New Home Sales Hold Steady in July
Sales of newly built, single-family homes rose 1% in July to a 708,000 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. This data reflected an expected upward revision to the June new home sales estimate.
“While new home sales are up 6.9% on a year-to-date basis, they are down 27% in July compared to the same time last year,” said NAHB Chief Economist Robert Dietz. “Builders will need to watch local home prices relative to incomes, given recent gains in building materials and other construction costs.”
Inventory continues to rise to more balanced market conditions of a 6.2-month supply, with 367,000 new single-family homes for sale, 26.1% higher than July 2020. While inventory is rising, a growing share is of homes that have not started construction.
As of July 2021, 29% of new home inventory consists of homes not started cons- truction, compared to 20% a year ago.
The median sales price was $390,500, up 18.4% from the $329,800 median sales price posted a year earlier, due to higher development costs, including materials.
Regionally, on a year-to-date basis, new home sales rose in all four regions, up 7.5% in the Northeast, 10.6% in the Midwest, 9.1% in the South, and 0.5% in the West. These significant increases are due in part to lower sales volume during the COVID-19 crisis a year ago.
CNHBA Board of Directors
CALENDAR OF EVENTS
General Membership Meeting
at Builders Warehouse
Kully Harrison from BPI will be presenting on Barricade Thermo-Brace Sheeting
RSVP by Monday
September 30-October 1
Area 11 Leadership Conference
For all members who would like to improve their leadership skills.
General Membership Meeting
at Pinnacle Bank
General Membership Meeting
at First National Bank
at Prairie Pride
IN THIS EDITION
CNHBA BOARD OF DIRECTORS p.2
CALENDAR OF EVENTS p.2
NEWS ACROSS THE NATION p.3-5
SCHOLARSHIP INFO p.6
AREA 11 CONFERENCE p.7-8
NAHB Opposes Revision of WOTUS Rule
NAHB Chairman Chuck Fowke spoke out against the EPA’s efforts to revise the Navigable Waters Protection Rule (NWPR) that defines the “waters of the United States” (WOTUS) during a recent roundtable discussion with federal policymakers, farmers, home builders and composite makers.
NAHB is a strong proponent of the NWPR because it outlines clearly which waters fall under federal jurisdiction.
Using Rent Payment History in Underwriting
The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae will consider rent payment history as part of its underwriting process so that home buyers with limited credit histories can more easily obtain home loans. This change will give qualified renters who may have limited credit history, but a strong rent payment history, new opportunities for homeownership.
Fannie Mae’s Desktop Underwriter® will enable single-family lenders – with permission from mortgage applicants – to identify recur- ring rent payments in the ap- plicant’s bank statement data.
Register for NAHB's Fall
Registration and hotel reser- vations are open for the NAHB Fall Leadership Meetings taking place Oct. 11-15 at the Marriott Marquis in Houston.
NAHB is working closely with Marriott to ensure that the health and safety of all attendees is a priority, and that applicable government policies designed to slow the spread of COVID-19 will be followed.
IBS Will Be In-Person, Feb. 8-10, 2022
Registration is open for the 2022 NAHB International Builders’ Show® (IBS). This year’s live, in-person event will be in Orlando, Feb. 8-10.
The show floor is packed with exciting new products and opportunities to connect with the industry’s top manufacturers. Purchase an All-Access Pass or 1-Day Education + Expo Pass for education sessions led by top industry experts. And be sure to check out NAHB’s IBS show homes, The New American Home® (TNAH) and The New American Remodel® (TNAR) to see emerging design trends and leading-edge products. products.
Supreme Court Strikes Down Eviction Ban
The U.S. Supreme Court issued a 6-3 decision Aug. 26 that said it was unlawful for the Centers for Disease Control and Prevention (CDC) to unilaterally extend its eviction moratorium through Oct. 3, 2021.
Before the Supreme Court issued its decision, nearly all NAHB members were exempt from the CDC eviction moratorium while all other landlords nationwide had to comply. That exemption was in place because of a successful NAHB lawsuit in October 2020 contesting an earlier federal eviction moratorium.
Lot Values Surge at Record-Breaking Pace
Construction Workers' Earnings
Half of payroll workers in construction earn more than $50,460 and the top 25% make at least $71,000, according to the 2020 Bureau of Labor Statistics Occupational Employment Statistics Survey data and analysis by NAHB. In comparison, the U.S. median wage is $49,150, while the top 25% of workers make at least $67,410.
In general, construction trades that require more years of formal education or special training tend to offer higher annual wages. Half of plumbers in construction, for example, earn more than $55,920, with the top quarter making over $75,640. Electricians’ wages are similarly high.
Half of carpenters working in construction earn over $49,730, with the top quarter making more than $64,670.
Lot values for single- family detached homes started in 2020 surged 18% to a record-high median lot price of $53,000, according to NAHB’s analysis of the Cen- sus Bureau’s Survey of Construction data.
Lots are most expen- sive in the New England region, where half of all single-family detached (SFD) spec homes started in 2020 reported lot values of more than $120,000. Sec- ond most expensive is the Pacific division, with a median lot value of $103,000 in 2020. Least expensive is the South Atlantic, which includes Florida, Georgia and the Carolinas. Half the of the SFD spec homes started in the South Atlantic region in 2020 had lot values of $35,000 or less.
Treasury Pushes Rental Assistance
The Treasury Department on Aug. 25 announced additional policies to encourage state and local governments to expedite emergency rental assistance to eligible renters and landlords.
Congress has appropriated $46.5 billion for emergency rental assistance but state and local governments have only distributed less than $6 billion to date. The guidelines announced by Treasury are designed to streamline the application process and help state and local governments get rental assistance to those in need.
In a separate letter to state and local emergency assistance rental program grantees, Treasury strongly encouraged them to provide greater protections for tenants facing evictions.
Due to the costs businesses face if they are found to have wrongly classified their workers, it is important to make hiring decisions with a clear understanding of how the law views such workers.
The law permits the use of independent contractors, provided such workers are not “employees” under existing tax, employee benefit, and labor and employment laws. Engaging independent contractors instead of employees can result in considerable cost savings and increased workforce flexibility, and most home builders work extensively with contractors.
If an employee is classified as an indepen- dent contractor, the “employer” is not required to pay and/or withhold a variety of payroll‐related taxes, fees and benefits (Social Security and Medicare taxes, local, state and federal income taxes, unemploy- ment insurance, workers compensation, pension and health benefits, etc.). Not only are these costs shifted to the individual worker, the independent contractor is also not fully protected by various employment laws (minimum wage and overtime requirements, workers compensation protection, etc.).
But proper classification of workers as independent contractors is not as simple as a written agreement between the parties. No single test exists to evaluate indepen- dent contractor status for all purposes.
And the consequences of misclassifying individuals as independent contractors may result in large penalties or damages awards, including unpaid overtime comp- ensation, tax and insurance obligations, liquidated damages, and civil penalties.
For more information on engaging independent contractors, consult with your local attorney or seek the services of a qualified professional experienced in labor and employment matters.
Key Distinction: Employee vs. Independent Contractor
Mike Rowe is a host and narrator known for his work on Dirty Jobs, Somebody’s Gotta Do It, The Way I Heard It Podcast, and Returning the Favor. He is also now an author, and his first book, The Way I Heard It, is out now.
Future Dates at Heartland Events Center &
Fonner Park • Grand Island
2022 | April 7-9 2026 | April 9-11
2023 | April 13 -15 2027 | April 8 -10
2024 | April 11 -13 2028 | April 6 – 8
2025 | April 10 – 12 2029 | April 5 – 7
2030 | April 4-6
The philosophy of the Championships is to reward students for excellence to involve industry in directly evaluating student performance and to keep training relevant to employers’ needs. The state championships showcase the best career and technical students in Nebraska. First-place winners compete in the SkillsUSA national championships in June. More than 1500 people including students, teachers, and business partners are expected to participate in the virtual event. Students work against the clock and each other, proving their expertise in over 100 contests in areas of:
Architecture & Construction, Arts, Audio/Video Technology, Business Management & Administration, Education, Health Science, Public Safety, Hospitality & Tourism, Leadership, Manufacturing, Science, Technology, Engineering & Math, Information Technology, Transportation & more!
2021 CNHBA/Jim Roth Memorial Scholarship
Carter graduated from Grand Island Senior High School and plans to attend UNK majoring in Construction Management.