October 2020
New Home Sales at Highest Pace Since September 2006
In another indicator that housing continues to lead the economy forward, sales of newly built, single-family homes in August topped the 1 million mark and reached their highest pace since September 2006. Sales increased 4.8% to a seasonally adjusted annual rate of 1.01 million units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The August rate is 43.2% higher than the August 2019 pace. “Surging sales are consistent with record builder confidence levels stemming from higher buyer traffic, historically low interest rates and a shift in demand for lower density markets,” said NAHB Chairman Chuck Fowke. “However, higher lumber costs and limited building material availability in some markets signify we could see higher prices down the road.” “New home sales are now 15% higher on a year-to-date basis, with gains in all regions,” said NAHB Chief Economist Robert Dietz. “But with inventory at just a 3.3 months’ supply, more construction is needed. The challenge will be whether materials and labor are available.” That 3.3 month's supply means just 282,000 new single-family homes are for sale, 40% lower than August 2019. The current months’ supply is the lowest in the history of the data series, which goes back to 1963. Of the inventory total, just 54,000 are completed and ready to occupy.
Apartment Absorption Rate Falls to 45% The absorption rate of unfurnished, unsubsidized apartments (the share rented out in the first three months following completion) fell to 45% in the first quarter of 2020 (from 53% in the first quarter of 2019), according to data from the U.S. Census Bureau’s Survey of Market Absorption. This is the lowest absorption rate for the first quarter since 1986. The decline in the absorption rate is related to the emergence of COVID-19 in the US.
HUD Secretary Carson Speaks with NAHB HUD Secretary Ben Carson on Sept. 24 participated in an exclusive webinar that more than 1,000 members and invited guests registered to attend. He discussed the need to address the lumber crisis as well as HUD’s actions to address housing needs in response to COVID-19. Carson told the NAHB members that lumber prices are “a big roadblock” and that he would seek to “elevate” this issue by engaging with other top administration officials. IBS Registration Is Now Open Registration is open for the 2021 NAHB International Builders’ Show® (IBS), the premier event in the resident- ial construction industry. The in-person show will follow all safety protocols set forth by the CDC and federal, state and local government agencies. IBS will move back to the Orange County Convention Center in Orlando, Feb. 9-11, where it will again co-locate with the National Kitchen & Bath Association’s Kitchen & Bath Industry Show® (KBIS).
CDC Imposes Eviction Moratorium The U.S. Centers for Disease Control and Prevention (CDC) has issued a nationwide order that will halt millions of U.S. renters from being evicted through Dec. 31, 2020. The CDC said halting residential evic- tions of any covered tenants for failure to pay rent is necessary to prevent the further spread of COVID-19. NAHB is deeply concerned the CDC’s rental eviction moratorium through the end of the year will result in negative economic consequences without dedicated funding for rental assistance.
ICC Board Agrees with NAHB on Appeal The ICC Board of Directors on Sept. 23 agreed with NAHB’s appeal related to a proposed change to the International Energy Conservation Code (IECC) that dealt with the efficiency of water heaters. NAHB and others argued, and ICC agreed, that the changes would have preempted federal law or would have exposed adopting jurisdictions to potential litigation related to the proposed requirements. The ICC Board decided to reject RE126-19 (and RE107-19) on the basis that “potentially preempted provisions in the I-Codes are inconsistent with the spirit, intent and mission of the Code Council.”
The White House recently joined NAHB in opposing House energy bill H.R. 4447 due in part to problematic language regarding building codes that would harm housing affordability. NAHB has come out in strong opposition to the legislation because it would needlessly raise home construction costs while doing little to boost energy efficiency in the housing sector. NAHB ran a strong grassroots campaign asking members to reach out to their congressional members and urge them to oppose the legislation. Over the past two years, NAHB has also met with the White House to discuss concerns about the building code language. NAHB's leadership was pleased to see that the administration shares the association's concerns. The full Statement of Administration Policy can be viewed on the White House's website.
Video Highlights 2020 NGBS With so many green rating systems available, understanding how each one compares to the others is imperative for making a choice that works best for your project, climate zone and market. The recent release of the 2020 National Green Building Standard™ (NGBS) provides a great opportunity to conduct a side-by side comparison, starting with energy performance — an easy element to measure. Buyers also can relate to energy perform- ance without difficulty; they desire energy efficiency, whether it’s the numbers they see on their electric bill or the familiar ENERGY STAR label. NAHB has produced a two-minute video highlighting the strengths of the 2020 NGBS that members can share on social media.
EPA Finalizes Reg Guidance The EPA has finalized a rulemaking that establishes regulatory standards for all EPA regulatory guidance documents. EPA’s final rule, intended to increase transpar- ency and access, has four key elements: Establishes a regulatory definition for the “guidance documents” and “significant guidance documents” that are subject to the rule’s requirements. Responds to President Trump’s directive under Executive Order 13891, “Promoting the Rule of Law Through Improved Agency Guidance Documents.” Requires “significant regulatory guidance documents” to be subject to public com- ment before being finalized by the Agency. Creates a process by which anyone can petition the agency to modify or withdraw any existing regulatory guidance document.
White House Joins NAHB in Opposing House Energy Bill
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. Wednesday, October 21, 2020 Annual Meeting of the Members and Election of Officers ZOOM MEETING 5:30PM – 7:30PM 2020 NAHB Fall Leadership Virtual Meetings Oct 19-23, 2020 8:30AM – 5PM November 2020 SPIKE APPRECIATION MONTH Friday, November 6, 2020 8:30AM COFFEE & A CONVERSATION ZOOM MEETING Thursday, November 12, 2020 Cigar Night to Benefit GCBA, FHBA & NAHB PAC CUCINA CABANA Wednesday December 2, 2020 GCBA Board Meeting, Board Orientation and 2021 Planning Session ZOOM MEETING 12:00 noon – 4:00PM Friday, December 4, 2020 COFFEE & A CONVERSATION ZOOM MEETING 8:30AM Thursday, December 10, 2020 HOLIDAY PARTY LOCATION TBA
Leadership List 2020 GCBA Officers and Directors OFFICERS PRESIDENT Jay Huebner, HSQ Group 1ST VP Maya Chocron, K Hovnanian 2ND VP Rafael Roca, DR Horton Homes ASSOCIATE VP Jason Handin, Ward Damon PL VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT David Kanarek, Pulte Home Company LLC DIRECTORS Fred Pfister, Toll Brothers Inc Karl Albertson, DR Horton Homes Steve Dassa, Lennar Homes LLC Michael Nuziata, 13th Floor Homes Tony Macaluso, GFA International Ken Lebersfeld, Capitol Lighting Irina Heyaime, Pulte Home Company LLC David Donvito, Minto Communities Josh Hedden, Hydroshield South Florida Peggy West, GRS Management Associates, Inc. Executive Officer: KT Catlin Design: Gregory J. Del Deo
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
BUILDERS Atlantic LLC Make Way Construction, LLC Associates 1 Touch Technologies, Inc. Allstate Heating and Cooling Bravas Community & Economic Development Council Cutting Edge Gifts East Coast Repair Services Gebeloff Law Group Glasrail Huynh Bach Construction Inc. JG Painting and Restoration Inc. M2E Consulting Engineers MIW Builders INC Santiago General Services Ststones Wall Clic LLC 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!
mEMBERSHIP NEWS
Welcome to our Newest Members!
MEMBERS SAVINGS & REBATE PROGRAMS
DISCOVER THE VALUE OF MEMBERSHIP NAHB members save thousands of dollars each year thanks to NAHB’s advocacy efforts and other member benefits. While home building is a challenging industry, NAHB’s resources, expertise and educational opportunities can help you build a better product, build a better business, and create a more positive business environment. The Four Pillars of NAHB & Membership are: ADVOCACY NAHB fights for our members on Capitol Hill, in your state and in the communities where you do business. EXPERTISE FOR OUR MEMBERS ON CAPITOL HILL, IN YOUR STATE AND IN THE COMMUNITIES WHERE YOU DO BUSINESS. KNOWLEDGE NAHB’s educational programs and professional designations provide opportunities to improve your skills and advance your career. NETWORKING Discover opportunities to build relationships with fellow professionals, future customers and suppliers.
GCBA 2020 TOP RECRUITERS KT Catlin - 9 Deborah Giarratana - 8 Stuart MacGregor - 6 Jay Huebner - 5 Ethan Nelson - 5 Tony Macaluso - 5 Peggy West - 2 Josh Hedden - 2 Vic Canales - 1 Aldo Conigliaro - 1 Michael Weiner - 1 Ron Qualk - 1 Alex Piazza - 1 Maya Chocron - 1 Irina Heyaime - 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!
The Flight to the Suburbs by Brad Hunter The flight to the suburbs is amplifying the incredible strength in South Florida's housing markets. Click here to view a video of mymarket-update presentation to GCBAfrom last week, in which I discussed some new strategies and designs that are coming along with this, some coming here from other parts of the country. I also talked about the risks stemming from the economy. We all know that the Millennials are starting to buy homes in large numbers. This was happening before, but it has accelerated since then. The 2018-2019 trigger was KIDS. Ten years late, millennials are having kids, and that means they want to be in the suburbs, because they can have a yard, good schools, and other kids in the neighborhood. And the2020 trigger, the pandemic, just sent the trend toward the suburbs into overdrive. But that’s just the demand side. Supply is shifting to allow all this to happen, because the builders are pivoting toward the millennials. Almost all of the builders have changed their product lineup to provide more home choices aimed at millennials. And, we can see the effect of all of this in household formations. This is the best data for tracking and forecasting DEMAND for new homes! And the households that are forming who want to BUY are growing much faster than those who want to rent. One product trend I'm watching is the new offerings of home office packages by builders. KB Home and CC Homes are offering curated home office packages and systems, and Lennar's NextGen homes are selling heavily to people who want to use the extra space as a dedicated home office. This pandemic sent the work-from-home trend into high gear. Homeowners have been converting garages and spare bedrooms into offices, or forcing rooms to do double-duty. Builders should think about strategies and product tweaks that can serve this newly-intensified need, and they will profit in the process.
GCBA'S Official Printer
GCBA'S Official Photographer
Amendment Time by Michael S. Weiner, Esquire, Sachs Sax Caplan, P.L. Nothing says democracy like being able to amend your most sacred document, your Constitution all the time. As you know, you have two of them, one for the Federal government and one for your State government. Within the geographical boundaries of the Florida, your state constitution is a powerful document. However, in Florida, we like tinkering with basic rights so we are on our SIXTH constitution, the last one was adopted November 5, 1968. Further, since that date, we have amended it 140 times. You can amend through citizen initiatives, legislatively referred constitutional amendments, or constitutional conventions. There are specific commissions convened at regular intervals to review the Constitution and refer amendments to the ballot. For you newcomers to Florida, the sanctity of this great document is enshrined in Article X, Section 19 of the Florida Constitution preventing pregnant pigs from being caged. After all, pregnant pigs matter. So, this year in our great democracy, you will have SIX amendments for your consideration. I am explaining but you draw your own conclusions. AMENDMENT 1: Citizenship Requirement to Vote: Here is the first one. Even though the Constitution already says only a “citizen” can vote, you need more words to make that clear. You need to say in the Constitution that the citizen is a citizen of the United States, that she or she is 18 years old and he or she is a permanent resident. Not sure if you need “belts and suspenders”, but you be the judge. AMENDMENT 2: Raising Florida’s Minimum Wage: This would mandate an increase in the minimum wage for Florida so by September 30, 2026 it would reach $15.00 per year, which is would be about $31,000 per year. Right now, it is $8.56 per hour or about $17,000 per year. Another hot button item, for sure. Look at the issue now and not while you are bending over the ballot. AMENDMENT 3: All Voters Vote in Primary Elections: Basically, this would usher in the “open primary” system to Florida. In the primary, everyone is listed on the ballot and the total electorate votes in respect of all candidates. There is no separation by parties. The top two vote getters move on to the final. You could have two candidates from the same party in the final. Of course, both parties loathe this one. AMENDMENT 4: Voter Approval of Constitutional Amendments: You would vote for these amendments twice before they became law. It is a means by which the number of amendments to the Constitution would be limited. Consider it equal to taking your marriage vows a second time. Would you? AMENDMENT 5: Limitation on Homestead Assessments: It liberalizes the ‘save –our-homes’ tax break by giving you 3 years, instead of 2 years to find a new house. AMENDMENT 6: Ad Valorem Tax Discount for Spouses of Certain Deceased Veterans: It gives the surviving spouse of a disabled veteran the veteran’s homestead tax break after the veteran passes away. As usual, I have tried to take dense material and make it a romp. Seriously, vote and seriously, stay engaged.
CLICK HERE TO VIEW THE INTERACTIVE MAP
Get To Know The FHBA Supported Candidates On Your Ballot As election day approaches, be sure to check out the live listing of candidates that have received support from FHB PAC, Build PAC or your local HBA PAC! Simply visitwww.fhbpac.orgwhere you'll find a map of Florida. Click your home county to see a complete list of candidates supported by NAHB Build Pac, FHB PAC or your local PAC. Want to know more about the candidate? Click their name to be transported to their campaign website. Questions? Contact FHBA Director of Governmental Affairs, Dane Bennettdbennett@fhba.com.
Proposed Constitutional Amendment Seeks To Raise Minimum Wage This November, six amendments to Florida’s Constitution will be decided upon by Florida voters. For any amendment to be passed, it must receive 60% of the popular vote. Among the amendments up for your consideration is Amendment 2, “Raising Florida’s Minimum Wage.” Led by the Florida For A Fair Wage political committee, (which is chaired by Orlando attorney John Morgan) this amendment would increase the minimum wage to $15 per hour by 2026. This would be achieved by increasing to $10 per hour on January 1, 2021, and one dollar annually until 2026. Upon recommendation from FHBA Senior Officers, the FHBA Executive Committee voted to join a coalition of industries in opposition of this amendment. While many trades in our industry pay above $15 an hour, the ramifications of the increases were far too great to not lend our name. The proposed hike, set to be etched into Florida’s constitution, would result in an increase of nearly 75 percent in labor costs for the hospitality and tourism industries over a six year period. Further, the Florida Restaurant and Lodging Association (FRLA) economists predicts that between 158,000 to 181,000 jobs will be lost in the hospitality industry by 2026. This ballot initiative may do the most damage to the very employees it intends to help and ultimately drastically hinder employment for individuals under the age of 18. It will also have a devastating impact on local businesses that have already been hit hard by the COVID-19 pandemic. The Florida Home Builders Association stands with small businesses in opposition to Amendment Two. As we begin to rebound from a worldwide pandemic and high unemployment, putting more strain on already depleted payrolls is not the solution for an economic recovery. Further, for every $1,000.00 increase in the median new home price, 10,274 Florida Households are priced out of the marketplace. And finally, minimum wages should be addressed in the Florida Legislature, not theConstitution of the State of Florida. Now is not the time to increase costs, VOTE NO ON 2.
CLICK HERE TO LEARN MORE ABOUT AMENDMENT 2
Prices for an Ad in GCBA News To Build ON SIZE 1 Month 3 Months Annual (min 10 issues) Full Page $300 $750 $2250 1/2 Page $200 $500 $1500 1/4 Page $175 $440 $1320 Business Card $75 $200 $750 Copy Deadline 1st of month for that month. Submission in electronic format , jpg, 300 DPI Send to: INFO@GCBAFlorida.com
The Nominating Committee after careful consideration puts forth the following recommendations for the 2021 Officers and Board of Directors to be voted on during the October 21st Annual Meeting of The Members.
OFFICERS : Fred Pfister President Rafael Roca 1st VP Mike Brown 2nd VP Jason Handin Associate VP Steve Karp Finance VP (by appointment) Jay Huebner Immediate Past President (in accordance with GCBA bylaws) BOARD : Steven Dassa, Builder Director (by Presidential Appointment) OPEN, Builder Director Michael Nunziata, Builder Director Karl Albertson, Builder Director Irina Heyaime, Builder Director David Donvito, Builder Director Peggy West, Associate Director (by Presidential Appointment) Josh Hedden, Associate Director (by Presidential Appointment) Ken Lebersfeld, Associate Director Tony Macaluso, Associate Director Rick Baxter, Director at Large (Appointed based on Expertise in Marketing & Communications) Candidates for the open Builders Position, to be filled by Appointment, are still being considered. If you are interested in applying for this positionor wish to nominate yourself or another member to the Board please contact KT Catlin at the GCBA Office.