September 2021
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.
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 Leadership Meetings 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.
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
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. Masks are required for all indoor events..
Leadership List 2021 GCBA Officers and Directors OFFICERS PRESIDENT Fred Pfister, Toll Brothers 1ST VP Rafael Roca, DR Horton 2ND VP Michael Nunziata, 13th Floor Homes ASSOCIATE VP Tony Macaluso, Universal Engineering Sciences VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT Jay Huebner, HSQ Group DIRECTORS Steven Dassa, Mattamy Homes Frank Coppola, Coppola Brothers Herb Tremble, Master Contractor and Subcontractor Association of Florida Karl Albertson, DR Horton David Donvito, Minto Peggy West, GRS Community Management Josh Hedden, Hydroshield Ken Lebersfeld, Capitol Lighting Lisbeth Linert, Clive Daniel Home Rick Baxter, Palm Beach Post Executive Officer: KT Catlin Design: Gregory J. Del Deo
Quarterly Board of Directors Meeting Tuesday, September 14, 2021 GCBA Webinar: Online Design Center Trends with BDX Thursday, September 16, 2021 PWB Golf Clinic Friday, September 17, 2021 PRISM 2021 Thursday, September 23, 2021 PWB Golf Clinic Friday, September 24, 2021 PWB Golf Clinic Friday, October 1, 2021 Real Estate Boot Camp Monday, October 4, 2021 FHBA Market & Legislative Update Wednesday, October 6, 2021 with Brad Hunter, Rusty Payton and Special Guest Fl. State Rep. Blaze Ingolia SouthEast Florida Parade of Homes 10/20/2021 - 11/20/2021 GCBA 1st Annual Chili Cook Off Friday, November 12, 2021 All dates and locations are subject to change.
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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
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GCBA 2021 TOP RECRUITERS HV Tremble -29 Fred Pfister - 16 KT Catlin -10 Rafael Roca -3 Mark Anderson–3 Deb Giarratana–3 LisbethLinert–3 Alex Akel – 3 Michelle Mockenhaupt – 2 David Kanarek – 2 Michael Nunziata -2 Matthew Blum -2 Peggy West -2 Greg Garnish - 1 Walter Robles - 1 Mike Brown - 1 Tamara Ksiazek - 1 Rick Baxter - 1 Frank Williams - 1 Eduardo Aleman - 1 Ron Ellish - 1 Laurie Albert - 1 Marcia Wegman - 1 Devin Perry - 1 Marc Julian–1 Maddie Williams–1 Suzanne Donohue - 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!
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ASSOCIATES MARCO OSIO DEAKO LIGHTING LISA CARTA ETC PALM BEACH LLC BETH COHEN PALM BEACH LIFTS A DIVISION OF SOUTHEAST ELEVATORS FERNEY MONTOYA FERGUSON WATERWORKS AFFILIATES ROB NICOL TERESA SAEZ 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!
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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
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Stay Competitive By Offering Health Benefits to Employees The FHBA Private Health Exchange offers members access to the most competitive group health insurance solutions on the market. Enjoy unique cost-saving opportunities, complimentary enrollment technology, valuable HR tools, and voluntary premier-level ancillary benefits with special pricing and concessions. Speak to a benefits counselor and request a free quote today.
NAHB Honors Former NEFBA EO, Arnold Tritt FHBA members and friends continue to honor the legacy of long-time NEFBA Executive Officer, Mr. Arnold Tritt. Today, NAHB paid tribute to Tritt on the NAHBNow Blog.
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FHBA Fall Conference October 26 @ 12:00 pm – October 29 @ 2:30 pm Westin Sarasota, 100 Marina View Dr Sarasota, FL 34236 Mark your calendars for October 26-29, 2021, in beautiful Sarasota, Florida. FHBA members and guests will enjoy a special room rate of $169 per night at The Westin Sarasota. This rate includes a waived resort amenity fee. Please note, rooms traditionally sell out quickly for this conference. Attendees will also receive a reduced valet parking rate of $15 + tax. Note: The health and safety of our members and staff are of utmost importance. In a year of ever-growing challenges, the FHBA will continue to closely monitor the status of COVID-19 and work with the hotel to ensure protocols are in place to maintain the well being of all attendees at the 2021 FHBA Fall Conference.
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Hunter's S. FLorida INSIGHTS
Defining the "Slowing Market" One of my favorite movies of all time is Spaceballs, and one discussion that I have seen in the media and on social media has reminded me of a scene from that movie. I keep seeing articles about how the pace of home sales has “slowed down” in the last 30 days. I find that kind of discussion to be odd. I guess it is a slow down when you go from “Ludicrous speed” down to just “Amazing speed.” I guess we have all had that sensation of driving at 90 miles an hour down the highway, and then do you think a cop might be checking your speed so you slow down quickly. When you get back to 55 mph, it feels like you are crawling. Yeah. It’s like that when you look at home sales on a data chart. But the media doesn’t seem aware of is that builders are *trying* to slow down sales. If not with outright caps, then by boosting prices and letting the ol’ demand curve bring sales down. That said, I have talked with several builders who have said they are raising prices trying to slow down sales, and they *can’t* get sales to slow down! Yes, that kind of fervor does feel eerily familiar, but don’t worry; there is no bubble this time. If negative amortization loans and interest-only loans start becoming popular again, then you can get worried. Here in South Florida, we are continuing to benefit from the tax differential between here and New York, and even more than ever the New York connection is driving commerce, money, and homebuying demand our way. Add to that the strong rate of household formations among millennials, and we arrive at a boom and demand and pricing power that doesn’t have to rely on exotic financing, speculators, and flippers. The greatest need in the housing business is homes suited to young families, which are in extremely short supply. The pace at which millennials are forming household is staggering. They are having babies (finally), and that is driving their need for housing in the suburbs. Simultaneously, empty-nesters are finally starting to put their homes up for sale to move. That is stimulating buying and selling activity as they look for a smaller place in-town. Those two legs of the stool will be met by a third when generation Z starts appearing in builders sales centers, alongside the millennials and the boomers. In my consulting shop, we have been busier than ever, doing studies on sites throughout the state, and in many markets around the country. Studies of course always center on: what will be the feasible price by unit type, or what will be the feasible rent if it is a rental development. And with affordability being where it is, we are increasingly being asked to do studies on built-for-rent single-family. A lot of builders are asking about that opportunity, which can bring a lot of cost efficiencies. All that to say, it’s a great time to be in the Homebuilding business in South Florida. BRAD HUNTER Hunter Housing Economics www.hunterhousingeconomics.com
The Golden Handcuffs This month we will be kicking off a 4-part series about the importance your benefits offerings play in recruiting, retaining and satisfying your employees with the best and most economical benefit offering for your company. This first article will set the stage, so to speak, to dive down into the specifics of what you should offer based on the most recent results of numerous studies’ analyzing every aspect of a benefit offering from what’s most important to have right on down to how it impacts your employees by age group; this plays a big part in providing you the best information to make informed decisions for both your company and employees. So, let’s jump right in, shall we? Glassdoor’s Employment Confidence Survey showed that 60% of those surveyed report that the benefits and perks offered by a company were a major factor in considering a job offer. More telling than that is the 80% of those surveyed would choose additional benefits over a pay raise!!! So, the first question should be are you offering a competitive benefit package to your employees; and that means not just healthcare but what else are you offering and does your offering meet the needs of the 60% and 80% mentioned above respectively. Right now, in America the average cost to the employee for single coverage for employees is $6,435 per year and $18,142.00 for family coverage. This is the busiest time for benefits, the last quarter of the year, to evaluate and ensure what you and your employees are investing in is providing a strong ROI for both. Chris Glatz, Congruity HR cglatz@congruityhr.com, 772-828-6078
Home Builders Launch Campaign Against Excessive Regulatory Fees Increases Fueling New Home Sale Prices Homes For All Now seeks to inform consumers and petition local governments to stop the excessive increases of regulatory fees. West Palm Beach, Fl. [August 26, 2021] -- The Gold Coast Builders Association and Builders Association of South Florida have partnered together to launch Homes For All Now, a campaign to advocate against excessive housing regulatory fee increases targeting new construction. Drastic fee increases are pricing a growing segment of residents in Broward and Palm Beach County out of the new housing market. In many instances, those fees can add up to over $90,000 to the price of a newly built home. Home builders are happy to pay fees, such as impact fees, to help municipalities and school districts fund construction of the infrastructure needed to accommodate new residents. From new schools to new roads and upgraded water & sewer lines, infrastructure improvements benefit area residents as much as the home builders vying for home buyers. Unfortunately, since the onset of the pandemic, counties, cities, school districts and other taxing agencies have been excessively increasing impact fees, driving up construction costs. Furthermore, the pandemic has caused homebuilding materials and labor shortages, which is making construction costs skyrocket, further fueling the rise of home prices. Every time the price of a home is increased by $1,000, nearly 10,200 Floridians are priced out of the market, according to the National Association of Home Builders. “Homes For All Now seeks to involve the community in petitioning elected officials to be mindful of how drastic regulatory fee increases can further exacerbate the current housing crisis in markets like Broward and Palm Beach,” said KT Catlin, Executive Officer of the Gold Coast Builders Association. “This campaign seeks to inform residents about the hefty fee increases fueling the price of new homes, but it also encourages them to reach out to their elected officials on this issue. Home builders are willing and eager to work with counties, cities and school districts to find a middle ground to benefit home buyers and increase the homeownership rates in Broward and Palm Beach County.” As some local governments get ready to review their regulatory fees in coming months, this campaign will seek to avoid similar situations as experienced with the Broward School District in 2020. The district proposed increasing school impact fees from $6,888 to $9,049 for three-bedroom properties and $6,888 to $12,295 for four-bedroom properties. The school impact fees are collected to build new schools to meet demand for new classrooms fueled by new developments. However, Broward Public Schools are seeing a consistent decline in enrollment and that trend is expected to continue until 2026, making it unnecessary to build new schools and raise impact fees. Despite objections from the Gold Coast Builders Association and the Builders Association of South Florida, the district increased school impact fees by 25 percent, impacting home prices. In response to excessive impact fee increases in Florida, the Governor signed a law that prevents local governments from increasing impact fees more than once every four years and limits the increases to 50 percent. At the same time, increases between 25 and 50 percent would have to be spread over four years. Smaller increases would be phased in over two years. For more information on the campaign, visit www.HomesForAllNow.com For further information please contact: Paola Iuspa-Abbott, President of Top of Mind PR, 305.726.5848, paola@topofmind-pr.com Jessica Forres, Vice President of Top of Mind PR, 202.716.8320, jessica@topofmind-pr.com