NAHB's Chief Economist Anticipates Solid Demand For New Homes in 2017
NAHB - Demand for New Homes 2017 Showcase Home VIP Event BANN News "Waters of the US"-Senate Withdrawl Resolution Nations Home Builders Elect Leadership for 2017 BALA Winners Design Trends Upcoming Committee Meetings Calendar of Events
Fueled by a growing economy, employment gains and rising household formations, single- family production will continue on a gradual, upward trajectory in 2017, according to NAHB Chief Economist Robert Dietz. “While positive developments on the demand side will support solid growth in the single-family housing sector in 2017, builders in many markets continue to face supply-side constraints led by the three Ls – lots, labor and lending,” Dietz said in a press conference at the International Builders’ Show in Orlando, Fla. He added that 64% of builders nationwide report low or very-low lot supplies; the rate of unfilled jobs in the construction sector is now higher than during the building boom; and that the availability of acquisition, development and construction loans for builders – while on the rise – needs to increase faster to meet demand. Builder confidence is up on anticipation that the Trump administration will help to lower regulatory costs going forward. “Regulatory requirements make up 25% of the cost of a new home,” said Dietz. “Given those constraints, it is hard to build a $200,000 entry-level house.” As the economy continues to grow, NAHB expects mortgage interest rates will average 4.5% in 2017 and 5.3% in 2018. Single-family production is expected to rise 10% in 2017 to 855,000 units and increase an additional 12% to 961,000 units in 2018.
January 2017
Overview
BANN NEWS
Positive Turnout for our 2017 Forecast & Beyond Event The Builder's Association of Northern Nevada's 2017 Forecast & Beyond was a complete success! With all our wonderful guest speakers and 400+ attendees, we were given the latest in industry trends for our builder community! Thank you to all the guest speakers, sponsors and to all those who came out! The success of the event wouldn't have been possible without you all! The Forecast 2017 & Beyond Presentations are now available at: www.thebuilders.com, under the Events & Training Tab or Click Here to view
Brown Bag Luncheon: Holland & Hart's, Anthony Hall gives us the latest in Nevada's Employment Law
On January 24, 2017, Anthony Hall from Holland & Hart explained employment laws and what it means for Nevada. With new regulations and policies in place, those who work with independent contractors should be wary of defining the line between being truly an independent contractor and an employee. Hall discussed the five tests that should be taken into consideration when hiring an independent contractor. These five tests should influence the type of contract a business should have when hiring. Even for small type jobs, it's better to renew the contract each time even though it can be a tedious. Contracts should be revisited and revised every so often to keep up to date with new policies set in place. Furthermore, Hall explained that since use of recreational use of marijuana has passed in Nevada, employers can still prohibit use. However, in the case an employee has a medical need, employers must make accommodations allowing reasonable use understanding that it doesn't pose a threat to people or property, imposes hardship on employer, and hinders employee from performing work. Employers should revisit contracts and their policies and make proper adjustments and pay particular attention in the case one does have a medical need. For more information or learn about the speaker, please visit https://www.hollandhart.com/ahall or click here
The housing industry has created the Skilled Labor Fund to address the lack of skilled labor entering the residential construction field. NAHB, the National Housing Endowment, the National Kitchen + Bath Association, the National Association of the Remodeling Industry and SGC Horizon announced the new fund during the Builders’ Show in Orlando. The fund will be launched with the support of SGC Horizon, parent company of Professional Builder and Professional Remodeler magazines. The fund will be used to attract and train skilled labor for the residential construction market by providing scholarships for students to attend accredited training schools and training facilities across the country.
NAHB recently filed comments opposing HUD’s planned implemen- tation of the Federal Flood Risk Management Standard. The proposed rule is substantially flawed and should be withdrawn. HUD’s proposal unnecessarily expands floodplain management requirements and fundamentally threatens access to FHA mortgage insurance programs for single- family home buyers and multifam- ily builders. If implemented, the proposal will severely disrupt the housing market and harm count- less families.
Flood Risk Standard Would Disrupt Market
In a move that will make home loans more afford- able, the Federal Housing Administration (FHA) announced recently that it will reduce the annual premiums most of its borrowers pay on mortgage insurance premiums by 0.25 percentage points from 0.85% to 0.60%. The agency said that the lower premium rates are projected to save new FHA-insured home owners an average of $500 this year.
Sens. Deb Fischer (R-Neb.) and Joni Ernst (R-Iowa) have introduced a resolution to withdraw the Waters of the United States rule, which contains new and expanded definitions that NAHB has long fought as a federal intrusion into state and local land-use decisions. “Congress left to states their traditional authority over land and water, including farmers’ fields, non-navigable, wholly intrastate water (including puddles and ponds), and the allocation of water supplies,” the resolution said. After the federal Sixth Circuit Court of Appeals issued a temporary stay in late 2015, NAHB led a coalition of industry partners to challenge the rule, saying that it is deeply flawed, arbitrarily written, and provides no clarity or certainty to members of the regulated community. On Jan. 13, 2017, the Supreme Court agreed to examine the Sixth Circuit decision after a petition by NAHB and a coalition of industry groups affected by the rule. The Senate resolution seeks to stop EPA's encroachment once and for all, asking that the rule and its new definitions of what constitutes the waters of the United States be vacated.
Senate Resolution Would Withdraw EPA Definition of "Waters of the U.S."
The House of Represent- atives on Jan. 11 approved H.R. 5, the Regulatory Accountability Act, legisla- tion that would modernize federal rulemaking under the Administrative Procedures Act and make the regulatory process more transparent, agencies more accountable and regulations more cost- effective. This comes one week after the House passed two other NAHB-supported regulatory relief measures – the REINS Act and the Midnight Rules Relief Act.
Lower Mortgage Insurance Costs
New Fund to Address Labor Shortage
Fast Start on Reg Reform
Median Age of Housing Stock by State
Age of Housing Stock Varies Greatly by State
Members of the National Association of Home Builders elected four senior officers to top leadership positions within the federation during the association’s Builders' Show in Orlando, Fla. Taking the helm as NAHB’s Chairman of the Board 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 development, construction, and property management firm with nearly 50 neigh- borhoods completed and managed across Texas. Also moving up on the leadership ladder was Randy Noel, a Louisiana-based custom home builder with more than 30 years of experience in the industry. He was elected as First Vice Chairman of the Board. Noel is president of Reve Inc., a custom home building firm that has developed more than 1,000 homes in the greater New Orleans area. Greg Ugalde, a Connecticut builder and developer with more than 25 years of experience in the home building industry, was elected Second Vice Chair- man 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. Dean Mon joined the NAHB leadership team with his election as Third 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. 2016 NAHB Chairman Ed Brady, from Bloomington, Ill., remains on the leadership ladder as Immediate Past Chairman. Brady is president of Brady Homes, a company founded in 1962 by his father, William Brady Sr. One of the oldest home building firms in central Illinois, Brady Homes has developed 20 residential communities throughout the state, building more than 1,800 single-family homes, 2,000 apartment units and more than 100,000 square feet of light commercial property. Rounding out the association’s leadership is NAHB Chief Executive Officer 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 of 2001. Previously, Howard was NAHB’s chief tax counsel.
Nation’s Home Builders Elect Leadership for 2017
According to the latest data from the 2015 American Community Survey, the median age of owner-occupied homes nationwide is 37 years. The age of housing stock is not evenly distri- buted across the United States. Among the states, New York has the oldest homes with a median age of 57, 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, followed by Arizona where half of all owner-occupied homes were built in the last 24 years. Older houses are less energy-efficient than new construction and ultimately will require remodeling and renovation in the future.
Calendar of Events February 9, 2017 Showcase Home Open House 4-7pm March 9, 2017 Thirsty Thursday 5-7pm
BALA winner Lake Keowee Cottage. Photo by Inspiro 8 Studios LLC
The 2016 Best in American Living Awards (BALA), which were presented during the International Builders’ Show in Orlando, Fla., showcased design trends that home buyers can expect to see over the next several years. The trends include: Benches and nooks. In single-family custom and production homes, architects and designers include benches and nooks because they’re cozy, chic and practical, serving as places to snuggle up with the kids or a good book. Big showers and tubs. Showers continue to get larger and free-standing tubs more luxurious. Walk-in showers feature wall-to-wall glass and universal design features. Board and batten. You’ll see a lot of this siding on the exteriors of this year’s winners, and they also add a classic touch to today’s contemporary interiors. Dark door and window frames. Architects and designers are choosing dark brown or black frames around windows and doors instead of whites. These windows pop on white or light siding, and dark frames add a striking effect from the interior looking out. Modern farmhouse. We’re seeing farmhouse sinks, reused wood siding in interior design details and barn doors that are customized to have a more contemporary feel. Metal roofs. Metal roofs are featured on many custom homes, from more traditional homes to distinctively modern homes. Natural wood beams and ceilings. From remodels to new homes, wood beams left in their original state add a natural touch and create a focal point in interiors. And while hardwood floors have always been popular with home owners, many of this year’s winners added warmth with natural wood ceilings. Under-stair storage. Architects and designers made the most of spaces under staircases. Often, these spaces include shelves for books and works of art. Unique wine storage. Wine storage is now a prominent feature in the home. Kitchens include floor-to-ceiling open or glass-enclosed wine storage.
Calendar of Events
upcoming committee meetings 2/7 Legislative committee- 8-9am 2/7- membership committee- 12-1pm 2/9- HOA council Meeting 2/14- Legislative committee 8-9am 2/15 Sales & Marketing Committee meeting 12-1Pm 2/16 Infrastructure / planning meeting 12-1pm 2/16- Executive committee meeting 3-4:30pm 2/21- legislative committee 8-9am 2/23- Remodelers Committee meeting 12-1pm 2/28 Legislative committee meeting 8-9am
BALA Winners Highlight Design Trends