May 2022
Worsening Affordability Conditions Dim New Home Sales
Worsening affordability conditions stemming from growing supply chain disruptions and rising mortgage rates pushed new home sales lower in March. Sales of newly built, single-family homes in March fell 8.6% to a 763,000 seasonally adjusted annual rate from an upwardly revised reading in February, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales are down 12.6% compared to March 2021. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construc- tion: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the March reading of 763,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory was up 52.4% over last year, rising to a 6.4 months’ supply, with 407,000 available for sale. However, just 35,000 of those are completed and ready to occupy. The median sales price rose to $436,700 in March from $421,600 in February and is up more than 21% compared to a year ago, due primarily to higher production costs, including materials. Regionally, on a year-to-date basis, new home sales fell in two regions, down 9.2% in the Midwest and 13.9% in the South. New home sales were up 10.5% in the Northeast and 8.5% in the West.
DOL Proposes New Prevailing Wage Rules The Labor Department has proposed new rules that would change "prevailing wage" standards for feder- al construction projects. NAHB opposes the changes. On March 18, the DOL’s Wage and Hour Division issued a proposed rule to amend the regulations implementing the Davis-Bacon and Related Acts (DBRA). The agency proposes to change the definition of "prevailing wage" by returning to the original methodology used to determine Davis- Bacon wage rates.
NAHB, HUD Sponsoring Housing Showcase NAHB and the U.S. Department of Housing and Urban Development are jointly sponsoring the Innovative Housing Showcase, a three-day event featuring new building technologies and housing solutions that are making housing more innovative, resilient and affordable for American families. Taking place June 10-12 on the National Mall in Washington, D.C., the event is expected to draw more than 2,500 people, including policymakers, housing industry representatives, media and the general public. Survey Shows Support for Production Incentives Americans expressed support for government initiatives to facilitate production of more housing, with 82% agreeing in a recent survey that policymakers should factor in housing affordability when consi- dering new legislation and regu- lations. The survey results and key economic data can be found on NAHB’s updated Housing Portal. Some 66% of survey respondents said government should provide incentives to private builders and developers to create more housing that is affordable to low- and moderate-income households.
NAHB Members Send Letter to Biden More than 10,000 NAHB members from all 50 states, the District of Columbia and Puerto Rico sent a letter to President Biden on April 27 calling on the White House to take immediate action as the growing housing affordability crisis pushes the housing market to an inflection point that threatens to derail the current housing and economic expansion. NAHB — through its powerful grassroots — called for meaningful steps to enable builders to increase the supply of affordable single-family and multi- family for-sale and for-rent housing.
Join NAHB's 2022 Legislative Conference NAHB members will have the opportunity to discuss how the supply chain is impacting their bottom line with their members of Congress during the 2022 Legislative Conference on Wednesday, June 15, in Washington, D.C. The Legislative Conference, NAHB's most important grassroots event of the year, is a day-long event that coincides with NAHB’s Spring Leadership Meetings. Registration for NAHB's Spring Leadership Meetings and the Legislative Conference is now open.
Remodeling Market Index Remains Strong
Builder Confidence Falls Rising interest rates, ongoing home price increases and higher construction costs continue to take a toll on builder confidence and housing affordability. Builder confidence in the market for newly built single-family homes moved two points lower to 77 in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released in late April. This is the fourth straight month that builder sentiment has declined. The decline is driven in part by rising mortgage interest rates, which have jumped more than 1.9% since the start of the year and currently stand at 5%, the highest level in more than a decade.
2022 NAHB Chairman Jerry Konter
The NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter of 2022 posted a reading of 86, unchanged from the first quarter of 2021. The finding shows residential remodelers’ confidence in their markets, for projects of all sizes. “Business remains strong for most remodelers at the beginning of 2022,” said NAHB Remodelers Chair Kurt Clason, a remodeler from Ossipee, N.H. “However, a few are starting to report that customers are reluctant to move forward on projects due to the delays and higher costs caused by supply chain problems.” The RMI survey asks remodelers to rate five components of the remodeling market as “good," “fair" or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.
Introducing Girls to Construction Girl Scouts across the country can now participate in an exciting new patch program, The House That She Built, designed to empower girls to think about STEAM and construction by meeting real professional women in building. This program is inspired by the team of women from NAHB’s Utah Chapter of Professional Women in Building Council who came together to build a one-of-a-kind home in Utah: The House That SHE Built. The intent of this patch program is to build self-esteem and develop skills through curiosity and hands-on activities. The patch program, hosted by the Girl Scouts of California’s Central Coast, is available to all Girl Scouts across the country.
Half of payroll workers in construction earn more than $49,070, and the top 25% make at least $75,820, according to the latest May 2021 Bureau of Labor Statis- tics (BLS) Occupational Employment and Wage Statistics (OEWS) and NAHB analysis. In comparison, the U.S. median wage is $45,760, with the top quartile (top 25%) making at least $68,590. The top two highest paid occupations in construction are CEOs and lawyers, making more than $162,390 and $152,650 per year, respectively. Out of the next 13 highest paid trades in construction, 12 are various managers. The highest paid managers in construction are architectural and engineering managers, with half of them making more than $135,900 annually. Among construction trades, elevator installers and repairers top the median wages list, with half of them earning more than $98,600 a year and the highest paid 25% making at least $120,950. First-line supervisors of construction trades are third on the list, with median wages of $72,600 and the top 25% highest paid supervisors earning in excess of $91,310. In general, construction trades that require more years of formal education, specialized training or licensing tend to offer higher annual wages. Median wages of construction and building inspectors are $61,360, and the wages in the top quartile of the pay scale exceed $78,940. Half of plumbers in construction earn more than $59,810, with the top quartile making more than $78,190. Electricians' wages are similarly high. Carpenters are one of the most prevalent construction crafts in the industry. Although the trade requires less formal education, the median wages of carpenters working in construction exceed the national median. Half of these craftsmen earn more than $48,420, and the highest paid 25% make at least $62,370.
Highest Paid Occupations in Construction
HB&RACC May Event
Barbara Cotton, Executive Director, Southeastern MA Chapter of the American Red Cross provided our CEU presentation on Disaster Preparedness at Home and in the Workplace.She succinctly offered lots of great tips and suggestions to make our spaces safe(r) places. We can never be too prepared to react in a calm and organized manner in the face of traumatic events, that is for sure.If you would like to see how prepared your organization is in the face of an emergency, check out:https://www.readyrating.org/ Another topic discussed was the need to know how to administer CPR/AED and/or First Aid in the workplace.For more info on these items, go to: https://www.redcross.org/take-a-class/workplace-safety-content.html Barbara also spoke of the great need for blood in the region at this time.With the Red Cross app,It is easy to schedule donation appointments, find blood drives near you, fill out the necessary forms before your appointment and more. Go to the App Store and download the app American Red Cross, or visit the website www.redcrossblood.org. Finally, volunteerism at the Red Cross was presented to the group.Local ongoing opportunities are available as well as Disaster Relief team opportunities. To find more info, as there is mandatory training involved, check out: https://www.redcross.org/volunteer/become-a-volunteer.html#step1
May 10th Dinner Meeting DoubleTree, Hyannis Sponsored by:
LeaMar Contact: Lea Mallegni Phone: 508-957-2301 Website: https://www.leamar.com Email: lea@leamar.com LeaMar Industries is Cape Cod and the Islands preeminent importer and distributor- offering an unparalleled selection of natural stone slabs, exotic slabs, porcelain and quartz slabs, tiles and mosaics. Family owned and operated, we invite you to view our collection of hand selected, carefully curated, first quality materials from all over the world at our indoor warehouse. At the forefront of trends -We are ready to assist you in all design, building and remodeling projects. #leamar.stone
Membership Minute Sponsored By:
Please welcome our new members when you see them at our events or around town.It’s great when members do business with other members!
Ocean Tailors Contact: Sandra Bladja Phone: 508-255-5666 Website: https://www.oceantailors.com/ Email: Sandy45@oceantailors.com Ocean Tailors offers a wide range of Custom Awning & Shade Products for your home or business. These products range from traditional lace on patio or window awnings to Motorized Retractable Awnings & Screens for your outdoor living spaces. Our goal is to match our clients wishes and needs with the right product.
Interested in being a Membership Ambassador? Call Candice at 617-462-8123 for details.No heavy lifting involved!
Atlantic Marble & Granite Contact: Maria Ribiero Phone: 508-540-9770 Website: https://atlanticmarbleandgranite.com/ Email: maria@atlanticmarblegranite.com It is our extreme privilege and pleasure to join this association. We, from Atlantic Marble and Granite, have been serving our community for over 35 years with a promise to give exceptional service to our customers. Since 2021 we are under a new management, convinced that we can improve our service but conserving our base. Our purpose here is to help and add value to our community. We look forward to knowing and helping each one of you.
Monogram Luxury Appliances Contact: Heather Guerriero Dans Phone: 781.206.9334. Website: https://www.monogram.com Email: heather.guerrierodans@geappliances.com Monogram Luxury Appliances elevate everything with the materials, performance, and ownership experience for consumers. Our award winning Statement and Minimalist Collections offer the most elegant, innovative, and hardest working Cooking, Refrigeration, and Dishwashing products in the industry. Our specialty appliances, including the fully electric “Hearth Oven,” the speed cook “5 in 1 Oven,” and the dual zoned “Wine Sommelier” are the heroes in any luxury kitchen. We offer a comprehensive Trade Partner Program with special incentives, and you can see our full line at our website listed above.
4. Member request: Please Like our Facebook page and Follow Us on Instagram. If you do so, you will get regular updates on upcoming events and info sessions. Don’t miss the chance to stay informed.
5. Interested in Building ADUs? Both the Housing Assistance Corporation and Community Develoopment Partnership would like to add you to their list of preferred builders for homeowners seeking to build an accessory dwelling unit on their property. If you would like to be added to their lists for homeowners please contact jkeegan@haconcapecod.org and terri@capecdp.org
News You Can Use 1. Last call to attend theBlitz Build Kick Off Partyon June 7th. Bad Martha’s in Falmouth is the place to be from 5-7PM, so please register here: https://members.capecodbuilders.org/events/details/blitz-kickoff- appreciation-event-06-07-2022-1469?calendarMonth=2022-06-01 2. RCC (Residential Construction Career) Day!!!The date is scheduled for October 6th.Over 250 high school students will be attending to learn about careers in the construction industry. Barnstable Fairgrounds is the venue and there are opportunities to be on site to talk with the students about your business and perhaps get a few interns, apprentices or employees! If you have interest in exhibiting, please contact candice@capecodbuilders.org 3. We are planning the first annual Cape Cod Construction Summit to take place on November 10th that will include CEU credit classes, exhibitors, and networking opportunities.Stay tuned for details – coming soon!
Calendar of Events Blitz Build Kick Off June 7th Bad Marthas Falmouth Island Queen Cruise June 16th Island Queen Falmouth Member Mixer – WhiteWood Kitchen July 13th Sagamore Inn 21stAnnual Nailbangers Golf Tournament July 21st Hyannis Country Club Lego Building Competition August 20th Johnny Kelley Park, Dennis Dinner Meeting September 13th Location TBD HB&RACC/Habitat for Humanity Blitz Build September19-23 Falmouth Residential Construction Career Day October 6th Barnstable Fairgrounds Dinner Meeting October 11th DoubleTree, Hyannis Bowling for Beds October 20th The Lanes, Mashpee Commons Cape Cod Construction Summit November 10th Cape Codder, Hyannis Annual Meeting & Holiday Party December 13th CoonamessettInn, Falmouth