century Cures Act, a comprehensive health care package which includes a provision to allow employers to provide Health Reimbursement Arrangements (HRAs) to help their employees pay for health insurance.
The business climate is changing before our eyes. Technology continues to evolve and make its way into the housing industry as well. We have gone from the advent of smoke alarms to now a fully connected home. With technology, we can control our thermostats, lights, appliances, and anything connected to an app on our phone. We are able now, with technology, to see our energy usage, and be able to adjust our habits to save money on our utilities. With technology, we are able to do a lot in the world.
We reap many benefits from our NAHB membership. Certainly, the ongoing advocacy efforts are one of the most valuable and often the most overlooked because they may seem slow and intangible. The NAHB advocacy efforts are very broad and diverse, from environmental regulation, regulatory overreach, to labor policy and reforms that include taxation, finance and immigration. Unless you make it your full-time job, most of us simply do not have the time to keep up with all the governmental issues that affect our industry. That's why your NAHB membership is so important. 
Lastly, I have considered it a great honor to serve you, the Oklahoma State Home Builders Association as the NAHB State Representative for Oklahoma over the last few years. 
Metro-area homebuilders are heading out of 2016 the way they headed in, as if in the wake of the Great Recession rather than seven years removed from it.
By Mike Means
Copyright © 2016 NAHB Now
Trump also said these 21 are the “type of people” he would nominate and that he sought the advice of the Federalist Society and Heritage Foundation in pulling this list together. Many listed are conservative state judges and Bush-appointed federal judges. A number of these judges clerked for Justice Scalia or Justice Clarence Thomas.
“When President-elect Trump takes the oath of office in January and the 115th Congress convenes, NAHB looks forward to working in a bipartisan manner with the incoming administration and Republican and Democratic congressional leaders to tackle critical issues facing the housing industry,” Brady said in a press statement.
With vacations over and the holidays coming fast, home buying is beginning to slow down. So, given all of the predictions for 2016 (including mine), let’s review the better part of the 2016 home-buying season and see what we’ve learned, with an eye toward 2017.
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On Nov. 1, the newest modifications to the statewide uniform building codes go into effect. Most of the code changes deal with life-safety issues, and some are adjusted due to new and better products.
Carbon monoxide alarms are now required to be hard wired and interconnected on new homes. Previously one could have simply installed a battery operated alarm outside the sleeping rooms. Combination Smoke/CO detectors are allowed in these locations if they are properly listed. They also have to be outside all sleeping areas. If you have a split-bedroom plan, it has to be outside each sleeping room. If two bedrooms in a central hallway, then just one is needed.
Residential spas and hot tubs
Congratulations to Steve Allen of Oklahoma City who joins the OSHBA leadership ladder in 2017 as vice president/secretary. Allen was COHBA Builder of the Year last year and is a past president of that association. Continuing in the leadership is David Blackburn of Tulsa as vice president/treasurer and Dan Reeves of Norman as president in 2017. Kurt Dinnes of Oklahoma City will remain on the leadership team as immediate past president in January.
Kendra Orcutt, Home Mods by Therapists, was awarded 2016 Occupational Therapist of the Year by the Oklahoma Occupational Therapy Association. Kendra holds the Certified Aging in Place (CAPS) designation and specializes in remodeling client’s homes for accessibility. She is a member of the Builders Association of South Central Oklahoma (BASCO).
The new Middle-Income Housing Tax Credit (MIHTC) would allocate funds to states based on population. State housing authorities would then follow a competitive process to allocate the tax credits to developers for new construction or rehabilitation projects.
"I can't think of a more deserving public servant than Craig Thurmond, who is one of the hardest working people I know," said Vice Mayor Richard Carter. "So much of the success that's happened in Broken Arrow is directly related to Mayor Thurmond's ability to forge partnerships and get things done. I'm proud to serve alongside him in the Broken Arrow City Council."
So you're looking at your to-do list and you have several things checked off:
And if golf isn't your thing, well, our Homebuilders PAC Sporting Clay Tournament is coming up soon too. October 14 will see guys (and gals) with guns at Silverleaf Shotgun Sports for our annual event. 
By Richard Mize
The McMansion style, built between 2001 and 2007 and averaging 3,000 to 5,000 square feet, lacks appeal with today's buyers compared with old vintage homes or large freshly built homes. 
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Here is what you need to know for the first question. Stay at the Renaissance hotel. We have a block of rooms and it connected to the Convention Center. 
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Our state’s tax collections are showing a downward trend between 3.5-7.5 percent, depending on the type of tax. The Realtors, at least in the OKC metro area, report the average size and price of homes selling is down approximately 25-30 percent over last year. Realtors report new homes selling the best are homes under 300K. 
By MIKE MEANS
Reason #3 – Design Trends. Todd Hallett will be presenting on the latest design trends. Even more, he will show you how to cut corners, literally, to save dollars and build more efficiently. If you are a student of “lean building,” this is the class for you as you can also add “lean design” to your repertoire. We will be looking for a few good builders willing to let their designs be used for demonstration purposes..jpg)
By Kim Slowey
Near the end of June, Brexit came, then it went and, according to Capital Economics, that’s where the story ends.
About 76% of Americans who are likely to vote in the 2016 presidential election say they are more likely to support candidates who make housing affordability a focus of their campaigns and a priority in government, according to a national public opinion poll by Make Room, a nationwide campaign giving voice to American renters.
It’s a fact of life: Homes come with far more emotional weight than any other investment we make.
Copyright © 2016 CNBC LLC. All Rights Reserved. A Division of NBCUniversal
The Associates Council of the Oklahoma State Home Builders Association funded an $1,800 scholarship to construction trades programs Autry Technology Center in Enid. Above, from left is Jeff Clark, construction instructor, working with, from left, Shane Morrison and Cody Roggow, both of Enid. This year, with matching funds from OSHBA, the Council provided six Oklahoma technical schools with $1,800 each for construction-related scholarships for a total of $10,800. In the photo at right, Steve Sullivan, immediate past president of the Associates Council, presents a check to fund the scholarship to Autry Tech Center's Clark.
“This comprehensive Guide offers access to a vast network of industry suppliers,” said Mike Means, Executive Vice President of OSHBA. “We’re pleased to offer such a needed resource, which will greatly assist industry professionals in making educated purchasing decisions throughout the year. As such, members may be contacted soon by Strategic Value Media regarding the different placement opportunities in our new online Guide.” 
All Festival Homes will be open 1-7 p.m. during Festival dates.
By David Ritchie
One of our goals for 2016 is to create an ambitious schedule of training events for builders and their salespeople. The goal of our education program is to not only provide our builders and their staffs with excellent education opportunities, but to bolster our branding efforts within the community by bringing other community stakeholders onto our campus. Our first event, with national speaker Jeff Shore, was a tremendous success with more than 200 people in attendance. Our next event, with another nationally renowned sales speaker, Myers Barnes, was April 19.
Connie Stokes, Associates liaison representing Stillwater, reports that the HBA sold out all of the space at the recent Home & Garden Show. Building permits have risen a little, and a lot more building is going outside the city. Anything new will have three offers in one day because there is such demand for housing and very little inventory. In 13 years, Stokes has never seen this much demand. For example, recently a $150,000 existing home on 2.5 acres sold $5,000 above the asking price and had six bidders by the end of the first day on the market. Meetings are very well attended. Dues were adjusted this year to make “meal payment” part of the dues, which has increased the attendance. HBA meetings have been very well attended.
We are continuing to grow and develop our student chapter relationship with the University of Oklahoma, and recently awarded a $500 scholarship to a Student chapter member at our Associates Showcase.
This year’s Greater Tulsa Home & Garden Show concluded with 500 exhibitor booths sold-out and more than 31,000 visitors (slightly down from 2015) attending the Show during its 4-day run on March 10-13. From first projections, the 2016 Show will be the most profitable in its history. It’s the first year in which $1 million in booth space was sold. What a money maker! Past chairs have already met and the Show’s Wrap-Up Party is scheduled on April 5.
Lance A. Windel, of Ardmore, relied on his experience as a commander of combat engineers in the U.S. Marines to attack the task of building homes in far-flung Oklahoma.
It’s one indication that reflective roof coatings are “an energy saver that hides in plain sight,” according to a recent article in 
It was also different in that we had as our guest NAHB President and CEO Gerald Howard and NAHB Senior VP of Government Affairs Stephen Gallagher with us. They and the leadership of OSHBA met with both Lt. Governor Todd Lamb and Governor Mary Fallin to discuss workforce development issues.
Industry benchmarks on profit margins, asset levels, and equity positions are important because they allow businesses to compare their performance to their peers, and that can be extremely helpful in identifying areas for improvement and increasing efficiencies.
OKLAHOMA CITY – The Oklahoma Housing Summit will take place April 14 in Oklahoma City. This one-day educational event held every three years offers the opportunity for those working in affordable housing to gather to learn about the latest happenings facing the industry. It is Oklahoma’s premier affordable housing event for 2016.
By Tim Stanley
Looking for the latest “must have” design features to wow your move-up buyers? Experts offered the following tips during January’s International Builders’ Show in Las Vegas:
Evans is one of only 36 Oklahoma City metro area home builders to hold both designations, and one of 100 across Oklahoma..jpg)
Highlands addition, has three stories and 5,285 square feet — but when opened to include covered patios and the courtyard, the living space amounts to more than 8,000 square feet..jpg)
Solar panels
Now in his fifth year of teaching the three-day CAPS class, Werner brought it to a group of OSHBA members in January. Class members gained first-hand perspective of what it takes for the disabled to maneuver around a home.
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The Jan. 14 meeting was called by Moore to discuss the increasing frequency of earthquakes in the area. About 300 people attended the event.
Lawton’s Steve Taylor with CenterPoint Energy was selected as 2016 chairman of the State Associates Council at the Oklahoma State Home Builders Association’s annual installation banquet at the Skirvin Hilton Hotel in Oklahoma City with approximately 160 in attendance.
“He just doesn’t quit. He just has that dogged determination that comes from being raised on a ranch and punched cows when he was growing up and he still lives those core values.”
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“When I think of Mark Dale I think of integrity, and also professionalism. There are not any other words that I can think of that describe Mark.”
In 2004, Lamb was elected to the state Senate, and Mike asked him to carry an important OSHBA piece, ‘Right to Remedy’ legislation. Right to Remedy, also known as Notice of Opportunity to Repair, allows a builder an opportunity to repair an alleged construction defect before it ends up in a lawsuit.
Robson, past chairman of the National Association of Home Builders, was inducted Saturday along with the late Mark Dale of Oklahoma City at the organization’s annual installation banquet at the Skirvin Hilton Hotel in Oklahoma, where approximately 160 were in attendance.
This coming year will challenge us to keep God as our focus. As our beloved state confronts lower energy costs and what that means to our economy, we will also be in the middle of a presidential election. The latter can be divisive as we each get emotionally attached to a favorite. 
Well, here we are a little less than a month away from our annual installation banquet. Have you made your reservations yet? I hope you have because this one will be really special.
By Phil Rhees
It began as an offer by the Remodelers Council of the HBA of Greater Tulsa, Oklahoma to help with minor monthly repairs on a building that houses a transitional living program.
Why should they not be a member also? They benefit from your success so they should also invest to protect that success. Builders should not feel badly about leveraging their position. These vendors need to invest in the industry that supports them, through builder business.
Tulsa HBA has a new EO!
Looking forward, there are signs that conditions in the housing market should show continued improvement:
OSHBA’s commitment to the state membership has never been stronger.
An entertaining opening keynote that appeals to everyone – builder and associate alike. A small revamp of the expo will be in the works – you won’t want to miss it.
Home builder support of the program continues long after the students complete one of five industry tracks, said Jeff Clark, Technology Construction instructor for Autry Technology Center.
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Some new laws got some attention when passed but, with the effective date of Nov. 1 quickly approaching, it is worth a little review.
Dick was the President of the Oklahoma State Home Builders Association from 1982-1983. He was also a recipient of the prized Builder of the Year award in 1977.
Governor Bill Amoatubby said Mr. McCaleb was well qualified for the position.
In May, the EPA and the Army Corps of Engineers finalized the long-awaited rule to define "waters of the United States" and the jurisdictional scope of the Clean Water Act. 
What can we do to improve the Expo component? 
They will, of course, be ably assisted by a great board filled with enthusiastic members. Shawnee HBA is pleased to be so ably represented by such individuals. The new board is seen to the right.
