FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
December 2022
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 6: Issue 12 December 2022
Single-Family Housing Contraction Continues
Elevated mortgage rates, high construction costs for concrete and other building materials and weakening demand stemming from worsening affordability conditions continue to act as a drag on single-family housing production. Overall housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.43 million units in October, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The October reading of 1.43 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 6.1% to an 855,000 seasonally adjusted annual rate. Year-to-date, single-family starts are down 7.1%. The multifamily sector, which includes apartment buildings and condos, decreased 1.2% to an annualized 570,000 pace. “This will be the first year since 2011 to post a calendar year decline for single-family starts,” said NAHB Chief Economist Robert Dietz. “We are forecasting additional declines for single-family construction in 2023, which means economic slowing will expand from the residential construction market into the rest of the economy.” On a regional and year-to-date basis, combined single-family and multifamily starts are 2.9% higher in the Northeast, 1.5% lower in the Midwest, 2.6% higher in the South and 5.1% lower in the West.
NAHB Offers Cybersecurity Resources An overwhelming amount of confidential informa- tion and business data is stored on servers all over the world. But the loss of client and contractor data can lead to lawsuits and badly damaged business relationships. A cyber or ransomware attack can hit a company’s bottom line hard. NAHB offers resources to help members protect their data and that of clients, contractors and partners from theft or catastrophic loss. Check out a recent podcast by attorney Philip R. Stein on data security and responding to ransomware threats.
Midterms and the Housing Agenda Republicans flipped the House in the recent mid-term elections while Democrats maintained control of the Senate. What does the divided Congress mean for housing? With narrow margins in both chambers, any legislation with a prayer of being signed into law by President Biden must be bipartisan. NAHB will work with the new Congress to propose bipartisan solutions to create more affordable and attainable housing. Read NAHB’s election analysis for an in-depth look at how the outcomes will affect residential construction.
ICE Extends I-9 Compliance Flexibility The Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) announced an extension until July 31, 2023, of flexibility in complying with requirements related to Form I-9, Employment Eligibility Verification when a workforce is working exclusively in a re- mote setting due to COVID-19-related precautions. This temporary guidance was set to expire on Oct. 31, 2022.
Register for NAHB’s Virtual Townhall Meetings NAHB's Senior Officers will host a series of Virtual Townhall Meetings at various times on Thursday, Jan. 12, 2023. The meetings are an important opportunity for members to provide feedback to NAHB leadership on emerging issues in their local communities. These conversations will help craft the agendas for the leadership meetings at the 2023 International Builders' Show. Regis- ter now for this opportunity to help shape discussions at the industry's premier event in Las Vegas. Don’t Miss the 2023 IBS Show Home Despite the significant delays earlier this year, The New American Home (TNAH) 2023 is on track for completion this December. The home boasts 7,575 total square feet of living space, with four bedrooms and six and one-half bathrooms. It also will feature a spa, game room, outdoor kitchen and rooftop deck. Registered IBS attendees can tour TNAH between 9 a.m. and 5 p.m., Jan. 31 - Feb. 2. Free shuttle buses will depart every half hour from the Las Vegas Convention Center (LVCC). Shuttle bus tickets will be available at the TNAH booth in LVCC's Central Hall. Visit BuildersShow.com to register for IBS.
Housing Affordability Falls to 10-Year Low
Patios Preferred Over Decks The share of new homes with patios increased for the sixth year in a row in 2021 to a post-2004 high of 63%. At the same time, the share with decks was trending in the opposite direction, declining for the fifth year in a row to a post-2004 low. Of the roughly 1.1 million single-family homes started in 2021, only 17.5 percent included decks, according to NAHB tabulation of data from the Survey of Construction (SOC), conducted by the U.S. Census Bureau and partially funded by HUD. This is the lowest point for new home decks since the 2005 re-design of the SOC.
Multifamily Index Sees Decline Prospects for continued high levels of multifamily development declined significantly in the third quarter, as did the prospects for continued high occupancy rates, according to results from the Multifamily Market Survey (MMS) released recently by NAHB. The MMS produces two separate indices: The Multifamily Production Index decreased 10 points to 32 compared to the previous quarter while the Multifamily Occupancy Index fell 15 points to 45. Both indices are now below the break-even point of 50, but multifamily construction levels and occupancy rates remain high compared to historic norms.
Housing affordability fell to its lowest level since the National Association of Home Builders (NAHB) began tracking it on a consistent basis in 2012 as rising mortgage rates, ongoing building material supply chain disruptions, high inflation and elevated home prices pushed the housing market into a recession. With mortgage rates moving even higher in the fall, affordability conditions are expected to further deteriorate through the end of the year. According to the NAHB/Wells Fargo Housing Opportunity Index (HOI), just 42.2% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $90,000. This marks the second consecutive quarterly record low for housing affordability since the Great Recession.
Six Steps to Reset Building Materials Costs
Rising interest rates and high inflation are dampening the residential construction market as more consumers are priced out. To manage costs in this environment, many home builders are working with vendors in their supply chain to lower material costs. Some will send off letters to suppliers mandating cost. They’ll bid out the various categories and swap vendors wherever they can save money. But that may not be the best way to treat trade and supply partners that held cost increases at bay, prioritized your orders, and worked like crazy to take care of you during the boom market. The following is a six-point guide to making a more collaborative strategy work for you. 1. Start with data analytics. 2. Set up meetings with members of your supply chain. 3. Put everything on the table. 4. Review your specification levels. 5. Involve your internal team. 6. Avoid laying off purchasing professionals. For more detail, read the full article, which originally appeared in the September/October 2022 issue of Pro Builder.
Upcoming Meetings & Events
January 11th Intelligent Leadership Workshop 12:30-1:00 FABA Board Room January 11th Associates Committee Meeting, 9:00-10:00AM FABA Office or Zoom January 11th Membership Committee Meeting,10:30-11:30AM FABA Office or Zoom January 19th Hard Hat Networking Sponsored by Morgal Plumbing Industries January 21st President's Gala Old Silk Mill, 6:00PM January 25th HBAV Day on the Hill Richmond HBAV, all day
Calendar at a Glance
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Tickets are $100 per person $50 for keys, your chance to unlock the grand prize valued at $2000!
Months available for 2023: July November
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM.
Welcome our new chairman for 2023 - Mike King
Chair - Marc Simes, msimes@tricordinc-va.com
Every Third Thursday of the month, join us for our networking Hard Hat Events from 5:00-7:00 PM. Interested in hosting a hard hat in 2023? We still have a few available next year. Be the only sponsor of our free networking events each month for $350!
2023 Cornerstone is selling fast! Click the image below to find out more about this sponsorship and marketing program!
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM.
Chair- Mike King- Rayssiddingcompany@gmail.com Rays Siding, Co.
Welcome our new chairwoman for 2023 - Teresa Taylor-Griffs
Associates Committee
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
Congratulations to Republic Home Builders for winning Pinnacle Builder! This prestigious award honors the FABA builder member who exemplifies the association’s mission to promote doing business with other members.
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Mark Snesavage at Mark@FABAVA.com
Orange County Quarterly Zoom January 27th, 11:00AM King George County Quarterly Zoom January 20th, 9:00AM
Legislative Committee
Chair - Bruce Reese, bruce@legacy-eng.com
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM.
Upcoming County Zoom Meetings
HBAV and FABA Day at the General Assembly January 25, 2023 7:30 AM - 1:00 PM Description Join us for a day at the Virginia General Assembly! Please coordinate with you local HBA to schedule meetings with members of the General Assembly between 7:30 and 11:00 am. After meetings at the General Assembly, HBAV will host all members and guests in our offices located at the James Center in Richmond, VA for lunch and a debrief meeting. Questions? Contact Emily Evola at emily@hbav.com. The Office of HBAV 1051 East Cary Street, Suite 1400, Richmond, VA, 23219
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Welcome our new chairman for 2023 - Jeh Hicks
Stay tuned for exciting new opportunities coming in 2023
Chair - Greg Schmidt, greg@pestsolutionsva.com
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. We are always looking for new ways to get help and support the community. If you are interested in submitting an idea for the community service committee feel free to join us!
Find a drive near you
Community Service Committee
Help support the Fredericksburg Area by giving blood at an upcoming drive. Click the link below to find a drive near you
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
Check our these educational opportunities in 2023 Impact to work place, support after Covid - January 2023 Codes of Coffee Marketing and Branding 101 Visual and digital marketing Social Media overview Building industry 101 Hiring and retaining workforce
Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth. Stay tuned for upcoming educational opportunities.
Sean Halsey - Halsey Homes
Education Committee
Young Professionals Committee
To join the FABA Young Professionals committee email Meghan@fabava.com
Young Professionals committee is for individuals in the 21-40 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members. Stay tuned for updates in 2023
Welcome our new chairman for 2023 - Nathan Dobbins
As a Cornerstone benefit for Partner, Platinum and Diamond levels they are able to contribute educational content to the newsletter each month. Check out this month's contribution from Contractors Websites Plus
info@contractorwebsitesplus.com
Member Contributions
This time of year can be difficult as a small business owner. It’s so easy to ruminate about the past year and what hasn’t gone right, what hasn’t worked well, and what you would do differently. It’s just as easy to look back and give yourself a pat on the back for what went right, what worked, and what you did well. But, maybe instead of the pats on the back or the ruminations, we should look back at how we handled each failure and each success? Life and business begin again with the start of every new year. There will be new hurdles to overcome, new failures to endure, and hopefully even greater successes to celebrate.
Look Backwards to See the Path Forward
That’s what keeps life interesting. It’s how you allow yourself to react to new obstacles that makes for a good or bad year. So, let’s look forward, not to wins and losses but instead to growth. Growth through the lessons learned by looking back at the obstacles we faced and how we faced them. Merry Christmas and Happy New Year from Michael and Patty Pollaci of Contractor Websites Plus and 610 Merchant Services.
Cornerstone 2021
2022 FABA Board of Directors
President Scott Hine Union Home Mortgage 1st Vice President Marc Simes Tricord Companies 2nd Vice President Jeh Hicks Jarrell Properties Secretary Michelle Hall J. Hall Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Stacey Lampman Spaces Design Studio Associate Vice President Michael King Ray's Siding Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Dan Sandoval Republic Home Builders HBAV State Representative Scott Hine Union Home Mortgage Builder Director Tim Hall Tricord Companies Builder Director Allen Harrison Battlefield Homes Builder Director Steve Flanagan Built Right Homes Builder Director Teressa Taylor-Griffis FTTG & Associates, LLC Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Bruce Reese Legacy Engineering, PC Associate Director Greg Schmidt Pest Solutions Life Builder Director Sean Halsey Halsey Homes Life Builder Director Dan Sandoval Republic Home Builders
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
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