March 2022
January New Home Sales Lower but Still Solid
New home sales declined in January on rising interest rates but still posted a steady reading as demand remains strong. Sales of newly built, single-family homes in January fell 4.5% to an 801,000 seasonally adjusted annual rate from a sharp upwardly revised reading in December, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. 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 January reading of 801,000 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 34.4% over last year, rising to a 6.1 months’ supply, with 406,000 available for sale. However, just 37,000 of those are completed and ready to occupy. The median sales price rose to $423,300 in January from $395,500 in December, and is up more than 13% compared to a year ago, due primarily to higher development costs, including materials. Regionally, on a year-to-date basis, new home sales fell in three regions, down 10.7% in the Northeast, 3.7% in the Midwest and 7.4% in the South. New home sales were up 1.2% in the West.
U.S. Lowers Duties on Canadian Lumber With lumber prices experiencing extreme price volatility this year and harming housing affordability, NAHB has relentlessly been calling on the Biden administration to reduce duties on Canadian lumber shipments into the United States. On Jan. 31, the Commerce Department took a posi- tive step forward by issuing its third administrative review to reduce duties on shipments of Canadian lumber into the United States from 17.99% to 11.64%.
Rising Home Values Pricing Out Millions Rising home prices and interest rates are taking a toll on housing affordability, with 87.5 million households — or roughly 69% of all U.S. households — unable to afford a new median priced home. In other words, seven out of 10 households lack the income to qualify for a mortgage under standard underwriting criteria. The data comes from NAHB’s recent 2022 priced-out estimates, which show that if the median price goes up by $1,000, another 117,932 households would be priced out of the market. Townhouse Construction Surged in 2021 Townhouse construction jumped 28.1% in 2021, according to NAHB analysis of the most recent Census data. Medium-density construction lagged for much of 2020, with persistent affordability headwinds, and housing demand shifting to more suburban and exurban areas. However, demand for medium-density neighbor- hoods returned as the economy more fully reopened during the past year. During just the fourth quarter of 2021, single-family attached starts totaled 39,000.
Strong Turnout at 2022 Builders' Show More than 45,000 home building professionals filled the exhibit halls of the Orange County Convention Center in Orlando as the National Association of Home Builders hosted the NAHB International Builders’ Show® (IBS) Feb. 8-10, which followed extensive health and safety protocols. IBS and the Kitchen & Bath Industry Show (KBIS) again combined for the Design & Construction Week® (DCW), which drew more than 70,000 attendees. More than 800 IBS exhibitors displayed their products across 425,000 net square feet.
Materials Prices Rise Again in January The prices of goods used in residential construction ex-energy climbed 3.6% in January (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The index was led higher by a 25.4% jump in softwood lumber prices, and 9% price increases for indoor and outdoor paint. Building materials prices increased 20.3% year over year and have risen 28.7% since January 2020. Over the past four months, the index has climbed 8.4%.
Members Elect NAHB’s 2022 Leadership Team
Home Buyer Preferences Home buyer preferences have continued to reverse trends in home building as builders work to respond to new interests in the wake of COVID-19. Increased desire for bigger homes, suburban locations and more outdoor amenities are driving new home design, resulting in a rise in the average size of a new home to 2,524 square feet, and the percentage of new homes with 4+ bedrooms and 3+ full bathrooms to 46% and 34%, respectively. Baby boomers buck those trends, with a greater interest in smaller homes on smaller lots, preferably in the suburbs. Certain home features do resonate with all generations, however. The top five are: laundry rooms; exterior lighting; ceiling fans; patios; and walk-in pantries.
2022 NAHB Chairman Jerry Konter
NAHB members elected senior officers to the association's top leadership positions at NAHB’s Leadership Meetings during the 2022 International Builders’ Show. Taking the helm as NAHB’s Chairman of the Board this year is Jerry Konter, a Savannah, Ga.-based home builder and developer with more than 40 years of experience in the home building industry. Also moving up on the association’s leadership ladder was Alicia Huey, a Birmingham, Ala.-based custom home builder. She was elected First Vice Chairman of the Board. Carl Harris, a Wichita, Kan.-based small volume spec and custom home builder, was elected Second Vice Chairman of the Board. Buddy Hughes, a Lexington, N.C.-based home builder and developer, joined the NAHB leadership ladder with his election as Third Vice Chairman of the Board. 2021 NAHB Chairman Chuck Fowke remains on the leadership ladder as the 2022 Immediate Past Chairman. Rounding out the association’s leadership is NAHB Chief Executive Officer Jerry Howard, from Washington, D.C.
Multifamily Sentiment up in Q4 Confidence in the market for new multifamily housing improved in the fourth quarter of 2021, according to results from the Multifamily Market Survey (MMS) released recently by NAHB. The MMS produces two separate indices: the Multifamily Production Index (MPI) increased one point to 54 compared to the previous quarter while Multifamily Occupancy Index (MOI) decreased six points to 69. The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.
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
March Monday Nights – Real Estate Investment Boot Camp March 16 – GCBA Quarterly Board Meeting March 24 – Builder Speed Networking Event April 8 – Coffee & Conversation on ZOOM April 28 – Hard Hat Happy Hour May 5 – Hurricane Preparedness Summit May 26 – GCBA Golf Outing June 1-3 – Ready To Work Boot Camp and Career Fair 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 Awards 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
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From left, NAHB CEO Jerry Howard, Boys & Girls Clubs CEO Jim Clark and 2021 NAHB Chairman Chuck Fowke prepare to sign proclamation on workforce readiness.
NAHB and the Boys & Girls Clubs of America are teaming up to introduce more of America’s youth to a potential career in residential construction. The announcement was made at a press conference held during the International Builders’ Show (IBS) in Orlando. The announcement comes as the residential construction industry continues to struggle to overcome the lack of available skilled trade workers. In fact, a recent survey of NAHB members showed nearly two thirds rank this issue as the most significant challenge they faced last year. Working together to promote construc- tion career pathways, NAHB and Boys & Girls Clubs of America will connect young people to individuals in the industry, providing them with work-based learning activities and access to essential skills development programs to further their career exploration. To kick off the pilot program, 10 local home builder associations (HBAs) will work with local Boys & Girls Clubs to mentor young men and women, showcase the multiple career oppor- tunities available in the home building industry and help guide them to choose a career in residential construction. The local HBA chapters will host events, including career panels, jobsite visits and job shadowing. HBAs interested in connecting with their local Boys & Girls Club can submit a request on nahb.org.
NAHB, Boys & Girls Clubs Announce Partnership
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GCBA 2022 TOP RECRUITERS KT Catlin – 4 Rafael Roca – 4 Herb Tremble – 1 Jamil Mikati – 1 Kathy Macaluso – 1 Michal Brown – 1 S. Robert August – 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!
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
Welcome to our Newest Members!
ASSOCIATES Jamie Janson SoFlo Home Design Avin Sundar FPL Energy Services Inc. AFFILIATES Mike Grashof American Stairs Dave Griscom Rapid Response Team 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!
Legislative Update Week 8 As the eighth week of the 2022 Session came to a close, conference committees began to resolve budget discrepancies and many local projects remain unfunded. As you likely have seen in the news, several controversial bills relating to elections, abortion, immigration, and data privacy have monopolized the floor time in both chambers, with marathon late-night sessions. Nonetheless, legislation FHBA has prioritized for the past eight weeks continues to move forward. Among those are the omnibus tax cut package, school concurrency, private providers for septic tanks, tortoise relocation and construction plans.
Gopher Tortoise Relocation/Florida Fish & Wildlife Conservation Commission Omnibus Bill—HB 323 by Rep. Sirios and SB 494 by Sen. Hutson As the eighth week of the 2022 Session came to a close, conference committees began to resolve budget discrepancies and many local projects remain unfunded. As you likely have seen in the news, several controversial bills relating to elections, abortion, immigration, and data privacy have monopolized the floor time in both chambers, with marathon late-night sessions. Nonetheless, legislation FHBA has prioritized for the past eight weeks continues to move forward. Among those are the omnibus tax cut package, school concurrency, private providers for septic tanks, tortoise relocation and construction plans.
Mandatory Building Inspections ---SB 1702 by Sen. Bradley SB 1702 was postponed on the Senate Special Order Calendar on both March 3 and 4. SB 1702 was amended to include some of the Surfside Task Force recommendations, such as unit owner access to records and reports, reserve funding disclosures and alternative funding mechanisms for maintenance, repair, and reserve funding obligations. It includes mandatory reserve studies every three years and provides specific provisions related to funding of reserves. SB 1702 allows a developer to waive reserves only if the association’s reserve obligations are funded consistent with the reserve study in effect or the association provides an alternative funding mechanism for the association’s reserve obligations.
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Aurora Awards Are Open For Entry Don’t miss your opportunity to be recognized for the great work you’ve done in the Southeast! The 2022 Aurora Awards are open for entry with 61 categories recognizing the best of residential, commercial and remodeling. The Auroras now feature sales and marketing award categories previously presented through the Excel Awards too. Don’t miss this opportunity for your work to receive the acclaim it deserves!
Help Wanted No matter where you seek opinions, one fact stands out above those who opine. “We need workers and have jobs waiting to be filled.” The opinions behind that fact are the variable in any discussion. Some within our industry say the worker shortage is because there is simply a shortage of skilled workers. Others say the “Great Resignation” people of all ages and occupations walking away from their jobs in the Covid-19 pandemic, has led to the continuing worker shortage. Still others, sometimes cynical because they have seen worker shortages in the construction industry in prior years, say the shortage is supply and demand with a twist. “When you have workers who are paid more to stay home and not work, they are not going to apply for jobs,” said a south Florida contractor who chose to remain unidentified. Regardless of the cause, the shortage is real. So too, may be a solution. Christopher A. Gaston of the Gaston Law Firm, says his firm has seen a steady upturn in employers throughout the Gold Coast and all of Florida seeking qualified immigrants to fill the worker shortage in a number of industries, including construction. “Visas are very much in demand by workers who want to work in the United States and have the skills many employers are seeking right now,” said Gaston. “There are several different types of visas that make it possible for immigrants to work here. H-1B visas are for people in specified professional or academic field who have a college degree or higher or the equivalent in work experience. H-2A and H-2B visas are for seasonal, or peak load, temporary workers in agriculture, the H-2A, or non-agriculture, H-2B, categories.” Gaston is currently consulting with a number of companies and says he is open to holding a forum on immigration with south Florida builders. “The building industry has been hit especially hard by a shortage of immigrants. Some estimates say the influx of immigrant workers into the United States is down by two million people. Those are people who previously have worked as laborers, skilled trades, logistics and other areas that are experiencing shortages right now. There are immigrant workers waiting for the vacant jobs,” added Gaston. Not surprisingly, the National Association of Home Builders (NAHB) has taken a strong stance on immigration reform in support of the housing and construction industry. According to information on the NAHB website, “ Reforms to the immigration system are an important component in workforce development, because the immigrant workforce plays a critical role in meeting the nation’s housing needs. In fact, immigrants account for 30% of all workers in construction trades, according to data from the U.S. Census Bureau.” The NAHB goes on to say that “ensuring a consistent, reliable influx of new workers is important in an industry that is continuing to grow. Even as we encourage America’s youth to consider careers in the building trades, we must also pursue immigration policies that complement ongoing vocational training efforts and help fill labor gaps to ensure that the nation has a workforce that can meet its housing construction needs. NAHB supports immigration reform that protects the nation’s borders.” The Gold Coast Builders Association plans to have further comments and discussion from immigration attorney Christopher Gaston on what help is available in South Florida to secure qualified workers. Stay tuned.
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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