February 2022
Total Housing Starts Up 15.6% in 2021
While single-family starts dipped in Decem- ber due to ongoing supply-side challenges, they still managed to post double-digit gains in 2021. Overall housing starts increased 1.4% in December to a seasonally adjusted annual rate of 1.70 million units, according to a report from HUD and the Census Bureau. The December reading of 1.70 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 2.3% to a 1.17 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 10.6% to a 530,000 pace. Total housing starts for 2021 were 1.6 million, a 15.6% gain over the 1.38 million total from 2020. Single-family starts in 2021 totaled 1.12 million, up 13.4% from the previous year. Multifamily starts in 2021 (5+units) were up 22.1% compared to the previous year. On a regional and year-to-date basis (January through December of 2021 compared to that same time frame a year ago), combined single-family and multifamily starts are 22.2% higher in the Northeast, 10.9% higher in the Midwest, 15.3% higher in the South and 16.9% higher in the West. Overall permits increased 9.1% to a 1.87 million unit annualized rate in December. Single-family permits increased 2.0% to a 1.13 million unit rate. Multifamily permits increased 21.9% to a 745,000 pace.
FHFA Raising Fees on Second Homes In a move strongly opposed by NAHB, the Federal Housing Finance Agency (FHFA) in January announced increases for upfront fees that Fannie Mae and Freddie Mac will charge for second home mortgage loans and certain high balance mortgage loans that exceed standard conforming loan limits. These fees will significantly increase the purchase cost of a second home and some homes in high-cost areas. Beneficial pricing on the agencies’ affordable loan products will not be increased.
Sawmills Failing to Keep Pace with Strong Demand U.S. sawmills have failed to boost output at a pace sufficient to meet consumer demand for newly built homes. The lumber industry has cited ongoing challenges with labor as a key reason for the insufficient lumber production in the U.S. But Bureau of Labor Statistics data indicate that sawmill industry employment is higher than a year ago. As of October 2021, the most recent data available, sawmill employment was 90,100. This is a 2.4% increase from October 2020, or a net gain of 2,100 jobs. Resi- dential construction employment was up 4.0% or 118,500 net jobs over the same period. IRS Extends Relief In Response to COVID Last summer, NAHB and other groups requested the IRS extend some of the COVID-19 relief granted one year ago. On Jan. 11, the agency released Notice 2022-05, which grants the extensions we requested, along with additional relief in response to COVID-19 related challenges. The relief includes extended compliance deadlines, as well as temporary waivers and revised compliance requirements.
Administration Withdraws Vaccine Rule The Biden Administration on Jan. 26 moved to formally withdraw its vaccine and testing mandate after the Supreme Court voted 6-3 to block OSHA from enforcing the mandate for employers with at least 100 workers. NAHB urged OSHA to withdraw the rule after the decision. NAHB had earlier filed a Petition for Review challenging OSHA’s rule and was pleased with the Supreme Court ruling, especially since it indicated that OSHA has the authority to “set workplace safety standards, not broad public health measures.”
SCOTUS to Consider WOTUS At the urging of NAHB and other business groups, the U.S. Supreme Court has agreed to hear a challenge to the Clean Water Act that would clarify an earlier ruling from the nation’s highest court issued in 2006. In that case, Rapanos vs. U.S., the Supreme Court issued a split 4-1-4 decision regarding the definition of “waters of the United States” (WOTUS) that led to two different tests to determine jurisdictional waters.
Remodelers Show Confidence in Market at Close of 2021
Construction Wages Rising Average hourly earnings for residential building workers have been growing fast recently, driven by the tightening construction labor market. The Bureau of Labor Statistics (BLS) in January reported that the unemployment rate declined to 3.9% in December, the lowest rate since the pandemic. As the labor market remains tight, wages have increased rapidly, particularly in the residential building sector. According to a recent BLS report, average hourly earnings for residential building workers were $28.74 in November 2021, increasing 7% from $26.87 a year ago. Learn more at NAHB's Eye on Housing blog.
The NAHB/Royal Building Products Remodeling Market Index (RMI) for the fourth quarter posted a reading of 83, up four points from the fourth quarter of 2020. The finding is a signal of residential remodelers’ confidence in their markets, for projects of all sizes. The NAHB/Royal Building Products RMI survey asks remodelers to rate five compo- nents 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. “Higher home equity provided resources for home owners to improve their existing homes, supporting high demand for remodeling,” said NAHB Remodelers Chair Steve Cunningham, CAPS, CGP, a remodeler from Williamsburg, Va. “Many remodelers are completely booked well into the future, however, supply chain problems continue to delay projects and make it difficult to work off the backlog.”
High Prices Deterring Buyers The share of adults planning a home purchase within 12 months has fallen for two consecutive quarters — dropping from 17% in the second quarter of 2021 to 16% and 15% in the third and fourth quarter, respectively — according to data from NAHB’s Housing Trends Report. The downward trend provides evidence that higher home prices and low housing availability (relative to demand) are leading some Americans to postpone their homeownership plans. Meanwhile, the share of these prospective buyers who are purchasing a home for the first time dropped for the first time since mid-2020 from 65% in the third quarter to 63% in the fourth quarter of 2021.
February 4-7 – NAHB Meetings Orlando February 7-11 – NAHB – IBS Orlando February 17 – Hard Happy Hour March 4 – Coffee & Conversation on ZOOM March 9 – AWARDS Celebration & Introduction of Leadership March 16 – GCBA Quarterly Board Meeting March Monday Nights – Real Estate Investment Boot Camp April 8 – Coffee & Conversation on ZOOM April 28 – Hard Hat Happy Hour May 26 – GCBA Golf Outing June 14-18 – NAHB Spring leadership & Legislative Conference June 22 – GCBA Board Meeting & Hard Hat Happy Hour August 3-4 – SEBC Orlando August 25 – Hard Hat Happy Hour September 21 – GCBA Board Meeting September 29 – PRISM October 20 – GCBA Annual Meeting & Hard Hat Happy Hour October 24-27 – NAHB Fall Boards November 18 – 2nd Annual Chili Cook Off December 13 – 9 Wine & Dine & Hard Hat Happy Hour
CHECK WEBSITE FOR MOST CURRENT INFORMATION
2022 GCBA Officers and Directors OFFICERS PRESIDENT Rafael Roca, DR Horton 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Frank Coppola, Coppola Brothers LLC ASSOCIATE VP Tony Macaluso, Universal Engineering Sciences VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT Fred Pfister, Toll Brothers DIRECTORS Mark Richards, Stock Custom Homes Herb Tremble, Master Contractors & Subcontractors Assoc. of FL. Karl Albertson, DR Horton Mark Welsh, Lennar Jon Long, Ryan Homes Steve Dassa, Mattamy Homes Ethan Nelson, UMI Stone Peggy West, Capitol Lighting PRO Rick Baxter, Localiq (Palm Beach Post) Mark Anderson, US Bank Executive Officer: KT Catlin Design: Gregory J. Del Deo
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. Masks are recommended if vaccinated for all indoor events.
If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
Leadership List
NAHB Chief Economist Robert Dietz recently provided this housing industry overview in the bi-weekly e-newsletter Eye on the Economy. For the first time since the early 1980s, the U.S. economy is experiencing a period of elevated inflation. Because of supply-chain issues attributable to the pandemic and a significant rise in government spending, the consumer price index (CPI) measure of consumer inflation recorded a 7% year-over-year gain in December 2021 — the highest in nearly 40 years. In contrast, during the 2010s, the CPI averaged an annual growth rate of just 1.8%. The Federal Reserve, having retired the call that these inflationary pressures would be “transitory,” is now clearly signaling tighter monetary policy ahead. The NAHB forecast sees the Fed raising the federal funds rate three times in 2022 and accelerating the pace of the taper of asset-backed security purchases. These moves will continue to cause interest rates to rise over the course of 2022. The 10-year Treasury rate already rose from 1.4% at the start of December to higher than 1.7% during the second week of January, and the average 30-year fixed-rate mortgage is expected to increase to 4% near the end of the year. Combined with ongoing home price appreciation, higher rates will place additional pressure on housing affordability. To subscribe for free to Eye on the Economy, please visit nahb.org.
NAHB's Economic Outlook for 2022
GCBA 2022 TOP RECRUITERS KT Catlin – 3 S. Robert August – 1 Rafael Roca – 3 Kathy Macaluso – 1 Michal Brown – 1 GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
MEMBERS SAVINGS & REBATE PROGRAMS
Builders Gary Velez Taymack Developers and Construction, Inc. Lori Degler Sawgrass Builders Inc. Tim Bostrom Silver Companies Daniel Rappold Hawkes & Daniel Construction Associates Michael Acevedo Truist Bank Hedge Burt Fiber Fast Homes Janis Ehlers The Ehlers Group Rafaella Ledo-Massey Neat House Plans John Gruber Osborne’s Inc. Robert Nicholson Kai Financial Investment Corp. Tom Corona SwellFi LLC Affiliates Mike Fleming Cambria, USA John Desantis Mullinax Ford Nathalie Roperto Truist Bank Avin Sundar FPL Home If you sponsored one of these individuals please let KT or Robin know! We will be having year long contests and recognition for Recruiting & Retention!
Welcome to our Newest Members!
mEMBERSHIP NEWS
Contact Us - FHBA Private Insurance Exchange Phone: (800) 282-8626 Fax: (904) 212-2058 Address: FHBA Member Benefits 10739 Deerwood Park Blvd. Suite 200-B Jacksonville, FL 32256
CLICK HERE TO LEARN MORE
May 11, 2022
March 9, 2022
Save the Date! We are looking forward to seeing you again at the Southeast Building Conference (SEBC). SEBC will take place August 3-4 at the beautiful Gaylord Palms Resort & Convention Center in Kissimmee, Florida. Registration opening soon! Please contact Kailin Koch at kkoch@sebcshow.com with any questions
June 1, 2022
Florida Building Code Training: Earn 7 Continuing Education Hours FREE! FHBA is pleased to share that we are bringing Florida Builders an online continuing education seminar via Zoom in partnership with the Florida Building Commission, The Florida Department of building and Professional Regulation and Building a Safer Florida, Inc. The Seminar will feature seven hours of continuing education focused on the Florida Building Code. Florida Building Code Training: Course Line Up 8:00 am- 9:00 am Guards, Fall Protection, and Emergency Escape and Rescue Openings | 1 Hour | General | CILB# 0614117 |BCAIB #Pending | FBPE #0008653 |Approved for Architects 9: 05 am – 10:05 am Residential Roof Assemblies |1 Hour| Wind Mitigation | CILB # 0614148 | BCAIB #PEnding | FBPE #0008653 | Approved for Architects 10:10 am- 11:10 am Solar Energy Systems | 1 Hour | General | CILB #0614119 | BCAIB #Pending | FBPE #0008653 |Approved for Architects 11: 15 am – 12:15 pm Applying the Existing Building Code to Residential Structures | 1 Hour | General | CILB # 0614116 | BCAIB #Pending| FBPE #0008653 | Approved for Architects 12:15 pm 1:30 pm Lunch 1:30 pm – 2:30 pm Tiny Houses and the Florida Building Code|1 Hour | General | CILB #0614121 | BCAIB #Pending | FBPE #0008653 | Approved for Architects 2:35 pm- 4:35 pm FBC 2020 Advanced: Residential Swimming Pools | 2 Hours | Advanced Building Code |CILB #0614114 | FBC #1077.0| BCAIB #Pending| FBPE#0008653 | Approved for Architects Register in Advance for These Meetings
April 6, 2022
How to Have a Home Improvement Project that Doesn’t Suck By Wyman Legal Solutions We get so many calls from people who are struggling to get their home improvement project finished. The project is taking way too long. The job is costing way more than they thought it would. The work is sloppy and looks terrible. There’s a lien on their house from a company they’ve never even heard of. Basically, they have a home improvement project that sucks. Don’t let this happen to you. If you are thinking of starting a home improvement project, here are three tips on how you can have a home improvement project that does not suck: 1. Hire a contractor that doesn’t suck. Here are the obvious things to look for: license, insurance lawsuits in the public records of your county and the counties on either side of yours licensing complaints (use this link to check): https://www.myfloridalicense .com/wl11.asp And here’s what else you should know: Don’t always hire the cheapest person. If you get a really low price, that may be a sign that your contractor is missing something important, is desperate for work or inexperienced. Know what you want BEFORE you call a contractor. An educated consumer is the best consumer. If your contractor shows up late, is bad at listening or returning calls when he’s trying to sell you your job, then he will be even worse once you sign and pay him money. 2. Sign a contract that doesn’t suck. Make sure your contract contains everything the contractor promised. If it’s not in the contract, don’t expect that you will get it. If the contract contains something you don’t understand, call a lawyer! Make sure the contract has a clear and fair payment schedule. Try to hold as much of the money as you can until the project is finished and passes inspections. Require permits, even if it costs you extra. 3. Manage your project so it doesn’t suck. Pay attention to the work so that you are not paying for work that has not been done. Review every piece of mail you get that looks like an official notice of some kind. Obtain a lien release every time a payment is made. Get a contractor’s final payment affidavit before you make the last payment. Obtain a list of subcontractors and suppliers. This is just some of the advice our experienced construction lawyers give our clients. Even better, our construction lawyers are available to help you have a construction project that doesn’t suck. Call us today at (561) 361-8700 to find out how.
GCBA'S Official Photographer